Behavioural Finance Workshop

Behavioural Finance Workshop - 14 & 15 September 2017

Trainer: Frank Ashe

Overview:

This course will analyse the main features of behavioral finance: what is it, why it occurs, and what can we do with it. Applications to personal finance, investment management, and product distribution will be discussed, using case studies. We’ll identify the influence of cognitive biases etc. on your organisation’s processes and those of your clients; how to mitigate their negative effects on your portfolios, and see how biases and heuristics can seriously distort market prices even in the presence of arbitrageurs. On the positive side, we’ll also investigate how to utilise insights from behavioral finance to construct more acceptable and more productive portfolios for your clients, how to better sell these portfolios to clients, and how to obtain better client satisfaction. Effects on corporate culture will also be discussed.

Who should attend ?

 - CIOS

 - Pension Fund Trustees & Managers

 - Financial Planners

 - Manager (Portfolio / Business Development / Marketing / Client & Relationship / Risk Management)

 - Security and Market Strategist & Analysts

 - Risk managers.

Course Outline:

The Psychology of Cognitive Biases, Heuristics, and Beliefs

 - Exercises will demonstrate these behaviours in course participants.

 - Overconfidence and optimism, representative and availability bias, illusion of knowledge, belief perseverance, framing and anchoring, mental accounting, hindsight bias

 - The big one: confirmation bias

 - Narrative and story telling

 - Short term versus long term decision making

 - Ambiguity aversion

Evidence for biases in wholesale and retail investors

 - Behavioural portfolio theory

 - Stock trading behaviour

 - Stock analyst biases

 - Managerial mistakes

 - Herds and crowds, and lone wolves

"Irrational" behaviours: why they occur, and why they’re hard to eradicate.

 - The structure of the brain:

    - Automatic versus controlled brain processes (System 1 and System 2)

 - The insights of neuroeconomics on financial decision making.

 - The importance of trust, emotions, drives, and motivations in making decisions

 - Gender differences

 - Decisions under ambiguity versus randomness

 - How ethics and morality cannot be divorced from decision making processes

The good side of “irrational” behaviours

 - Rational decision making under uncertainty doesn't get anything done

 - Bubbles are good for society, bad for most investors

 - Social capital

 - Game theory - escape from Prisoners Dilemma

 - Nudging vs boosting

Psychological biases: how to identify them, and what to do about them

 - Two checklists for managers, analysts and client managers

 - What to look for in companies being analysed

 - Training and education

 - Processes to mitigate risks of wrong decisions

Client portfolios: how to meet clients’ wants and needs.

Hierarchy of needs and the chaos of wants

 - Building trust

 - Behavioural portfolio construction

 - Education - will it work?

 - A portfolio for the short - term or the long term?

Corporate culture and risk management

What is culture? Risk culture?

 - Creation of a culture and cultural transmission

 - Risk perception

Financial markets: why they can't be efficient, and why we shouldn't expect them to be.

 - Noise traders vs arbitrageurs. Who wins in the long run?

 - How does information come to the market?

 - Strong enough market efficiency

 - Avoiding the "money pump"

This workshop is eligible for 14 CE credit hours.


 Course Fee:

CFA Singapore member price : S$1,580* (Early Bird fee) / S$1,780* (Standard fee)

Non-member price : S$1,780* (Early Bird fee) / S$1,980* (Standard fee)

Early bird fee valid till 14 August 2017

* Prices before 7% GST

* 10% off Group Discount available

Please email eventmanagement@cfasingapore.org for more details.

Download course brochure here   |    Click here for our CFA Singapore official webpage

Dr Frank Ashe, PhD UNSW, BA Macq - BA Macq, PhD UNSW Independent Consultant, Honorary Fellow, Macquarie Applied Finance Centre

Frank Ashe is an independent Consultant . He’s been an Associate Professor at the Macquarie University Applied Finance Centre from January 2002 to December 2014, teaching courses Financial Risk Management, Risk and Portfolio Construction, and Financial Instruments, with research interests in corporate governance and risk, financial risk management, robustness of investment portfolio construction techniques, enterprise risk management, and the statistical underpinnings of Applied Finance. He previously held a Visiting Fellowship with the Centre. Prior to the position at the Applied Finance Centre, Dr Ashe worked in Australia and Canada with insurance companies, investment management firms, and in software development and consultancy. His 30+ years of practical experience has been predominantly in the measurement and management of financial risk, with an emphasis on asset-liability management, and developing risk measurement and management tools for novel situations. He is a regular presenter at industry seminars and colloquia, and was President of the Australian Q-Group from 2001 to 2011. Dr Ashe obtained his PhD in Operations Research from the University of New South Wales.

DATE:
Thursday, September 14, 2017-
Friday, September 15, 2017

TIME:
09:00 a.m.-05:00 p.m.

LOCATION:
TBC
TBC

Speaker(s):
Dr Frank Ashe, PhD UNSW, BA Macq


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