blinxbuckles
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- Jun 18, 2026
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Haha…same here…don’t understand that either but have it memorized
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Haha…same here…don’t understand that either but have it memorizedsunny day wrote:
I gave up on trying to understanding this so I am planning to just memorize it cold:
Difference between Multiple Immunization and Cash Flow Matching:
1. Cash flow matching has low return assumptions on short-term cash, potentially high cash balances; Multiple immunization is fully invested at the remaining horizon duration
2. For Cash flow matching, funds must be available on/before date liability is due, with low reinvestment return assumptions; Multiple immunization just needs to meet the target date of each liability, and funding is done through rebalancing.
I have no idea what any of that means, haha, but I don’t think CFAI graders do either, since they just repeat more or less verbatim from the curriculum. High-5.
Possibly the returns from the investment?June06 wrote:
Yes, otherwise, who pays the management fee?TGIF12 wrote:
You need fees for required return, but in liquidity? Never seen it there…June06 wrote:
- Did the hedged return question without consider investment time horizon…
- Forgot to add management fee in liquidity needs.
It’s 2013 AM 6C. Please remember to add management fee into liqudity needs…kjames05 wrote:
Possibly the returns from the investment?June06 wrote:
Yes, otherwise, who pays the management fee?TGIF12 wrote:
You need fees for required return, but in liquidity? Never seen it there…June06 wrote:
- Did the hedged return question without consider investment time horizon…
- Forgot to add management fee in liquidity needs.
Gotcha… I probably got that one wrong tooJune06 wrote:
2014 CFA AM Q7Csunny day wrote:
Which hedged return question ?
I would start a new thread… I am counting on multiple choice to help me out with GIPS. It’s hard to memorize all the little details. Just pay attention to the years of the data in the question, because sometimes before and after a date makes a difference.pollfre wrote:
guys, need help on the gips section! How did you feel about it? I thought was super complicated and the guidance answers are not really helping…
i made flashcards of all required/reccomended standards. probably spent too much time on it, but ive got it down pretty muchpollfre wrote:
guys, need help on the gips section! How did you feel about it? I thought was super complicated and the guidance answers are not really helping…
Ok, looked it up again. Did it correctly in that A.M., because they explicitly say “Fees will be calculated based on year-end value of the portfolio and paid in arrears on the first day of the following year”. So fees will actually be paid. I remember another example, I think A.M. 2007, where it was management costs. There was no effect on liquidity because it was just trading costs, comissions, whatever.June06 wrote:
It’s 2013 AM 6C. Please remember to add management fee into liqudity needs…kjames05 wrote:
Possibly the returns from the investment?June06 wrote:
Yes, otherwise, who pays the management fee?TGIF12 wrote:
You need fees for required return, but in liquidity? Never seen it there…June06 wrote:
- Did the hedged return question without consider investment time horizon…
- Forgot to add management fee in liquidity needs.
2007 CFA AM endowment, guideline includes management fee in liquidity requirement as well.TGIF12 wrote:
Ok, looked it up again. Did it correctly in that A.M., because they explicitly say “Fees will be calculated based on year-end value of the portfolio and paid in arrears on the first day of the following year”. So fees will actually be paid. I remember another example, I think A.M. 2007, where it was management costs. There was no effect on liquidity because it was just trading costs, comissions, whatever.June06 wrote:
It’s 2013 AM 6C. Please remember to add management fee into liqudity needs…kjames05 wrote:
Possibly the returns from the investment?June06 wrote:
Yes, otherwise, who pays the management fee?TGIF12 wrote:
You need fees for required return, but in liquidity? Never seen it there…June06 wrote:
- Did the hedged return question without consider investment time horizon…
- Forgot to add management fee in liquidity needs.
Bottom line is, I would include it if they say that it will be paid somehow. Otherwise it may be deducted on a daily basis or in intervals we dont know and you cannot estimate the value of the next year correctly (dependent on AuM). 2013 is the only example where I included it.