what exactly constitutes this?
understand its anything that can affect the advisor to make investment decisons?
…is there a more specific explaination??\
thanks…left 15 days…man…
example: i have a stock that my grandfather gave me and i dont want to sell it, its an affinity position.
Unique constraints are any other constraints not included under the heading of liquidity needs, time horizon, tax considerations, legal and regulatory.
If it doesn’t fit any of the above, then its most likely unique. Socially responsible investment considerations would usually be unique.
Another unique constraint arises when the client’s willingness to take risk differs markedly from his ability to take risk: under Unique Constraints we’d generally note that some education is needed.
hmmmm many factors can then be grouped under unique, why does the answer scheme not show much under that heading most of the times??
another constraint is Liquidity
schweser says not to include on-going distributions, but in the schweser exam practise, they listed it! hows that for irony!
i think the best to refer to is the CFA AM exam, thats the marking scheme after all.
but Unique really is Unique, almost anything can fall under it if u make some assumptions about the question, which actually happens in some exam answers i feel
in one of the schweser pract exams, the primary residence is not considered part of the portfolio, reason being its going to be donated! which in the schweser material, no reason is given for excluding primary residence…so whats the reason??
a lot of the times in schweser the unique section is “none”
I am afraid to write “none”. Do I get marks off by writting anything?
You will get marks off for failing to write anything, even if what you needed to write is, “None”. If there are no unique constraints, you need to say so.
things specific to that client e.g. socially responsible investments requirement, no leverage, If they ask for unique circumstances to be commented on it will be unlikely that it will be “none”