Introduction

Mastering portfolio management is a critical skill for any finance professional looking to build, manage, and optimize investment strategies for long-term growth. This Portfolio Management Fundamentals training course provides a comprehensive and practical framework to navigate the complexities of the financial markets. Participants will learn how to make informed decisions by analyzing a wide range of assets, constructing diversified portfolios, and applying advanced risk management techniques to meet their clients' unique financial goals.

This intensive 10-day program is designed to transform theoretical knowledge into actionable skills. Through a blend of foundational principles, real-world case studies, and hands-on exercises, you will gain a deep understanding of portfolio construction, performance evaluation, and asset allocation. Whether you are new to the field or looking to formalize your expertise, this course will equip you with the tools to build a successful and sustainable career in portfolio management.

Duration: 10 Days

Target Audience

• Aspiring financial advisors and portfolio managers
• Professionals in investment banking and wealth management
• Individuals preparing for the CFA, CFP, or other financial certifications
• Students in finance, economics, or business programs
• Financial analysts and researchers
• Anyone looking to manage their personal investments more effectively
• Professionals in corporate finance and treasury
• Risk management specialists
• Investment product developers
• Retirees and individuals seeking to preserve and grow their capital

Objectives

• Understand the core concepts of modern portfolio theory.
• Learn to conduct a thorough financial market analysis.
• Master the process of portfolio construction and asset allocation.
• Develop skills for effective risk management and performance evaluation.
• Analyze various types of investment assets, including stocks, bonds, and alternatives.
• Understand the impact of economic and geopolitical factors on portfolios.
• Learn to use financial modeling and quantitative analysis.
• Create and implement investment policy statements.
• Apply ethical standards and regulatory frameworks in portfolio management.
• Gain a practical understanding of behavioral finance and its impact on investors.

Course Modules

Module 1: Introduction to Portfolio Management

• The definition and objectives of a portfolio.
• An overview of the investment process.
• The concept of risk and return.
• An introduction to modern portfolio theory (MPT).
• The role of a portfolio manager.

Module 2: Asset Classes and Investment Vehicles

• Stocks, bonds, and cash equivalents.
• Real estate, commodities, and private equity.
• Mutual funds, ETFs, and hedge funds.
• Understanding derivatives and structured products.
• The characteristics and risks of each asset class.

Module 3: Risk and Return Measurement

• Calculating historical and expected returns.
• Measuring volatility and standard deviation.
• The concept of correlation and diversification.
• Understanding beta and its role in a portfolio.
• Using Sharpe ratio and Sortino ratio for performance analysis.

Module 4: Modern Portfolio Theory (MPT)

• The efficient frontier and optimal portfolios.
• The Capital Asset Pricing Model (CAPM).
• The concept of systematic vs. unsystematic risk.
• Constructing a diversified portfolio.
• Criticisms and limitations of MPT.

Module 5: Portfolio Construction and Asset Allocation

• The strategic vs. tactical asset allocation approach.
• Active vs. passive investment strategies.
• Top-down vs. bottom-up security analysis.
• Tailoring a portfolio to client needs.
• Rebalancing and its importance.

Module 6: Behavioral Finance

• An introduction to investor psychology.
• Cognitive biases and their impact on investment decisions.
• The role of emotions in the market.
• Overcoming common behavioral pitfalls.
• Nudging investors toward rational decisions.

Module 7: Macroeconomic Analysis

• The impact of inflation and interest rates on portfolios.
• Understanding business cycles and their phases.
• The role of central banks and fiscal policy.
• Analyzing key economic indicators.
• The influence of geopolitical events.

Module 8: Fixed-Income Securities

• The characteristics of bonds and their valuation.
• Understanding duration and convexity.
• Managing interest rate risk.
• An overview of the yield curve.
• Constructing a bond portfolio.

Module 9: Equity Securities Analysis

• Fundamental vs. technical analysis.
• Using financial statements to evaluate companies.
• The importance of valuation models.
• Understanding different equity strategies.
• The role of market capitalization and sectors.

Module 10: Alternative Investments

• An introduction to hedge funds and private equity.
• Investing in real estate and commodities.
• The benefits and risks of alternative assets.
• The role of due diligence.
• The liquidity and lock-up periods of alternatives.

Module 11: Portfolio Performance Evaluation

• Calculating and interpreting portfolio returns.
• The use of benchmarks for comparison.
• Performance attribution analysis.
• The role of risk-adjusted returns.
• Presenting performance reports to clients.

Module 12: Risk Management

• The various types of portfolio risk.
• Techniques for managing credit and liquidity risk.
• Using derivatives for hedging.
• Value at Risk (VaR) and other risk metrics.
• Stress testing and scenario analysis.

Module 13: Investment Policy Statement (IPS)

• The purpose and components of an IPS.
• Defining client objectives and constraints.
• Setting appropriate risk tolerance levels.
• Establishing investment guidelines.
• Regular review and update of the IPS.

Module 14: Quantitative Analysis

• Using statistical tools for portfolio analysis.
• An introduction to regression analysis.
• The role of Monte Carlo simulation.
• Backtesting investment strategies.
• Building a basic financial model.

Module 15: Ethics and Regulation

• Fiduciary duty and professional conduct.
• Understanding regulations like the Investment Advisers Act.
• The importance of transparency and disclosure.
• Avoiding conflicts of interest.
• The role of professional certifications and associations.

Module 16: Building Your Investment Career

• Developing a personal investment philosophy.
• Practical career advice for finance professionals.
• Networking and professional development.
• How to communicate effectively with clients.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.