Portfolio Management in Practice, Volume 1 - Investment Management

Portfolio Management in Practice, Volume 1: Investment Management delivers a comprehensive overview of investment management for students and industry professionals.
 
As the first volume in the CFA Institute's new Portfolio Management in Practice series, Investment Management offers professionals looking to enhance their skillsets and students building foundational knowledge an essential understanding of key investment management concepts. Designed to be an accessible resource for a wide range of learners, this volume explores the full portfolio management process.
 
Inside, readers will find detailed coverage of:
* Forming capital market expectations
* Principles of the asset allocation process
* Determining investment strategies within each asset class
* Integrating considerations specific to high net worth individuals or institutions into chosen strategies
* And more
 
To apply the concepts outlined in the Investment Management volume, explore the accompanying Portfolio Management in Practice, Volume 1: Investment Management Workbook. The perfect companion resource, this workbook aligns chapter-by-chapter with Investment Management for easy referencing so readers can draw connections between theoretical content and challenging practice problems.
 
Featuring contributions from the CFA Institute's subject matter experts, Portfolio Management in Practice, Volume 1: Investment Management distills the knowledge forward-thinking professionals will need to succeed in today's fast-paced financial world.

List of contents

Preface xxi
 
Acknowledgments xxiii
 
About the CFA Institute Investment Series xxv
 
Chapter 1 Professionalism in the Investment Industry 1
 
Learning Outcomes 1
 
1. Introduction 1
 
2. Professions 2
 
2.1. How Professions Establish Trust 2
 
2.2. Professions Are Evolving 4
 
3. Professionalism in Investment Management 5
 
3.1. Trust in the Investment Industry 6
 
3.2. CFA Institute as an Investment Professional Body 6
 
4. Expectations of Investment Professionals 7
 
5. Framework for Ethical Decision-Making 9
 
5.1. Description of the Framework 9
 
6. Challenges for Investment Professionals 11
 
7. Summary 12
 
References 13
 
Practice Problems 13
 
Chapter 2 Fintech in Investment Management 15
 
Learning Outcomes 15
 
1. Introduction 15
 
2. What is Fintech? 16
 
3. Big Data 17
 
3.1. Sources of Big Data 18
 
3.2. Big Data Challenges 20
 
4. Advanced Analytical Tools: Artificial Intelligence and Machine Learning 20
 
4.1. Types of Machine Learning 22
 
5. Data Science: Extracting Information from Big Data 23
 
5.1. Data Processing Methods 23
 
5.2. Data Visualization 24
 
6. Selected Applications of Fintech to Investment Management 25
 
6.1. Text Analytics and Natural Language Processing 26
 
6.2. Robo-Advisory Services 27
 
6.3. Risk Analysis 29
 
6.4. Algorithmic Trading 30
 
7. Distributed Ledger Technology 30
 
7.1. Permissioned and Permissionless Networks 32
 
7.2. Applications of Distributed Ledger Technology to Investment Management 32
 
Summary 34
 
Practice Problems 35
 
Chapter 3 Capital Market Expectations, Part 1: Framework and Macro Considerations 37
 
Learning Outcomes 37
 
1. Introduction 38
 
2. Framework and Challenges 38
 
2.1. A Framework for Developing Capital Market Expectations 39
 
2.2. Challenges in Forecasting 42
 
3. Economic and Market Analysis 50
 
3.1. The Role of Economic Analysis 51
 
3.2. Analysis of Economic Growth 51
 
3.3. Approaches to Economic Forecasting 57
 
3.4. Business Cycle Analysis 61
 
3.5. Analysis of Monetary and Fiscal Policy 68
 
3.6. International Interactions 77
 
4. Summary 81
 
References 85
 
Practice Problems 85
 
Chapter 4 Capital Market Expectations, Part 2: Forecasting Asset Class Returns 93
 
Learning Outcomes 93
 
1. Introduction 94
 
2. Overview of Tools and Approaches 94
 
2.1. The Nature of the Problem 94
 
2.2. Approaches to Forecasting 95
 
3. Forecasting Fixed-Income Returns 96
 
3.1. Applying DCF to Fixed Income 96
 
3.2. The Building Block Approach to Fixed-Income Returns 98
 
3.3. Risks in Emerging Market Bonds 104
 
4. Forecasting Equity Returns 107
 
4.1. Historical Statistics Approach to Equity Returns 107
 
4.2. DCF Approach to Equity Returns 107
 
4.3. Risk Premium Approaches to Equity Returns 111
 
4.4. Risks in Emerging Market Equities 115
 
5. Forecasting Real Estate Returns 117
 
5.1. Historical Real Estate Returns 117
 
5.2. Real Estate Cycles 117
 
5.3. Capitalization Rates 118
 
5.4. The Risk Premium Perspective on Real Estate Expected Return 120
 
5.5. Real Estate in Equilibrium 120
 
5.6. Public vs. Private Real Estate 121
 
5.7. Long-Term Housing Returns 122
 
6. Forecasting Ex

About the author

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. CFA Institute has more than 155,000 members in 165 countries and territories, including 150,000 CFA® charterholders, and 148 member societies. For more information, visit www.cfainstitute.org.

Product details

• Authors: Cfa Institute
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 04.01.2021
• EAN: 9781119743699
• ISBN: 978-1-119-74369-9
• No. of pages: 1328
• Series: CFA Institute Investment Series; The CFA Institute Series
• Subjects: Non-fiction book > Politics, society, business > Money, bank, stock market; Social sciences, law, business > Business > Business administration; Portfoliomanagement, Finance & Investments, Finanz- u. Anlagewesen, Kapitalanlagen u. Wertpapiere, Investments & Securities