Asset Allocation |Theory and Practice


Compare and contrast the features and functions of various asset classes such as stocks, bonds, commodities, and cash Analyse and compute how to maximise the return of investment portfolio while minimising potential risk through mix of investments into different asset allocations Explain the steps involved in establishing an appropriate asset allocation Discuss the benefits and risks of asset allocation Appraise and critique the risk and return methodologies that are required to structure portfolios for all market environments Structure a portfolio according to relative, absolute and unconstrained benchmarks Discuss the ongoing monitoring and rebalancing of the investment portfolio. Assess and evaluate how behavioural finance influence individuals’ perceptions and investment decisions

Training courses

Banking & Finance

Course Background

This course will take participants through the following:

Importance of asset allocation for portfolio performance

Compare function, advantages and disadvantages of Asset Allocation Strategies

Steps involved in establishing an appropriate asset allocation

Understand the four approaches to asset allocation – Strategic, Tactical, Integrated and Insured

The benefits and costs of rebalancing and not rebalancing a portfolio

Evaluate return and risk objectives in relation to asset allocation

Optimisation and expected utility theory – introducing risk aversion

Moving beyond Markowitz mean-variance optimisation and standard utility theory

Insights from Black-Litterman and Bayesian Approaches

Evaluate whether an asset class or set of asset classes have been appropriately specified

Evaluate the theoretical and practical effects of including additional asset classes in an asset allocation

Demonstrate the importance of performance evaluation

Components of portfolio evaluation: performance measurement, performance attribution and performance appraisal

Using Technical Analysis to compliment asset allocation and manage risk

How behavioural factors affect investment committee decision making and recommend techniques for mitigating their effects

This course is also available bespoke for larger groups and organizations.

Who is this course for?

All front line investment research and

Marketing staff

Public course dates for - Asset Allocation |Theory and Practice