Active Portfolio Management and Asset Allocation

Overview:

Introduction:

Active portfolio management is a dynamic approach that aims to achieve superior returns by strategically selecting and timing investments. It focuses on outperforming benchmarks through continuous analysis and decision-making. This training program provides participants with comprehensive knowledge of active portfolio management techniques, effective asset allocation strategies, and risk management practices to optimize investment performance and achieve financial goals.

Program Objectives:

By the end of this program, participants will be able to:

• Explore the principles of active portfolio management.

• Develop and implement strategic asset allocation plans.

• Analyze market conditions to make informed investment decisions.

• Manage portfolio risk and optimize returns through diversification.

• Conduct advanced techniques for evaluating portfolio performance.

Target Audience:

• Investment Managers and Analysts.

• Portfolio Managers.

• Financial Advisors.

• Wealth Managers.

• Finance Professionals involved in investment decision-making.

Program Outline:

Unit 1:

Principles of Active Portfolio Management:

• Overview of active vs. passive portfolio management.

• The role of active management in achieving investment goals.

• Fundamental and technical analysis in active management.

• Key performance indicators for portfolio evaluation.

• Strategies for identifying market opportunities and inefficiencies.

Unit 2:

Asset Allocation Strategies:

• Understanding strategic, tactical, and dynamic asset allocation.

• Determining the appropriate asset mix based on investor profiles.

• Balancing risk and return through diversified asset allocation.

• The impact of macroeconomic factors on asset allocation decisions.

• Implementing rebalancing strategies to maintain portfolio alignment.

Unit 3:

Risk Management in Portfolio Management:

• Identifying and assessing portfolio risks (market, credit, liquidity, etc.).

• Techniques for managing and mitigating investment risks.

• The role of diversification in reducing portfolio volatility.

• Using hedging strategies to protect against downside risk.

• Applying Value at Risk (VaR) and other risk measurement tools.

Unit 4:

Performance Evaluation and Benchmarking:

• Methods for evaluating portfolio performance (Sharpe Ratio, Alpha, Beta).

• Comparing portfolio performance against benchmarks and indices.

• Attribution analysis to identify sources of portfolio returns.

• Measuring risk-adjusted returns and investment efficiency.

• Continuous improvement through performance review and analysis.

Unit 5:

Advanced Techniques in Active Portfolio Management:

• Implementing factor-based and sector rotation strategies.

• Using quantitative models for portfolio optimization.

• Incorporating behavioral finance insights into portfolio decisions.

• Applying machine learning and AI in portfolio management.

• Developing long-term strategies for sustainable portfolio growth.