GLOBAL INVESTMENT PORTFOLIO CONSTRUCTION AND BIBF DEALING ROOM

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1 GLOBAL INVESTMENT PORTFOLIO CONSTRUCTION AND BIBF DEALING ROOM Leading Excellence in Banking & Finance

2 OUR PARTNERS CapitalWave provides truly dynamic educational simulation training platforms. CapitalWave s instructors, consultants and management team have a wealth of financial knowledge and experience and have designed, developed and delivered training programmes globally to many of these leading capital market banks and financial institutions Amplify Trading was founded in 2009 and has three core operations of business: 1. Proprietary trading across all major asset classes 2. Professional development using trading technology for live & simulation-based training 3. Market analysis and research for clients Part of Henley Business School, the practical application of finance theory is one of the ICMA Centre s key advantages. This integration of theory with practice is achieved through the use of the Centre s three state-of-the-art dealing rooms. With over 100 terminals, All equipped by Thomson Reuters, the terminals run the latest industry simulation software as well as the Centre s own simulation software platforms; ICTrader and StockTrak. Amplify Trading delivers training to the world s leading global banks using its proprietary trading and simulation platforms. The BIBF Dealing Room has a Live link to Amplify Trading s dealing room in London. Participants will be exposed to the Live trading activity of Amplify s trading team. The CISI is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and in a growing number of major financial centres around the world. Formed in 1992 by London Stock Exchange practitioners, we now have more than 40,000 members in 110 countries. Thomson Reuters is the world s leading source of intelligent information for businesses and professionals, combining industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets. SimArch was founded in 1999 and has developed simulations related to commercial banking businesses. The simulations model all key components of a commercial bank and its operating and regulatory environment. SimArch has conducted over 450 workshops in more than 40 countries. SELECTIVE CLIENTS OF BIBF S PARTNERS

3 The BIBF Dealing Room is a state of the art facility, the first of its kind in the MENA region, which powers technologyenabled learning by doing. The facility has over 20 trading stations, fully-equipped multimedia and market tools such as Bloomberg and Thomson Reuters Eikon. In order to provide cutting-edge training expertise and technology, BIBF has partnered with specialist training and technology providers in the UK and US. Our partners have a successful track record of providing training to bulgebracket global banks, including JPMorgan, Citigroup, HSBC, Morgan Stanley, Barclays Capital & Deutsche Bank. A comprehensive range of courses are offered, covering subjects of interest to professionals in the financial sector across Treasury, Investments, Capital Markets and Risk Management.

4 SIMULATION TRAINING IN PORTFOLIO AND INVESTMENT DEALING ROOM

5 GLOBAL INVESTMENT PORTFOLIO CONSTRUCTION AND MANAGEMENT During this 3-day practical course, candidates will be guided through the process of portfolio construction looking at global asset allocation across multiple asset classes by assessing current global macro conditions, sector analysis based on the business cycle as well as covering portfolio risk and performance analysis. LEARNING OUTCOMES By the end of this course participants will be able to: Work as a fund management team to determine an investment strategy and implement this by constructing a real-life investment portfolio by executing trades through an investment bank, using cutting-edge trading simulation software. Learn how to adjust investment strategies in response to live news flow and changing market conditions Learn how industry professionals construct balanced investment portfolios breaking the process down into the following areas: Asset allocation Sector & stock selection Portfolio risk management Portfolio performance measurement Learn about the current global macro-economic factors driving today s global markets. Learn the difference between the Macro approach and the Micro approach to portfolio construction. Learn how equity sector performance changes with the economic and business cycle. Learn how to measure portfolio performance and risk. Candidates will be asked to form small teams and operate as competing portfolio management teams. Each group will construct their own multi asset investment portfolios (including equities, bonds, commodities and FX), implemented through sophisticated software on a bespoke simulation-based investment platform in the BIBF Dealing Room. TARGET AUDIENCE This programme is designed to deliver an insight into the front office investment process of constructing and managing portfolios. It is relevant to: Investment analysts Portfolio managers Risk managers/analysts Dealers Traders Treasury sales Treasury, back & middle office COURSE STRUCTURE Each day will start with three hours of lecture delivery before candidates then form into small teams to progress through the process of constructing their own global multi-asset class investment portfolios through sophisticated software on a bespoke simulationbased investment platform in the BIBF Dealing Room.

