This class exists in these courses :
• IÉSEG > MSc in Finance > Semestre 2 > 2,00 ECTS

Prerequisites

- Students should already have a good knowledge of "traditional" financial assets and their valuation

- Students should master the techniques of portfolio selection and know how financial markets and institutions work

Learning outcomes

- … know what alternative assets exist on the market, what are their characteristics in terms of risk, return and power of diversification when added to a traditional portfolio

- … successfully collaborate within a intercultural team when building a portfolio of diversified instruments in various locations and submitted to various regulatory schemes

- … propose creative solutions within an organization or individuals by assessing the organization / individuals' needs and investment profiles and propose appropriate investment strategy

- … construct expert knowledge from cutting-edge information by using professional data provider services like Bloomberg or Thomson Reuters

- … formulate strategically-appropriate solutions to complex and unfamiliar challenges in their professional field by considering alternative investments and selecting appropriate valuation techniques

Course description

Learning about alternative investments - The course provides bases to understand the key properties of alternative investments (identification of the purpose of including each of the following in a portfolio of investments, list of their unique properties and risk characteristics: all types of real estate assets, Private Equity & Venture Capital, Commodities, Derivatives).

Learning various valuation techniques and selecting which one is appropriate depending on the investment and available data.

Studying the power of diversification and relationship between alternative investments and traditional investments.

Studying the differences between countries or regulatory schemes for some categories of investments (mainly in real estate), studying the probable trends on the market for those categories.

Learning how/where to find the data on alternative investments and how to process it.

Class type

Class structure

Teaching methods

• Coaching
• Interactive class
• Project work

Assessment

A 2h final exam will assess the student's knowledge of raw information and theory.

The group project will participate to a deeper understanding of the investment opportunities and process through practice, and will assess the students' capacity to apply the valuation techniques, innovative portfolio construction techniques, and ability to propose a creative investment strategy to the case client

Recommended reading

• All course material will be placed on the IESEG Online dedicated space -