Portfolio Concepts and Management

Introduction and Overview of Financial Assets
Making investment decisions on behalf of others can be a daunting task. Our opening session will cover the investment basics you need to know to make informed choices for your fund. Learn the differences between a bond and a stock, how bonds and stocks are evaluated, what happens to bonds when interest rates change, different types of indexes, different definitions of earnings, and more.

Fundamentals of Portfolio Theory
There is more to understanding investments than just memorizing definitions and analyzing the financial system. As Day One continues, we will turn to the fundamentals of portfolio theory. This session will cover time-weighted and value-weighted rates of return, the concept of efficiency, how to build portfolios for a targeted risk level, the principles of diversification, and the challenges of constructing a well-diversified portfolio.

Introduction to Case Study
An important part of the Portfolio Concepts and Management program is interactive case study. At the end of Day One, you will be directed to meet with your small groups to introduce yourselves and discuss the case study you will be working on for the remainder of the week.

Managing Pensions in a Risky Global Environment
What does our market look like right now, and should our current state of affairs affect our short-term and long-term investment decisions? This session will cover recent market trends, historical risk-and-return patterns, the capital asset pricing model, price distortions, and how to determine the discount rate.

Performance Evaluation
Having financial literacy and a clear investment policy is important for any fund, but it means little if you do not have the right people executing your vision. In “Performance Evaluation,” we will discuss the elements of manager monitoring, risk-adjusted measures, the role of different investment styles, understanding the numbers in a performance evaluation report, using your performance measurement tools in a practical framework, and the impact of investment policy.

Case Study Group Work
At the end of Day Two, you will be directed to meet with your small groups to continue working on the case study.

Fundamentals of Valuation
How does an analyst determine the price of stock, and what determines the volatility of a bond? The simple answer to these questions: valuation, which is used to determine the current worth of an asset. In this session, we will cover topics like the mechanics of compounding and discounting, valuation of annuities, and how to calculate present and future value.

Macroeconomic Issues and Financial Markets
While most people are at least remotely familiar with the term microeconomics, where economists look at an individual household or company, macroeconomics studies the economic system as a whole. Understanding macroeconomics means understanding how our complex economic system operates. In this session, we will discuss the basics of price and return, monetary and fiscal policy structures and current stances, and the exchange rates and international factors.

Case Study Group Work
At the end of Day Three, you will be directed to meet with your small groups to continue working on the case study.

Asset Allocation and Impacts of Risk on Return
What is the best way to implement your plan’s investment strategy? In “Asset Allocation and the Impacts of Risk on Return,” we will discuss the trends of pension management, typical investment policies, overall asset allocation and allocation within asset class, and rebalancing vs. reinforcing asset allocation.

Case Study Discussion
Our final session of the program will cover the issues within the case study and discuss the various answers received by the small groups. Attendance at this session is required to earn a certificate.