Training Courses

Principles of Portfolio Management

Category: Investment Management

Course level: Intermediate

In house

This one-day course on the Principles of Portfolio Management (IIM Level Two) is designed to follow the one-day Introduction to Investment Management course. Together, they form the two-day Investment Management Explained course.

This course explores Modern Portfolio Theory, investment techniques, risk and performance measurement.

Case studies form an integral part of the course, to allow the delegates to consolidate the information and provide the basis for group discussions.

Objectives

By the end of the course, delegates will have a better understanding of:

  • asset class pricing
  • using derivatives
  • Modern Portfolio Theory
  • risk
  • investment strategies
  • performance measurement, attribution and benchmarking

Length

1 day

Course Content

Fixed income

Pricing
Duration
Credit risk
Managing fixed income funds
Case Study: Looking at retail fixed income fund strategies

Equities

Pricing equities
Fundamental, quantitative and technical analysis
Managing equity funds
Case Study: Looking at retail equity fund strategies

Cash and Money Market Instruments

Cash
Cash equivalents (T-bills, CDs, CPs)
Case Study: Looking at retail cash funds

Currencies

Currency hedging
Currency overlays

Alternatives

Property
Commodities
Infrastructure

Derivatives

Forwards and futures explained
Using derivatives
Hedging and asset switching

Modern Portfolio Theory

Calculating expected returns
Measuring risk
Beta, standard deviation, volatility
Other risks
FX risk, custody, settlement, business risk, legal risk, etc.
Benchmark risk
Case study: Calculating expected risk and return

Building portfolios

Index-tracking strategies
Sampling, optimisers, replication
Active strategies
Growth vs income strategies
Top-down vs bottom-up strategies
Quant approaches
Core plus satellite
Multi-manager strategies
Hedge fund strategies
Case study: Tactical asset allocation

Performance measurement

Time-weighted and money-weighted returns
Performance attribution
Benchmarks
Tailored benchmarks, using industry sectors, using indices
Risk-adjusted returns (Sharpe and information ratios)
Alpha
Case Study: Performance and attribution for a retail fund
Case Study: Risk attributes for a retail fund

This course would be suitable for:

  • Finance and accounting
  • HR and training
  • Investment administration and operations
  • Investment professionals
  • PR and recruitment firms
  • Risk management
  • Sales and marketing

This course would be suitable for these exams:

  • CFA - Level 1
  • CFA - Level 2
  • IMC
  • SII Diploma - Fund Management
  • SII Diploma - Private Client Investment Advice and Managment
  • SII IAQ - Introduction to Securities & Investments
  • UKSIP - Introduction to Investment
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