Asset Management

Course Director: Magnus Dahlquist

Purpose

In this course we will take a tour of the world of asset management. The objective is to cover important concepts in asset management, identify the practical implications, and assess the current challenges in the landscape.

Content

We will begin by considering various asset management models (e.g., the Endowment and Norway models). The emphasis will be on alternative assets, long-term investing, and a coherent framework for assets and liabilities. We will discuss current challenges in a low-expected-return environment as well as inflationary periods with higher interest rates. Next, we will discuss performance evaluation and attribution. We will cover developments of more complex investment fund structures and compare them with traditional ones. We will also discuss the ongoing transition in the asset management industry. We will also cover factor investing based on common trading strategies (including value, momentum, carry, and defensive). Finally, we will discuss liquidity issues, and the costs and risks of implementing trading strategies.

Format & structure

The course consists of lectures as well as class discussions of cases and issues of topical interest. There may be guest lectures by practitioners.

To support an effective learning environment, attendance is highly recommended. I believe that your participation is indispensable for a successful class. I expect you to be actively involved in class discussions and sharing your knowledge and experience. This is particularly important for the case discussions.

Course Administrator:Kirandeep.Saini@hhs.se

After taking this course, you will have developed an understanding of the current asset management landscape and its challenges. You will know important empirical facts about the asset management industry, and you will be able to interpret them through the eyes of the investment professional, pension plan sponsor, endowment trustee, sovereign wealth fund, private wealth manager, investment consultant, and the executive management of asset management firms. You will also know and understand important concepts used in the asset management industry. These concepts relate to various investment approaches (including liability-driven investment, long-term investment, responsible investment, factor investing), performance evaluation, and active and passive management of assets.

General entry requirements

My slides will provide the basis for lectures and discussions.

You are not required to buy any textbook for the course. However, as a service, I will make references to three highly recommended books:

1. Asset management: A systematic approach to factor investing (Oxford University Press, 2014) by Andrew Ang.
2. Investing amid low expected returns: Making the most when markets offer the least (Wiley, 2022) by Antti Ilmanen.
3. Efficiently inefficient: How smart money invests and market prices are determined (Princeton University Press, 2015) by Lasse Heje Pedersen.

These books are available through the SSE library. They are not necessary for solving cases or the final exam. What we do in class is key.

I will give required and optional readings from academic and practitioner journals.

We will cover several HBS-like cases.

Assignments

Assignments are an important part of this course. I believe that this sort of learning by doing is an integral part of internalizing new ideas and concepts. The assignments consist of cases. These cases will either introduce a new topic or you will apply the concept and tools covered in class to practical problems.

Examination

The grading for the course is based on case write-ups and a final exam. Write-ups of three cases will count for 30% of the final grade. You are allowed and encouraged to work on these case analyses in groups of up to five students, in which case you will only have to hand in one write-up per group for each of the case studies. (More cases will be discussed in class but there will be no write-ups on the additional cases.) The final exam will count for 70% of the final grade.

Note that participation is not graded. However, as much of the learning in this course occurs in the class sessions, it is important that you attend every session.

Find the course schedule in TimeEdit

Have you been granted educational support because of a documented disability? If so, please contact the course director as soon as possible so that adequate accommodations can be made.

Contact specialneeds@hhs.se if you have questions about being granted educational support or need a copy of your educational support certificate.

For more information, visit the Specific Educational Needs page on the Student Hub (login required).