International Examinations Syllabus

Certified International Wealth Manager (CIWM®)

October 2012

CIWM International Examinations Syllabus, Jan 2012

............................................................................................................................................................................................................................................................. 1 CIWM EXAMINATION SCHEME ... 3 FIXED INCOME VALUATION AND ANALYSIS ................................. 4 DERIVATIVE VALUATION AND ANALYSIS ............................................................. 3 CORPORATE FINANCE ........................................CONTENTS INTRODUCTION ............................................................................................................................................................ 3 EQUITY VALUATION AND ANALYSIS ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 5 WEALTH MANAGEMENT ...... Jan 2012 ........................ 4 PORTFOLIO MANAGEMENT .............................. 1 FOUNDATION EXAMINATION ........................................................................................................................ 5 BEHAVIOURAL FINANCE ........ 4 FINAL EXAMINATION........................................... 5 RELATIONSHIP MANAGEMENT ................................ 3 ECONOMICS ........................................................................................................................................................... 6 REAL ESTATE VALUATION AND ANALYSIS..................................................... 7 CIWM International Examinations Syllabus.............. 3 FINANCIAL ACCOUNTING AND FINANCIAL STATEMENT ANALYSIS .......................................................... 6 NATIONAL EXAMINATION..........

CIWM Examination Scheme The CIWM examination scheme comprises international examinations as well as a national/regional examination. Oct 2012 1 . Behavioural Finance. The international examinations are divided into two levels – the Foundation and Final level. Equity Valuation and Analysis. Portfolio Management Total time Final Examination Topic Areas Wealth Management Relationship Management. Economics Derivative Valuation and Analysis. The examinations are held in March and September annually. For simple cross-referencing. It examines knowledge that affects investment decision-making and that is required for domestic and international wealth planning and management. Corporate Finance Fixed Income Valuation and Analysis. 9 hours) CIWM International Examinations Syllabus. it corresponds with the table of contents of the training manuals for this programme. The examinations combine multiple choice and open questions that aim to test the understanding of key concepts and their application to investment decision making.e. Real Estate Valuation and Analysis Total time Examination Duration (Minutes) 180 180 360 (i. Both levels test a global common knowledge base and are completed by all CIWM candidates worldwide.INTRODUCTION This syllabus lists the topics covered in the international examinations of the professional designation Certified International Wealth Manager CIWM®. 6 hours) Examination Duration (Minutes) 190 160 190 540 (i. INTERNATIONAL EXAMINATIONS Foundation Examination Topic Areas Financial Analysis and Financial Statement Analysis. The national/regional specific examination is set by individual AIWM training providers.e.

Domestic Wealth Planning. Taxation. 4 hours) CIWM International Examinations Syllabus. Wealth Products.NATIONAL / REGIONAL EXAMINATION Topic area Regulatory Practices. International Wealth Planning.e. Ethics. Estate Planning Total time Examination Duration (Minutes) 240 240 (i. Oct 2012 2 .

6 2 2.5 1.3 3 3.1 8.1 1.1 4 4.2 5.4 1.2 2.2 Fundamentals of corporate finance Goals of corporate finance Finance function and firm’s objectives Role of the financial manager Principles of valuation Discounted cash flow Capital budgeting Long term finance decision Investment decision Project evaluation Liquidation and reorganisation Short-term finance decision Short-term financing Capital structure and dividend policy Leverage and the value of the firm Dividend policy 4 4.1 CIWM International Examinations Syllabus.2 1.FOUNDATION EXAMINATION Financial Accounting and Financial Statement Analysis 1 1. Oct 2012 3 .3 1.4 6 6.3 5.1 7.3 2. financial and labour markets Macroeconomic dynamics Inflation vs.1 1.1 4.3 8 8..3 4.5 1. cash flows Quality of earnings and earnings management Earnings per share Analytical tools for assessing profitability and risk Profitability analysis Risk analysis Equity Valuation and Analysis 1 1.2 2 2.3 Equity markets and structures Types of equity securities Indices Valuation model of common stock Dividend discount models Free cash flow model Measures of relative value Corporate Finance 1 1.1 4.1 6.2 4.1 2.2 2.6 Macroeconomics: the basics Major macroeconomics concepts and variables The basic model of output and interest rates in a closed economy The basic model of a financial market in a closed economy The IS-LM model The labour market General equilibrium in the real.2 Financial reporting environment The financial statements Financial reporting issues Framework for the preparation and presentation of financial statements Objective of financial statements Accounting conventions Fundamental definitions Criteria for accounting recognition Statement of cash flows Rationale for statement of cash flows Relation between income flows and cash flows Income recognition Criteria for revenues recognition Long-term construction contracts Criteria for expense recognition Accounting for stock options and similar benefits Assets.4 1.3 7 7. unemployment: The great trade-off 2 2.2 2.1 1.1 3.1 5.2 7.2 2 2.1 1.2 Economics 1 1.2 6.4 5 5.2 1.3 1. Liabilities and shareholders equities Assets Liabilities Shareholders’ equity Provisions Foreign currency transactions Foreign currency transactions The translation of financial statements into a foreign currency Hyperinflationary economies Financial reporting and financial statement analysis Income vs.1 2.4 3 3.1 2.

