Portfolio Management

mlsmm2125  2023-2024  Mons

Portfolio Management
5.00 credits
30.0 h
D'Hondt Catherine;
Main themes
  • Portfolio construction and management techniques
  • Modern Portfolio Theory and beyond
  • Performance measurement
  • Sustainable development goals, ESG factors (Environment-Social-Governance) & their integration when investing
Learning outcomes

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

1 With regard to the LSM Competency framework at the Master level, this learning unit contributes to the development of the following capabilities:
  • Corporate citizenship (1.1 + 1.2 + 1.3)
  • Knowledge and reasoning (2.2 + 2.4)
  • Scientific and systematic approach (3.1 + 3.2)
  • Project management (7.1 +7.2 +7.3)
At the end of this learning unit, students will be able to:
  • Calculate the risk and return of individual financial assets and of portfolios of financial assets;
  • Calculate the traditional performance measures and select the most appropriate measure(s) depending on the context;
  • Assess the strengths and weaknesses of active vs. passive management strategies;
  • Explain and apply the tenets of Modern Portfolio Theory (MPT);
  • Construct and evaluate their own portfolio building on MPT;
  • Explain and discuss ESG considerations in investing;
  • Explain the most frequent ESG strategies in asset management;
  • Apply to their own portfolio the integration of ESG scores.
  • Introduction
  • Key concepts
    • Some useful reminders
    • Market Efficiency Hypothesis
    • Key players in the industry
    • Market indices
  • The portfolio management process
  • Modern Portfolio Theory and beyond
    • Markowitz & the mean-variance efficient frontier
    • The pitfalls of Modern Portfolio Theory
    • The Capital Asset Pricing Model
    • The ESG-efficient frontier
  • Performance Measurement
  • Investment strategies
    • Basic strategies
    • Strategic Asset Allocation
    • Tactical Asset Allocation & Security Selection
    • Style Investment
  • ESG factors & Sustainable investing
    • Introduction to Sustainable and Responsible Investment
    • ESG financial ecosystem
    • ESG strategies
    • ESG ratings & the challenge of reporting
    • Policy & regulatory drivers in Europe
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