Young Women In
Investment 2023
Day 1 – Welcome and
Investment Industry
Foundations
Curriculum Components
An interactive and engaging curriculum comprising live virtual training sessions, eLearning, project work and simulations
over a four-week period.
FLEX eLearning
Micro video-based eLearning cover asset management fundamentals
Assessments throughout check understanding
Live virtual instructor-led training
Half-day sessions delivered through Zoom ACTIVATE
DEVELOP
Blend of technical and professional skills
Focus on practical application within the investment industry
The ESG research and investment challenge
Group projects set at the start of the programme ADVANCE
Learners research the impact of key dynamics on the investment industry, asset classes, and EMBED
specific equities and bonds
Teams produce reports and present findings at the conclusion of the 4-week programme
Asset manager simulations
Simulation using real data from recent market periods
Participants make allocation decisions for fixed-income and
equity investments, reflecting decision making of PMs
Runs throughout the 4-week programme
Digital speaker series
Fitch Group and investment industry SMEs deliver micro FLEX Live ESG research Asset manager Digital
digital sessions covering hot topics eLearning Training challenge simulation speaker
Run throughout the 4-week programme series
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Knowledge Skills Conduct
Virtual Learning Overview
Day Date Time Curriculum Trainer
Welcome and Programme Introduction
1 Mon 17 Jul 09:00 - 12:45PM BST Vickie Griffin
Investment industry foundations
2 Tue 18 Jul 09:00 - 12:30PM BST Economics: Application to Investment Analysis Vickie Griffin
3 Wed 19 Jul 09:00 - 12:30PM BST Investment Industry participants and structures Vickie Griffin
4 Thu 20 Jul 09:00 - 12:30PM BST Financial Math and Business Statistics Nick Dunmore
5 Fri 21 Jul 09:00 - 12:30PM BST Effective Communication 1: Report Writing Soraya Sarif
6 Mon 24 Jul 09:00 - 12:30PM BST Excel: Principles of financial modelling Richard Hewison
Financial Statements Analysis and Modelling
7-10 Tues 25 Jun - Fri 28 Jul 09:00 - 12:30PM BST Equity Valuation Richard Hewison
Excel: Building an Equity Valuation Model
11 Mon 31 Jul 09:00 - 12:30PM BST Money Markets, FX and Fixed Income Nick Dunmore
12 Tue 1 Aug 09:00 - 12:30PM BST Derivatives: Introduction to forwards, futures and options Nick Dunmore
13 Wed 2 Aug 09:00 - 12:30PM BST Alternative Assets Nick Dunmore
14 Thu 3 Aug 09:00 - 12:30PM BST Review of Research Valuation Models Richard Hewison
15 Fri 4 Aug 09:00 - 12:30PM BST Effective Communication 2: Presentation Skills Soraya Sarif
16 Mon 7 Aug 09:00 - 12:30PM BST Effective Communication 3: Meeting and time management skills Soraya Sarif
17 Tue 8 Aug 09:00 - 12:30PM BST Data Analytics and Interpretation Cara Marshall
18 Wed 9 Aug 09:00 - 12:30PM BST Risk Management Melissa Durbin
19 Thu 10 Aug 09:00 - 12:30PM BST Portfolio Management Nick Dunmore
20 Fri 11 Aug 09:00 - 12:30PM BST ESG Research Challenge Final Presentations Nick Dunmore
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Knowledge Skills Conduct
Fitch Learning Trainers
Vickie Griffin Nick Dunmore Richard Hewison
Vickie works with Fitch Nick specialises in financial Richard has been teaching
Learning to create, develop market products training Fitch Learning’s CFA, IMC,
and deliver technical and across all asset classes, with a graduate/intern training
professional skills training particular focus on trading and financial modelling
to a wide range of banking, and sales. Since starting courses in Europe and
asset management and training in 2007, he has North America since 2008.
wealth management clients. brought his experience from
the dealing room to the
Prior to becoming a trainer,
classroom, thus providing a
Until 2013 Vickie was a Richard worked in
practical focus to courses.
