Two Asset Management Simulations to Bring Your Training to Life

Portfolio Trader

Portfolio Management Simulation

Description

Portfolio Trader lets you gain valuable knowledge and experience in the process and execution of portfolio management. You are given a certain (fictive) amount of capital which you can invest in a variety of securities. The goal is to maximise your returns while adhering to your clients’ portfolio objectives and balanced trading risks. The online simulation uses real market instruments in a real-time environment.

You will get the opportunity to see which market theories work as you expected and what happens when a theory breaks down in practice. You will gain an in-depth understanding of market dynamics and create and follow (your own) market expectations as well as experience the emotions involved in managing a portfolio of real instruments in real time.

Duration

The simulation software is Internet-based and runs ‘live’ (either with a 15-minute delay or in real time) over a period of at least four weeks. The length of a session can vary considerably depending on the experience of, and time available for, the participants. A normal length is five to eight weeks.

A standard session would require either one hour of e-learning or a classroom presentation before the start of the simulation.

After a simulation session, the group feedback takes on average two hours. Individual feedback (partly given during a session), can range from ten minutes to two hours per participant depending on the required depth of coaching.

Key Issues Covered

• Active management of a portfolio of various instruments
• Risk and return appetites of clients
• Formulating 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 

Evaluation

The instructor will interact with you and the other participants by analysing your strategy and performance and give continuous feedback. During and after a session you are reviewed individually by an instructor on specific aspects including the following:

• Profit and loss (volatility)
• Risk management
• Identification of (own) trading styles
•  Knowledge and awareness of market developments/products
•  Reaction to news and market changes
• Liquidity management
• Fundamental and technical analysis

Portfolio Manager

Asset Management Simulation

Description

Portfolio Manager gives you the opportunity to gain valuable knowledge and experience in the process of portfolio management and strategic asset allocation.

You are given a certain (fictive) amount of capital which you can strategically invest over asset classes and their constituents. The goal is to maximise your returns while adhering to your fund objectives and risks.

You will gain an in-depth understanding of market dynamics and can create and follow (your own) market expectations as well as experience the emotions of managing a fund over a longer time horizon. You will get the opportunity to see which market theories work as you expected and what happens when a theory breaks down in practice.

Duration

The simulation software is Internet-based and is normally played over a period of one full day. The portfolios are constructed in a simulated environment that spans over five years, which translates to one simulated month per five minutes. The duration may be adjusted to match the participants’ experience and available time.

A standard session would require either one hour of e-learning or a classroom presentation before the start of the simulation.

After a simulation session, the group feedback takes on average two hours. Individual feedback can range from ten minutes to two hours per participant depending on the required ‘depth of coaching’.

Key Issues Covered

• Active management of a portfolio of various instruments
• Risk assessment and rating
• Risk and return appetites of clients
• Pricing, covenants and collateral
• Formulation of investing and trading strategies to build a balanced portfolio
• Establishment of risk parameters, trading limits and goals
• Credit portfolio management
• 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

Evaluation

The instructor will interact with you and the other participants by analysing your strategy and performance and give continuous feedback. During and after a session you are reviewed individually by an instructor on specific aspects including the following:

•  Profit and loss (volatility)
• Risk management
• Identification of (own) trading styles
• Knowledge and awareness of market developments
• Reaction to news and market changes
• Liquidity management
• Fundamental and technical analysis
• Fund strategy handling