Pensions and Retirement Training Course on Portfolio Construction for Pension Funds
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This program provides pension professionals with the technical, analytical, and governance skills necessary to design and manage diversified investment portfolios that align with long-term pension fund objectives. Participants will explore modern portfolio theory, asset allocation strategies, risk diversification, and performance evaluation, all within the unique context of pension fund management. The course emphasizes liability-aware investing, sustainability integration, and regulatory compliance, equipping participants to build portfolios that optimize returns while safeguarding beneficiaries’ interests.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of the course, participants will be able to:
Understand the principles and objectives of portfolio construction in pension fund management.
Identify the unique investment constraints faced by pension funds.
Apply modern portfolio theory and asset allocation techniques.
Design diversified portfolios that balance risk and return over long horizons.
Incorporate liability-driven investment (LDI) principles into portfolio design.
Evaluate portfolio performance using quantitative and qualitative measures.
Integrate ESG and sustainability considerations into portfolio strategy.
Understand regulatory, fiduciary, and governance requirements in portfolio construction.
Conduct stress testing, scenario analysis, and rebalancing exercises.
Develop a full pension fund investment portfolio and present a policy-driven allocation strategy.
Course Content
Module 1: Foundations of Portfolio Construction for Pension Funds Overview of pension fund investment objectives Key principles of portfolio theory and diversification Role of portfolio construction in achieving long-term pension goals Pension fund constraints: liquidity, funding, and regulation Balancing growth, income, and risk mitigation Case study: Portfolio construction for a defined benefit (DB) vs. defined contribution (DC) plan
Module 2: Investment Policy and Governance Framework Role of the Investment Policy Statement (IPS) in guiding portfolio construction Governance structures and decision-making roles Setting strategic objectives: return targets and risk appetite Integrating fiduciary duties and compliance requirements Aligning portfolio strategy with pension fund liabilities and demographics Workshop: Developing a governance framework for portfolio design Module 3: Asset Classes and Characteristics Overview of traditional and alternative asset classes Equities, fixed income, real estate, infrastructure, and private equity Alternative investments: hedge funds, commodities, and venture capital Risk, return, and correlation analysis across asset classes Inflation protection instruments: TIPS, inflation-linked bonds, and real assets Case study: Asset class selection for a maturing pension fund Module 4: Strategic and Tactical Asset Allocation Long-term strategic asset allocation (SAA) principles Tactical asset allocation (TAA) in changing market conditions Quantitative and qualitative approaches to allocation decisions Correlation management and diversification optimization Dynamic asset allocation models and rebalancing strategies Workshop: Constructing a diversified asset allocation model Module 5: Liability-Driven Investment (LDI) Strategies Understanding the link between assets and liabilities Duration matching and immunization strategies Cash flow matching for benefit payments Use of derivatives and swaps in liability hedging Integrating LDI within overall portfolio construction Simulation: Designing a portfolio for a liability-matching pension fund Module 6: Risk Management and Performance Measurement Identifying and quantifying key investment risks Market, credit, liquidity, and operational risk in portfolios Tools for performance evaluation: Sharpe, Treynor, and Information ratios Benchmarking and attribution analysis Stress testing and scenario analysis techniques Workshop: Measuring performance and tracking error in pension portfolios Module 7: ESG Integration and Sustainable Investing ESG (Environmental, Social, and Governance) principles and their impact on portfolio returns Sustainable and impact investing for long-term pension portfolios Regulatory trends in responsible investment ESG data, ratings, and performance tracking Designing an ESG-aligned portfolio framework Case study: Integrating ESG factors into asset allocation Module 8: Alternative and Real Asset Investments Role of real estate, private equity, and infrastructure in portfolio diversification Assessing illiquidity premiums and long-term capital commitments Valuation and performance challenges of alternative assets Portfolio construction considerations for alternative investments Regulatory and reporting implications for pension funds Workshop: Incorporating alternatives into a balanced pension portfolio
Module 9: Portfolio Monitoring, Rebalancing, and Reporting Establishing monitoring frameworks and key performance indicators (KPIs) Rebalancing strategies: calendar-based, threshold-based, and dynamic Portfolio adjustment to changing liabilities and market conditions Communication and transparency in performance reporting Evaluating investment managers and custodians Practical session: Creating a portfolio monitoring dashboard Module 10: Practical Case Study and Capstone Project Step-by-step development of a pension fund portfolio strategy Real-world case analysis of portfolio restructuring Presenting investment rationale and risk mitigation measures Peer review and critique of portfolio construction projects Final evaluation and certification ceremony Wrap-up: Future trends in pension portfolio management
Who Should Attend
Pension fund managers, trustees, actuaries, investment analysts, portfolio strategists, risk managers, financial consultants, regulators, and policymakers responsible for pension investment oversight and governance.
