Dynamique Australasia and Europe DKSAM12005
Module No 1 Module Title Business & Process Fund Management Main File Ref AM1Mod0101
Knowledge Systems for the Global Investment Industry
GROUP
FRONT OFFICE
KS Content What we must achieve.
INTRODUCTION TO FUND MANAGEMENT- ASSET MANAGEMENT LEVEL 1
Sub-file Ref AM1Mod010101 AM1Mod010102 AM1Mod010103 AM1Mod010104 Sub-File Content Match Pension Fund Liabilities then achieve Benchmark Plus++ Complete Investment Process Model Portfolio Construction Performance Measurement – Testing the Investment Process Time Investment Differentials Liquidity Minimal Decision Making Use of Risk Defining Risk Efficient Markets Defined Contribution V Defined Benefit Success is down to Client Relationships Measuring Results Implementing Policy Front and Back Office Functionalities AM1Mod020101 AM1Mod020102 AM1Mod020103 AM1Mod020104 AM1Mod020105 AM1Mod020106 AM1Mod020107 3 Critical Areas Funds Future Value Normal Distribution Identifying Optimal Portfolio Utility & Wealth Time & Diversification Investment Horizons Components of a good Risk/Return Model Measuring Risk Components of Corporate Risk Measuring Market Risk CAPM APM Models of Default Risk Bond Ratings Tax Considerations for Investors Assumptions Template Capital Gains the Big Challenge Taxes have to be paid sometime! Policy Asset Allocation Understanding Risk Careless Cash TAA -Tactical Asset Allocation
AM1Mod0102
Investment Setting
AM1Mod010201 AM1Mod010202 AM1Mod010203 AM1Mod010204 AM1Mod010205 AM1Mod010206 AM1Mod010207 AM1Mod010208 AM1Mod010209 AM1Mod010210 AM1Mod010211
AM1Mod0103 2 Client & Fund Manager Relationship AM1Mod0201
Business of Fund Management Risk and client needs
AM1Mod0202
Models of Risk
AM1Mod020201 AM1Mod020202 AM1Mod020203 AM1Mod020204 AM1Mod020205 AM1Mod020206 AM1Mod020207 AM1Mod020208
AM1Mod0203
Tax An Additional Cost For Investors
AM1Mod020301 AM1Mod020302 AM1Mod020303 AM1Mod020304
3
Asset Allocation Decision
AM1Mod0301
Active Asset Allocation
AM1Mod030101 AM1Mod030102 AM1Mod030103 AM1Mod030104
3
Asset Allocation Decision
AM1Mod0302
Hedge/Absolute Return Funds
AM1Mod030201 AM1Mod030202
Not a gardening activity! American- Antipodean Responsible
Dynamique Australasia and Europe
Knowledge Systems for the Global Investment Industry
AM1Mod030203 AM1Mod030204 AM1Mod030205 AM1Mod0303 Trade Execution, Transparency & Trading Risk AM1Mod030301 AM1Mod030302 AM1Mod030303 AM1Mod030304 AM1Mod030305 AM1Mod030306 AM1Mod0304 SRI Socially Responsible Investing AM1Mod030401 AM1Mod030402 AM1Mod030403 AM1Mod030403 Insert AM1Mod030404 AM1Mod030405 4 Institutional Investment AM1Mod0401 Actuaries & Investment Consultants
Commonalities to all Hedge Funds Simple Hedge Fund Strategy Latest Hedge Fund Performance Indices Portfolio Execution Untangling Transaction Costs Components of Trading Costs Management of Trading Costs Broker's Perspective Risk analysis for Traders Rising importance of in UK & global markets Performance Costs of Ethical Investing FTSE 4GOOD GLOBAL Index Index Constituents Most popular companies for eithical funds SRI in and around Europe Strategic Asset Allocation Fund Manager Selection Leading Actuaries and Investment Consultants Competitive Market and Bundling of Services Who is taking what “out of the pie?”
