Portfolio Management II

Certificate in Portfolio Management Basics

Building on Portfolio Management I, this series explains in greater detail how to value fixed income and equity securities, and explains the roles of global investing, emerging markets, alternative investments, indexation, and style investing. It illustrates specific ways to analyze portfolios, including the Sharpe Ratio and performance attribution analysis.

Who should take this course:		Junior portfolio managers, money managers, research analysts, client services staff, consultants, individual and institutional investors, private bankers and financial advisors, research staff members of pension boards and plan sponsors.
Prerequisites:		Portfolio Management I or equivalent knowledge.
Training Hours/CPE Credits:		8

Modules

Bond Valuation


Module Code	:	fimk_3003
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
This module will examine in depth the criteria for deciding if a bond is likely to yield a sufficient return.

Learning Objectives:

After completing this module, you'll be able to: Apply the concept of discounted cash flow, or compound interest, to bond valuation Recognize the significance of bond prices and how bond yields are calculated Explore strategies for deciding what bonds to buy Recognize how bond yield is linked to a benchmark Identify the four theories that explain the shape of typical bond yield curves

Portfolio Volatility and Duration


Module Code	:	fimk_3004
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
In this module, we're going to learn about volatility and duration. There's a few scary math equations on the horizon, but the concepts involved in this module are more important than the calculations themselves.

Learning Objectives:

After completing this module, you'll be able to: Define volatility and identify the factors that affect it. Identify duration strategies — (modified duration and convexity) and recall their benefits. Identify the best bonds when calculating convexity.

Advanced Equity Valuation Techniques


Module Code	:	inve_3008
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
In this module we're going to take a look at some advanced equity valuation techniques that use common models to assess stocks

Learning Objectives:

After completing this module, you'll be able to: Identify the major theories of portfolio management, including the Efficient Markets Hypothesis, Diversification and Correlation, the Efficient Frontier, Capital Asset Pricing Model, and Arbitrage Pricing Theory Discuss how diversifying a portfolio can reduce its risk Explain how risk and return vary for different combinations of assets, leading to the development of the efficient frontier Explain how specific risk differs from market risk, as postulated by the Capital Asset Pricing Model Use various risk measures to build a portfolio balancing risk and return

Advanced Portfolio Management Theory


Module Code	:	inve_3009
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
This module covers modern portfolio theory, arbitrage pricing and using risk measures to structure portfolios.

Learning Objectives:

Global Investing and Alternative Investments


Module Code	:	alin_3006
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
In this module, you'll learn about the advantages of global investing and about investing in emerging markets. We'll also talk about what alternative investments are, and why and how to incorporate them into a portfolio.

Learning Objectives:

After completing this module, you'll be able to: Identify the advantages, benefits, and risks of global investing and investing in emerging markets Recognize key alternative investments Describe the investor suitability criteria that a fund manager should consider before integrating alternative investments into a portfolio

Indexation


Module Code	:	inve_3010
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
This module covers indexation and indexation techniques.

Learning Objectives:

After completing this module, you'll be able to: Explain the benefits and disadvantages of using index funds for the investor and the portfolio manager Explain indexation techniques suitable for the passive investor

Style Investing


Module Code	:	inve_3011
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
To better understand the world of the style investor, this module will cover market segmentation and earnings growth theories, as well as the style categories in use today.

Learning Objectives:

After completing this module, you'll be able to: Compare the traits of top-down vs. bottom-up market segmentation Identify the role of equity market expectations in earnings growth Distinguish between value investing and growth investing Identify yield curves corresponding to the relative performance of growth and value portfolios Contrast stock and market traits that can influence style investing strategies

Evaluating Portfolio Performance


Module Code	:	inve_3012
Level	:	Intermediate
Training Hours/ CPE Credits	:	1

Module Description:
This module deals with evaluation portfolio performance.

Learning Objectives:

After completing this module, you'll be able to: Explain the importance of risk adjustment when comparing one portfolio to another Distinguish between Sharpe's ratio and Treynor's ratio Discuss performance attribution analysis Recognize the significance of Global Investment Performance Standards (GIPS)