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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

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Portfolio Construction and Risk Management

Portfolio Construction and Risk Management

Alex Struc

20 years: Asset management

Part two of this two-part video series will delve deeper into portfolio construction and risk management, as well as the critical considerations that underpin both disciplines.

Part two of this two-part video series will delve deeper into portfolio construction and risk management, as well as the critical considerations that underpin both disciplines.

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Portfolio Construction and Risk Management

9 mins 40 secs

Overview

It is easy to get overwhelmed by the sheer number of considerations at the securities analysis or portfolio construction stages. Conflating these principles often leads to expensive mistakes. Knowing which risk you take, security selection (alpha) or a portfolio construction (beta) can be life-saving in volatile markets.

Key learning objectives:

  • What is the primary goal of portfolio construction?

  • Understand the difference between portfolio construction and security selection

  • What is risk management and what could go wrong?

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Summary

What is the primary goal of portfolio construction?

The primary goal of portfolio construction is to diversify risk across multiple holdings by reducing correlation between individual securities and sectors.

The main deliverable of this exercise is the sizing of individual positions within the portfolio, which will depend on understanding the individual risk-reward profiles vis-à-vis the goals that the overall portfolio is looking to achieve.

What is risk management and what could go wrong?

Risk management can be a powerful alpha generation tool. Value-add risk management is all about the art of scaling. Scaling means allocating more risk budget to positions with the greatest prospects and cutting positions whose thesis (and valuations) are not playing out as expected.

Risk management is about understanding two types of risks in the portfolio. One is endogenous, arising from the individual securities and portfolio construction – things that produce investment alpha. The other is exogenous, market risks which can affect individual performance in a more holistic way. Scenario analysis and stress-testing are probably the most powerful techniques.

 

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Alex Struc

Alex Struc

Alex is a fixed income investor with deep credit expertise. His work on liquid impact investing, deep expertise in financial markets, and a strong belief in the power of scalable frameworks to outperform and foster positive change drove him to found GOALSFIRST with a single vision of unlocking the full value of finance for change. Prior to founding GOALSFIRST, Alex managed credit assets for PIMCO for nearly fifteen years, including the firmwide exposure to financials and the world largest bank capital fund. In 2014 he was named FN’s 40 under 40 asset managers for his work in this sector. In his earlier years, he built the firm’s European bank loan business and positioned PIMCO as a liquidity provider in that space by introducing relative value trading to this seemingly illiquid asset class.

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