Oct 2012 4 .2 3.1 Derivatives in portfolio management 5.5 Basic characteristics of forward and futures contracts Mechanics of trading in futures markets Examples of various futures contracts Futures valuation and analysis Introduction to hedging strategies using futures Options Basic characteristics of options contracts Options valuation Option pricing models Binomial pricing model Sensitivity analysis of options premiums Fixed Income Valuation and Analysis 2 1 1.1 6 6.1 4.1 1.1 3.2 2.1 Investment characteristics 3.3 1.1 The risk/return framework 1.3 1.4 2.3 Portfolio Theory 1.5 1.2 Performance measurement and evaluation Risk-return measurement Risk-adjusted performance measures CIWM International Examinations Syllabus.4 1.2 1.1 6.2 3 3 Bonds with warrants 3.6 5 Practical portfolio management 5.2 4 Investment characteristics Fixed Income portfolio management strategies Active management Passive management 4. prices and interest rates Statistical behaviour of the exchange rate Derivative Valuation and Analysis 1 Futures and forward contracts 1.4 Open economy macroeconomics: the balance of payments and the exchange rate The balance of payments The exchange rate Exchange rate.2 4.6 Fundamentals Main characteristics Types of fixed income securities Money market instruments Government Bonds Corporate securities Indices Time value of money Time value of money Bond yield measures Term structure of interest rates Bond price analysis Risk measurement Usage 2.5 2.4 4.3 2.2 4.4 Capital asset pricing model (CAPM) 2 2.2 Value of a warrant 4 4.3 3.4 2.3 3.1 2.5 Portfolio Management 1 Modern portfolio theory 1.2 Convertible bonds Investment characteristics Value of conversion benefits Investment strategies Callable bonds Investment Policy Individual investors Institutional investors Asset allocation Asset allocation overview Type of asset allocation Asset/liability-analysis and management Introduction Modelling liabilities Modelling assets Surplus and funding ratios Integrated optimization Implementation of strategies 3.1 4.6 2 2.3 2.2 Efficient markets 1.4 1.2 International investments 6 6.1 1.1 3.3 5 5.1 6.1 2.3 4.2 2.1 2.2 1.5 4.

1 1.3 Interpersonal relationship and wealth management The interpersonal relationship The wealth manager and his client: the relationship interpretation model Interdependence and expectations in the wealth manager-to-client relationship Effectiveness and efficiency in relationship management The idea of wealth through different cultures and the club of the wealthy Comparing outcomes of investments Utility functions and indifference curves Expected utility approach Expected utility and the meanvariance framework Asset and liabilities categories Assets and funds Structured products Liabilities Clients profiles 1.1 Pro forma financial statements 4.3 Asset allocation. 2.3 3.1 5.2 2.1 2.5 Basic concepts Relationship Management 1 1.2 3.2 6.2 Base currency 4.3 Assets 4.2 5.1 The idea of wealth The club of the wealthy Effective management of the client relationship Information as a strategic resource for the wealth manager Where to look for information The client as a primary source of information Communication and negotiation Intercultural communication The negotiation Efficient customer relations management in wealth management The lifecycle of a relationship Strategy for an efficient relationship management Customer relations management at the operating level The industrial aspects of wealth management Customer originated processes “COP” Organizational models in the business The competence of a wealth manager 4 The financial plan: Assessing the client’s assets and liabilities 4. Oct 2012 5 .4 3.2 3 3.5 Revenues and the evolution of revenues 4.FINAL EXAMINATION Wealth Management 1 1.8 Taxation 4.1 6.9 Financial analysis 5 5.7 Cash surplus 4.2 1. 4. 3. co-operation with the research and economic forecast departments Funds selection 6 6.1 4.4 Liabilities 4.3 5 5.1 3. portfolio choice and management styles Client constraints Construction of the efficient frontiers Determination of the optimal portfolio and the corresponding asset allocation with the client Periodical review of the assumptions.1 5.3 3.4 2 Setting return objectives Time horizon Liquidity need Taxes Keep the profile alive 2.2 3.3 3 3.2 5.1 2.4 3.2 4.6 4 4.3 Advantages and disadvantages of mutual funds The fund selection process Tax considerations CIWM International Examinations Syllabus.5 3.6 Consumption and growth in consumption 4.4 3. 2 2.3 5.

