Templates
Wealth Management
CFA Level 3 Asset Allocation Process
CFA Level 3 Asset Allocation Process
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CFA Level 3 Asset Allocation Process

Explore the CFA Level 3 Asset Allocation Process, a comprehensive approach to designing, implementing, and optimizing an investment strategy for maximum returns.
1
Define the investment objectives
2
Analyze investor risk tolerance
3
Create an Investment Policy Statement
4
Margin of Safety determination
5
Identify the asset classes for investment
6
Estimate the Expected return for each asset class
7
Consider the correlations among asset classes
8
Analyze the historical performance of the asset classes
9
Allocating percentages of the total investment capital to different asset classes
10
Compose the strategic asset allocation plan
11
Approval: Fund Manager
12
Implement the asset allocation strategy
13
Monitor the portfolio
14
Identify deviations from strategic asset allocation
15
Decide on a rebalancing strategy
16
Approval: Financial Planner
17
Execute a rebalancing strategy
18
Review portfolio performance
19
Approval: Investment Committee
20
Present investment portfolio to client