Asset allocation ,Factor investing, Liability-Driven Investing, Goal-based Investing
Stay ahead of the game: Explore cutting-edge concepts and practices that will reshape the future of investment management and discuss them with a broad community of learners from the finance industry
Investors are facing problems, for which they need dedicated investment solutions, as opposed to off-the-shelf investment products. This recognition is giving rise to a whole new investment paradigm, taking on slightly different forms in individual versus institutional contexts: Liability-Driven Investing (LDI) in Institutional Money Management Goal-Based Investing (GBI) in Individual Money Management
Broadly speaking, investment management is the art, science and engineering of efficiently spending investors’ dollar and risk budgets to help them achieve their meaningful goals in the presence of uncertain market conditions
Meeting this challenge involves an efficient use by institutional or individual asset owners, and/or by investment managers acting on their behalf, of the three known forms of risk management within a comprehensive disciplined investment framework:
• Diversification, which is used to construct well-rewarded risky performance-seeking portfolios, that is portfolios enjoying an efficient harvesting of risk premia across and within asset classes;
• Hedging, which is used to construct truly safe portfolios, that is portfolios allowing for an efficient matching of factor exposure on the asset and the liability sides;
• Insurance, which is used to dynamically allocate to the risky performance portfolio and the safe hedging portfolio as a function of changes in market conditions as well as distance with respect to investors’ goals.
Click here to discover the Jacob-Levy 2018 JPM Best Paper Award on Proverbial Baskets are Uncorrelated Risk Factors!
Written by Professor Martellini and Vincent Milhau from EDHEC-Risk Institute
This state-of-the-art executive online course offers:
> Strength and relevance of academic research
> Insight from world-class thought leaders
> Cutting-edge investment research and industry practices
> An EDHEC-Risk certificate of completion
The digital material is made up of videos, lecture notes and technical supplements which cover a set of concepts and techniques that we believe are most relevant in asset allocation and portfolio construction decisions.
The material is divided in 3 parts or sections, each related to one form of risk management:
Each part is in turn divided into 3 chapters, hence the total number of 9 chapters and therefore 9 related videos, sets of lecture notes and technical supplements.
The recommended sequence of actions for each chapter is as follows: first watch the related video, taking the time to stop and take notes as needed, then read the corresponding lecture note, and dig further into the technical details with the supplements if you have time and appetite for it.
You will be able to discuss with your peers using discussion forums and put your questions to EDHEC-Risk Team in a very easy way. This is a chance to tap into a broad community of learners from the finance industry.
This seminar strikes a balance between exploration of new models and a study of applications. It is presented in a highly accessible manner by two experienced instructors who combine both academic and industry experience.
Week 1 – Diversification Module
Week 2 – Hedging Module
Week 3 – Insurance Module