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This two day interactive programme is designed to offer an insight into the working practices of today’s Fund Managers – the Buyside of the industry. Emphasis will be on the practical, not theoretical.
The content will cover how the Managers invest across the traditional investable universe (Bonds, Equities & related Derivatives), as well as how they deal with the inherent everyday risks in the markets & how to incorporate alternative investments like Hedge Funds into mainstream Portfolios.
Course categories:Asset Management Courses, Asset Management Inhouse
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Day One:
Modern Portfolio Theory and Efficient Markets as applied to today’s environment
- Efficient Markets – Are they? Do we live in a ‘Normal’ world?
- Behavioural Finance & its impact on current thinking
- The Capital Asset Pricing Model and Efficient Frontiers
- Betas and the search for Alpha
- What should we expect from Equities? The lessons of history
- What is the correct Equity Risk Premium now?
Case Study – Beta at work in practice
Active Equity Portfolio Management – Valuation screens
- Which valuation methodology to choose? It depends on the sector
- Price Earnings Ratios & PEGs
- Dividend Yields – Equities as a source of income
- Asset Backed valuation
- Enterprise Values & EBITDA
Case Study – A walk through a New Issue’s Valuation criteria
Passive Portfolio Management using Exchange Traded Funds
- ETFs & traditional Index Funds compared
- Understanding ETFs, the replication mechanism
- Primary (Redemption, Creation process) & Secondary markets
- Core vs Satellite investing
- ETF Variations on a theme – Inverse, Leveraged, Thematic, Active
Bond Portfolio Management styles
- Interest Rate sensitivity (Modified Duration)
- Actively or passively Managed, Sensitivity to Credit Risk
- Maturity targeting, Gross Redemption Yield
- Interest Rate anticipation
- Yield Curve strategies
- Yield/Credit spread strategies
Case Study – Comparing Sovereign Yield Spreads across the Eurozone
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Day Two:
Portfolio Construction in practice
- How have Wealth Managers’ invested their Clients’ wealth to date?
- Investments of ‘passion’
- Changing Asset allocation strategies in today’s Markets
- Diversification vs Correlation
- Client profiles and model portfolios
Case Study – Putting together a Portfolio for a HNWI in practice
Using Derivatives in Portfolio Management
- Which products do the Portfolio Managers mainly use & why?
- Index Futures – Hedging, Margin requirements
- Options Trading Strategies for Equity Fund Managers
- Contracts for Difference
- Credit Default Swaps for Bond Fund Managers
Case Study – CDS pricing in practice
Risk Measurement and Management across the Investable Universe
- Volatility – Statistical probability and dispersion of returns
- Fat Tails in Finance & Black Swans explained
Case Study – Volatility in practice across the Mutual Fund Universe
- Sharpe Ratios – Risk adjusted performance measurement
- Portfolio Optimisation and rebalancing (Excel demonstration)
- Value at Risk
Using Alternative Investments in the Portfolio
- Hedge Funds defined
- Rationale for Hedge Funds in an Investors’ Portfolio. Is it still there?
- The non-correlated Asset Class, Survivorship Bias, Drawdown
- Leverage, Risk and Transparency
- Institutionalisation of Hedge Funds, Index Providers – Benchmark Risk
Case Study – How do investors choose their Hedge Fund Managers?
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