Portfolio & Wealth Management

While investment strategies may vary considerably, the principles behind sound portfolio management remain constant. Within any strategy, asset selection and portfolio construction involve many considerations and risk factors. The success of any strategy depends on how well risks are managed in the pursuit of an investment mandate. Strategies can also be implemented through a variety of investment vehicles including private funds, separate accounts, mutual fund and exchange traded products. More broadly, wealth management brings together the functional areas of personal and business wealth management that go well beyond the scope of a basic financial planner. Finance IQ offers courses that focus on specific portfolio management disciplines, various investment vehicles and also a wealth management suite.

Introduction to Portfolio Management

Equity Portfolio Management

Wealth Management Suite

Mutual Funds: Updating their role in asset management

Exchange Traded Funds (ETFs): Investment vehicles for a modern portfolio

Introduction to Portfolio Management

While investment strategies may vary considerably, the principles behind sound portfolio management remain constant. This two day course, delivered by a Chartered Financial Analyst and successful M&A hedge fund manager, offers participants a thorough introduction into the theory, concepts and practical considerations related to portfolio management. Drawing from almost two decades of industry experience, the instructor will provide numerous real-world examples that help illuminate how portfolios are designed, constructed, managed and hedged. Participants will also be afforded opportunities to design and test their own portfolio ideas through numerous exercises and case studies.

Learning Objectives

Outline/Topics:

Describe and calculate common measures of portfolio return and risk
Discuss the derivation and use of the efficient frontier
Describe and calculate the impacts of diversification on a given portfolio
Define and distinguish between strategic and tactical asset allocation decisions
Critique and identify risks associated with various investment strategies

Describe issues related to portfolio execution and other trading costs
Discuss methods and rules regarding monitoring and rebalancing
Explain considerations specific to equity and fixed income portfolios, respectively
Describe techniques to hedge unique risks
Discuss how to assess portfolio performance and attribution

Duration: Two days

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 14.0 CPE Credits

Day 1

Capital market concepts
Asset Allocation decision
Execution of portfolio decisions
Equity portfolio considerations & issues
- Approaches to equity valuation
- Equity risk premium
- Structuring an equity portfolio
- Use of indexes
- Indexing: strengths and weaknesses
- Strategy types
- Hedging and other risk management techniques
- Portfolio optimization
- International and currency issues

Day 2

Fixed income portfolio considerations & issues
- Framework and process
- Managing portfolios versus an index
- Managing portfolios against liabilities
- Unconstrained funds
- Taxable versus non-taxable
- Fixed income strategies
- Fixed income risk exposures
- Hedging and risk management
Portfolio monitoring & rebalancing
- Benefits and costs of rebalancing
- Rebalancing disciplines and trading rules
Performance evaluation & attribution
- Components of performance evaluation
- Statistical measures of performance
- Benchmarks
- Performance attribution
- Performance appraisal
- Manager selection

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Equity Portfolio Management

Equities constitute a significant part of many investment portfolios. Long-term stock market performance relative to that of bonds suggests that equity investments underpin the growth of diversified investment portfolios. Managing equity portfolios successfully requires a deep understanding of modern portfolio management techniques as well as a solid and tested approach to valuing stocks. This two day course offers participants a thorough introduction into the world of equity portfolio management.

The program will begin with a review of modern portfolio theory that will serve as a foundation from which participants will explore various traditional and alternative equity-related strategies. Participants will also learn about the main approaches to equity valuation and the methods to conduct a thorough evaluation of an equity manager’s performance.

Learning Objectives

Outline/Topics:

Explain capital market expectations and asset allocation
Describe portfolio optimization
Evaluate risk management techniques
Identify and critique different categories of equity strategies

Compare active and passive investment strategies
Describe how factor models are used in asset allocation
Discuss recent advances in behavioral finance, risk management and alternative investments related to equity portfolio management
Discuss how to assess portfolio performance and attribution

Duration: Two days

Program Level: Basic

Prerequisites: There are no prerequisites

Day 1

Capital market concepts
Value concepts and techniques
Asset Allocation decision
- Strategic versus tactical
- Capital market expectations
- Passive versus active management
- Investment strategies
Execution of portfolio decisions
Equity strategies (part I)
- Structuring an equity portfolio
- Information into investment ideas
- Use of indexes
- Indexing: strengths and weaknesses
- Traditional strategies

