Life Cycle Investing (AFCP855)

This unit provides an in-depth knowledge of the challenge of understanding the nature of whole of life investing. A framework is developed to model the various risks followed with techniques to solve it whilst addressing the various complexities and uncertainties including longevity, inflation and interaction with age pension. This unit will assist those involved in developing, managing and analysing any investment strategy for whole of life investing, particularly in the accumulation and retirement phases of the superannuation and retirement industry.

Learning Outcomes:

  1. Understand and communicate the whole of life investing challenge in a relevant asset-liability framework.
  2. Apply investment theory to understand and communicate the different perspective of long term multi-time period investing.
  3. Be able to specify and develop solution techniques for whole of life investing within the specified asset-liability framework, and be able to apply them in practice.
  4. Be able to incorporate various complexities into the asset-liability model aiming to capture the material drivers impacting retirement outcomes.
  5. Critically evaluate various solutions to whole of life investment management within the framework of their impact on (risk-adjusted) retirement outcomes.
  6. Critically evaluate mechanisms to manage uncertainties impacting retirement outcomes as they arise through life.

Topics:

  1. Introduction to Life Cycle Investing
  2. The Problem to Solve
  3. Techniques to Solve the Investment Strategy Problem
  4. Apply to Various Cases
  5. Round Out the Solution
  6. Managing the End Game: Techniques to Manage the Uncertainties in Retirement

Prerequisite Units:

Lecturers:

Unit Guides:

  • Life Cycle Investing - The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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