Portfolio Management
In-house
For our current public Wealth Management course (including day on portfolio management) click here.
A 2 day practical course for Portfolio, Asset and Wealth Managers exploring successful strategies for building investment portfolio.
By the end of this training you will have a sound understanding of strategies and mechanisms involved in portfolio construction including:
- Choosing the right instruments: traditional and alternative
- Apply risk measurement and management techniques
- Understanding bonds, equities, hedge funds, private equity, commodities and FX overlay
- Strategies to optimise the portfolio performance
- Pros and cons of implementing hedge funds in a portfolio as well as how to choose the right hedge fund manager
Description
This 2 day course will give participants a practical understanding of portfolio creation and management techniques. Delegates will learn to analyse pros and cons of investing in bonds, equities and alternative instruments, explore methods for measuring returns and risk and explore how to build an optimal portfolio for private clients.
The course is relevant for professionals with 1-2 years of industry experience who have some basic understanding of the main investment instruments as well as for analysts and supporting staff.
Main Topics Covered During This Training
- Overview of the current market context for portfolio managers
- Modern Portfolio Theory and application of behavioural finance
- Methods for measuring returns
- Implementing Betas and Alphas in the context of portfolio management
- Investing in bonds and equities - selection criteria and factors to consider
- Investing in private equity, hedge funds, commodities and FX overlay
- Passive vs active investing
- Portfolio construction for private clients
- Risk management techniques
- Portfolio optimisation strategies
- Implementing hedge funds in a portfolio
Who Should Attend
From Asset Management, Private Banks, Wealth Management Companies, Family Officest and Corporate Banks as well as Consultancies and Lawyers : Executives, Managers and Team Members and Support Staff involved in:
- Portfolio Management
- Client Relationship Managers
- Asset Managers
- Private Bankers
- Consultants
- Wealth Management
- Business Development
- Fixed Income and Equity Analysts
- Back and Middle Office Staff
- Pension Fund Professionals
Teaching Method
The course is taught with hands-on, practical exercises forming the framework for the case study model. All the theory will be explained though recent financial examples and put into current market context to help you apply it in your daily business.
You will also benefit from a comprehensive course material.
In order to help us establish your individual and business concerns, you will be asked to fill a pre-course questionnaire.
Portfolio Management - A 2 Day Programme
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?
- A look at behavioural finance
- The Capital Asset Pricing Model and efficient frontiers
- Betas and the search for Alpha
- What is the correct equity risk premium now? Can history be a guide
Case Study: Beta at work in practice
Investing in Bonds – From Sovereign to Corporate
- Factors to consider when managing bond portfolios
- The search for Income – From sovereign to corporate
- Maturity, duration; yield curve and spread trading
- From Investment Grade to High Yield – Rising stars and fallen angels
- More (derivative) tools in the box – Credit Default Swaps
Case Study: Credit spreads in practice across the sovereign Euro bond universe
Investing in Equities – From Active to Passive
- Thematic vs geographical selection criteria
- Growth vs Value Investing – how do the numbers work?
- Can active management add value? The growth of Index Tracking. The cost of Beta
- Exchange Traded Funds – Active passive?
- Which equity derivatives are most likely to be used by the Managers?
Case Study: Assessment criteria used by equity fund managers
Using Derivatives in Portfolio Management
- Which products do Portfolio Managers mainly use & why?
- For hedging or speculation; Exchange tradable vs Over-the-Counter instruments
- Index futures – Hedging a portfolio, margin requirements
- Equity index swaps for equity fund managers
- Using options to protect portfolio positions
Day 2
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
Alternative investments- Private equity, commodities, FX overlay
- Investor attitudes to private equity as an investment proposition
- The range of investable opportunities within private equity
- Foreign exchange as an asset class vs currency overlay strategies
- Commodities as an asset class – comparisons with traditional investments
Case Study: Investable commodities’ performances 2008
Alternative Investments: Hedge Funds, an overview
- What are they exactly? How do they differ from conventional Funds?
- How many are there? How big are they? Fee structures - The cost of Alpha
- Counterparty relationships - Prime Brokerage, Fund administration
- Manager tactics – Leverage & shorting explained
Case Study: How do investors choose their Hedge Fund manager?
Rationale for using hedge funds in an investors’ portfolio
- The non-correlated asset class? So what happened in 2008?
- Efficient frontiers revisited for the long term investor
- Due diligence process
- Survivorship bias, drawdown
- Transparency issues
- Benchmark risks for investors
Case Study: Exclusion criteria in the due diligence process
Paul Meadows
Paul started his career in 1983 at Royal Insurance in the long-term equity portfolio team. In 1990 he joined Swedish insurer Trygg-Hansa’s London start-up operation to manage its UK Equity exposure.
In 1994 he moved into the Private Client arena, as part of the Investment Unit of Lloyds Private Banking & over a two year period diversified away from an exclusive analytical/Fund Management role to incorporate an extensive presentational package on the Bank’s investment strategy delivered ‘on the road’ to its network of offices around the country.
In 1996 Paul joined Bank of Butterfield to head up the global Equity research effort in London in support of the Bank’s (offshore) private client base. By this time that he had also developed training material covering most aspects of Portfolio Management & the behaviour of institutional investors for delivery (as a freelance consultant) to a wide range of audiences in the UK & abroad. This was subsequently extended to incorporate the Private Client Asset Management area.
Paul had a spell with an international high-risk security company analysing the operations of quoted oil & mining corporates worldwide. In 2000 Paul moved into full time training with main course providers, specialising in Fund Management, Equity Markets, Private Banking & Hedge Funds.
Clients trained include Citigroup, Man Investments, Axa Investment Managers, Barclays Global Investors, HSBC, Renaissance Capital.
IN-HOUSE TRAINING
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
or send us an e-mail to: enquiry@eurekafinancial.com