Private Banker for Barclays accountancy for four years,
and provided cash, banking, with the National Audit
Prior to entering the training
investment and wealth Office and the United
world, Nick spent 11 years at
planning advice to clients. Nations Development
HSBC trading fixed-income
Program, where he was a
derivatives.
senior auditor unit
sampling.
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Knowledge Skills Conduct
Fitch Learning Trainers
Soraya Sarif Cara Marshall Melissa Durbin
Soraya is an organizational Cara specialises in delivering Melissa joined Fitch
efficiency professional with an courses related to Microsoft Learning in 2012 and has
expertise for aligning people, Excel, VBA, financial modelling, been designing courses
performance, and profit. She is risk measurement, portfolio since joining as well as
known for enhancing cross- management and corporate delivering training courses
functional collaboration, finance. Concurrently, she is a on bank analysis.
aligning and engaging professor of finance and risk
stakeholders with corporate management for more than 10 Prior to joining Fitch
strategy, and developing years. Learning, Melissa had an
strategic communication skills extensive career in the City
organisation wide, to support Cara has conducted training at of London, spanning 25
optimal performance. leading investment banks and years. She started her
has served as a consultant to career at National
large banks, hedge funds, and Westminster Bank as a
Soraya’s banking career began
governmental agencies graduate trainee, moving to
in 1998 at the Canadian
including the U.S. Department Bank of Tokyo Mitsubishi
Imperial Bank of Commerce, in
of Treasury. where she specialised in
credit analysis, fraud
bank and sovereign risk
monitoring and loss prevention.
analysis.
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Knowledge Skills Conduct
Key Contacts
Fitch Learning – London office
Kinna Patel Direct: +44 (0)20 3530 1417
Programme Co-ordinator Email:
[email protected] CFA Institute UK
Fiona Edwards Email: [email protected]
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Knowledge Skills Conduct
Day One
Investment
Industry
Foundations
Day 1 Welcome & Investment Industry Foundations
In Context
The Institute open the bootcamp and we then introduce analysts to the business of investment, clients and each other setting
the ground rules for the bootcamp: team learning and practical learning and development.
Classroom Session
Welcome and bootcamp Introduction
• Introduction to the bootcamp, objectives, learning approach and agenda
• Introduction to the ‘Research and Investment Challenges’
Investment industry foundations
• The nature of financial services market
• Finance terminology: a practical dictionary of key terms
• The key players in investment market: clients, investment management firms, banks, insurance companies, custodians and regulators
• Service offering: investment management, advice, protection and hedging
Breakout Exercise: Matching clients to services
• In teams, analysts are given overviews of a range of client types and asked to identify those services relevant to the client type
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Knowledge Skills Conduct
‘ESG Research Challenge’ – Whole Program
Scenario Delivery of challenge
“What must the Investment ESG research document handed in on
industry do to ensure it is fit for Day 15
the future” Presentation in groups on Day 20
BACKGROUND
BACKGROUND CHALLEGE
CHALLENGE OUTPUT
OUTPUT
MISSION
The investment management industry In teams, research the impacts of ESG on Groups create a report and summarise their
faces many challenges including the investment industry, Teams must then findings in a presentation to the cohort and
demographic changes, the move to present their findings and explain how they business panel, outlining:
passive investment and demand from can be used by an investment management • The benefits of their proposed
clients related to their ESG goals. firm as part of their future strategy. Teams recommendations with practical
are supported by Fitch trainers throughout assessment of costs and execution
In light of these challenges the industry the process. challenges
needs to adapt, something confirmed by • How these solutions should be
the current COVID-19 crisis. communicated to potential clients of
SOLUTION OUTCOME
investment management firms.
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Knowledge Skills Conduct
‘Investment Challenge’ – Week 2
Scenario Delivery of challenge
Delegates working in teams Report handed in on Day 11
value a business and produce a Excel sheet handed in on Day 11
summary report
BACKGROUND CHALLENGE OUTPUT
MISSION
We will provide teams with information In teams, the delegates will research, value Teams create a report and summarise their
on a simple business they will value and make an investment analysis for the findings in a presentation, outlining:
using the three statement valuation stock. • The approach and assumptions used in the
model used in week 2 of the program. valuation
Feedback will be provided by the Fitch • The investment case for their chosen
. trainer. stock, buy/hold or sell.
