Asset Management

Objectives

The Asset Management industry has more than tripled in the current century despite the several financial crises, reaching currently 80 trillion dollars of assets under management worldwide.
Understanding this industry is critical for any finance professional, since it plays a critical role in the setting of financial assets’ prices, in particular the risk free rates, cost of capital & multiples.
The purpose of the Asset Management course is to provide students with a fundamental understanding of asset management, focusing on an institutional approach to Portfolio Management, as well on the strategic management of asset management organizations.
Furthermore, the growing market and resulting competition in the wake of sustainable investing going mainstream has the welcome effect to compress fees for such products.

General characterization

Code

14516

Credits

3

Responsible teacher

Miguel Ferreira

Hours

Weekly - Available soon

Total - Available soon

Teaching language

Portuguese | English

Prerequisites

Available soon

Bibliography

• “The Future of Investment Management ", Ronald N. Kahn. (ISBN 978-1-944960-56-8) https://www.cfainstitute.org/en/research/foundation/2018/future-of-investment-management
• “What is Responsible Investment?”, United Nations Principles for Responsible Investment https://www.unpri.org/download?ac=6998

Teaching method

The course is partly based in tutorial, that outline the concepts, which are discussed in terms of conceptual and practical application in asset management. A high degree of case study method is applied.

Evaluation method

The assessment of this curricular unit is done together with the block of curricular units of the same area of knowledge. This assessment has 3 moments, which together define the final grade of the curricular unit:
• Individual exam with a weighting of 50% of the total mark
• Group work with a weighting of 35% of the total grade value
• Individual reflection-action exercise carried out at the end of the curricular unit, with a weighting of 15% of the total grade value. The set of individual action-reflection exercises is a journaling activity, which will constitute, at the end, a learning portfolio capable of synthesising the contributions of the Executive Master for that student.

Subject matter

The course will be structured around the following topics.
• Investment policy and process, strategies, performance evaluation and incentives;
• Asset Allocation, Diversification and Implementation issues
• Strategic Management of Asset Management Companies
• The investment management process
• Efficient frontier and the definition of optimal portfolio
• Constraints, policy statements, asset allocation
• Active Portfolio Management
• Environmental, Social and Governance factors, and ESG strategies in investments
• Development of soft skills in case discussion, investment decision arguments
• Ability to discuss and follow the development of the investment industry
• Practitioner view of the benefits of diversification and portfolio construction

Programs

Programs where the course is taught: