Lec%201%20-%20Invest%20Man%20Process

Lec%201%20-%20Invest%20Man%20Process - Lecture 1...

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BANK 3004 Portfolio and Fund Management © HB, Feb 2008 Lecture 1 Introduction BANK3004 Portfolio and Fund Management © HB, Feb 2008 r Portfolios Investors invest in portfolios of assets. » Portfolio = a collection of investment assets. » The securities held by an investor taken as a unit. » Think! Why do investors hold portfolios of assets? Key Questions: » How are “efficient” portfolios created? r What principles do we use? r What assets do we combine and how much of each? » How do we manage these portfolios? r Monitoring portfolios r Evaluating their performance Portfolios © HB, Feb 2008 Asset allocation schema Asset allocation decisions Security selection decisions Actual securities Cash Bonds Stocks Property Domestic Cash Bonds Stocks Property Foreign Overall portfolio Will derivatives form an asset class in their own right?
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BANK 3004 Portfolio and Fund Management © HB, Feb 2008 r Asset allocation decision Choosing among broad asset classes. Deciding how much of the portfolio to invest in each major asset class. r Security selection decision Choosing the particular securities to include in a portfolio. © HB, Feb 2008 Key Themes and Ideas Risk aversion Risk/Return trade-off Asset allocation Security selection Portfolio management Equities, bonds, cash, managed funds Use of derivatives in investments © HB, Feb 2008 Diversification Market efficiency Equilibrium pricing Portfolio concepts Optimal allocation
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BANK 3004 Portfolio and Fund Management © HB, Feb 2008 Background Knowledge Financial market instruments - characteristics Asset pricing Basic calculations – return and risk statistics Basic theory: TVM, market efficiency, characteristics of shares and bonds, derivatives diagrams, managed funds, basic economics and statistics © HB, Feb 2008 Course Overview Introduction 1. Investment Management Process Securities Markets 3. Equity Security Analysis 4. Fixed-Income Securities
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Lec%201%20-%20Invest%20Man%20Process - Lecture 1...

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