Fundamentals of Financial Performance Measurement and Control

Course Properties

Course date: 11-03-2018
Course End Date: 15-03-2018
Location Dubai

Course Objective:
     Course participants will explore the fundamental concepts underlying performance measurement, including a brief introduction to essential statistical concepts.

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Who Should Attend:
                • Directors of Finance Departments and Financial Controllers
                • Financial Accountants
                • Internal auditors

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Course Contents:
                • Statistical concepts: probability distribution
                                  Mean
                                  Variance and standard deviation
                                  Skewness
                                  Kurtosis
                                  Covariance
                                  Correlation

                • Statistical concepts: the relationship between a stock market and the market portfolio
                                  Market portfolio
                                  Characteristic line
                                  Beta
                                  Residual variance

                • Performance measurement: using risk-adjusted returns
                                  Sharpe's measure
                                  Treynor's measure
                                  Jesnen's measure

                • Risk-adjusted performance (RAP)
                                  Definitions and notation
                                  Sigma as a measure of risk
                                  RAP as a tool for optimal portfolio selection
                                  RAP versus other measures of risk-adjusted performance
                                  Application of the RAP measure

                • Qualifications of the RAP approach
                                  Historical versus future performance
                                  Alternative measures of risk
                                  Arithmetic versus geometric returns
                                  Tracking error and the information ratio

                • Determining a fund's effective asset mix
                                  Thinking about asset allocation
                                  Determining manager styles
                                  Determining the effective asset mix
                                  All-or-none versus mixed classification
                                  Inferring manager style from historic returns
                                  Applying the approach
                                  Representative manager styles
                                  Fund returns

                • Returns-based style analysis
                                  The theory
                                  Using style indexes to build customized benchmarks
                                  Testing style benchmarks
                                  Style analysis for the total equity fund
                                  Return based analysis for international managers

                • Style briefs (using Zephyr software)
                                  Selecting assets
                                  Efficient frontier graph
                                  Tracking a benchmark
                                  Allocation table
                                  Changing forecasts
                                  Managers as asset classes
                                  Comparing multiple portfolios

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