Discretionary Investment Management (J10) develops knowledge and understanding of the role of the Discretionary Investment Manager, and the ability to analyse and apply financial information and portfolio management skills.
This unit starts by looking at the investment advice process and establishing the client relationship - the aims and objectives, risk profile, investment objectives and analysing the client’s financial position.
Asset classes, investment strategies and investment wrappers are covered next, including the main asset classes – cash, bonds, equities and property, alternative investments and derivatives and investment tax wrappers. The Role of the investment manager is then considered, followed by discretionary and advisory management.
The study text moves on to look at investment funds, the economic environment, investment returns and investment risk. Portfolio theory – principles and limitations is considered, followed by measuring portfolio performance and understanding investment data. We then look at financial mathematics and sources of information – uses and limitations.
Purpose
At the end of this unit, candidates should be able to demonstrate an understanding of:
- the behaviour, performance, risk profile and correlation of key investment types;
- discretionary and non-discretionary portfolio management;
- the principles of performance measurement, financial analysis and ratio analysis;
- the principles of performance management and portfolio theory.
Assessment
- 2 hour exam
- 90 multiple choice questions
- The standard pass mark is 70% (for more information on standard pass marks please see here)
- The 2024 pass rate for this unit was 90.8%
