CFA Level III topic weights for 2027

Asset Allocation

15–20% of the exam

Capital market expectations, allocation principles, real-world constraints.

• Capital Market Expectations, Part 1: Framework and Macro Considerations
• Capital Market Expectations, Part 2: Forecasting Asset Class Returns
• Overview of Asset Allocation
• Principles of Asset Allocation
• Asset Allocation with Real-World Constraints

Topic map and sample questions. Key terms: Reinvestment risk · Immunisation · Efficient frontier · Strategic asset allocation · Tactical asset allocation · Rebalancing · all 9.

Portfolio Construction

15–20% of the exam

Equity and fixed-income portfolios, alternatives, institutions, trading costs.

• Overview of Equity Portfolio Management
• Overview of Fixed-Income Portfolio Management
• Asset Allocation to Alternative Investments
• An Overview of Private Wealth Management
• Portfolio Management for Institutional Investors
• Trading Costs and Electronic Markets
• Case Study in Portfolio Management: Institutional (SWF)

Topic map and sample questions. Key terms: Suitability · Tracking error · Investment policy statement · Risk tolerance · Liability-driven investing · Behavioural bias · all 8.

Derivatives & Risk Management

10–15% of the exam

Options strategies, swaps/forwards/futures strategies, currency management.

• Options Strategies
• Swaps, Forwards, and Futures Strategies
• Currency Management: An Introduction

Topic map and sample questions. Key terms: Covered call · Protective put · Collar · Straddle · Currency hedging · Derivatives overlay.

Ethical & Professional Standards

10–15% of the exam

The Standards plus the Asset Manager Code — which appears only at Level III.

• Code of Ethics and Standards of Professional Conduct
• Guidance for Standards I–VII (seven separate modules)
• Application of the Code and Standards: Level III
• Asset Manager Code of Professional Conduct

Topic map and sample questions. Key terms: Code of Ethics · Standards of Professional Conduct · Fiduciary duty · Suitability · Investment policy statement.

Performance Measurement

5–10% of the exam

Attribution, appraisal, manager selection and the GIPS standards.

• Portfolio Performance Evaluation
• Investment Manager Selection
• Overview of the Global Investment Performance Standards (GIPS)

Topic map and sample questions. Key terms: GIPS · Composite · Money-weighted return · Time-weighted return · Alpha · Sharpe ratio · all 11.

Portfolio Management pathway

30–35% of the exam

Active equity, yield-curve and credit strategy, LDI, trade execution.

• Index-Based Equity Strategies
• Active Equity Investing: Strategies
• Active Equity Investing: Portfolio Construction
• Liability-Driven and Index-Based Strategies
• Yield Curve Strategies
• Fixed-Income Active Management: Credit Strategies
• Trade Strategy and Execution
• Case Study in Portfolio Management: Institutional (Endowment)

Private Markets pathway

30–35% of the exam

GP/LP economics, private equity and debt, special situations, real assets.

• Private Investments and Structures
• General Partner and Investor Perspectives and the Investment Process
• Private Equity
• Private Debt
• Private Special Situations
• Private Real Estate Investments
• Infrastructure

Private Wealth pathway

30–35% of the exam

Goals-based planning, tax efficiency, human capital, wealth transfer.

• The Private Wealth Management Industry
• Working With the Wealthy
• Wealth Planning
• Investment Planning
• Preserving the Wealth
• Advising the Wealthy
• Transferring the Wealth