Investing in Emerging Markets

Globalization trends have allured economic superpowers in a come-and-go fashion throughout the decades. In current times, we witness an upswing in this trend, which allows portfolio managers to diversify local risks by taking active bets in other developed and liquid markets.

Nevertheless, the financial integration that has accompanied these globalization trends, has also brought about an increase in the correlation of returns in the key markets of the world, giving entry to new opportunities and in a way, mandatory steps towards efficient diversification through uncorrelated brave new markets in the emerging world.

The course will show the participant the gains and obstacles of emerging market inclusion in a portfolio as an asset class of its own.

30-Apr-2012 -- 01-May-2012New YorkUSD$2475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Jorge A. Martínez-Gonzalez; ] Mon Tue Level: Basic

CPE CREDITS
14.0
Consultants and financial advisors, portfolio managers and risk managers, corporate treasurers, capital and fixed income markets specialists, hedge fund managers and strategists.
No advance preparation required.
Students will be able to:
  • Demonstrate rooted fundamentals in the analysis tools needed to include emerging markets as a new asset class in their portfolios
  • Discuss confidently on the benefits and obstacles that emerging markets, as an asset class, pose to investors
  • Develop a model to diversify a portfolio with emerging markets assets through the various available channels
A solid knowledge of basic financial and macroeconomic theories and portfolio management. Essentials of U.S. Capital Markets and Fixed Income Markets I or equivalent knowledge would be helpful.
  • Introduction to Financial Engineering
  • Fund Selection and Analysis for Professionals
    • Disclaimer:
    While NYIF endeavors to provide programs that are current and up-to-date, these programs, and the associated courseware, are provided on an "as is" basis. To the maximum extent permitted by law, NYIF disclaims all warranties of any kind, either express or implied, including, without limitation, implied warranties of merchantability, or fitness for a particular purpose, or of a particular result. NYIF does not warrant that any program or its courseware will meet any particular requirements or needs, or that the content of or courseware for any program will be error-free. Neither NYIF nor its licensors shall have any liability with respect to any loss or damage caused or alleged to have been caused directly or indirectly by reliance on the content or any courseware. For any program provided by NYIF, including, but not limited to, loss of consulting or anticipatory profits, or consequential damages.
    Day 1 - The Framework and Tools for Analyzing Emerging Markets
    Political, Economic and Legal Risk
    • The country risk framework for analyzing emerging markets
    • The taxonomy of crises in the last three decades: banking, currency and current account
    • The impact of regulation, openness in financial markets and reforms

    Currency Risk and Correlation Risk

    • The modeling, parities and forecast of volatile exchange rates
    • The main hedging vehicles for exchange rate risk: derivatives and accounting strategies
    • Evidence and models to cope with FX risk and correlation risk

    Day 2 - Available Vehicles for Emerging Markets Investing
    Capital Markets Investing in Emerging Economies
    • The instrument investable universe: market sizes, liquidity, risk and returns
    • The efficient frontier with/without emerging stocks
    • Benefits and risks in using emerging markets indices to enhance returns: the long term record

    Emerging Economies' Fixed Income and Other Markets

    • The instrument investable universe: market sizes, liquidity, risk and returns
    • Adding emerging bonds and real state to the efficient frontier
    • Benefits and risks in using emerging markets universe of assets to enhance returns: the long term record

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.