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Course 7
NOT OFFERED THIS SEMESTER The investment of plan assets is a major function of employee benefit plan management. Every person working with employee benefit plans should have an understanding of investment policies, security markets, asset selection, portfolio theory and evaluation of financial performance. These topics have an impact not just on pension benefits, but on the overall management of employee benefit assets (e.g., self funded medical plans, VEBA accounts, etc); consequently, these relationships should be understood by professionals in the field. The course introduces asset management in the context of setting investment objectives for pension plan assets. The course then provides the necessary background on financial markets, how they are organized, and how they operate. The concept of risk versus return and efficient markets and the impact of modern portfolio theory are presented, followed by a detailed discussion on bonds, stocks, and derivatives. The discussion is interwoven with the various approaches, some controversial, used by investors in analyzing and evaluating these instruments and the overall performance of specific financial markets. The course also covers mutual funds, managed accounts, and guaranteed investment contracts (GICs) which play a unique role in the administration of pension plans.
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© Copyright 2000 - Certified Employee Benefit Specialist Program |
This is a required
course for the RPA designation. It may be used as an elective for the
CEBS designation.