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CISI ICWIM Exam Syllabus Topics:

SectionWeightObjectives
Investment Management15%- Portfolio construction theories
- Risk and return concepts
- Performance measurement and evaluation
- Investment strategies
Economics and Investment Analysis10%- Economic indicators and cycles
- Investment mathematics and statistics
- Macroeconomics and markets
- Valuation methods
Industry Regulation10%- Compliance and governance
- Regulatory authorities and rules
- Client categorization and protection
- Financial crime prevention
Fiduciary Relationships16%- Risk profiling and suitability
- Client needs assessment
- Conflicts of interest
- Duties and responsibilities
Asset Classes10%- Derivatives
- Fixed income securities
- Real estate and alternative assets
- Cash and money market instruments
- Equities
The Financial Services Sector16%- Structure and participants
- Market functions and products
- Ethical standards and professional conduct
- Regulatory objectives and frameworks
Lifetime Financial Provision18%- Estate and succession planning
- Protection and insurance planning
- Retirement planning
- Trusts and foundations
Investment Advice21%- Advisory process
- Taxation principles
- Portfolio recommendations and review
- Communication and documentation

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CISI International Certificate in Wealth & Investment Management Sample Questions (Q131-Q136):

NEW QUESTION # 131
Which one of the following is true of fundamental analysis? It seeks to establish:

Answer: D

Explanation:
Fundamental analysis involves evaluating a security to determine its intrinsic value by examining factors such as financial statements, economic conditions, and industry trends. The goal is to identify whether the security is undervalued or overvalued compared to its current market price.


NEW QUESTION # 132
Which index tracking method requires a swap agreement?

Answer: B

Explanation:
Synthetic replication uses derivative contracts (swaps) to track an index without directly holding the underlying assets.
* Why is Option C Correct?
* The fund manager enters into a swap agreement with an investment bank.
* The bank provides the return of the target index, while the fund pays a fixed rate or cash return.
* This is common for emerging markets or illiquid assets, where direct replication is difficult.
* Why Not Other Options?
* A (Full replication) # Buys all index components, no swaps used.
* B (Stratified sampling) # Buys representative index samples, no swaps.
* D (Optimisation) # Uses mathematical models to track an index, no swaps.
# Reference: CFA Institute (Index Replication Strategies), CISI Wealth & Investment Management.


NEW QUESTION # 133
An execution-only sale usually means a sale where there is an absence of:

Answer: C

Explanation:
* Understanding Execution-Only Sales:
* Execution-only sales occur when the client makes a financial transaction without receiving any advice or recommendations from the intermediary.
* The client assumes full responsibility for the decision.
* Elimination of Other Options:
* A: Charges are typically present in execution-only sales.
* C: The product is being sold; the sale cannot occur without it.
* D: Guarantees are unrelated to the advisory process.
References:
* ICWIM Module 4: Focus on financial advice models, including execution-only services.


NEW QUESTION # 134
An investor deposits £1,000 into an account that pays interest at the rate of 3% per year. If the interest is credited to the account at the end of the year and the investor leaves the money in the account for 5 years, how much money will be in the account at the end of the fifth year?

Answer: A

Explanation:
* Compound Interest Formula:A=P×(1+r)nA = P \times (1 + r)

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