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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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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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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

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The Investment Process and Security Selection

The Investment Process and Security Selection

Alex Struc

20 years: Asset management

This two-part video series will help us understand the investment process and explore what sources of repeatable performance can arise from its various components.

This two-part video series will help us understand the investment process and explore what sources of repeatable performance can arise from its various components.

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The Investment Process and Security Selection

8 mins 32 secs

Key learning objectives:

  • What are the key stages in the investment process?

  • Recognise how the activities of the investment process fit with one another

  • Understand what sources of repeatable performance can arise from its various components

Overview:

Security analysis is a discipline of understanding the underlying fundamentals of a business or sector. The key outcome is the point prognosis based on the assessment of the total addressable market.

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Summary

What are the key stages in the investment process?

  • Security selection
  • Portfolio construction
  • Risk management

What are the benefits of focusing on each discipline? 

  • Help investors stay focused on finding sources of outperformance
  • Helps investors learn from mistakes

Harmony in the investment process

  • Security analysis is the practice of weighing the risks and opportunities arising from a business activity. The key outcome of all investment analysis is opportunity-based security selection. The cornerstone of all security selection is research, which pivots on applying knowledge of sector-specific fundamentals to make a timely call.
  • Portfolio construction is about combining multiple securities into a diversified proposition, which can increase the efficacy of an overall investment strategy by reducing risks. The focus of portfolio construction is sizing - i.e the practice of deciding on and allocating a portion of the portfolio's cash to individual positions. Portfolio managers combine securities with various risk-reward profiles to reduce correlation while still aiming to achieve the highest possible rate of return.

  • Risk management is the discipline of scaling portfolio positions to contain mistakes and amplify what works best. The information gleaned from historical performance and linking it to past decisions – otherwise known as attribution – can further inform research, which underpins and improves security selection and portfolio construction.

What is Security selection?

The term security selection applies to many financial instruments and sectors like futures, options, fiat currencies, crypto assets, private lending, real estate, and many others.

What are the key elements of security selection?

  • Total addressable market
  • The role of the agent
  • Product design 

What is MOAT?

MOAT, the term popularized by Warren Buffet, is often used to explain a business’s ability to maintain competitive advantages over its competitors to protect its long-term profits and market share.

 

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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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