Institutional IPS this year - pension? possible, insurance, following, foundation, 2010

Iginla2010

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.

Colum

It will be a bank that also issues non life insurance and offers a pension plan to the employees of their private foundation...

Windjam

dude, gambler's fallacy

oneboy

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.

jmh530

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.

Valores

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.

Analyze_This

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....

Windjammer

and they use it to offset risks taken in the loan portfolio.

lcw77

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.

Chuckrox

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)