LEARNING OUTCOMES

LEARNING OUTCOMES Program: Master in Wealth Management
Professor: Georges Hübner
Title of course: Personal Portfolio Management
ECTS Credits (teaching days): 3
Learning Objectives: * Consider the client from the point of view of his/her preferences for risk and return * Determine the risk and return of various asset classes and explain where the risk premium comes from * Understand and master the notion of risk factors and how they explain portfolio returns * Master the Equity Risk Premium and be able to discuss its determinants and evolution * Understand the basics of prospect theory and its influences on the PB client * Link the MiFID “suitability” criterion to investor profiles and identify their dimensions * Identify and avoid the pitfalls in portfolio advice * Go beyond the notions of strategic and tactical asset allocation to better serve the client * Include the investor’s objectives and constraints in the portfolio construction process * Adequately report portfolio performance and explain it is a clear fashion to investors * Adapt the measurement of portfolio performance to the preferences of the investor * Distinguish the types of managerial skills that generate the portfolio returns
Topics covered: 1. Personal Portfolio Management I A. Investors’ preferences, risk and return 1. The notion of risk and the risk premium 2. Classical view of investors’ preferences 3. The Risk-return framework 4. Multi-factor models and style analysis 5. The equity risk premium nowadays B. The client-centric view of the investor 6. Biases and the prospect theory 7. MiFID and the investor’s profile 8. Risk perception and preferences

2. Personal Portfolio Management II C. Personal