SOLUTION OUTCOME
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Knowledge Skills Conduct
Introductions
In breakout rooms ask a few questions about your new colleagues
The most important thing they have done over the last three years
A key topic they are looking forward to on the program
Something interesting about them
We will bring you back to the main room and YOU will introduce SOMEONE else
from your team
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Knowledge Skills Conduct
The Global Financial Markets
Capital (money) allocation
Financial markets move capital from those that have it to those that need it
Third-party vendors Primary market
Asset $$$
Issuers
managers and
Cash • Companies
hedge funds $$$ products • Governments
(buy-side) Secondary
Banks and brokers (sell-side)
Advice and • Local authorities
Products, markets
research arrangement
and services Products
Wealth Money markets
Funds
$$$
managers Foreign exchange
Banks
and IFAs Equities
Bonds
Derivatives
Alternatives
Investors/lenders Structured Borrowers
• Retail $$$ Methods $$$ • Retail
• HNW/private client Exchange-traded • HNW/private client
OTC
• Institutions • Companies
Deposits/loans
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Knowledge Skills Conduct
Investment Market Instruments
Short-term funding Long-term funding Risk
Money markets Capital markets FX and derivatives
Spot and
forward FX
Bills Loans Equity Debt
Shares
Futures Options
Bonds Loans
Swaps
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Knowledge Skills Conduct
Investors, Asset Management, Funds and Custodians
INVESTORS XYZ Inc.
Have capital/want return (sponsoring company)
• Pension funds
• Sovereign wealth funds Pension fund XYZ
• Central banks employees
• Insurance companies (members of
the pension
CAPITAL Fees scheme)
ASSET MANAGEMENT
Norway
TRADITIONAL FUNDS HEDGE FUNDS USD
ASSET CLASSES STRATEGIES
Bank
CUSTODIAN Central Bank
Bank
Assets Liabilities
Bank
600
Government bonds 600m Reserve deposits
m
Bank
Premiums
INSURANCE CO.
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Knowledge Skills Conduct
Investors, Asset Management, Funds and Custodians
INVESTOR Investment bank A
Has capital/want return Markets division
• Sales/sales traders
CAPITAL • Research
ASSET MANAGEMENT FIRM • Trading
Portfolio Manager Central dealing desk
Equity fund Corporate bond Multi asset fund
manager fund manager manager
Markets
FUND FUND FUND
Global Equity Fund Global Corporate Multi-Asset Absolute
Bond Fund Return Fund
Investment bank B
Markets division
• Sales/sales traders
• Research
• Trading
CUSTODIAN
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Knowledge Skills Conduct
Global Asset Management Industry
Money Manager Rankings by Total AuM (US$ Trillions)
Blackrock
Vanguard Group
State Street
Fidelity
Allianz
JP Morgan AM
BNY Mellon
Amundi
Capital Group
AXA Group
0 1 2 3 4 5 6 7
AuM (US$ Trillions)
Source: Towers Watson World 500
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Knowledge Skills Conduct
Top Sovereign Wealth Funds by Assets
SWF by AuM ($ billions)
Norway Petroleum Fund
China CIC 940
ADIA 580
Kuwait KIA 534
HKMA 528
GIC 440
China SAFE 418
Temasek 375
NSSF China 325
KSA PIF 320
0 200 400 600 800 1,000
Assets ($ billions)
Source: Sovereign Wealth Fund Institute
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Knowledge Skills Conduct
Hedge Fund Industry
Top Hedge Funds by AuM (US$ billions)
Bridgewater
Renaissance Tech
Man Group
AQR Capital
Two Sigma
Millenium
Elliot Management
Blackrock
Citadel
Davidson Kemper
0 10 20 30 40 50 60 70 80 90 100 110
AuM ($ billions)
Source: Pensions & Investments Survey
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Knowledge Skills Conduct
Client Information
Regulators insist that asset managers determine as much as they can about a client
so that they provide the most appropriate service.
