PMIA Lecture 4.pptVIP

Top Down Considerations in Portfolio Management James Clunie March 2011 * Contents Investment philosophies Investment process Top-down considerations: Economic forecasting, Asset allocation Country and sector allocations, Currency hedging and derivatives Style * Investment Philosophies Fundamental beliefs on how best to achieve investment goals. May relate to asset allocation, market timing, investment style or stock selection. Often based on academic studies. For example: a belief in the benefits of diversification A belief in value investing a philosophy based on investing in stocks with a