This is a required course for the RPA designation. It may be used as an elective for the eight-course curriculum. The investment of plan assets is a major function of employee benefit plan management. Every person working with employee benefit plans should have an understanding of investment policies, security markets, asset selection, portfolio theory and evaluation of financial performance. These topics have an impact not just on pension benefits but on the overall management of employee benefit assets (e.g., self-funded medical plans, VEBA accounts, etc.); consequently, these relationships should be understood by professionals in the field. The course introduces asset management in the context of setting investment objectives for pension plan assets. The course then provides the necessary background on financial markets, how they are organized and how they operate. The concepts of risk versus return and efficient markets and the impact of modern portfolio theory are presented, followed by a detailed discussion on bonds, stocks and derivatives. The discussion is interwoven with the various approaches, some controversial used by investors in analyzing and evaluating these instruments and the overall performance of specific financial markets.
Study Materials:
May meet CE Credit Requirements
Click here for ACE Credit Recommendation. Enrichment Reading:Investment Policy StatementsBest Practices for Investment Committees