2 Real estate indices 2 2.1 1.1 2. Oct 2012 6 .3 3.1 Valuation methods 1.1 2.2 Introduction Optimal asset allocation Real Estate Valuation and Analysis 1 Valuation and indices of real estate 1.Behavioural Finance 1 1.1 3.2 3.1 4.2 3.3 3 3.5 The decision-making process: limits of normative theory Decision problems.3 3. reporting and evaluating the investment advice Product design – a case study with structured products The question to be analysed The client’s profile and hypothesis Products to be analysed Prospect theory evaluation Portfolio considerations and scientific assessment of structured products Inter-temporal asset allocation 3 3.4 3.1 3.4 2.5 Integration of the real estate in the mixed-asset portfolio Return and risks of real estate Correlation between the returns on various asset classes Determining the share of real estate in optimal portfolios Financing of real estate Introduction: equity and debt in real estate investment Market for mortgage debt Financial structure of real estate investors: debt and equity Mortgage contract features Mortgage valuation and pricing CIWM International Examinations Syllabus.5 4 4.2 2.3 2.2 2. characteristics and the meaning of rationality in finance The expected utility hypothesis and the independence axiom Structuring the wealth management process Needs analysis Personal asset and liability management Investor’s profile Optimal asset allocation Documentation.2 2 2.4 3.

Art Fund.PPF. Basic concepts 1. tax regularization & money laundering. REITS.3 8.1 Legal needs of today’s families 3.5 Valuation of family business 4. confidentiality.3 Overview of global developments – decline of bank secrecy.2 Global transparency and the move away from undeclared money 8. Currency 8. CD.4 HUFs and their special needs Estate Planning Basic Concepts Intestate Succession Hindu Succession Act The Muslim Personal Law (Shariat) Application Act 1937 Will.5 AML.3 5.2 8. community property. undeclared funds.6 5.3 Wealth Management 1. Probate & Nominations Trust POA Charity Land Records 7. Wine Fund.2 Direct Tax – Income Tax.4 Wealth Products Equity – Direct Equity.3 Alternative Investment Fund Regulation 6. mobility. CP. 6. living wills. political risk. MF. asset gathering & identification. asset protection & preservation. KYC 7.Bonds.1 5. mitigating risks (for e.2 5. special assets. Service Tax 4. information exchange. PMS Fixed Income. MF Structured Products Insurance – Life & General Retirement Savings Products. The non-tax needs of the families & how to address them 10. Principles of taxation of Individuals & their investments comparative review 4.2 Financial Planning 1. second family. forced heirship.8 5. Exchange of information and growing transparency between various Governments 3. Regulatory Practices 6. Small Savings Schemes 8.4 Guidelines for PMS & Structured Products 6. Wealth Tax. DDT. 8.NATIONAL EXAMINATION 1.5 Alternative Investments – Real Estate.1 Market trends in wealth planning Overview – Today’s families & their tax & legal needs 2.2 Tax needs of today’s families 3. CIWM International Examinations Syllabus.1 Regulatory bodies 6.9 10.2 Regulatory Overlap 6.1 International judicial assistance in tax matters 7.1 8. kidnapping & security.6 International Products – Real Estate. succession and probate.1 Basic Concepts 4. Heads of Income 4. Oct 2012 7 .g.4 5. Equity. Hedge Funds. etc. 3. Divorce).4 Wealth Management sector in India Domestic Wealth Planning 2. business succession. The taxation planning needs of the families and how to address them 5. STT.3 Indirect Taxes – VAT/ GST & Custom duties. Super Funds 9.4 Structuring of Family Office & governance mechanism 3.5 5. Gold. privacy.7 5.4 8. 5. 3.1 Charity planning.1 Time Value of Money 1. Commodities.

10 Expatriation – tax and legal issues. and planning considerations 11.4 Wealth Management & Tax planning strategies for NRIs & Expatriates 11. 11.2 Cross-border tax planning 11. and planning considerations 11.6 Tax friendly nations 11.9 Mobility planning 11.12 Changing nationalities as a tax-saving measure CIWM International Examinations Syllabus.1 Market trends in international wealth planning. establishment & oversight of off-shore trusts 11.11 Pre-immigration – tax and legal issues.8 Structure & Strategies for foreign investors 11.3 Structuring. International Wealth Planning 11.5 Double-taxation avoidance treaties 11.7 International Asset Allocation 11. Oct 2012 8 .11.

com See www.com for the contact details of your local training partner AIWM India 2012 CIWM International Examinations Syllabus. Bandra-Kurla Complex. Level 9.aiwmindia. October 2012 9 . Platina. Plot C-59. Mumbai – 400051 Ph: +91 22 6700 0572 Fax: +91 22 6700 0600 Regional Office AIWMI Regus. 15th Floor Eros Corporate Tower Nehru Place.110 019 Email: info@aiwmindia. Website: www.com.aiwmindia. Bandra (E). G Block. New Delhi.Contact address Principal Office AIWM India Regus.

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