Introduction to Investment Management

In addition to your class tuition and study materials, you will receive the following:


Complimentary e-learning module
Case Study

• Exploring the Efficient Frontier
• Broking to the 'Buy-Side'
• A day in the life of an equity portfolio manager

Simulations

• Fantasy Fund Manager

Exercises

• Matching clients with products
• Jargon buster, decoding the language of a bond investor

Class Discussions

• Issues facing asset managers

Other Extras

• Certificate of attendance

Level: Introductory


Synopsis:
This entry-level course provides a comprehensive, non-mathematical introduction to the key elements of investment management. It is readily accessible to a wide range of delegates who need to know more about this global industry's function, structure, motivations and methodology.


At the end of the course participants will be able to: Differentiate between equity and fixed income management styles . Understand the interaction between institutional investors and brokers/investment banks . Understand the basic principals of portfolio construction . Distinguish between active and passive portfolio strategies and styles . Understand the importance of establishing investor preferences . Identify and distinguish between the principal investment products . Identify the characteristics of the principal asset classes . Understand what institutional investors are and how they operate .


Prerequisites:
None


Suitable For:
Entry-level delegates that wish to develop a broad understanding of the investment management industry and the role that it plays in today's markets. This course will be of particular benefit to those starting within the investment management industry and those that deal with the financial services industry.


Introducing the Investment Manager

• What is investment management?
• Industry development, ownership and structure
• Industry drivers
• Current trends and themes

The Investment Management Process

• Establishing investor objectives
• Investment return profile
• Risk tolerances and Investment constraints
• Portfolio construction and risk management
• Portfolio monitoring and administration
• Performance evaluation - measurement and attribution

Principals of Portfolio Construction

• Strategic asset allocation - definition and formulation
• Principal asset characteristics- expected return and volatility (risk)
• Typical strategic weightings and a stylised investment cycle
• Tactical asset allocation
• The concept of correlation
• Diversification and the Efficient Frontier

Key Players in the Investment Decision Process

• The asset allocation committee
• The Trustee Board & consulting actuaries
• The portfolio manager & the 'buy-side' analyst
• The centralised dealing desk

Managing an Equity Portfolio

• Active Equity Investment Strategies - Motivations and Characteristics
• Styles: Growth, Income, Value, Technical etc.
• Passive Fixed Income Investment Strategies - Motivations and Characteristics
• Strategies - motivations and characteristics
• Methods: Replication, Sampling, Optimisation and Synthetic
• Hedge Funds: A Different Active Strategy

Managing a Fixed Income Portfolio

• Active Fixed Income Investment Strategies- Motivations and Characteristics
• Passive Fixed Income Investment Strategies- Motivations and Characteristics

Fund management and derivatives

• The major products: equity, debt, foreign exchange
• Equity options:Volatility / Delta / Gamma
• Equity futures / equity swaps
• Fixed income derivatives / interest rate swaps
• Credit derivatives / default swaps

Investment Products - An Overview

• Pension funds - defined benefit and contribution
• Collective Investment Schemes - Mutual Funds, Unit Trusts & OEICS
• Investment Trusts
• ISAs
• Exchange-Traded Funds (ETFs)
• Hedge Funds - the new investors
• Private client wealth management