About this module
This module provides participants insight into the first phase of the investment process, which is about detailing client requirements and related investment behaviour as the basis for the design of an effective investment process.
Knowing your client should be the first step in every financial advice. Moreover, knowing your client is – especially since the financial crisis of 2008-2009 – the main keyword in financial su-pervision. In this module we dive into a few essential elements of a client profile. What are the client’s investment beliefs? What is the client’s risk appetite and how can we measure it? What behavioural biases are well known and how can we cope with these? The answer to these questions – amongst others – provides you with the building blocks to make a sound and “su-pervisory proof” investment policy statement for your client.
- Participants will build the capacity to set and define appropriate investment profiles across various types of asset owners in the local market.
- As part of this module participants will work on various assignments which will result in presenting the end case, an Investment Policy Statement (IPS) for various types of asset owners in the Dutch market. In addition, these assignments add to both communication skills (presenting and explaining complex ideas simply) and curiosity (openness to new ideas and exploring and challenging conventional wisdom) to find solutions to complex investment and client related issues.
Basic understanding of various types of clients in the Dutch market with key characteristics and today’s main investment challenges.
- How to integrate both financial planning and investments?
- How to set collective and individual risk profiles?
- Understanding and applying new tools in risk profile setting.
- Comparing dynamics in risk profiling across various client groups and financing types (DB, DC, insurance, asset only schemes).
- Integrating insights from behavioural finance in the design and decision-making process.
- Defining investment beliefs as the basis for an effective investment process.
Study load & Format
The module will require 10 weeks of 10-12 hours of study load, including classes. This will vary according to your pre-education and work experience.
You are expected to attend in-class lectures at VU Amsterdam, which are supported by pre-readings and pre-assignments. This will serve as the basis for the overall end-case (step-by-step) and will be part of the final examination, including testing.
Classes & Lecturers
Monday September 14, 2020 from 15:00 to 21:00
Intro Risk Profiling - By Gerben Jorritsma RBA & Gosse Alserda, CFA
Monday September 28, 2020 from 15:00 to 21:00
Risk Profiling - By Gosse Alserda, CFA & Rogier Potter van Loon
Monday October 12, 2020 from 15:00 to 21:00
Investment Beliefs and Trends - By Rutger van Asselt
Monday October 26, 2020 from 15:00 to 21:00
Best Practices and End Case - By Alwin Oerlemans, CFA & Gerben Jorritsma RBA
Monday November 9, 2020 from 13:00 to 15:30