Overview

This course consists of three modules on behavioural finance. It aims to cover the important concepts underlying behavioural finance, the impact it may have on investment performance (e.g. behavioural biases) and the actions that a private wealth manager may take to remedy these issues (including strategies such as client profiling, portfolio construction, and advisory lifecycle).

Objective

On completing this course, you should be able to:
a. Understand the definition of behavioural finance and its purpose for private wealth management (“PWM”) and investment management;
b. Illustrate with an example how loss aversion and risk aversion may affect customers;
c. Identify the potential impact of behavioural biases on investor decision process and customer investment performance; and
d. Apply strategies to deal with customer biases, including risk profiling process, risk evaluation and portfolio construction and risk management.

Content

Module 1 - Behavioural Finance and Prospect Theory
- Background of Behavioural Finance
- Prospect Theory

Module 2 - Behaviourial Biases
- Behaviourial Biases Types and Financial Market Dynamics
- Customer Biases in the Advisory Lifecycle

Module 3 - Strategies to Deal with Customer Biases
- Dealing with Customers Biases
- Customer Profiling Strategies
- Portfolio Planning and Implementation Strategies
- Monitoring and Review Strategies

Final Assessment

Who should attend

It is primarily targeted to CPWP candidates who wish to take the CPWP Module 1 Paper 2 Examination. It is also relevant to those PWM practitioners who would like to enhance their knowledge and skills in wealth management.

If you've already enrolled in the examination and would like to enrol in the training programme, please contact us via email ([email protected]) or tel. on 3120 6100.