Portfolio Management

Introduction
This module is designed for experienced investment practitioners and property portfolio managers. It builds on the foundation contained in the module entitled ‘Introduction to Investment Valuation and Portfolio Theory’, embracing theoretical and practical concepts. It addresses the application of modern portfolio theory and investment concepts to commercial property portfolios; how investment tools may be employed in structuring property portfolios; and how portfolio risk may be controlled. The module also looks at the risk-return characteristics associated with commercial property and derivative products. Computing sessions form an integral part of the module, providing opportunity to undertake data-related analysis. Successful completion of the module enables participants to understand the role of property within a multi-asset portfolio and completion of the module equips participants with the necessary tools to enable them to undertake practical portfolio analysis.

Learning Aims and Objectives
To develop participants’ ability to:
· Apply the principles of portfolio theory and management to create and maintain an efficient portfolio;
· Evaluate the place of real estate in a multi-asset portfolio.

Module Requirements
Successful completion (or exemption from) the foundation modules. Participants are expected to have familiarity with financial mathematics and discounted cash flows prior to entry upon this module.

Indicative Content
· Practical application of modern portfolio and capital market theory;
· Structuring an efficient investment portfolio;
· Use of futures, options and SWAPs contracts;
· Attribution analysis
· Portfolio risk control using simulation techniques;
· Asset selection.

By the end of this module, you should be able to:
· Evaluate the role of property in a multi-asset portfolio;
· Calculate the risk of a portfolio , matching the risk-return profile to investor preferences;
· Measure and control risk of and within an investment portfolio;
· Be aware of the use of derivatives in portfolio strategy
· Evaluate the use of derivatives in a portfolio strategy;
· Critically evaluate and apply performance attribution measurement to an investment portfolio;
· Calculate the risk of a portfolio and to control risk.

Indicative study commitment:
3 days classroom study plus 24 hours preliminary self-managed study and 4hrs for final take-home assignment.

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