FINA0084-1 : Estate and Financial planning

Study Programmes 2016-2017

FINA0084-1

Estate and Financial planning

Duration :

30h Th

Number of credits :

Master in management (120 ECTS)		5

Lecturer :

Laurent Bodson, Georges Hübner

Coordinator :

Georges Hübner

Language(s) of instruction :

English language

Organisation and examination :

Teaching in the first semester, review in January

Units courses prerequisite and corequisite :

Prerequisite or corequisite units are presented within each program

Learning unit contents :

The course extends and deepens the course "Investments and Portfolio Management" (IPM) for students having a finance major in management (BAM) or economics (E&F).
Students are expected to master to a large extent the core topics of IPM, which is a formal prerequisite, namely covering chapters 6-9, 15-16, 18-19, and 24-25 of the reference textbook (Brown & Reilly).
This course features in the framework of the CFA Institute University Recognition Program. It spans a significant portion of the CFA Programe Candidate Body of Knowledge (CBOK), and explicitly prepares for the CFA certification.
Course structure:
1. Profiling Investors and Managing Investor portfolios      a. Notions of Investor Profile: The Rational and the Behavioral      b. Management of Individual/Family Investor Portfolios (MIP Ch 2)      c. Management of Institutional Investor Portfolios (MIP Ch 3) including pension plans and employee benefit funds
2. Asset Allocation and Financial Planning      a. Steps in the Asset Allocation Process (MIP Ch 5)      b. Tax & Successoral Planning Issues in Asset Allocation
3. Calibrating the risk-return framework     a.Economic Analysis and Setting Capital Market Expectations (MIP Ch 4)    b. The Black-Litterman Framework 4. Portfolio Strategies      a. Equity Portfolio Management and Selection (MIP Ch 7)      b. Fixed Income Portfolio Management and Selection (MIP Ch 6)      c. Mutual funds, pooled funds and ETFs      d. Overlay strategies (inluding currency overlays)      e. Alternative Investments & Strategies: Hedge funds, Commodities, Real Estate, Private Equity, Distressed Securities, Closely-held companies and inactively traded securities and other Tangible Assets (MIP Ch 8)
5. Portfolio Construction and Monitoring      a. Executing and Rebalancing Portfolios (MIP Ch 10, 11)      b. Risk Management and Compliance (MIP Ch 9)      c. Performance Measurement and Reporting (MIP Ch 12, 13), including the presentation of GIPS

Learning outcomes of the learning unit :

The objective of the course is to allow students to handle "end to end" the financial planning process at large. The focus is set on understanding the investor's objective, constraints and profil in order to build an adapted solution regarding portfolio construction, management of flows, and risk and performance control.
Intended Key Learning Outcomes:
In concordance with the Key Learning Outcomes of the Master in Management Sciences, this course aims to enable the student to:
- Strategy: Establish a strategy in order to optimize the value chain of a company, an organization or a project * based on the analysis of its financial and economic context. * taking into account its political, social and societal context. * taking into account its legal constraints. * adopting the position of a specialist in the field of management of his / her finality. * demonstrating a critical mind and scientific precision. - Implementation: Take charge of the everyday management of a company, an organization or a project * implementing the strategy that was established for this company, organization or project. * in a holistic perspective, taking into account the interactions between its different functions. * capitalizing on the characteristics of a more and more digitalized world. * analyzing his/her managerial practice with a critical and ethical mind. - Control: Plan and implement the performance and quality control in a company, an organization or a project * in a holistic perspective, taking into account the interactions between its different functions. - Communication: Communicate efficiently, internally and externally, about a company, organization or project * in English. - Adaptability: Adapt his/her managerial practice to the needs of a fast-evolving world. * showing curiosity and a scientific precision of academic level. * showing creativity, autonomy and entrepreneurial spirit.

Prerequisite knowledge and skills :

- Investments and Portfolio Management (or equivalent) A solid background in probability theory and statistics is required.

Planned learning activities and teaching methods :

- Theory sessions (including illustrations and practical examples)
- Presentations by external guest experts
- 2 x 3 hours of exercise sessions, featuring the development of a realistic case of financial planning in its main components

Mode of delivery (face-to-face ; distance-learning) :

Theory + Exercise sessions
Assignment (graded)