IPS's, Prior Exams, and My Theory

Based on prior Exams, I’m hoping Life & NonLife IPS wont show up on this years exam: 2000 - Individual, Corp Pension, & Life & Non Life 2001 - Individual & Corp Pension 2002 - Individual & University Endowment 2003 - Individual, Foundation, & Life& Non Life 2004 - Individual, Foundation 2005 - Individual, Foundation, Corp Pension 2006 - ??? Don’t know didnt take yet 2007 - ??? Don’t know didnt take yet, but I recall hearing a Life & Non Life on this one… Any Thoughts? I’m not saying it wont show up at all, but hopefully we wont have to write an IPS for the Life & Nonlife…

What’s up big?? Sounds like you are not too thrilled about insurance-company IPS?

NOT AT ALL! They are just a weird beast.

as long as it is not endowment or private foundation. Those can be VERY subjective

hi big willy, can you please tell me how did you get the past exam questions?

www.cfasuccess.com

thanks. got them. are these the actual past cfa exams or the mock exam on CFAI website?

actual past exams

There’s this thing called LOS’s which tell you what’s on the exam. Shhh! Just be prepared for everything. Guessing on a once a year exam is not a great strategy

2000 - Individual, Corp Pension, & Life & Non Life 2001 - Individual & Corp Pension 2002 - Individual & University Endowment 2003 - Individual, Foundation, & Life& Non Life 2004 - Individual, Foundation 2005 - Individual, Foundation, Corp Pension 2006 – Individual, Corp Pension, Foundation 2007 – Individual & Life (I think looking real quick since I havent taken yet) 2008 – Individual, Foundation/Endowment, Pension

In either 05, 05, or 07 actual sample (don’t remember which), they had a non-life and it practically gave you the answers. Portfolio was broken out into 3 subportfolios and they bascially gave you the return requirement. I’d love this exam to have that.

i just remember that there were some NASTY topics in L2 that they did not hammer you on. remember how easy the translation / all current stuff was? it was a freakin joke. likewise, i’m not sure what they gain by having some obscure insurance or banking IPS on there that no one outside of insurance or banking can get right. i’m not saying it won’t happen, but it seems unlikely.

The thing I’m most worried about is f/ing up the return requirement on an individual IPS, not because I don’t get the concept, but because I forget to subtract taxes from 20K in dividend income the year before retirement, or some such completely irrelevant thing.

There was also a bank question on 06 but it wasn’t really IPS-related I am thinking a pension question and either endowment/foundation (60%) or bank (40%). If they ask an insurance question, it probably won’t be on how to construct an IPS. There really isn’t much to do with them. I would expect a general question about how the different portfolios are used. Individual IPS is a given.

In talking to some of the charterholder’s in my office, they mentioned that bank IPS stuff was added to the curriculum in 2006. Not to open a can of worms, but it wouldn’t surprise me to see some questions on banks given they have yet to show up in the morning exams.

FlamesFan Wrote: ------------------------------------------------------- > In talking to some of the charterholder’s in my > office, they mentioned that bank IPS stuff was > added to the curriculum in 2006. > > Not to open a can of worms, but it wouldn’t > surprise me to see some questions on banks given > they have yet to show up in the morning exams. I agree, especially now, they gotta stress it

Interest Spread Mgmt baby!

Banks have been in the news ALOT the last year guys. Just my 2 cents.

Remember though, the exam we’re going to be writing on June 7th was probably written last year sometime when this whole credit crisis issue was just starting to emerge. Just a thought…

I think it is going to VaR related as it all appear to be failures of risk control in many of the large financials …