Portfolio Management

mlsmm2125  2022-2023  Mons

Portfolio Management
5.00 credits
30.0 h
None (at the master level)
Main themes
The goal of this course is to teach students the foundations of portfolio construction and performance measurement.
Key topics include:
  • Return and risk measurement (for equity, fixed-income, and derivative portfolios)
  • Portfolio construction and management techniques
  • Performance attribution and presentation standards
  • Private Wealth Management (Wealth Allocation Framework)
Learning outcomes

At the end of this learning unit, the student is able to :

1 At the end of this course, students will be able to:
  • calculate the risk and return of financial assets using a spreadsheet and the R software;
  • select the most apporpriate return and risk computation methods when evaluatinfg the portfolio management strategy followed by investor risk;
  • analyze the composition of the portfolio held by wealthy individuals when making any necessary recommendation for change;
  • assess the strengths and weaknesses of active and passive management strategies;
  • construct and evaluate one's portfolio by selecting and combining several securities.
  • Key concepts
    • Some useful reminders
    • Market Efficiency Hypothesis
    • Key players in the industry
    • Markets & execution mechanisms
    • Classification of assets
    • Market indices
  • The portfolio management process
  • Modern Portfolio Theory and beyond
    • The importance of diversification
    • The pitfalls of Modern Portfolio Theory
    • The Capital Asset Pricing Model
    • Extensions to the CAPM
  • Performance Measurement
  • Investment strategies
    • Basic strategies
    • Strategic Asset Allocation
    • Tactical Asset Allocation & Security Selection
    • Style Investment
  • ESG issues in investing
    • Introduction to Sustainable and Responsible Investment
    • ESG financial ecosystem
    • Framework for sustainable finance
    • ESG strategies
Teaching methods
  • Lectures
  • Stock Trak portfolio management assignment
  • Exercises
Evaluation methods
Within this course, students' skills assessment is twofold :
• Ongoing assessment with mandatory homeworks (related to the Stock Trak portfolio simulation assignment) to deliver during the semester (50% of the final grade)
• Written exam with open questions in session (50% of the final grade)
The grade of the homeworks is no longer taken into account in case of second session (resit exam=100% of the grade).
Other information
  • Teaching material provided in English
  • Course taught in both French/English
  • Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (Vol. 10th Edition). New York: McGraw-Hill Education
  • Portfolio Management: An Overview by Robert M. Conroy, CFA and Alistair Byrne, CFA
  • Basics of Portfolio Planning and Construction by Alistair Byrne, CFA and Frank E. Smudde, CFA
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Learning outcomes
Master [120] in Management

Master [120] in Business Management

Master [120] : Business Engineering

Master [120] in Management

Master [120] : Business Engineering