look back at previous exams I have determined the following was asked for the institutional IPS: 2006 - pension 2007 - endowment 2008 - pension 2009 - foundation 2010 - pension? based on this looks like we could see pension this year. I would think there is a great chance. I mean there is always the possible they will screw us over and through in an insurance or bank question, but i think thats not very likely.
It will be a bank that also issues non life insurance and offers a pension plan to the employees of their private foundation…
dude, gambler’s fallacy
I would immediately kiss the exam paper if it is a pension plan With tongue. Then I would probably flip the paper over on all fours… er nevermind.
2002- Endowment 2003- Insurance (Life and Casualty) 2004- Foundation 2005- Pension I’m going to make sure I look at banks with some extra attention.
GMofDen Wrote: ------------------------------------------------------- > 2002- Endowment > 2003- Insurance (Life and Casualty) > 2004- Foundation > 2005- Pension > > I’m going to make sure I look at banks with some > extra attention. Good call. I know I haven’t spent sufficient time on bank IPS yet…probably since it hasn’t been on any of these exams.
just remember they have significant liquidity, and the security portfolio is designed to manage liquidity, manage credit risk, manage duration(interest risk), and provide income…
and they use it to offset risks taken in the loan portfolio.
for banks the schweser mock exam has a great example. but i have to agree in that pensions are the easiest.
It’s either that pensions are over or under funded and it depends on the financial capability of the parent. Pensions are not that difficult -
Chi Paul Wrote: ------------------------------------------------------- > I would immediately kiss the exam paper if it is a > pension plan > > With tongue. > > Then I would probably flip the paper over on all > fours… er nevermind. lol. & agree…
From Schweser website. Level III Selected Past Exam Questions Individual Investment Policy 2007 Exam: 53 points Jack & Ruth Ingram 2006 Exam: 34 points Randolfo Serra 2005 Exam: 37 points Elizabeth Yeo 2004 Exam: 58 points Christopher Maclin 2003 Exam: 47 points The Campbell’s 2002 Exam: 58 points Claire Pierce 2001 Exam: 61 points Dr. Stephenson 2000 Exam: 44 points Robert Taylor 1999 Exam: 48 points Peter & Andrea Mueller 1998 Exam: 46 points Vince Donaldoni & Maria Barba 1997 Exam: 42 points John Mesa 1996 Exam: 27 points Susan Fairfax 1995 Exam: 40 points Ambrose Green 13 year average = 46 points or 13% of the exam. Trailing 4 year average points = 46 points or 13% of the exam.
Think it’ll be Life & Casualty Insurance this year. Gut feeling. Plus, the Schweser Mock had a big Banks essay… so, if the CFAI did too they probably changed it to spite everyone. Look at the 2003 exam for an example essay. Remember: Life insurers: - risk sources (disintermediation, credit, ALM, etc.) - return objective (crediting rate, etc.) - liquidity Non-life: - return objectives (competitive pricing, etc.) - risk sources (underwriting cycle, etc.) - liquidity requirement (large reserve for claims, etc.) - time horizon, relative to Life (shorter? I think)
Its going to be pensions and Chi Paul will fail because his tongue will make his paper all wet and the ink will run.
Hmm you guys seem to be forgetting that there can be more than one. 2007 was endowments and life insurance!
Aimee; what’s your game for the remaining days. You seems to be on top of everything like few other people here. Any advice?
Well, I’m not wasting time speculating what will or won’t be on a test that I can’t predict, that’s for sure! 
Right now I’m taking one practice test per day, doing a final review of each topic (2 a day), and then just trying to improve on the areas that I consistently make mistakes in. Focusing more on CFA materials now so that I have a good idea of what I’ll be in for… did 2007 today and will get to 2008 and 2009 over the next 4 days. Might do some more of Schweser Vol 2 if I have time left but there are some EOCs I may do instead. Helps that I’m off from now until exam day!
Aimee is on top of things.
for whatever it’s worth (nothing?), I agree there could be a hybrid institutions problem - sort of like last year (won’t spoil it). it’s just fun to guess, that’s all