IFoA SP5 study plan
IFoA SP5 · Give each week a clear focus.
8 weeks · About 7 hours per week
Investment and asset management
Map the SP5 syllabus against your existing knowledge and rate each learning objective red, amber or green
Build a one-page formula and notation sheet covering present value, discounting, real versus nominal returns and the main return measures
Work through at least 15 past-paper calculation questions on time value of money and return measurement without notes
Start an error log recording every mistake, its cause and the corrected method
Your checkpoint
A completed syllabus RAG grid plus a formula sheet and error log with at least 15 logged items
Investment and asset management
Derive and apply the key risk measures: volatility, covariance, correlation, beta and tracking error
Explain the assumptions and limitations of mean-variance portfolio theory and the efficient frontier
Compute portfolio risk and return for two-asset and multi-asset combinations by hand and in a spreadsheet
Summarise the capital asset pricing model and its practical weaknesses in under 300 words
Your checkpoint
A spreadsheet model of a multi-asset portfolio showing return, volatility and beta, with a written critique of CAPM assumptions
Investment and asset management
Compare the main asset classes (equities, bonds, property, cash, alternatives) on return drivers, risk and liquidity
Analyse the term structure of interest rates and explain duration, convexity and credit spread effects on bond values
Evaluate equity valuation approaches including dividend discount and free cash flow models
Assess the role of alternatives and real assets in a diversified portfolio
Your checkpoint
A two-page asset class comparison table with worked duration and valuation examples for each class
Investment and asset management
Explain the investment management process from objective setting through to performance review
Apply the main performance measurement and attribution techniques, including time- and money-weighted returns
Distinguish asset allocation, security selection and currency effects in attribution
Practise exam-style performance questions under timed conditions
Your checkpoint
A timed 45-minute mock section on performance measurement and attribution, marked and reviewed against the error log
Investment and asset management
Analyse the liability side: the nature of investor liabilities and how they shape investment strategy
Apply liability-driven and cash-flow-matching techniques, including immunisation conditions
Evaluate asset-liability modelling approaches and their sensitivity to assumption changes
Link funding level and surplus risk to strategic asset allocation decisions
Your checkpoint
A worked immunisation example plus a one-page summary of ALM methods and their limitations
Investment and asset management
Compare active, passive and semi-active investment strategies and when each is appropriate
Evaluate the use of derivatives for hedging, efficient portfolio management and synthetic exposure
Assess the costs, governance and regulatory constraints that shape investment decisions
Discuss the role of ESG and stewardship considerations in portfolio construction
Your checkpoint
A decision matrix recommending a strategy type for four contrasting investor scenarios, with justification
Investment and asset management
Complete a full past paper under exam conditions and self-mark strictly against the marking scheme
Identify the three weakest topic areas from the mock and rework those chapters
Practise structuring longer written answers with clear points and applied context
Refine the formula sheet down to exam-usable essentials
Your checkpoint
A marked full past paper with a prioritised remediation list of no more than three weak areas
Investment and asset management
Re-test every item in the error log until each is answered correctly without prompts
Complete two further timed half-papers and improve on the week 7 mark
Rehearse concise written explanations of the most commonly examined concepts
Plan exam-day timing and question selection strategy
Your checkpoint
A closed error log with zero unresolved items and two timed half-paper scores above the week 7 baseline
Milestones
Week 2: You can compute portfolio return, volatility and beta from raw inputs unaided and explain CAPM weaknesses in your own words
Week 4: You score at least 50% on the timed performance and attribution section and can attribute a return to allocation, selection and currency
Week 6: You can justify a strategy recommendation for a given investor using liability profile, constraints and cost evidence
Week 8: Your error log is fully closed and your timed scores are consistently above the pass mark with time to spare