Course Details

Portfolio Management for Pension Funds Training Course

INTRODUCTION

Effective portfolio management is essential for pension funds, which must balance the goals of long-term capital growth and providing sustainable retirement income. In an evolving investment landscape marked by fluctuating markets, low interest rates, and emerging risks, pension fund managers face complex challenges in managing assets, liabilities, and risk.

This training course is designed to equip participants with the knowledge and tools necessary to manage pension fund portfolios efficiently. The course covers the fundamentals of portfolio management, strategic asset allocation, risk management, and regulatory frameworks specific to pension funds. Participants will also explore investment strategies that align with the unique objectives of pension funds, such as long-term sustainability, income generation, and inflation protection.

 DURATION

5 days

TARGET AUDIENCE

• Pension fund managers and trustees
• Financial advisors and investment professionals
• Risk managers and compliance officers in pension funds
• Policymakers and regulators involved in pension fund governance
• Actuaries and consultants working with pension funds

COURSE OBJECTIVES

By the end of this course, participants will:

1. Understand the fundamentals of pension fund portfolio management:
   • Gain a clear understanding of the goals, constraints, and fiduciary responsibilities associated with managing pension fund portfolios.
   • Learn about the basic principles of asset allocation, diversification, and portfolio optimization.
2. Explore strategic asset allocation for pension funds:
   • Understand the importance of strategic asset allocation in aligning investments with pension fund objectives.
   • Learn how to design an asset allocation strategy that balances risk, return, and long-term sustainability.
3. Develop risk management frameworks specific to pension funds:
   • Identify key risks faced by pension funds, such as interest rate risk, inflation risk, and longevity risk.
   • Explore methods for managing investment risk through hedging strategies, liability-driven investing (LDI), and stress testing.
4. Analyze different investment strategies for pension fund portfolios:
   • Evaluate the role of traditional and alternative investments, such as equities, bonds, real estate, private equity, and infrastructure.
   • Explore strategies for generating stable income, preserving capital, and enhancing portfolio returns.
5. Examine the regulatory and governance frameworks for pension funds:
   • Understand the regulatory environment governing pension fund investments, including solvency requirements, funding regulations, and fiduciary standards.
   • Explore the role of governance in ensuring accountability and transparency in pension fund management.
6. Consider the role of environmental, social, and governance (ESG) factors:
   • Understand the growing importance of ESG considerations in portfolio management.
   • Explore how pension funds can integrate ESG factors into their investment strategies to promote long-term sustainability.

 COURSE CONTENT

Module 1: Introduction to Pension Fund Portfolio Management

• Overview of pension fund objectives: providing retirement income, risk management, and growth
• Types of pension funds: defined benefit vs. defined contribution plans
• Key stakeholders: pension fund trustees, managers, and beneficiaries
• Fiduciary responsibility in managing pension fund assets

Module 2: Strategic Asset Allocation for Pension Funds

• Principles of asset allocation: risk, return, and diversification
• Strategic vs. tactical asset allocation: long-term vs. short-term adjustments
• Asset-liability management (ALM) and liability-driven investing (LDI) strategies
• Building a diversified portfolio to meet pension fund objectives

Module 3: Risk Management in Pension Fund Investments

• Identifying key risks: market risk, interest rate risk, inflation risk, and longevity risk
• Risk management tools: duration matching, currency hedging, and inflation-linked bonds
• Stress testing and scenario analysis for pension fund portfolios
• Managing downside risk and volatility through diversification and hedging

Module 4: Investment Strategies for Pension Fund Portfolios

• Traditional asset classes: equities, fixed income, and real estate
• Alternative investments: private equity, hedge funds, infrastructure, and commodities
• Income-generating strategies: dividend stocks, bonds, and real estate investments
• Strategies for capital preservation and long-term growth

Module 5: ESG Integration in Pension Fund Management

• Importance of incorporating ESG factors into pension fund investments
• ESG investment strategies: exclusion, integration, and impact investing
• Regulatory and investor-driven demand for sustainable investments
• Case studies on pension funds that have successfully integrated ESG factors

Module 6: Regulatory and Governance Frameworks for Pension Funds

• Overview of pension fund regulation and solvency requirements
• Global regulatory standards and frameworks (e.g., IORP II, ERISA, Pensions Act)
• Governance structures for pension funds: roles and responsibilities of trustees
• Ensuring transparency, accountability, and compliance in pension fund management

Module 7: Managing Longevity Risk in Pension Fund Portfolios

• Understanding longevity risk and its impact on pension fund liabilities
• Strategies for mitigating longevity risk: annuities, longevity swaps, and reinsurance
• Building portfolios that provide sustainable retirement income over the long term

Module 8: Performance Measurement and Monitoring

• Key performance indicators (KPIs) for pension fund portfolios
• Benchmarking performance against market indices and peers
• Techniques for performance attribution and analysis
• Ongoing monitoring and rebalancing of pension fund portfolios

Module 9: The Role of Alternative Investments in Pension Funds

• Assessing the suitability of alternative investments for pension funds
• The benefits and risks of private equity, real estate, infrastructure, and hedge funds
• Strategies for diversifying portfolios with alternative assets
• Case studies on pension funds that have successfully incorporated alternatives

Module 10: Future Trends and Innovations in Pension Fund Management

• Emerging trends in pension fund investment strategies
• The impact of low interest rates and demographic shifts on pension funds
• Technological innovations in portfolio management and investment analytics
• The future of sustainable investing and its impact on pension funds

 CERTIFICATION

• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

• Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com