This study session consists of three parts. On completion of the video, selected readings and structured assessment, 2 hours of structured CPD will automatically be entered into your CPD log.
1. Investment Management - Video
This series of interviews focuses in on the areas of investment management most central to wealth managers. This includes the cost and value of the services being obtained, and the extent to which a client can understand performance attribution. This video asks leading practitioners for their views and opinions on these matters.
2. Investment Management - Selected Readings
Three external papers have been selected in this area:
'Investment Management: A Science to Teach or an Art to Learn?' by Frank J. Fabozzi, Sergio M. Focardi, Caroline Jonas (CFA Institute, 2014)
An examination of whether financial economics belongs in the sphere of empirical natural science or would be better considered as a social science. The lack of observable input quantities for many financial models leads the author to question the fundamental basis of mainstream finance theory.By considering the effectiveness of diversification, optimisation, the efficient market hypothesis, risk management and the capital asset pricing model in turn, an argument is developed for a new investment paradigm being needed.
'My Top 10 Peeves' by Clifford Asness (CFA Institute, 2014)
This is an entertaining and valuable reading in which the author highlights his ten greatest ‘peeves’. These peeves, in addition to relating to finance and investing have been selected because they are commonly held, often repeated and are wrong or misleading in a way that can cause damage to investors.
'The Rise and Fall of Performance Investing' by Charles Ellis (CFA Institute, 2014)
This article by Charles Ellis highlights one of the key issues facing active performance investors and their clients in today’s highly competitive capital markets. Given that performance investing has been perhaps too successful; can active performance investors outperform passive investing after fees have been taken into account any more?
3. Investment Management - Structured Assessment
The assessment consists of 10 questions and requires a pass score of 70% to be obtained. The test must be passed in the first two attempts in order to successfully complete this study session and for the learning to log as structured learning.