AM1Mod0402
Fund Managers
Business economics of the Fund Management Industry Buying Process by Pension Funds Role played by Investment Consultants Strength of Branding Passive Investing Competition and Optimal Decisions Risk Budgeting and Investment Objectives Performance still a Problem
AM1Mod0403
SIPS - Statement of Investment Principles
Decision making Clear objectives Focusing on Asset Allocation Expert Advice Explicit Mandates Activism Performance Measurement Transparency Regular Reporting
AM1Mod0404
DC, Stakeholder & Pension Fund Valuations
Important investor implications for DC Schemes Move from final salary to DC Schemes Impact of FRS17 on company valuations Stakeholder pensions – not a great success! Pension Fund Valuations Projections for Total Pension Assets
4
Institutional Investment
AM1Mod0405
Pooled Investment Vehicles
AM1Mod040501 AM1Mod040502
Unit Trusts/Mutual Funds OEICS- Open -Ended Investment Companies
Dynamique Australasia and Europe
Knowledge Systems for the Global Investment Industry
AM1Mod040503 AM1Mod0406 Private Equity
Split Level Trusts Venture Capital – Returns and Exit Plans Start-Up & Other Early Stage Funding Expansion:Refinancing Bank Debt:Secondary Purchase Trade Organisations : EC Venture Capital by Country Disclosure–Giving away a Competitive Advantage Non-Venture Private Equity- MBO/ MBI/Public to Private Private Equity’s Data Drawback+Institutional Résistance Infrastructure Funds
5
Attribution Analysis
AM1Mod0501 AM1Mod0502
Pre-amble Attribution Analysis Application of Attribution Analysis (AA) AM1Mod0502 Insert s/s AM1Mod050301 AM1Mod050302 AM1Mod050303
Selectivity: Risk: Timing Basic AA Model Clarifying the esoteric - AA Value Fund Managers/ Rainbow Pension Fd High Life Investment Consultants Total Market Contribution Currency,Market & Stock Selection Contribution Return Attribution:SIPEM:4 Simple Strategies GAT Bond Model Accurate, Informative, Simple Bond Benchmarks Dietz Method Two Variations of MWR Total Return Internal Rate of Return AM1Mod060301 AM1Mod060302 AM1Mod060303 AM1Mod060304 Driving Shareholder Power The when and how to 77 global market proxy voting Changes to Shareholder Voting Process US style - Sarbanes-Oxley Act & Creative Accounting GIPS - Global Investment Performance Standards Vision Statement Objectives Components
AM1Mod0503
Total Contribution & Return Attribution
AM1Mod0504 6 Risk Management & AM1Mod0601 AM1Mod0602 Corporate Governance AM1Mod0603
Bond Attribution Money weighted returns (MWR) Time weighted returns (TWR) Corporate governance
7
Performance Standards &
AM1Mod0701
Why a global standard (GIPS)?
AM1Mod0702 8 Investment Styles AM1Mod0801
Key characteristics GIPS Active funds
8 Key GIPS characteristics Guidelines and Effective Timetable Markets and Costs Beat the Market “3” kinds of Bets
AM1Mod0802
Intrinsic & Relative Valuation Models
Basics of Intrinsic Valuation Relative Valuation Models Standardised Values and Multiples Earnings Multiples Book Value or Replacement Value Multiples “TobinsQ” Revenue Multiples
AM1Mod0803
Technical analysis
Basis for Approach Types of Technical Indicators Limitations of Technical Analysis
Dynamique Australasia and Europe
Knowledge Systems for the Global Investment Industry
Private Information AM1Mod0804 Passive Funds AM1Mod080401 AM1Mod080402 AM1Mod080403 9 Identifying Shareholder Value AM1Mod09 Measures for identifying value creation AM1Mod0901 AM1Mod0902 AM1Mod0903 AM1Mod0904 AM1 JG Jargon Busting Building a tracker fund and cost advantages Methods of indexation - optimisation, full replication, stratified sampling, synthetic Tracking error - controlling the investment process CFROI- Cash Flow Return on Investment EVA- Economic Value Added EVA- Delivering Superior Returns to Shareholders MVA- Market Value Added