The Candidate Body Of Knowledge (CBOK) represents the core knowledge, skills, and abilities generally accepted and applied by investment professionals globally.

The CBOK is grounded in practice, meaning that panels and surveys of thousands of investment professionals have had input into the curriculum through our practice analysis.

CBOK Topic Areas

I. Ethical and Professional Standards

1. Professional Standards of Practice

2. Ethical Practices

II. Quantitative Methods

1. Time Value of Money

2. Probability

3. Probability Distributions and Descriptive Statistics

4. Sampling and Estimation

5. Hypothesis Testing

6. Correlation Analysis and Regression

7. Time-Series Analysis

8. Simulation Analysis

III. Economics

1. Market Forces of Supply and Demand

2. The Firm and Industry Organization

3. Measuring National Income and Growth

4. Business Cycles

5. The Monetary System

6. Inflation

7. International Trade and Capital Flows

8. Currency Exchange Rates

9. Monetary and Fiscal Policy

10. Economic Growth and Development

11. Effects of Government Regulation

12. Impact of Economic Factors on Investment Markets

IV. Financial Reporting and Analysis

1. Financial Reporting System (with an emphasis on IFRS)

2. Analysis of Principal Financial Statements

3. Financial Reporting Quality

4. Analysis of Inventories and Long-Lived Assets

5. Analysis of Taxes

6. Analysis of Debt

7. Analysis of Off-Balance-Sheet Assets and Liabilities

8. Analysis of Pensions, Stock Compensation, and Other Employee Benefits

9. Analysis of Inter-Corporate Investments

10. Analysis of Business Combinations

11. Analysis of Global Operations

12. Ratio and Financial Analysis

V. Corporate Finance

1. Corporate Governance

2. Dividend Policy

3. Capital Investment Decisions

4. Business and Financial Risk

5. Capital Structure Decisions

6. Working Capital Management

7. Mergers and Acquisitions and Corporate Restructuring

VI. Equity Investments

1. Types of Equity Securities and Their Characteristics

2. Equity Markets: Characteristics and Institutions

3. Valuation of Individual Equity Securities

4. Fundamental Analysis (Sector, Industry, Company)

5. Equity Market Valuation and Return Analysis

6. Equity Portfolio Management Strategies

VII. Fixed Income

1. Types of Fixed-Income Securities and Their Characteristics

2. Fixed-Income Markets: Characteristics & Institutions

3. Fixed-Income Valuation (Sector, Industry, Company) and Return Analysis

4. Term Structure Determination and Yield Spreads

5. Analysis of Interest Rate Risk

6. Analysis of Credit Risk

7. Valuing Bonds with Embedded Options

8. Structured Products

9. Fixed-Income Portfolio Management Strategies

VIII. Derivatives

1. Types of Derivative Instruments and Their Characteristics

2. Markets and Valuation of Forwards and Futures Contracts

3. Options Markets and Valuation of Option Contracts

4. Swaps Markets and Valuation of Swap Contracts

5. Credit Derivatives Markets and Instruments

6. Uses of Derivatives in Portfolio Management

IX. Alternative Investments

1. Types of Alternative Investments and Their Characteristics

2. Real Estate

3. Real Assets

4. Private Equity/Venture Capital

5. Hedge Fund Strategies

6. Commodities

7. Asset Allocation to Alternative Investments

X. Portfolio Management and Wealth Planning

1. The Investment Policy Statement

2. Modern Portfolio Management Concepts

3. Investment Vehicles

4. Behavioral Finance

5. Technical Analysis

6. Environmental, Social, and Governance (ESG) Investing

7. Management of Individual/Family Investor Portfolios

8. Management of Institutional Investor Portfolios

9. Investment Manager Selection

10. Economic Analysis and Setting Capital Market Expectations

11. Tax Impact of Investment Decisions

12. Asset Allocation

13. Portfolio Construction and Revision

14. Risk Management

15. Market Indexes

16. Execution of Portfolio Decisions (Trading)

17. Performance Evaluation

18. Presentation of Performance Results

PREAMBLE

The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to achieving its mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession.

Since their creation in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members (including holders of the Chartered Financial Analyst® [CFA®] designation) and CFA candidates must abide by the Code and Standards and are encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.

THE CODE OF ETHICS

Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must:

• Act with integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.

• Place the integrity of the investment profession and the interests of clients above their own personal interests.

• Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.

• Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

• Promote the integrity and viability of the global capital markets for the ultimate benefit of society.

• Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

I. PROFESSIONALISM

A. Knowledge of the Law. Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations.

B. Independence and Objectivity. Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.

C. Misrepresentation. Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

D. Misconduct. Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

II. INTEGRITY OF CAPITAL MARKETS

A. Material Nonpublic Information. Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.

B. Market Manipulation. Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.

III. DUTIES TO CLIENTS

A. Loyalty, Prudence, and Care. Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

B. Fair Dealing. Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.

C. Suitability.

1. When Members and Candidates are in an advisory relationship with a client, they must:

a. Make a reasonable inquiry into a client’s or prospective client’s investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action and must reassess and update this information regularly.

b. Determine that an investment is suitable to the client’s financial situation and consistent with the client’s written objectives, mandates, and constraints before making an investment recommendation or taking investment action.

c. Judge the suitability of investments in the context of the client’s total portfolio.

2. When Members and Candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only investment actions that are consistent with the stated objectives and constraints of the portfolio.

D. Performance Presentation. When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it is fair, accurate, and complete.

E. Preservation of Confidentiality. Members and Candidates must keep information about current, former, and prospective clients confidential unless:

1. The information concerns illegal activities on the part of the client or prospective client,

2. Disclosure is required by law, or

3. The client or prospective client permits disclosure of the information.

IV. DUTIES TO EMPLOYERS

A. Loyalty. In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.

B. Additional Compensation Arrangements. Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved.

C. Responsibilities of Supervisors. Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards.

V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

A. Diligence and Reasonable Basis. Members and Candidates must:

1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.

2. Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.

B. Communication with Clients and Prospective Clients. Members and Candidates must:

1. Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes.

2. Disclose to clients and prospective clients significant limitations and risks associated with the investment process.

3. Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations,

or actions and include those factors in communications with clients and prospective clients.

4. Distinguish between fact and opinion in the presentation of investment analysis and recommendations.

C. Record Retention. Members and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications with clients and prospective clients.

VI. CONFLICTS OF INTEREST

A. Disclosure of Conflicts. Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.

B. Priority of Transactions. Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner.

C. Referral Fees. Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.

VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

A. Conduct as Participants in CFA Institute Programs. Members and Candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, or security of the CFA Institute programs.

B. Reference to CFA Institute, the CFA Designation, and the CFA Program. When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA program.