The PortfolioManager simulation gives the participants the opportunity to gain valuable knowledge and experience in the process of portfolio management and strategic asset allocation.
The PortfolioManager simulation is a scenario-based simulation that uses actual market data from a certain period from the (recent) past.
The participants are given a certain (fictive) amount of capital which they can strategically invest over asset classes and instruments. The goal is to maximise returns while adhering to their fund objectives and risks.
The participants will gain an in-depth understanding of market dynamics and can create and follow (their own) market expectations as well as experience the emotions of managing a fund over a longer time horizon. They will get the opportunity to see which market theories work as expected and what happens when a theory breaks down in practice.
Key issues covered
Active management of a portfolio of various instruments in all asset classes
Risk assessment and rating
Manage risk and return appetites of clients
Formulation of investing and trading strategies to build a balanced portfolio
Establishment of risk parameters, trading limits and goals
Selection of target instruments, sectors and companies
Analysis of expected returns, volatility and portfolio 'fit' for each investment
Instruments to hedge or leverage a position
Realistic ‘take profit’ and ‘stop loss’ levels
The PortfolioManager simulation is internet based and generally runs over a period of one day. The scenarios of the PortfolioManager simulation are constructed in a simulated environment that spans over five years. This translates to one simulated month per five minutes. The duration may be adjusted to match the participants’ experience and time available.
A standard session would require either one hour of e-learning or classroom presentation before the start of the PortfolioManager simulation.
After a PortfolioManagement simulation session, the group feedback takes on average one hour. Individual feedback can range from ten minutes to two hours per participant depending on the required depth of coaching.
During the session the trainer or instructor will interact with the participants by analysing their strategy and performance and give continuous feedback. After a PortfolioManager session the participants are reviewed individually (optional) by the trainer/instructor on specific aspects including the following:
Profit and loss (volatility)
Identification of (own) trading styles
Knowledge and awareness of market developments/products
Reaction to news and market changes
Fundamental and technical analysis
Fund strategy handling