An Introduction to Portfolio Management


Modern Portfolio Theory and Efficient Markets as applied to today’s environment

• Efficient Markets – Are they? Do we live in a ‘Normal’ world?
• Behavioural Finance & its impact on current thinking
• The Capital Asset Pricing Model and Efficient Frontiers
• Betas and the search for Alpha
• What should we expect from Equities? The lessons of history
• What is the correct Equity Risk Premium now?
Case Study – Beta at work in practice

Portfolio Management styles – From Active to Passive

• Growth vs Value Investing – how do the numbers work?
• Thematic Investing – the Ethical/Green approach
• Can active management add value? The growth of Index Tracking
• Exchange Traded Funds – Active passive?
Case Study – Assessment Criteria used by Equity Fund Managers

Portfolio Construction for Private clients in practice

• How have Wealth Managers’ invested their Clients’ wealth to date?
• Investments of ‘passion’
• Changing Asset allocation strategies in today’s Markets
• Diversification vs Correlation
• Client profiles and model portfolios
Case Study – Putting together a Portfolio for a HNWI in practice

Risk Measurement and Management across the Investable Universe

• Volatility – Statistical probability and dispersion of returns
• Fat Tails in Finance & Black Swans explained
• Case Study – Volatility in practice across the Mutual Fund Universe
• Sharpe Ratios – Risk adjusted performance measurement
• Portfolio Optimisation and rebalancing (Excel demonstration)
• Value at Risk