:Module One
The Fundamentals Of Portfolio Management
An overview of investment strategy, capital markets and modern portfolio theory
Essential Finance Principals
a) An introduction to financial assets and capital markets
b) Review of the objectives of corporate financial decision making
c) The basics of asset valuation
d) PV and FV, Rates of Return, Time value of Money
e) Reading financial reports (balance sheets, fund reports, etc)
Portfolio Elements
a) The role of the advisory (asset management, institutions, fund managers, etc)
b) Risk reward
c) Allocation strategies
d) Sector, market and other methods of classification
e) Regulations and constraints
:Module Two
Portfolio Types And Construction
Part 1 – Portfolio Types And influences
a) Asset classes
b) Geography, sector
c) Macro economic factors
Part 2 - Portfolio Design, Planning And Execution
a) Market planning, analysis and targeting
b) Segmentation methods
c) Funding methods
d) Manufacturing (In-house or outsourced)
e) Distribution
f) Asset management
Module Three:
Valuing Stocks, Bonds And Funds – Pricing The Risk/Return Relationship
Part 1 – Valuation Methods
a) The value of a corporation, characteristics of debt and equity
b) Valuing debt, valuing equity, models of dividend growth
c) Understanding and applying PE ratios
Part 2 – Risk/Return
a) The nature of risk
b) Measuring total risk
c) More accurate pricing – variance calculations using a probability
d) distribution of returns
Part 3 – Diversification And Optimization
a) Diversification theory and the calculation of portfolio risk
b) Optimization of returns within a two stock / multi-stock portfolio
:Group Exercise
Case Study – Risk/Reward: Reviewing a series of portfolios and determining recommendations to your clients
:Module Four
Part 1 – MPT (Modern Portfolio Theory)
a) Market risk vs. unsystematic risk
b) Beta and the Capital Asset Pricing Model (CAPM)
c) Choosing an optimum portfolio
d) Calculating the cost of equity/debt capital
e) The Weighted Average Cost of Capital (WACC)
Part 2 – Portfolio Rebalancing And Asset Mix Techniques
a) Managing ongoing customer expectations
b) Correlation methods and expected returns
c) Strategic and tactical asset allocation
d) Portfolio performance appraisal
:Module Five
Capital Structure Policy And Dividend Policy
Part 1
a) Capital structure policy
b) Initial public offerings, rights issues and private placements of equity
c) Commercial bills and promissory notes
d) Financial, operating and leveraged leases
e) Modigliani and Miller and capital structure irrelevance
Part 2
a) Dividend policy
b) Payout and plough back ratios
c) Costs of issuing equity
d) Transaction costs and information asymmetry
:Group Exercise
Final Examination
The final examination will be in a Multiple-Choice format