Day 2

Equity strategies (part II)
- Alternative strategies
- Short selling
- Hedging
- Risk management techniques
- Portfolio optimization
Portfolio monitoring & rebalancing
- Benefits and costs of rebalancing
- Rebalancing disciplines and trading rules
Performance evaluation & attribution
- Components of performance evaluation
- Statistical measures of performance
- Benchmarks
- Performance attribution
- Performance appraisal
- Manager selection

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Wealth Management Suite

This six–day Wealth Management Suite is designed to provide a detailed review of the real world considerations that are needed to connect all the singular functional areas that comprise personal and business wealth management. The program opens with an overview of the wealth management industry and description of the major categories of clients. The second phase of the program helps participants understand the building blocks of a diversified portfolio by exploring various investable markets including equities, fixed income, alternatives, commodities, derivatives and real estate. The third part of the program explores how investment portfolios are designed, constructed, managed and hedged. The fourth section focuses on the issues of taxes, concentrated single-asset positions, insurance and estate planning in a global context. The program concludes with discussions of typical client behavioral biases and how wealth teams are assembled.

Learning Objectives

Discuss the current state of the wealth management industry and explain the economics of the wealth advisor business
Identify and describe the main securities in the equity, debt and derivatives markets
Describe how various markets are structured and how they operate
Identify the key risks associated with equity, debt and derivatives securities
Describe and calculate the impacts of diversification on a given portfolio
Define and distinguish between strategic and tactical asset allocation decisions
Critique and identify risks associated with various investment strategies
Describe issues related to portfolio execution and other trading costs
Discuss methods and rules regarding monitoring and rebalancing
Explain considerations specific to equity and fixed income portfolios, respectively
Describe techniques to hedge unique risks
Discuss how to assess portfolio performance and attribution

Duration: Six days

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 42.0 CPE Credits

Prepare an investment policy statement for wealth clients
Explain different types of taxes and tax regimes and how they affect wealth generation
Explain how taxes affect investment risk and influence returns
Describe situations and solutions for clients with concentrated single-asset positions
Discuss the purpose of estate planning and explain basic concepts of estate planning including estates, wills, trusts
Evaluate the after-tax benefits of basic estate planning strategies, including generation skipping, spousal exemptions, valuation discounts and charitable gifts
Explain the basic structure of a trust and discuss the differences between revocable and irrevocable trusts
Discuss commonly recognized behavioral biases and implications for financial decision making
Identify and evaluate a client’s behavioral biases
Evaluate how behavioral biases affect investment policy and the asset allocation decision and
Discuss how behavioral factors affect adviser-client interactions
Explain the roles of outside service providers in assembling a wealth management team

Outline/Topics:

Day 1

Wealth managers and clients
Wealth management
- Industry overview
- Functions and services of a wealth manager
- Wealth manager business models
Clientele
- High net worth individuals
- Ultra-high net worth
- Family offices
- Endowments and foundations
- Overview and comparison of wealth client needs
Finance primer

Day 2

Capital markets overview
Equity securities
- Common and preferred stock
- Rights/warrants
- Derivatives
Equity markets
- Traditional versus Alternative
Fixed income securities
Fixed income markets
- Treasury market
- Yield curve
- Municipal bonds
- Asset backed securities
- Money markets and instruments
Derivatives
- Forwards
- Futures
- Options
- Swaps
- Credit derivatives
- Structured products

Day 3

Foreign exchange
- Markets and forex-related products
Alternative investments
- Hedge fund strategies
- Private equity and venture capital
- Private placements
- Real estate
- Physical assets
- Infrastructure
- Due diligence of alternative investments
- Risks in investing in alternative investments
Fund types and investment vehicles
- Closed and open-end funds
- Exchange traded funds
- Structured products
- Target funds
- Liquid alternatives

Day 4

Portfolio management concepts
Asset Allocation decision
- Strategic and tactical asset allocation
- Capital markets expectations
- Market and other risk factors
- Passive versus active management
- Investment strategies and mandates
Execution of portfolio decisions
Equity portfolio considerations & issues
Fixed income portfolio considerations & issues
Portfolio monitoring & rebalancing
Performance evaluation & attribution
Investor Policy Statement
- Return objectives
- Risk objectives
- Constraints
- Asset allocation
- Statement

