SCLE Revision: Asset & Fund Management (Module 10)

• Overview of the Global Fund Management Industry
• Overview of the Investment Process
• The Malaysian Fund Management Industry

The Investment Setting

• What is an Investment?
• The Rational Investor
• Measures of Return
• Measures of Risk
• Relationship between Risk and Return
• Factors Influencing the Required Rate of Return

• Life-cycle Investing
• Financing Planning Process
• Investment Policy Statement (IPS)
• Asset Class and Fund Selection
• Types of Investment Styles

Asset Allocation

• Asset Allocation
• Major Asset Classes and their Historical Return Profile
• Asset Allocation in the Investment Management Process
• Dynamic Asset Allocation Strategies
• Security Selection Process and Investment Management Strategies
• Portfolio Rebalancing

• Risk Aversion and Utility
• Portfolio Risks and Returns
• Capital Asset Pricing Model (CAPM)
• Arbitrage Pricing Theory (APT) and Multi-factor Models
• Efficient Market Hypothesis (EMH)

• Role of Equity Investment in a Portfolio
• Risk and Return
• Portfolio Construction
• Performance Benchmark and Evaluation
• Relationship to Other Asset Classes

Managing a Fixed Income Portfolio

• Role of Fixed Income in a Portfolio
• Traditional Investors and Investments in Fixed Income
• Historical Return of the Asset Class
• Fixed Income Fundamentals
• Fixed Income Portfolio Management Issues
• Performance Benchmark and Evaluation
• Relationship to Other Asset Classes
• Asset Backed Securities (ABS)

• What are Derivatives?
• Exchange-traded Derivatives
• Over-the-Counter (OTC) Derivatives
• Use of Derivatives in Portfolio Management
• Risk of Using Derivatives

• Real Estate Investments
• Collective Investment Schemes/Unit Trusts
• Private Equity Investments
• Non-traditional Asset: Infrastructure and Development Capital
• Special Purpose Acquisition Company (SPAC)
• Hedge Funds
• Gold
• Base Metals
• Commodities
• Art
• Business Trust

Managing International Investments

• Definition and Characteristics
• Why Invest Overseas?
• Risks Associated with International Investments
• Factors Influencing Returns
• Investment Strategies
• Currency Management
• Performance Benchmark and Evaluation
• Relationship to other Asset Classes

• Islamic Investments: Concepts and Contracts
• Islamic Capital Markets: Products and Services
• Malaysian Islamic Capital Markets
• International Islamic Capital Markets
• Guidelines Pertaining to Islamic Capital Markets
• Investment Asset Classes
• Specific Risks Pertaining to Islamic Investments

Portfolio Risk Management

• What is Portfolio Risk Management?
• Value at Risk (VaR)
• Risk Budgeting in Capital Allocation
• Specific Risk in Portfolios

• Portfolio Performance Measurement Tools
• Performance Presentation Standards

Investment Psychology

• The Psychology of Investing
• Psychological Traits and Errors
• Irrational Exuberance and Market Excesses
• Investment Professional Approach to Behavioural Finance