The 2025 Level III CFA Program introduces the concept of Specialized Pathways.


We have received some candidate questions, which we replied to below.


Question:  If I choose portfolio management pathway do you have some summary how the changes 2024 vs 2025 for whole curriculum looks like? Can I base my learning on the IFT prep from 2024 or are the changes too big?


IFT Response: Portfolio Management Pathway is the same existing CFA LIII material with minor changes in 2 readings. It depends entirely on you to continue with the traditional public markets focused approach that you are familiar with or learn an entirely new set of skills based on the valuation and management of private markets. The new pathways were introduced because of the boom in the private markets sector. To essentially prepare the candidates for new job roles as they open up because of the growth in this sector.


Question: Please say something little bit about pathway. CFAI said that all pathways have the same level of difficulty. But what does IFT think? At this moment I will take Portfolio management pathway because I studied this for 2024. Maybe the new pathways are better?


IFT Response: CFA Institute says:

"For 2025 Level III exams, we will introduce specialized pathways – two new versions of Level III in Private Wealth and Private Markets – while also keeping our traditional Portfolio Management path. Candidates will be able to select a path that teaches content more directly related to their interests and aspirations. The three versions will have a 'common core' of curriculum at Level III, supplemented by specialized content for each pathway."


Level III Specialized Pathways and changes in 2025

 

At the time of registration

Candidates have to choose from any one of the three "specialized pathways" offered at the time of registration. They will receive the study materials for the selected pathway. Pathways can not be changed once registered.


Exam Structure

"Common Core" =  65-75% of the Level III exam topic weight 

"Specialized Pathway" = 25-35% of the Level III exam topic weight. 

Exam Content: The selected pathway will be tested in the same was as for the common core,

by a mix of item sets and essays. 

There will be no difference in the CFA Charter granted upon passing Level III. 


Reference:  https://www.cfainstitute.org/en/programs/cfa/exam/level-iii-pathways

Review the above CFA institute page for further details


Common Core

Common Core will cover:

 

  • Asset allocation:  Capital market expectations, macro forecasting, handling constraints.  

            *No Change from 2024

  • Portfolio construction: Equity, Fixed Income, and Alternatives portfolio construction, Institutional versus private wealth portfolio construction, trading costs. 

            *Some changes.  A new reading (V2 LM4), and a 2023 Level II reading moved to 2025 Level III (V2 LM6)

  •  Performance measurement: Performance attribution, manager selection, Global Investment Performance Standards. *Minor changes from 2024
  • Derivatives & risk management: Options strategies, swaps/forwards/futures strategies, currency hedging strategies. *Minor changes from 2024
  • Ethics: Code of ethics, standards of professional conduct, Asset Manager Code. 

            *Minor changes from 2024

* denotes IFT remarks


Specialized Pathways: 

  • Private Wealth Pathway - NEW

This pathway builds on former versions of the CFA Program, based on simple investment management and financial planning. New areas such as family management, philanthropy, and serving star athletes are taught here.

There are 7 readings:

  1. The Private Wealth Management Industry. 
  2. Working with the wealthy 
  3. Wealth planning. 
  4. Investment planning. 
  5. Preserving the wealth.
  6. Advising the wealthy. 
  7. Transferring the wealth. 

 

  • Private Markets Pathway - NEW

This pathway teaches private markets investing primarily from the view of the General Partner (GP). It builds skills for valuation and other competencies in the CFA Program from all four asset class domains. 

There are 7 readings:

  1. Private investments and structures. 
  2. GP and LP perspective and the investment process.
  3. Private equity. 
  4. Private debt.
  5. Private special situations.
  6. Private real estate. 
  7. Infrastructure.

 

  • Portfolio Management Pathway 

This pathway has advanced public markets portfolio management current readings of the 2024 LIII CFA Program.

There are 8 readings:

 

  1. Index-based equity strategies.  *Reading is revised
  2. Active equity investing: strategies 
  3. Active equity investing 
  4. Liability driven and index based fixed income strategies. *Reading is revised 
  5. Fixed-income active management: yield curve strategies. 
  6. Fixed-income active management: credit strategies. 
  7. Case study in portfolio management: institutional
  8. Trade strategy and execution.

*IFT remarks

 

Practical Skills Module for Level III starting in this same window

A single, mandatory 10-15 hour practical skill module on Portfolio Construction for Level III is to be completed, but it will not be graded—more details will be provided later by CFA Institute.