CFA Program Curriculum Overview

The knowledge, skills, and abilities required to pass the CFA exam.

A list of corrections or updates to the CFA curriculum.

An average amount of time successful candidates dedicate to studying for each CFA exam.

Candidates should spend more time on specific topics that are more unfamiliar or challenging.

Reviewing the LOS before and after studying helps ensure understanding of critical concepts.

A group of experts in fields like biotechnology, pharmaceuticals, and medical devices, contributing to the success of startups.

A type of investment where a company raises funds by selling shares of its stock on a public stock exchange.

The total value of a company's outstanding shares of stock.

The ability of different investments to perform differently, reducing overall risk.

The degree to which the returns of one investment are related to the returns of other investments.

Investments in companies that are not publicly traded on stock exchanges.

The inability to easily sell an investment due to limited buyers or restrictions.

Private fund managers often provide not only capital but also valuable industry expertise, contributing to the growth and success of startups.

GIC, a Singaporean sovereign wealth fund, manages billions of dollars globally, aimed at preserving and growing Singapore's reserves.

GIC's investment strategy has evolved from primarily conservative to more diversified, including private and public markets.

The Reference Portfolio acts as a benchmark reflecting Singapore's overall risk tolerance.

The Policy Portfolio is GIC's actual asset allocation across six asset classes, including private equity.

The Active Portfolio allows GIC flexibility to pursue specific skills-based investments within its risk budget.

GIC has significantly increased its allocation to private equity and real estate, demonstrating its active approach.

GIC's commitment to private markets is evident in its growing investment team and participation in large transactions.

GIC has a dedicated team of 70 investment professionals focused on infrastructure investments.

The uniform discount rate that equates the present value of future cash flows from an investment to zero.

The sum of the present values of all future cash flows from an investment, discounted at a specific rate.

The life cycle of a private asset investment, characterized by periods of both positive and negative cash flows.

The return on an investment over a long period, taking into account the time value of money and the timing of cash flows.

The assumption that interim cash flows from an investment can be reinvested at the IRR rate.

The rate at which interim cash flows from a private investment can actually be reinvested.

The potential for a decrease in an investment's overall return due to lower reinvestment rates of interim cash flows.

The process of calculating the return on investment (ROI) for a private equity fund, taking into account the timing and magnitude of capital calls.

Money committed by investors to a private equity fund, which is not immediately deployed into investments.

The return that could have been earned if committed capital were invested in more liquid investments such as short-term fixed income.

The expected return on the investment, taking into account the delay in deployment of committed capital and the return earned during the waiting period.

The future value of an investment calculated using a compound interest rate over a specified period of time.

The process of determining the future value of an investment given a specific interest rate and time period.

The ratio of the future value of an investment to the initial investment value.

A legal entity created specifically for a project, isolating its assets, liabilities, cash flows, and income from investors' balance sheets.

The main reason for using a SPE in private real estate and infrastructure projects is to limit the liability of investors to the project itself. This means investors are not responsible for the overall financial health of the companies involved in the project.

The SPE structure doesn't dictate how returns are allocated. The equity and debt investments determine how returns are distributed to investors.

At the end of the project, the project assets, if any, revert back to the original owner (grantor). The SPE doesn't own the assets.

Public markets involve listed securities of mature companies with stable cash flows, often providing dividends or coupons.

Private markets are less transparent, with limited information about pricing and liquidity. They often involve illiquid assets or less established companies.

Performance metrics in private markets differ from public markets, as investments are typically illiquid and less regulated.

Private market performance metrics often include 'distributed to paid-in', 'residual value to paid-in', and 'total value to paid-in', which provide insights into the investment's returns and value creation.