Investment Management

Course Overview

This course offers a holistic view of the principles and practices essential for managing investments effectively. Beginning with an overview of the investment management process and the structure of a fund management business, the course delves into understanding client requirements, risk profiles, and the mandates that guide investment strategies. Through “A Day in the Life of a Fund Manager,” participants will explore the nuances of portfolio construction, monitoring, and reporting, alongside the evaluation of company results and economic data.

The course thoroughly addresses Portfolio Risk and Return, including investor indifference curves, expected returns, and various measures of risk, paving the way to strategies for Minimising Portfolio Risk through diversification, covariance, and correlation analysis. Asset Pricing Models introduce participants to fundamental concepts such as the Capital Market Line, Beta, and the Sharpe Single Index Model, while practical sessions with the Excel Optimiser on the Markowitz and Sharpe models highlight the application of these theories. Global Management and Asset Allocation sessions expand the horizon to include global market considerations and the implications of globalisation on investment strategies.

Investment Strategy, Active Asset Allocation, and the Asset Selection Process sections encourage a deeper understanding of market efficiency, quantitative management, intrinsic and relative valuation models, and the debate between passive vs. active investing. Managing and Hedging Portfolio Risk cover sophisticated techniques for risk management using futures, forwards, options, and overlay strategies.

Furthermore, the course covers the calculation of returns, the importance of benchmarks, risk definition and measurement, and portfolio attribution, concluding with the essentials of presenting performance in line with Global Investment Performance Standards.

Learning Objectives

• Grasp the Fundamentals of Investment Management: Participants will gain a solid understanding of the investment management process, including the structure of fund management businesses, and learn how to align client requirements with investment mandates based on risk and return profiles.
• Master Portfolio Construction and Management: Learners will acquire the skills to construct, monitor, and report on investment portfolios, integrating company results and economic data to make informed decisions, and understanding the day-to-day responsibilities of a fund manager.
• Analyse and Minimise Portfolio Risk: Attendees will be able to evaluate portfolio risk and return, employing strategies such as diversification, covariance, and correlation to minimise risk. They will also learn about different asset pricing models, including the Capital Market Line, Beta, and the Sharpe Single Index Model.
• Apply Optimisation Techniques in Portfolio Management: Participants will learn to use Excel Optimiser tools to apply the Markowitz and Sharpe models for portfolio optimisation, enhancing their ability to make data-driven investment decisions.
• Develop Global Investment Management Strategies: Learners will explore global investable capital markets, understanding the risks, returns, and historical correlations to develop integrated and segmented asset allocation strategies, considering the implications of globalisation on investment choices.
• Implement Advanced Investment Strategies and Risk Management Techniques: Participants will delve into investment strategies, including active asset allocation and the asset selection process, and learn to manage portfolio risk using hedging vehicles such as futures, forwards, options, and portfolio overlay strategies. They will also gain expertise in calculating returns, utilising benchmarks, and presenting investment performance in accordance with global standards.