Browse CSI Exam Guides: CSC, IFC, EXMP, WME, FP I, FP II, Compliance & Derivatives

PMT Managing Equity Portfolios Guide

CSI Portfolio Management Techniques chapter guide for managing equity portfolios, with section lessons, mandate controls, operations cues, and review priorities.

Managing Equity Portfolios is a PMT exam topic weighted at 16%. Use this chapter landing page to frame the mandate, operating model, technique, or reporting issue first, then move into the section lessons for the specific controls and portfolio-management decisions.

What this topic is really testing

  • equity philosophy, styles, and benchmarks
  • active risk, diversification, and liquidity discipline
  • tax, etfs, and derivative overlays
  • exposure transitions, cash drag, and implementation choices
  • rebalancing, governance, and performance review

Section lessons

LessonMain review cue
Equity Philosophy, Styles, and BenchmarksDifferentiate top-down and bottom-up approaches to equity portfolio management
Active Risk, Diversification, and Liquidity DisciplineIdentify common sources of active risk and active return in equity portfolio management
Tax, ETFs, and Derivative OverlaysExplain why turnover matters to both implementation cost and tax efficiency
Exposure Transitions, Cash Drag, and Implementation ChoicesExplain how cash positions and cash drag affect portfolio exposure and performance
Rebalancing, Governance, and Performance ReviewExplain how rebalancing discipline can improve consistency in equity portfolio management

Better first instincts

If the case feels most like…Better first move
authority, mandate, or benchmark problemverify permission and restriction language before selecting a technique
operational workflow issueidentify whether the failure sits in front, middle, or back office
equity or fixed-income techniqueconnect the method to risk budget, benchmark, and client objective
reporting or attribution questionexplain the result without overstating skill or ignoring benchmark limits

Common traps

  • treating PMT as only investment selection instead of mandate-driven portfolio management
  • ignoring operations and control evidence after a trade decision
  • selecting a technique that exceeds the mandate or implementation capacity
  • confusing performance measurement with clear client communication

In this section

Revised on Friday, May 29, 2026
3. Portfolio Management Organization and Operations
5. Managing Fixed Income Portfolios