Asset Allocation is the core determinant of an investment portfolio performance and is therefore a crucial step of the investment process.
Yet, paradoxically, it is not at all the main business proposal of the investment management industry. At the retail level, it is often limited to generic allocations corresponding to risk profiles. At the institutonial level, asset managers have mostly been pigeon-holed as specialists leaving the asset allocation advice to consultants to the board. Also, finance programs do not place Asset Allocation at the forefront of the courses provided.
This course’s objective is to clarify the objectives and methods used to define an adequate if not optimal asset allocation. Theories are presented but the major focus is on real-life applications.
The course is divided in 6 sections
- Setting the stage: the asset management framework
- Constructing an investment philosophy by justifying beliefs
- Defining Long Term Capital Market Assumptions
- Structuring a Strategic Asset Allocation
- Shorter term forecasts and Tactical Asset Allocation
- Performance analysis and process review
Each section is composed of
- A preview of Learning Objectives
- A powerpoint presentation
- A file containing documentation (mostly recent and from the financial industry)
- Tools (Online, Excel or outline of decision making process)
- Questions for self-evaluation