3 (ECTS) - 24 Contact Hours
This course is divided into two parts. The first part deals with standard Modern Portfolio Theory as well as some more advanced topics such as Portfolio delegation and Risk Management. After a broad introduction of Standard Portfolio Theory, we present the different tools that are used to select and evaluate investments. We then explain how benchmarks are derived from equilibrium asset pricing models. We also compare different risk adjusted performance measures. Finally, we analyze the setting-up of a risk management process. The second part focuses on the so-called Architecture of the Fund Industry. It turns out that the standard Finance literature has neglected this topic. This part starts with an introduction of the different investment vehicles. We then focus on the understanding of the legal structuring and domiciliation strategies of the players of the Asset Management Industry. We analyse the regulatory developments within the EU as well as location strategies. Finally, we discuss Governance problems of the Fund Industry as well as different alternative investment strategies. In this part of the course, the interaction between legal and financial aspects is very strong.