School of Investment Management

Course Overview

This course offers an extensive journey through the intricacies of investment markets and the fundamentals of investment management. Designed for financial professionals aiming to deepen their expertise, the course begins with an introduction to investment markets, exploring the risk-return paradigm, asset classes, market cycles, and the principles governing investor behaviours and fiduciary responsibilities.

The programme delves into the sources of investment return drivers, the significance of understanding investment statistics like alpha and beta, and the methodologies for effective investment performance measurement.

Students will learn about the economic impacts on financial markets, the drivers of global bond returns, equity valuation, and the methodologies for constructing diversified equity portfolios.

The course also covers derivatives and their role in investment management, traditional and new paradigms in asset allocation, tactical asset allocation processes, and the critical understanding of investment risk across different asset classes. Furthermore, it addresses risk management for global liability-driven investors, the risk budgeting process, hedge fund strategies, and the role of alternative assets like commodities in investment strategies.

Learning Objectives

• Grasp the fundamental concepts of investment markets, including the risk-return paradigm, different asset classes and their return drivers, market cycles, and investor typologies, enabling a comprehensive understanding of how investment markets operate and the factors influencing them.
• Develop an in-depth understanding of the sources of investment return drivers, learning to apply cyclical approaches to investment management, quantify market direction, and comprehend the effects of market liquidity, behavioural finance, and market cycles on investment returns.
• Acquire proficiency in investment statistics, mastering the use and interpretation of alpha, beta, market volatility measures, global investment benchmarks, and major investment management measurement ratios, to evaluate and enhance investment strategies effectively.
• Gain insights into the process of investment performance measurement and attribution, including selecting appropriate benchmarks, understanding the principles of GIPS, and evaluating investment fund performance persistence, equipping participants with the skills to assess and communicate fund performance accurately.
• Understand the economic impact on financial markets, including the relationship between investment returns and economic cycles, the effects of governmental economic intervention, and the quantitative easing future impact, allowing for better-informed investment decisions based on economic forecasts.
• Explore advanced topics in investment management, such as derivatives as portfolio management tools, traditional and new paradigms in asset allocation, tactical asset allocation, risk measurement and management, and multifactor models, to design sophisticated investment strategies and manage risk across diverse portfolios.