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CISI ICWIM Exam Syllabus Topics:
| Section | Weight | Objectives |
| Risk and Return | 20% | - Risk concepts
- 1. Risk measurement
- 2. Types of investment risk
- 3. Risk diversification
- Portfolio theory
- 1. Risk-return profiling
- 2. Asset allocation principles
- 3. Modern portfolio theory
|
| Client Advisory | 25% | - Client needs analysis
- 1. Investment objectives
- 2. Risk profiling and suitability
- 3. Time horizons
- Portfolio construction
- 1. Portfolio review and rebalancing
- 2. Performance measurement
- 3. Asset allocation strategies
|
| Market Environment | 20% | - Economic environment
- 1. Interest rates and inflation
- 2. Business cycles
- 3. Macroeconomic factors affecting investments
- Role and function of financial markets
- 1. Types of financial markets and their roles
- 2. Market participants and intermediaries
- 3. Market indices and benchmarks
|
| Financial Products | 20% | - Collective investments
- 1. ETFs and index trackers
- 2. Funds and structured products
- 3. Fund selection criteria
- Bonds and fixed income
- 1. Yield and price relationships
- 2. Bond types and characteristics
- 3. Credit risk
- Equities and shares
- 1. Types of equity
- 2. Valuation methods
- 3. Dividends and total return
|
| Regulation and Ethics | 15% | - Regulatory framework
- 1. Investor protection
- 2. Financial regulation principles
- 3. Compliance requirements
- Ethical conduct
- 1. Professional responsibilities
- 2. CISI Code of Ethics
- 3. Conflict of interest
|
CISI International Certificate in Wealth & Investment Management Sample Questions:
Question 1
How do imports and exports affect the Gross Domestic Product (GDP) calculation?
A. Imports are added and exports are subtracted
B. Imports are subtracted and exports are added
C. Imports and exports are ignored as they only affect Gross National Product (GNP)
D. Exports are added and imports are ignored
Question 2
What is the purpose of measuring a company's dividend yield?
A. It is useful for investors not wanting to exceed the annual dividend tax allowance
B. It provides a clear indication of how much profit is being used by the company for expansion and growth
C. It provides an indication of the expected return on a share and then can then be compared to other shares
D. It provides an indication of future dividend growth for a successful company
Question 3
To minimise risk and maximise diversification, a portfolio should hold securities with:
A. Negative correlation and high standard deviation
B. Positive correlation and high standard deviation
C. Positive correlation and low standard deviation
D. Negative correlation and low standard deviation
Question 4
If someone in a fiduciary position has personal or professional interests that compete with their duty to act in the client's best interest, this is called:
A. Discretionary management
B. Full disclosure
C. A regulatory breach
D. A conflict of interest
Question 5
Standard deviation is used when analysing portfolios because it:
A. Identifies profitable trades
B. Makes it easier to track the performance against a benchmark
C. Identifies underperforming assets
D. Allows for a comparison of volatility
Solutions:
Question 1 Answer: B | Question 2 Answer: C | Question 3 Answer: D | Question 4 Answer: D | Question 5 Answer: D |