behavioral finance for private banking

Transcription

1 behavioral finance for private banking Seminar Swiss Banking Institute, weiterbildung

2 program overview Topic Behavioral finance is a new flourishing area of finance that analyses the psychology of investing. This seminar explains in which way people deviate from the paradigm of rational decision making. The new behavioral models that the seminar provides have at least the following two important applications: Private Banking The behavioral investment models improve financial decision-making by alerting to the dissonance between the decisions you are tempted to take and the decisions you should take. Product Development The behavioral models can also be used to design structured products that are best suited to serve the needs of private investors. Target Audience Number of participants Aim The seminar is designed for client advisors and financial planners from banks, pension funds and family offices. The participants are expected to have good knowledge in German and working level in English since most lectures are given in German and the seminar material is written in English. The number of participants is limited to 20 allowing close interaction between the participants and the speakers. The seminar will strengthen its participants advisory competence by enhancing their knowledge with latest insights from behavioral finance research; developing expertise on differentiating between rational and irrational decisions; widening their proficiency in assessing client s risk profile; promoting the integration of behavioral finance insights along the wealth management process. Instructors Prof. Dr. Enrico De Giorgi Assistant Professor of Finance USI, University of Lugano Prof. Dr. Thorsten Hens Professor of Financial Economics, Dr. Marc Oliver Rieger Assistant at the Swiss Banking Institute, Prof. Dr. Mei Wang Assistant Professor of Finance and Financial Markets, Certification Confirmation of participation issued by the

3 Governing Body Administration Dates Location Fees Registration Prof. Dr. Thorsten Hens,, Swiss Banking Institut Evi Ruthenbeck,, Fachstelle für Weiterbildung, Hirschengraben 84, 8001 Zurich, Phone: , The seminar lasts three days from 10 to 12 September Lectures take place from 8.00 to with coffee breaks and lunch in between. The course fee for each participant amounts to CHF covering tuition, course materials, meals and refreshments. Travel expenses and/or accommodation have to be covered by the participants. To register for the seminar please either fill in the registration form and return it to us or register online: The deadline for registration is July 31, The registration can be cancelled within 10 days after receiving the definite admission at no charge. For later cancellations there will be no refund. Websites

4 content 1. Decision Theory Participants learn how to distinguish rational from irrational decisions, how to use descriptive models to better understand the view of the client, how to determine the optimal asset allocation of clients with behavioral preferences. traditional finance: rational choice, expected utility and mean-variance analysis prospect theory and the optimal asset allocation: integrating prospect theory in the mean-variance analysis reward-risk trade-off from behavioral finance perspective comparison of expected utility, mean variance and prospect theory 2. Behavioral Biases Participants learn how individuals decisions may be affected by psychological biases, how biased investors influence the asset prices. behavioral biases predictable asset prices cultural differences 3. Risk Profiling Participants learn why to use a risk profiler when deriving the optimal asset allocation of a client, how to use the behavioral finance in the assessment of the client s risk profile. behavioral biases versus behavioral preferences risk profiler in the mean-variance analysis risk profiler based on behavioral finance 4. Product Design Participants learn what is an optimal payoff from the perspective of different clients, which aspects of offered products can be improved, how to design products that match client s preferences. case studies: structured products, life-cycle products optimal product design

5 5. Dynamical Asset Allocation Participants learn how to adjust the asset allocation of clients with different preferences over time under different market conditions, what is the role of the client s investment horizon, which rules of thumb are appropriate for which clients. two-period optimal asset allocation inter-temporal optimal asset allocation 6. Life-Cycle Planning Participants learn what is the best consumption / saving path along the life-cycle, what is the best proportion of risky assets as of financial capital over the life-cycle, does it make sense to lock-in the investor in a life-cycle product. consumption smoothing behavioral life-cycle hypothesis hyperbolic discounting and habit formation optimal asset allocation over the life-cycle 7. Structured Wealth Management Process Participants learn which psychological effects have to be considered when advising clients, how to integrate the insights of behavioral finance in the current advisory process. a typical wealth management process integrating behavioral finance along the wealth management process developing a tailored asset allocation case studies

6 Registration form: Behavioral Finance for Private Banking Personal data Last name Date of birth First name Nationality Home address (correspondence address ) Street Telephone Postcode/city Fax Office address (correspondence address ) Company Profession Homepage Function Street Years of experience Postcode/city Telephone Fax Professional occupation: Duration/brief description Application/conditions To apply for the seminar please either fill in the form and send it to or apply online ( The application can be cancelled within 10 days after receiving the definite admission at no charge. For later cancellations there will be no refund. Registration deadline July 31, Address Kremena Bachmann,, Swiss Banking Institute, Plattenstrasse 32, 8032 Zürich Confirmation City, Date Signature

7 Further Education at the Where Research and Science Find Their Way into the Workplace Just a few years after you have completed your studies, the market value of the technical knowledge which you have acquired will have depreciated considerably as a result of natural memory loss and the creation of new knowledge. Regular further education helps you keep up to date, ensuring an outstandingly competitive portfolio of knowledge. The offers university graduates and those with an equivalent qualification a wide range of further education courses including certificate, diploma and master programs as well as specialist courses lasting several days. In further education courses organized by the, knowledge is not only imparted but also exchanged. Real-life examples and exercises are used to introduce new technologies, models and practices into the everyday work of course participants. Through constant comparisons with traditional universities and universities of applied sciences throughout Switzerland and abroad and the selection of academically qualified and committed lecturers we are able to offer a high standard of university-level education. weiterbildung Universität Zürich Fachstelle für Weiterbildung Hirschengraben Zürich Tel Fax wbinfo@wb.uzh.ch