What is the CFA Level III exam?
CFA Level III is the last of the three exams and the one that changes character most. Where Level I tests knowledge and Level II tests valuation, Level III asks you to manage money: set an investor's objectives and constraints, build an asset allocation, construct and rebalance the portfolio, hedge its risks with derivatives, and then measure whether it worked.
From February 2025 the exam splits into a common core and a specialised pathway that you choose when you register. The core is 65 to 70 percent of the content and covers asset allocation, portfolio construction, performance measurement, derivatives and risk management, and ethics. The remaining 30 to 35 percent comes from one of three pathways: Portfolio Management, Private Markets, or Private Wealth. The charter itself does not name which pathway you took.
Half the exam is constructed response. You write out answers, show calculations and justify recommendations, and they are marked by human graders against a guideline answer. Candidates who have coasted through two multiple-choice exams often find this the hardest adjustment in the whole programme.
Who sits it
- Candidates who have passed CFA Levels I and II
- Portfolio managers, wealth advisers and investment strategists completing the charter
- Private markets and private wealth professionals, who now have a pathway aimed at their work
Exam format at a glance
- Questions
- 22 sets: 11 item sets (vignette plus four multiple-choice questions) and 11 essay sets. Two sets are unscored trial material
- Duration
- Two sessions of 2 hours 12 minutes, with an optional break between them
- Delivery
- Computer-based at proctored test centres
- Exam windows
- February and August only
- Fees (USD)
- Registration $1,240 (early) or $1,590 (standard); there is no longer a separate enrollment fee
- Prerequisite
- A pass in CFA Level II, plus a completed bachelor's degree or 4,000 hours of professional experience
- Pathways
- Portfolio Management, Private Markets or Private Wealth, chosen at registration and fixed for that sitting
- Recent pass rate
- 50% (February 2026); the ten-year average is 51%
- Practical Skills Module
- One module of 10–15 hours must be completed; it is ungraded but mandatory, and from February 2026 can be matched to your pathway
- To earn the charter
- All three exams, plus 4,000 hours of qualifying investment experience over at least 36 months
Exam-body facts last checked September 2026. Fees, dates and formats change; confirm the current details with CFA Institute before registering.
CFA Level III pass rates by sitting
| Sitting | Pass rate |
|---|---|
| February 2023 | 48% |
| August 2023 | 47% |
| February 2024 | 49% |
| August 2024 | 48% |
| February 2025 | 49% |
| August 2025 | 50% |
| February 2026 | 50% |
Published by CFA Institute for each window. February 2025 was the first sitting under the pathway format, and as the figures show it did not move the pass rate: Level III has sat between 47% and 50% throughout. The ten-year average is 51%, and first-time candidates do better than the overall figure, at 59% in February 2026. The August 2026 result had not been released when this page was last updated.
Syllabus and topic weights
The five core topics are 65 to 70 percent of the exam. You sit exactly one of the three pathways, and whichever you choose carries the remaining 30 to 35 percent. CFA Institute does not publish a breakdown of topics within a pathway.
1.Asset Allocation15–20% · 34 lessons · 192 questions · 111 cards15–20%34192111
- Capital Market Expectations, Part 1: Framework and Macro Considerations
- Capital Market Expectations, Part 2: Forecasting Asset Class Returns
- Overview of Asset Allocation
- Principles of Asset Allocation
- Asset Allocation with Real-World Constraints
2.Portfolio Construction15–20% · 36 lessons · 204 questions · 129 cards15–20%36204129
- Overview of Equity Portfolio Management
- Overview of Fixed-Income Portfolio Management
- Asset Allocation to Alternative Investments
- An Overview of Private Wealth Management
- Portfolio Management for Institutional Investors
- Trading Costs and Electronic Markets
- Case Study in Portfolio Management: Institutional (SWF)
3.Performance Measurement5–10% · 27 lessons · 148 questions · 63 cards5–10%2714863
- Portfolio Performance Evaluation
- Investment Manager Selection
- Overview of the Global Investment Performance Standards
4.Derivatives and Risk Management10–15% · 28 lessons · 100 questions · 61 cards10–15%2810061
- Options Strategies
- Swaps, Forwards, and Futures Strategies
- Currency Management: An Introduction
5.Ethical and Professional Standards10–15% · 13 lessons · 103 questions · 72 cards10–15%1310372
- Code of Ethics and Standards of Professional Conduct
- Guidance for Standards I–VII
- Application of the Code and Standards: Level III
- Asset Manager Code of Professional Conduct
6.Portfolio Management Pathway30–35% · 64 lessons · 256 questions · 160 cards30–35%64256160
- Index-Based Equity Strategies
- Active Equity Investing: Strategies
- Active Equity Investing: Portfolio Construction
- Liability-Driven and Index-Based Strategies
- Yield Curve Strategies
- Fixed-Income Active Management: Credit Strategies
- Trade Strategy and Execution
- Case Study in Portfolio Management: Institutional (Endowment)
7.Private Markets Pathway30–35% · 34 lessons · 136 questions · 140 cards30–35%34136140
- Private Investments and Structures
- General Partner and Investor Perspectives and the Investment Process
- Private Equity
- Private Debt
- Private Special Situations
- Private Real Estate Investments
- Infrastructure
8.Private Wealth Pathway30–35% · 27 lessons · 111 questions · 155 cards30–35%27111155
- The Private Wealth Management Industry
- Working With the Wealthy
- Wealth Planning
- Investment Planning
- Preserving the Wealth
- Advising the Wealthy
- Transferring the Wealth
Lesson, question and flashcard counts are StudyOptima's content written so far for each topic. Expand a topic to see its subtopics.
How to prepare for CFA Level III
- 1
Practise writing full answers by hand against the clock from early on. Knowing the material and being able to set it down in a graded answer within the time are two different skills, and only the second one earns marks.
- 2
Study the published guideline answers, not just the questions. They show how much detail earns a mark and how much is wasted effort, which is the single most useful calibration available.
- 3
Choose your pathway early and commit. It is a third of the exam, you cannot change it after registering, and the core material is demanding enough without hedging your bets.
- 4
Asset allocation and portfolio construction together are up to 40 percent of the core. Individual and institutional investor cases appear constantly, so know the constraint frameworks cold.
- 5
Keep ethics in the rotation. It is worth up to 15 percent, the standards are unchanged from earlier levels, and it is tested in both formats.
CFA Level III on StudyOptima
CFA Level III is the exam we have built the most content for without releasing it: lessons, flashcards, a formula reference and a question bank spanning the five core topics and all three pathways. We have not published it because we want the pathway material reviewed against a full exam cycle first. In the meantime our CFA Level I and Level II material is live, and the ethics standards tested at Level III are the same ones covered there.
CFA Level III FAQ
Does the pathway I choose appear on my charter?
No. All three pathways lead to the same CFA charter, and the designation does not record which one you sat.
How is the essay section marked?
Human graders score written answers against a guideline answer at CFA Institute's annual grading event. Partial credit is available, so an incomplete answer that shows correct reasoning still earns marks.
Can I sit Level III in a May or November window?
No. Level III runs only in February and August, unlike Levels I and II.
When will StudyOptima cover CFA Level III?
It is the exam we are furthest along with. Study lessons, flashcards, a formula reference and a question bank are already written across all five core topics and all three pathways, but they are not released yet. Email support@studyoptima.com if you would like to be told when they are.