During the 3 day course participants will learn how investment professionals deal with the challenges of asset allocation in constructing an international portfolio. The seminar will cover the principles of managing an international portfolio spread out across a number of investment classes. Participants will learn the theoretical underpinnings of asset allocation and diversification alongside other relevant topics such as diversification and rebalancing, strategic vs. tactical allocation, and benchmarking. There will also be the opportunity to practice with case studies which will give participants the familiarity with portfolio techniques used in the global investment markets.
Topics and Content
- Principles of asset allocation
– The process of selection of asset classes
– Volatilities and return distributions in markets
– Correlations between asset classes
- Modern Portfolio Theory and (MPT) Portfolio Optimization
– An introduction to MPT and asset allocation models
– Mean variance portfolio optimization – a hands-on example
– Criticisms of MPT and other approaches
- Implementation of portfolio
– Strategic vs. tactical approaches to asset allocation
– Benchmarking and tracking error objectives
– Obtaining market exposure: index, active managers, in-house or external
- Managing financial risk across different asset classes
– Overview of different derivative products
The purpose of this course is to enable participants to:
- To understand the main principles of managing a portfolio consisting of a number of different asset classes.
- Evaluate and implement different strategies for building a suitable asset allocation.
- Assess ways to manage the returns and risks inherent in an international portfolio.
Who should attend?
This course is designed for company directors and other professionals who wish to gain a greater understanding of how to manage an international investment portfolio. This could include treasurers and finance officials directly involved in managing assets, but also directors and staff who would gain from an enhanced knowledge of the main principles of asset allocation.