By the end of this programme, participants will:
- Understand how pension funds operate
- Gain insight into pension fund investors and their specific needs
- Evaluate the performance of their portfolio companies
- Recognize the differences between pension funds and other types of funds, including private equity
- Learn strategies for replicating pension fund investment approaches
Day 1
Overview of Pension Funds
- What is a pension fund?
- Types of pensions
- Main investors of pension funds
- Asset allocation strategy
- Investment risk
- Creating value in pension funds
- Private equity versus pension funds
Day 2
Portfolio Theory
- The Markowitz model of portfolio risk
- The Capital Asset Pricing Model
- A practical application of the CAPM to a range of companies
- Long-Term Sources of Finance
- Types of Equity Capital
- Calculating WACC and CAPM
- Short-Term Sources of Finance
- Replicating pension fund investments
Day 3
Portfolio Management
- Passive Equity Portfolio Management Strategies
- Active Equity Portfolio Management Strategies
- Strategic Asset Allocation
- Tactical Asset Allocation
- Style Investing
- Value versus Growth
- Pension fund and Private equity portfolio companies
Day 4
Markov Models
- Introduction to Markov Models
- Constructing the Markov Model
- Analyzing the Model
- Sensitivity Analysis
- Introduction to Scenario Analysis.
- Introduction to Monte Carlo Simulation
- How to apply Markov model to pension fund investments
Day 5
Analyzing the Annual Report and Account
- Using Ratio and Other Analyses of the Annual Report and Accounts to Assess Financial Position and Financial Performance
- Profitability and Cost-Volume-Profit (CVP) Analysis
- Liquidity and the Short-term Solvency
- Investment and Growth
- Financial Structure and Long-term Solvency
- Ratio Analysis using Excel
- Excel Trend Analysis using Common-size Horizontal Analysis and Vertical Analysis for Comparability
- Assessing the performance of Pension fund portfolio companies
