Asset Management

Course Overview

This two day course provides participants with detailed tuition on all of the major activities within asset management.

These include the process of investing, the impact of macro-economic parameters, the impact of portfolio theory on the investment process, and the use of bonds, stocks and derivatives in portfolio management. Theoretical knowledge will be combined with practical exercises.

Lecturing will be combined with group sessions and at the end of this course participants will have a thorough understanding of the financial markets and of the process of investing

Course Content

The process of investing

• Introduction
• History
  • Period 1900-1950 : first research
  • Period 1950-1975 : portfolio theory
  • Period 1975-2000 : development of option theory and behavioural finance
• Types of investors
  • Private investors
  • Institutional investors
• Risk, diversification and leverage
  • Diversification
  • Leverage
• The process of investing: an overview

Impact of macro economic parameters on asset management

• Introduction
• Anticipation on changes of the macro-economic parameters
  • Long time horizon
  • Kondratieff cycle
• Impact of interest rates and inflation on long term asset management
• Impact of macro-economic data on investment decisions

Impact of the portfolio theory on the investment process

• Price on the financial markets
  • Risk and return
  • Effects of diversification
  • Efficient portfolios
• The Capital Asset Pricing Model ( CAPM)
  • Basic form of CAPM
  • Different types of risk
  • Market portfolio
• Alternative models for pricing
  • The international CAPM
  • CAPM with limited liquidity
  • Empirical Models
• Pitfalls in the asset management theory
  • Rationality of the markets
  • Perfection of the markets
  • Efficiency of the markets
  • Positioning of Behavioural Finance

Interest bearing instruments as part of the investment process

• Structuring Time
  • Deterministic models
  • Stochastic models
• The price of a bond
  • Geometrical average of expected return
  • Mathematical average of expected return
  • Yield to maturity
• Parameters of interest rate risk
  • Interest rate risk
  • Duration of a bond
  • Modified duration of a bond
  • Key rate duration of a bond
  • Convexity of a bond
  • M square as a indicator of diversification
  • Modified Horizon Duration
• Bond strategies

Stocks as part of the investment process

• Stocks as investment category
  • Long term investment result
  • Equity premium puzzle
• Pricing of stocks based upon fundamental analysis
  • Price-to-book and Price/earnings ratio
  • Parameters needed to create return
  • Parameters needed to create growth
  • Sector and/or geographical comparison
  • Dividend discount models
• Technical analysis
  • Chart reading
  • Relative strength, momentum end other indicators
  • Statistical technical analysis
• Valuation of stocks : modern portfolio approach

Options and other derivative instruments

• Forwards, futures and options
  • Forwards
  • Futures
  • Options
• Binominal valuation of options
• Risk management
  • Strategies to hedge market risk
  • Delta Hedging
  • Gamma and theta hedging
  • Option spread strategies

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.