Against the backdrop of “New Normal” financial conditions of historic low interest rates, bond yields combined with low property rental yields, and disappointing equity market returns, pension schemes are under great pressure. They need to deliver higher returns to meet their increasing liabilities due to the greater longevity of pension scheme members.
Asset allocation remains a critical consideration as pension schemes seek to leverage their natural liquidity in order to generate higher returns from longer term investment in new capital assets. The traditional approach of allocating to existing securities markets – which may only result in increasingly inflated prices for existing capital – is increasingly being called into question. Consequently, investors urgently need to acquire the knowledge and skills to confidently invest in asset classes such as Private Equity and Infrastructure assets.
Pension scheme Governors and Trustees with a fiduciary responsibility to act in the best interests of members have also increasingly been questioning the value added by external asset managers, noting their often disappointing performance, and taking on these responsibilities themselves.
There are many complex decisions to be made and this course will arm those responsible for investment of pension fund assets with the knowledge to make these critical choices with greater confidence.
On completion, you will be able to:
- Understand the principal asset valuation techniques
- Appreciate the limitations of public security investment
- Analyse the risks and return potential of the major asset classes
- Understand the tenets of modern portfolio theory
- Appreciate the potential benefits of, and risks pertaining to private market investment
- Analyse the key risks of different asset types
- Risk pricing across the principal asset classes
- Equity market analysis and valuation techniques
- The role of bonds and money market securities in pension funds
- Bond valuation and key risk measures including duration
- Analysing the risk and return profiles of Private Equity and Infrastructure investment
- Understanding asset-liability risk from a pension fund perspective
- The critical role of liquidity in contemporary investment
- Risk management and the role of derivatives
All courses will be conducted entirely in English. A proficient level of both spoken and written English is required by all delegates so that they are able to fully benefit from the course and participate in our interactive style of training.