An introduction to some of the latest developments in investment strategy

This module is designed to introduce you to some of the latest developments in investment strategy.

The majority of these new developments are grounded in academic research. This means that by completing this module, you’ll also become familiar with the underlying theories behind these new strategies.

The module will cover 6 key topics:

1. Asset Allocation 1.0

A detailed examination of the traditional approach to asset allocation.

2. Asset Allocation 2.0

An analysis of alternative approaches to asset allocation and the academic evidence surrounding the effectiveness of these approaches.

3. Risk-profiling

Building robust, multi-asset portfolios for clients is only the first stage in meeting clients’ needs. The next step is risk-profiling. What is the client’s capacity for loss? How do you determine their risk aversion levels? And how can this profiling be mapped back into a client portfolio?

4. New challenges to active fund management

An analysis of active fund management in light of the well-known scepticism that exists in academic literature about whether active fund managers can produce ‘alpha’.

5. New developments in passive fund management

An examination of the options available in passive fund management. For those investors that don’t believe in active fund management, passive fund management techniques have been an important alternative. Driven largely by academic research, the passive choice has expanded dramatically in the last few years.

6.  Liability Driven Investment

Many institutional investors now follow the principles of ‘Liability Driven Investing’, where traditional benchmarks have been replaced by the institution’s liabilities, where the main aim is to design an asset portfolio to meet these payments in full and on time.