Investment Management

Overview:

Introduction:

This Investment Management training program is designed to equip participants with the knowledge and skills needed to effectively manage investment portfolios. Through a comprehensive curriculum and practical exercises, attendees learn various investment strategies, portfolio construction techniques, and risk management principles.

Program Objectives:

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

• Learn about various assets that can be considered to form an investment portfolio, their valuation, and measurement of performance

• Analyze the intrinsic value of traded assets using fundamental valuation theories as well as technical analysis

• Set investment goals and accordingly construct efficient portfolios

• Evaluate the performance of the portfolio.

Targeted Audience:

• Financial analysts seeking to enhance their investment management skills.

• Portfolio managers aiming to refine their investment strategies and techniques.

• Investment bankers looking to deepen their understanding of asset management principles.

• Wealth managers and financial advisors seeking to expand their expertise in investment management.

Program Outline:

Unit 1:

 Foundations of Financial Markets and Investments:

• Introduction to financial markets.

• Institutions, and assets.

• Investment as a process.

• Investment philosophies.

Unit 2: 

Exploring Financial Markets:

• Money and bond markets.

• Equity markets.

• Derivative markets.

• Managed funds.

• Margin trading.

• regulation of markets.

Unit 3: 

Optimizing Asset Allocation:

• Expected portfolio return and variance.

• Definition of risk premium.

• Asset allocation – two assets: mean-variance preferences.

• Optimal asset allocation with a risk free asset.

• CARA utility and normal returns.

• Portfolio frontier.

• Expected return relationships and estimation issues.

• Diversification – the single index model.

• Treynor-Black model, factor models.

• Statistics of asset allocation.

Unit 4: 

Mastering Bond Mathematics:

• Bond math.

• Term structure.

• Duration.

• Numerical examples.

• Immunisation of bond portfolios.

• Convexity and immunization.

• Immunization of equity portfolios.

Unit 5:

Exploring Market Dynamics:

• Types of markets.

• Bid-ask bounce – the Roll model.

• Glosten-Milgrom model, Kyle model.

• Discrete version of the Kyle model.

• Limit order markets.

• Statistical arbitrage (algorithmic trading, program trading).

• Why market microstructure matters.