What do you think an asset management firm would need to ask their client about?
?CLIENT?
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Knowledge Skills Conduct
Client Investment Objectives
Objectives
Risk Return
Willingness vs. ability Primary (required) and secondary
Source/measure of wealth (desired) goals
Stage in lifecycle Capital vs. income
Time horizon Influence of risk tolerance/time horizon
Constraints
Liquidity Time Horizon Tax Regulatory
Unique
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Knowledge Skills Conduct
The Investment Management Process
(7)
(1) (2)
(5)
(8)
(6)
(3)
(4)
(9)
Planning Execution Feedback
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Knowledge Skills Conduct
The Investment Management Process (cont.)
Asset allocation, portfolio
optimisation, security
selection, implementation Monitor economic
and execution and market- Specify capital
related inputs market expectations
Achieve objectives
and measure Portfolio policies Economic, social,
performance and strategies political, sector,
and security
considerations
Monitor
investor-related
inputs Portfolio
construction
Specify and and revision
quantify investor
objectives and
constraints
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Knowledge Skills Conduct
Pension Schemes
Defined contribution – here the sponsoring
company declares the contributions it will make,
e.g. 15% of salary p.a.
Trustee XYZ Inc
(Sponsoring company)
Advisor Retirement fund
Fund management company
XYZ employees (members)
Defined benefits – here the sponsoring
company declares the benefits the members
will receive, e.g. 40/60 x final salary
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Knowledge Skills Conduct
Insurance Companies
There are three main types of insurance
1. Life insurance
– ‘Long-term insurance’ includes income protection
2. General insurance (non-life)
– Property, e.g. residential and commercial
– Motor, e.g. personal and business fleet
– Accident and health
– Marine, aviation and transport
– Marine: Cargo, hull, fine art and specie
– Casualty – business, e.g. public liability, product liability/recall, data protection, business travel, workers
compensation
3. Reinsurance
– Primary insurer transfers major risks to a reinsurer who provides additional, underwriting capacity
– Non-life account for around three-fourth of reinsurance premiums
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Knowledge Skills Conduct
Investment Management Services
Asset
Advisory
management
Protection Hedging
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Knowledge Skills Conduct
What Investment Services Do Clients Need?
Client type Investment service needs
SWF
Pension
General insurance
Educational endowment
Family office/HNWI
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Knowledge Skills Conduct
Day One
Appendix
The Investment Management Process
Specify and Monitor
quantify investor investor-related
objectives Portfolio policies inputs
and constraints and strategies
1. Portfolio construction
and revision
Achieve
2. Asset allocation,
objectives
portfolio optimisation,
and measure
security selection,
performance
implementation and
Economic, social, execution
political, sector, Specify
and security capital market Monitor
considerations expectations economic and
market-related
input
Planning Execution Feedback
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Knowledge Skills Conduct
Day 2 Economics: Application to Investment Analysis
In Context
A grasp of macro economics is essential for investment analysis and an insight into the dynamics of investment management,
so today we focus on this topic.
Self Study Session
Team-Work: Research Challenge
• Review of the macro economic situation in local economies
• Teams produce a short report of their findings
Self Study
• FLEX Macroeconomics Introduction
• FLEX Mechanics of Financial Markets
Classroom Session
Review of Team-Work
Overview of Macroeconomics
• A practical macro model
• Economic goals: growth, low inflation and full employment
• The economic cycle
• How do governments and central banks manage the economy
• Key economic indicators
Application: Review of an asset managers investment outlook report
Breakout Exercise: Where are we in the cycle?
Delegates are asked to find the current key macroeconomic indicators for key economies. Using this data and identifying trends they are
asked to interpret and identify the position in the economic cycle and expectations for major asset classes.
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Knowledge Skills Conduct
Delegate Feedback
QR Code:
Feedback Link:
https://forms.office.com/r/z7hgZi67Fq
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