IFoA SP10
IFoA Specialist Principles: Investment and Asset Management (SP10)
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ExploreAbout this exam
SP10 (Investment and Asset Management) is one of the Institute and Faculty of Actuaries' Specialist Principles exams, taken after the Core Principles stage and typically alongside or before the Specialist Advanced subjects. It suits candidates heading toward investment consulting, insurer investment functions, pension scheme advisory work, or asset management roles where actuarial judgement meets portfolio decisions. The syllabus spans six areas: the investment environment and asset classes; asset-liability modelling and investment strategy for insurers and pension schemes; valuation of equities, bonds, property and alternatives; portfolio construction and asset allocation; risk management, derivatives and hedging; and performance measurement, attribution and governance. The exam is a written, constructed-response paper: you are expected to write structured answers, apply numbers where asked, and justify recommendations rather than recall definitions. Preparation usually means working through the syllabus learning outcomes, practising past-style long questions under time pressure, and building fluency in explaining trade-offs to a non-technical audience. Because the paper rewards application over memorisation, candidates who rehearse full written answers - not just reading notes - tend to fare better. The IFoA publishes current exam dates, entry deadlines, fees and any pass standards on its own website; check there rather than relying on second-hand figures.
What you'll study
About IFoA SP10 preparation
What is the exam format?
A written, constructed-response examination. You answer essay-style and calculation questions in a answer booklet, often with several parts building on one scenario. Expect to allocate time across questions deliberately and to show workings clearly, since method marks are typically available even when the final number is wrong.
How long is the exam and how many questions are there?
The IFoA sets and publishes the current duration and paper structure each sitting, and these can change. Check the exam timetable and the SP10 page on the IFoA website for the authoritative details rather than relying on what other candidates report from previous sessions.
How hard is SP10 compared with the Core Principles exams?
It is more applied and less formulaic. Core exams test whether you know techniques; SP10 tests whether you can select techniques, weigh competing objectives and communicate a recommendation. Candidates with no investment work experience often find the qualitative marks hardest, because they under-explain their reasoning.
Can I retake it, and how often?
Retakes are generally permitted at subsequent sittings, but the IFoA sets the rules on attempts, entry deadlines and any restrictions. Confirm the current policy on the IFoA website before planning a resit, and note that entry deadlines fall well before the exam date.
What should I study first?
Start with the investment environment and asset classes, because valuation, portfolio construction and hedging all assume you know how instruments behave. Then move to asset-liability modelling and strategy, which ties the technical material to insurer and pension scheme contexts. Leave performance measurement and governance until last; they are easier once the rest is secure.
Do I need to memorise formulas?
You need working fluency, not rote recall. Learn the core valuation and risk relationships well enough to apply and manipulate them, and practise writing the assumptions alongside the calculation. Examiners reward candidates who state what a number means for the decision, not just the number itself.
Why do candidates fail?
Common causes: running out of time because early answers were overlong; ignoring the verb in the question (evaluate versus list); giving generic textbook prose instead of applying it to the stated scenario; and skipping the numerical parts entirely rather than attempting them for method marks. Practising full papers under timed conditions addresses most of these.
How much preparation time is realistic?
Most candidates report several months of part-time study alongside work, with the final weeks spent on timed written practice. The IFoA publishes recommended study hours per subject; use that figure as your baseline and add time if investment topics are new to you.
Does SP10 count toward Fellowship?
Yes, it is a Specialist Principles subject within the actuarial qualification structure, but the combination of subjects required for a particular pathway is set by the IFoA. Check the current qualification structure and your own pathway requirements on the IFoA site before assuming SP10 fits your plan.