Portfolio Management Techniques
The principal aim of this course is to develop and enhance participants' skills that are commonly used in asset allocation decision and equity as well as alternative investment management. The course starts of with statistical and theoretical approaches to fund management, asset allocation, investor profiles and behavioral finance applications. The 2nd focuses on equity portfolio management including asset pricing models, portfolio management techniques, indexing strategies and emerging market equities. The last day is dedicated to alternative investments and performance measurement. The last case study will allow participants to use all topics learned during the previous days to evaluate a group of investment portfolios.
We begin the course with an introduction to the fundamentals of today’s portfolio management – Modern Portfolio Theory (MPT). We will explore concepts such as efficient frontier, risk/return trade-offs, the asset allocation process and conclude the day with a look at investor characteristics and new developments in behavioral finance.
Case study –Portfolio management decisions
Participants will be given a historical portfolio of common stock, debt securities and other assets and will be asked to calculate related portfolio statistics: expected returns, standard deviation of returns, covariance, correlation coefficients and beta of the assets. Participants will then use this information to construct an efficient portfolio.
Case study: Strategic asset allocation
Participants will be given a background information for a variety of different investors and asked to design appropriate portfolio mixes.
Exercise – The importance of behavioral finance topics
Participants will examine how a series of behavioral investment biases affect optimal investment decisions as defined by MPT. Biases to be evaluated include:
Equity portfolio management is often a critical component of overall investment success since equity securities often represent a significant portion of many investment portfolios. After a review of equity vital equity valuation techniques, we will discuss the role of equities in an investment portfolio, the major approaches employed to manage equities and conclude with a look at strategies used to manage international and emerging market equity portfolios.
Exercise – Using asset pricing models
Participants will answer a series of questions related to applications of CAPM and equity valuation techniques
Exercise – Evaluating equity funds
We will review several equity portfolios, discussing relative weightings, sector allocation and other important attributes affecting performance
Case study – Emerging markets portfolio construction
Participants will first examine some of the major issues confronting emerging market portfolio construction, including high correlations during crisis, cost of capital computation difficulties, and non-normal return distributions.Then, groups will prepare a presentation to investors demonstrating the advantages of an emerging market portfolio.
Case study: Portfolio performance evaluation and attribution
Case on raking various managed portfolios based on risk adjusted performance and attribution analysis of superior performance
Different investments and their investor characteristics
Exercise: alternative investment analysis
Participants will evaluate different alternative investments and select suitable investors to match various portfolios.
Portfolio managers, Equity and fixed income analysts, Wealth managers and private bankers, Independent financial advisors, Back and middle office professionals, Pension fund trustees
10.00 am to 5.30 pm
Rs. 12,000.00 + Applicable Service Tax per participant inclusive of tuition fees, reference material and (morning / evening) refreshments only.
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