Day 5

Taxes and Private Wealth Management
- Income taxes and Alternative Minimum Tax
- Taxes on investment income
- Pass-through and other legal entities
- Charitable contributions and other deductions
- Tax efficient investment accounts
- Basic tax deferral strategies
Concentrated Single-Asset Positions
- Closely held businesses
- Single company stock and stock options
- Private business equity
- Real estate holdings
Estate Planning
- Estate plan evaluation
- Planning for heirs
- Lifetime gifts vs. transfers at death
- Charitable giving
- Estate, gift and generation skipping taxes
- Types of trusts
- Cross-border estate planning
Insurance and Protected Assets
- Protected assets and assets at risk
- Insurance coverage types including collectibles and unique assets
- Life insurance
- Asset protection strategies and entities

Day 6

Behavioral Biases
- Behavioral versus traditional perspectives
- Decision making
- Market behavior and portfolio construction
- Categories of biases
- Emotional biases
- Investment policy and asset allocation
Behavioral Finance and Investment Processes
- Classifying clients into types
- Behavioral factors affecting adviser-client relationships
- Portfolio construction
- Committee decision making
Additional Service Providers
- Accounting services
- Employers
- Legal
- Investment managers and consultants
Client Management
- Revisiting the Investor Policy Statement
- Managing expectations
- Family dynamics
- Assembling a wealth team

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Mutual Funds: Updating their role in asset management

This half-day program provides participants with a detailed overview of how mutual funds are structured, managed and distributed to the investing public.

Participants will gain a thorough understanding of the various types of mutual fund products available and also the main regulations that govern the industry today. The course will be highlighted with a review of some of today’s most popular mutual funds where participants will be able to discuss and analyze issues related to fee structures, share classes, performance and investment strategies. The course will conclude with a comparison of mutual funds to other types of investment funds available to the public.

Learning Objectives

Outline/Topics:

Describe how a mutual fund company works and the role mutual funds play in investor portfolios
Distinguish among various types of mutual funds
Identify and assess the key characteristics of mutual funds
Compare mutual funds to other types of investment funds
Discuss emerging trends in the mutual fund industry

Duration: ½ Day

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 3.0 CPE Credits

1 Day Program

Introduction and Overview of the Mutual Fund Industry
- Traditional role of mutual funds in asset management
- Open-end versus closed-end mutual fund structures
- Compliance and regulations
- Distribution channels
Mutual Fund Characteristics
- Net asset value
- Investment strategies
- Investment teams
- Share classes and fee structures
- Benchmarks
- Performance criteria
- Ratings
Issues for Mutual Fund Investors
- Buying and selling mutual funds
- Dividends and distributions
- Tax issues
- Mutual funds versus exchange traded funds
- Mutual funds versus hedge funds
- Mutual funds in a contemporary portfolio

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!

Exchange Traded Funds (ETFs): Investment vehicles for a modern portfolio

Over the last 15 years, exchange traded funds (ETFs) have been one of the fastest growing areas of the investment world and today hold over $2 trillion in assets. Far from being a simple and inexpensive means to gain access to the market for the individual investor, ETFs are used by many sophisticated, institutional practitioners in a wide variety of investment portfolios. This half-day program explains in detail the construction of various types of ETFs and compares their use to other investment vehicles including mutual funds, hedge funds and managed futures. The course will also highlight how portfolios are both constructed and hedged with these flexible investment vehicles.

Learning Objectives

Outline/Topics:

Identify the types of ETFs available in the market today
Describe the characteristics common to most ETFs
Discuss the strengths and weaknesses of ETFs
Compare index-based versus actively managed ETFs
Explain the construction and use of custom ETFs
Describe how portfolio management and hedging programs use ETFs
Compare ETFs to other investment vehicles

Duration: ½ Day

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 3.0 CPE Credits

1 Day Program

Overview of ETFs
- Definition and types
- Common ETF structures
- Features and characteristics
- Sponsors and market makers
- Main categories
- Strengths, weaknesses, risks
Passive vs. Active ETFs
- Index tracking and passive ETFs
- Actively-managed ETFs
- Custom ETFs
Portfolio Management with Hedging
- Portfolio construction and management
- Hedging applications
ETF Issues
- Trade processing
- Valuation and tracking
- Short selling
- Derivatives-based ETFs
- International considerations
- Redemptions
- Dividends and taxation
- Comparison to mutual funds, hedge funds, managed futures
- Industry growth and outlook

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (646) 244-5190 or [email protected]!