Strategic Asset Allocation and Portfolio Management

This programme is only available on in-company basis. Please, contact us for more information

Course Description

This 2 day course will review developments and best practices within the investment management industry focusing on asset allocation and portfolio construction. Conducted by a trainer with many years of practical experience from the sector the workshop is designed to be interactive drawing on the knowledge and experiences of the trainer and participants.

You will have a chance to explore best practices across the industry using current industry research, reports, analysis and case studies. You will be also encouraged to apply the best practices from your own market and business.

The program is designed for delegates with a knowledge of the fundamentals of modern portfolio theory, asset allocation theory, equity analysis and portfolio construction techniques.


What Will You Learn

By the end of this course you will: 

  • Understand how to design asset allocation models for different client types and market conditions
  • Build and maintain optimal portfolio’s based on investor needs
  • Recognise the key features, advantages and risks of the key asset classes and their role in portfolio construction
  • Recognise how to identify and capture alpha
  • Appreciate the significance of behavioural biases and how to manage them when designing investment strategies for different client type

Main Topics Covered During This Training

  • The nature of the Investment Management market
  • The theoretical tools and concepts
  • The process of asset allocation and portfolio construction in practice
  • Rebalancing and reallocation
  • The importance of Behavioural Finance
  • Asset class characteristics 

Who Should Attend

  • Private Bankers and Wealth Managers
  • Family Office Executives 
  • High Net Worth Investors and their advisors
  • Investment Managers, Strategists & Analysts
  • Risk managers 
  • Trustees
  • Accountants / Lawyers
  • Pension Fund Professionals
  • Regulatory bodies and Policy makers


In-Company, call us for more information

Strategic Asset Allocation and Portfolio Management - A 2 Day Course


Overview of the Investment Management industry

  • The players
  • The key clients
  • The core products
  • Market trends 
  • Key Performance Indicators and Profit dynamics
  • Investment “themes” and “styles”
  • Market trends and Product evolution

            - The passive vs. active debate – 'redefining active management'

            - Separation of alpha and beta

            - ETF’s

            - Smart Beta

            - Open architecture

            - Multi Manager approaches

            - Liability driven strategies

            - Outcome funds


The “building blocks” 

  • Asset allocation – Art or Science?
  • The relevance of Modern Portfolio theory and “efficient markets” today 
  • Risk

            - The risk / return relationship 

            - The “efficient frontier” concept

            - Asset and portfolio risk and returns

            - Different types of risk and perception of risk

            - Risk measures

            - Risk premium

  • Diversification and Correlation


The asset allocation process

  • Overview 
  • The Investment Policy Statement
  • Types of asset allocation
  • Principal protection and principal growth assets
  • Constructing the Framework
  • Matching asset classes with wealth levels and income needs
  • Asset and portfolio risk
  • Risk adjusted returns
  • Case study: Building and maintaining optimal portfolio solutions 

Rebalancing and reallocation

  • Principles and Scope
  • Approaches to rebalancing
  • Advantages and disadvantages
  • Managing ‘drift’ in the portfolio and ‘maverick’ risk
  • Relative performance
  • Critical success factors
  • Special considerations when dealing with concentrated positions


Asset allocation and other portfolio construction disciplines

  • Strategic principles
  • Style and sector selection
  • Region and country selection
  • Industry and Security selection
  • Manager selection
  • Information ratios for different investment styles
  • Currency selection and currency overlay
  • Market timing
  • Decision points in implementation strategy


The search for 'alpha' and the importance of information ratios

  • Defining alpha
  • Sources of alpha
  • Portable alpha
  • Alpha generation and manager skill
  • The information ratio and coefficient
  • The fundamental law of active management 


The emergence of SMART Beta

Performance Measurement and Atribution

Individual investor behaviour

  • Introduction - What is behavioural finance?
  • Decision theory
  • Factors impacting individual asset allocation decisions
  • The significance of 'asset locations'
  • Goal based asset allocation
  • Comparison of expected utility, prospect theory and mean variance analysis
  • Individual investor behaviour characteristics
  • What can we learn from 'market history'?
  • The cycle of 'emotion'
  • Identifying patterns of irrationality
  • Risk profiling – dealing with behavioural bias
  • Reacting to client irrationality
  • Moderate or adapt the asset allocation?
  • Summary of implications for portfolio design
  • Case study: The practical application of Behavioural Finance concepts


Asset class characteristics

  • Asset class descriptions and distinguishing qualities
  • Evaluation of asset classes
  • Specific challenges with Fixed Income

            - Duration

            - Convexity

            - Hedge ratio

            - Yield components

            - Skewness and Kurtosis

  • Case study: Thought leadership in Asset Allocation – The “Yale Model”


Course summary and close


Our Course Director is currently working as a trainer and consultant focusing on the wealth management needs of high net worth private clients, their families and their businesses.  

Prior to this Bill worked in the international private banking market for almost 20 years. His private banking career began with Royal Bank of Canada where he spent 15 years in a variety of senior roles covering all aspects of the international wealth management business both onshore (London) and offshore (Bermuda).

Bill has broad general wealth management experience but his particular area of expertise is developing financial planning solutions for international high net worth private clients and their businesses who have complex cross border planning issues. In addition to wealth structuring, tax and estate planning the practice also advises on the specific challenges in establishing and growing a successful family enterprise.

During his career Bill has had responsibility for designing and delivering financial education programmes for professional staff and wealthy families in the Middle East, Europe, USA, Canada, South America and Africa. Bill is currently developing and delivering training programmes for international banks, private banks, wealth managers, family offices, professional bodies and regulators covering a broad range of financial, investment and soft skills subjects.

Bill is a Chartered Accountant (FCA), Trust and Estate Practitioner (TEP) and Financial Planner (DipPFS).

Strategic Asset Allocation and Portfolio Management <p>This 2 day course will review developments and best practices within the investment management industry focusing on asset allocation and portfolio construction. Conducted by a trainer with many years of practical experience from the sector the workshop is designed to be interactive drawing on the knowledge and experiences of the trainer and participants.</p> <p>You will have a chance to explore ... In-Company