The Fundamentals of Asset Management

Training Description

The Fundamentals of Asset Management

Asset management involves allocating funds across different asset classes (equities, bonds, alternative investments) to optimize the risk-return tradeoff according to specific objectives.

Factors Influencing Investment Decisions

Investment decisions are influenced by several factors:

• Investment horizon and risk tolerance
• Tax and regulatory constraints
• Specific objectives (insurance, pension funds, personal savings)
• Behavioral biases affecting investment choices

Institutional vs. Private Wealth Management

Individuals typically invest for personal projects (savings, real estate, retirement), whereas institutions use models like asset-liability management (ALM) to optimize asset allocation.

Universal Principles of Portfolio Management

• Risk and volatility analysis
• Optimization of expected returns
• Capital loss management
• Diversification and asset correlation

Strategies and Asset Allocation Optimization

A well-defined strategy allows for adapting asset allocation to maximize performance while managing risks. Quantitative and qualitative methods help adjust portfolios based on market trends and predefined objectives.

Key Learning Objectives

• Understand modern portfolio theory: risk vs. return and correlation
• Learn about the asset management ecosystem
• Identify the main types of investment funds
• Understand the different types of portfolio management
• Analyze various asset management approaches based on asset classes
• Identify and understand how economic cycles impact different asset classes
• Measure and attribute key performance contributors in equity and bond portfolios

Target Audience

• Portfolio Managers
• Financial Analysts
• Investment Advisors

Training Duration

• 2 days (14 hours)

Training Program

The Fundamentals of Asset Management

I. Fundamental Principles of Portfolio Management

• Modern Portfolio Theory by Markowitz
• Concepts of Return, Risk, and Correlation

Case Study:

Reading and analyzing an efficient portfolio frontier

II. Asset Management Ecosystem

• Asset Management Firms and UCITS
• Custodian
• Centralizing Agent
• Prime Broker
• Distributor

Quiz

III. Different Investment Approaches

• Active Management
• Passive Management
• ESG Investing
• Islamic Finance

Quiz

IV. Portfolio Management and Asset Classes

• Equity Management
• Fixed Income Management
• Alternative Investments: Private Equity, Real Estate, and Commodities
• Hedge Funds: Equity, Relative Value, Opportunistic, Specialist

Case Study:

Analysis of a bond fund prospectus

V. Economic Cycles and Asset Classes

1. Recovery Scenario

• Asset Class Behavior
• Monetary and Fiscal Policy
• Yield Curve Behavior

2. Growth Scenario

• Asset Class Behavior
• Monetary and Fiscal Policy
• Yield Curve Behavior

3. Contraction Scenario

• Asset Class Behavior
• Monetary and Fiscal Policy
• Yield Curve Behavior

4. Recession Scenario

• Asset Class Behavior
• Monetary and Fiscal Policy
• Yield Curve Behavior

Case Study:

Analysis of the current economic cycle based on monetary policy and asset class behavior

VI. Performance Measurement Indicators for Portfolios

1. Equity Portfolio

• Brinson-Fachler Model
• Multi-Factor Model

2. Fixed Income Portfolio

• Duration Effect
• Yield Curve Effect

Case Study:

Examination and calculation of performance factors for an equity fund