6 GLOBAL INVESTMENT PORTFOLIO CONSTRUCTION AND MANAGEMENT DAY 1: THE TOP DOWN APPROACH : GLOBAL MACRO ASSET ALLOCATION Objectives: To introduce and submerge candidates into the world of modern day portfolio management. To explore the need for investment portfolios to be constructed in order to meet specific investment objectives. To cover in detail the top down asset allocation approach by covering the current global macro environment and exploring global economic and monetary policy differentials in order to pick geographic and asset class biases. 08:00 11:00 12:00 15:00 Introduction to managing an investment portfolio in order to meet specified investment goals. Exploring the different asset classes and the structure of global markets and how they function Analysis of contemporary macroeconomic drivers from the credit crunch to the Eurozone crisis and the global recovery Portfolio construction through the top down approach : Geographical and asset class allocation Candidates split into teams of 3 or 4 and use the simulation-based investment platform to begin the process of building their own investment portfolio by choosing an investment objective and picking geographic and/or asset biases The teams have the opportunity to react to incoming news flow and adjust their investment strategies Results of the simulations are revealed and analysed Candidates receive feedback on their performance, as well as coaching to identify their areas of personal strength and potential improvement DAY 2: THE BUSINESS CYCLE AND RELATIVE SECTOR PERFORMANCE Objectives: To explain the business cycle and how behavioural finance effects can disrupt the theoretical idea of linear GDP growth. To analyse previous recessions and track how sector performance can differ depending on which phase of the business cycle an economy is in. To demonstrate how to incorporate a sector-focused asset allocation to an investment portfolio based on business cycle analysis. To explore the monetary and fiscal policy tools used to attempt to smooth out the amplitude of the business cycle. To introduce the different sectors within the equity asset class. 08:00 11:00 12:00 15:00 Drivers of the Business cycle Explore the different equity sectors Analysing historical recessions in order to identify which sectors out-perform and under-perform at different stages of the business cycle. Explore current economic conditions and locate at which stage of the business cycle each major economy is in. Tech analysis: Support/Resistance/Trends Candidates analyse and use the simulation-based investment platform to select sector biases for the equity portion of their portfolios and continue to build their investment fund. Results of the simulations are revealed and analysed The teams have the opportunity to react to incoming news flow and adjust their investment strategies Candidates receive feedback on their performance, as well as coaching to identify their areas of personal strength and potential improvement

7 DAY 3: PORTFOLIO RISK AND PERFORMANCE MEASUREMENTS AND BEHAVIOURAL FINANCE Objectives: To cover how investors measure the risk and performance of their previously-built portfolios. Exploring hedging strategies to reduce risk. To explore trading psychology concepts and how the investment decision making process can be effected by emotional factors relating to the management of money. To introduce the topic of behavioural finance and how it can impact on market sentiment. To introduce the common investment strategies used by the hedge funds of today. 08:00 11:00 Portfolio risk management Hedging strategies to reduce risk exposure Measuring portfolio performance Impact of trading psychology on portfolio performance Behavioural finance Hedge fund strategies 12:00 15:00 Candidates use the simulation-based investment platform to finalise the construction of their investment portfolios Cumulative results of the simulations (covering 3 years of price action) are revealed and analysed The teams have the opportunity to react to incoming news flow and adjust their investment strategies Candidates receive feedback on their performance, as well as coaching to identify their areas of personal strength and potential improvement

8 BIBF plays a vital role in the training and development of human capital in the Kingdom of Bahrain. Our commitment to excellence has strengthened our position as the top provider of quality education across all major business disciplines. We serve as a partner to numerous world-class institutions; delivering thought leadership, research and advisory, assessment and training solutions in the areas of Accounting and Finance, Academics, Executive development, Banking, Leadership and Management, Insurance, Islamic Finance and Information Technology; resulting in a complete business solution. BIBF covers a wide spectrum of subject matter, with over 300 different courses offered to the financial and corporate market; tailor-made training solutions based on organisational requirements; specialised programmes taught by leading market specialists; and professional qualifications and degree programmes in partnership with major international organisations. BIBF continues to exceed global benchmarks for many of the qualifications it offers with its affiliates. Contact Details: Tel: dealing@bibf.com