Description
CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow. CFA Institute has more than 170,000 members in 160+ countries and territories, including 163,000 CFA(r); charterholders, and 150+ member societies. For more information, visit www.cfainstitute.org. Foreword Preface Acknowledgments About the CFA Institute Investment Series Chapter 1: Introduction to Corporate Governance and Other ESG Considerations Learning Outcomes * Introduction and Overview of Corporate Governance * Stakeholder Groups * Principal- Agent and Other Relationships in Corporate Governance * Overview and Mechanisms of Stakeholder Management * Mechanisms to Mitigate Associated Stakeholder Risks * Company Boards and Committees * Relevant Factors in Analyzing Corporate Governance and Stakeholder Management * Risks and Benefits of Corporate Governance and Stakeholder Management * Factors Relevant to Corporate Governance and Stakeholder Management Analysis * ESG Considerations for Investors and Analysts Summary Chapter 2: Introduction to Alternative Investments Learning Outcomes * Introduction * Investment Methods * Investment and Compensation Structures * Hedge Funds * Private Capital * Natural Resources * Real Estate * Infrastructure * Issues in Performance Appraisal * Calculating Fees and Returns Summary Chapter 3: Real Estate Investments Learning Outcomes Section A: Overview of Types of Real Estate Investment * Introduction and Basic Forms of Real Estate Investment * Economic Value Drivers, Role in Portfolio, and Risk/Return of Real Estate Investments Relative to Stocks and Bonds * Considerations in Analysis and Due Diligence * Indexes Section B: Investments in Real Estate Through Private Vehicles * Introduction to Valuation Approaches * The Income Approach to Valuation: Discount Rates and the Direct * The DCF Method, the Relationship between Discount Rate and Cap Rate, and the Terminal Capitalization Rate * Private Market Real Estate Debt Section C: Investments in Real Estate Through Publicly Traded Securities * Types of Publicly Traded Real Estate Securities * Valuation: Net Asset Value Approach * Valuation: Relative Value (Price Multiple) Approach * REIT Mini Case Study: Example of Disclosures and Valuation Analysis * Private versus Public: A Comparison Summary General Characteristics of Real Estate Private Equity Real Estate Publicly Traded Real Estate Securities Chapter 4: Private Equity Investments Learning Outcomes * Introduction * Introduction to Valuation Techniques in Private Equity Transactions * Contrasting Venture Capital and Buyout Investments * LBO Model for Valuation of Buyout Transactions * VC Method for Valuation of Venture Capital Transactions * Exit Routes: Return Cash to Investors * Risks and Costs of investing in Private Equity * Private Equity Fund Structures and Terms * Private Equity Fund Summary Chapter 5: Introduction to Commodities and Commodity Derivatives Learning Outcomes * Introduction * Commodity Sectors * Life Cycle of Commodities * Valuation of Commodities * Commodities Futures Markets: Participants * Commodity Spot and Futures Pricing * Theories of Futures Returns * Components of Futures Returns * Contango, Backwardation, and the Roll Return * Commodity Swaps * Commodity Indexes Summary Chapter 6: Hedge Fund Strategies Learning Outcomes * Introduction and Classification of Hedge * Equity Strategies: Long/Short Equity * Equity Strategies: Dedicated Short Selling and Short-Biased * Equity Strategies: Equity Market Neutral * Event- Driven Strategies: Merger Arbitrage * Event- Driven Strategies: Distressed Securities * Relative Value Strategies: Fixed Income Arbitrage * Relative Value Strategies: Convertible Bond Arbitrage * Opportunistic Strategies: Global Macro Strategies * Opportunistic Strategies: Managed Futures * Specialist Strategies * Multi- Manager Strategies * Analysis of Hedge Fund Strategies using a Conditional Factor Risk Model * Evaluating Equity Hedge Fund Strategies: Application * Evaluating Multi- manager Hedge Fund Strategies: Application * Portfolio Contribution of Hedge Fund Strategies Summary Chapter 7: Capital Market Expectations: Forecasting Asset Class Returns Learning Outcomes * Introduction * Overview of Tools and Approaches * Forecasting Fixed Income Returns * Risks in Emerging Market Bonds * Forecasting Equity Returns * Forecasting Real Estate Returns * Forecasting Exchange Rates * Forecasting Volatility * Adjusting a Global Portfolio Summary Chapter 8: Asset Allocation to Alternative Investments Learning Outcomes * Introduction and The Role of Alternative Investments in a Multi-asset Portfolio * Diversifying Equity Risk * Traditional Approaches to Asset Classification * Risk- Based Approaches to Asset Classification and Comparing Risk- Based and Traditional Approaches * Risk Considerations, Return Expectations and Investment Vehicle * Liquidity * Fees and Expenses, Tax Considerations, and Other Considerations * Suitability Considerations * Asset Allocation Approaches and Statistical Properties and Challenges of Asset Returns * Monte Carlo Simulation * Portfolio Optimization * Risk Factor- Based Optimization * Liquidity Planning and Achieving and Maintaining the Strategic Asset Allocation * Managing the Capital Calls and Preparing for the Unexpected * Monitoring the Investment Program Summary Chapter 9: Integrated Cases in Risk Management: Institutional Learning Outcomes * Introduction * Financial Risks Faced by Institutional Investors * Environmental and Social Risks Faced by Institutional Investors Glossary About the Editors and Authors Index
