Summer Program in Contemporary Finance

CASMEF – Arcelli Centre for Monetary and Financial Studies – LUISS University

GABELLI SCHOOL OF BUSINESS – Fordham University

Partners:

Summer-Program-in-Contemporary-Finance

Scientific Directors

  • Giorgio di Giorgio Professor of Monetary Economics and Director of CASMEF (Arcelli Center for Monetary and Financial Studies)
  • Sris Chatterjee, Professor of Finance and Gabelli Chair of Global Security Analysis, Fordham University
  • Nicola Borri, Assistant Professor of Economics LUISS Guido Carli University, Rome
  • Raffaele Oriani, Full Professor of Corporate Finance and Venture Capital, Department of Economics and Business, LUISS Guido Carli University, Rome 

Objectives

The course offers a unique opportunity to gain deep knowledge of the behavioral approach to finance, applied to the fields of wealth management and asset management.

The role of wealth manager has changed over time. Nowadays, it is not sufficient to have “technical” skills: wealth managers do also manage people, not only people’s wealth. Such an approach is necessary to understand clients’ behaviors and the psychology underlying their decision making processes. On the other side, even though asset manager do not directly interact with people, they have to take their behaviors into consideration because their cognitive and emotional errors may distort the initial (rational) allocation proposed by the asset manager. As result, these distortions may impede the achievement of clients’ investment objective. The 4-day course is meant to provide participants with the behavioral tools that wealth and asset managers need to deal with their clients. The course starts from the basics of behavioral finance (i.e., biases, heuristics and framing effects) and then, it presents the main market anomalies with respect to the efficient market hypothesis. Thereafter, the main behavioral theories, i.e., prospect theory and SP/A (Security, Potential, Aspirations) will be presented, together with the approach of “Goals-Based Wealth Management” that uses mental accounting to better serve the clients.

While the last topic refers to the “technical” part of behavioral asset management, a behavioral wealth manager also needs to deal with the clients. Thus, the course meants to develop soft skills, teaching how to implement a behavioral profiling tool to understand the financial personality of clients, as well as their inclination to errors. Finally, but not last in terms of importance, several debiasing techniques – to correct people cognitive biases ­– will be presented.

Target Group

Target consists of asset managers and wealth managers; despite that, the potential audience is larger, including people working in banks, mutual funds, pension funds, asset management companies, but also independent financial advisors. The course will be beneficial also for marketing and sales people in the financial industry.

Certification

Participants attending at least 80% of the sessions will receive a certificate of attendance at the end of the program.

Contents

Module 1

Behavioral Finance Foundations

  • Behavioral Biases: overconfidence, over optimism, illusion of knowledge, illusion of control, confirmation bias, (self)attribution bias, home bias, status quo bias, present bias
  • Decision Heuristics: familiarity, representativeness, availability, affect, anchoring and adjustments
  • Framing Effects: loss aversion, aversion to a sure loss, hedonic editing, mental accounting
  • Prospect Theory: Value Function and Subjective Probability Weighting Function

Module 2

Anomalies or regularities? Behavioral vs. Traditional View

  • Cross-section regularities: P/E effect, Price-to-Book Effect
  • Seasonal and Calendar Anomalies: January Effect, Sell in May and Go Away, Weekend Effect
  • Event-based regularities: behavioral issues regarding IPOs, SEOs, M&As, Splits, Spinoffs, Share Repurchasing
  • Momentum and Reversal: momentum effect, winner-loser effect

Module 3

Basics of Behavioral Portfolio Theory

  • Motivational (SP/A) Theory: the main financial objectives (Security and Potential) and the role of Aspirations
  • Mental Accounting
  • Behavioral Portfolio Theory (BPT):
  • BPT-SA (Single Account), BPT-MA (Multiple Accounts), Mental-Accounting Portfolio Theory
  • Behavioral asset allocation and behavioral asset management
  • Behaviorally Modified Asset Allocation
  • Goals-Based Wealth Management

Module 4

Customer satisfaction, True profiling and Behavioral guidance

  • Financial Personalities and Personality Profiling
  • Behavioral Investor Types (BITs) and Behavioral Profiling
  • Using personality and behavioral profiling to increase customer satisfaction
  • Behavioral Guidance: Managing Behaviorial Errors and Guiding Clients
  • Behavioral insights and comprehensive wealth management
  • Recognizing the nature of behavioral biases (cognitive or emotional)
  • Managing Emotions: Odysseus’ Strategies
  • Debiasing: debiasing techniques to correct cognitive errors

Faculty

Faculty includes both academic instructors and guest speakers from the financial industry.

Sris Chatterjee is Professor of Finance at the Gabelli School of Business of Fordham University, where he teaches M&A, Modern and Behavioral finance. He holds a M.Phil and a Ph.D. from Columbia University,  has an outstanding record of publications in major international finance journals and is an associate editor of the Journal of Financial Stability.

Enrico Cervellati is assistant professor of finance at the University of Bologna and an instructor of corporate finance at LUISS University in Rome. He holds a Ph.D. in Economics from the University of Ancona and a Msc in Finance from Birkbeck College in London and has a long and successful experience in professional and executive education.

Location

The Program will be held at Gabelli School of Business, Lincoln Center Campus, New York, USA.

Structure and Training Schedule

Program will last 5 days – 4 full days of training and one day of institutional visits – and will be held following the calendar below:

  • Monday, June 19 2017
  • Tuesday, June 20 2017
  • Wednesday, June 21 2017
  • Thursday, June 22 2017
  • Friday, June 23 2017

Monday to Friday:

  • Morning Session: 9.30-12.30
  • Lunch break:   12.30 – 1.30
  • Afternoon Session: 1.30 – 4.30

Fees

For US applicants:

5000,00 $  including University accommodation, 2 meals per day (breakfast – lunch), welcome cocktails and dinner-cruise, teaching material (notes, cases, etc.).
Notice:  hotel nights (if university accommodation is not chosen), dinners, airplane fares and transportation from and to airports (individually arranged) are not included in the Tuition Fees.

For European applicants:

4500 € including University accommodation, 2 meals per day (breakfast – lunch), welcome cocktails and dinner-cruise, teaching material (notes, cases, etc.)..
Notice:  hotel nights (if university accommodation is not chosen), dinners, airplane fares and transportation from and to airports (individually arranged) are not included in the Tuition Fees.

How toApply

Deadline to apply:  April 15, 2017
20% discount for:
Early bird applicants (before February 28, 2017)
Fordham and Luiss alumni
Applicants from industry partner associations

For US applicants:

Please contact Gregory Cooper (gcooper7@fordham.edu)

For European applicants:

candidates should send the following documents to segreteriaexecutiveedu@luiss.it:

  • fully- completed application form (available on line);
  • copy of degree certificate;
  • digital id photo;
  • copy of passport or id document;
  • curriculum vitae;
  • proof of employment;
  • fee receipt.

Payment Method

For US applicants:
Please contact Gregory Cooper (gcooper7@fordham.edu)

For European Applicants:
Please contact segreteriaexecutiveedu@luiss.it

Cancellation Policy

Please contact Gregory Cooper (gcooper7@fordham.edu)

For Further Information

Gabelli School of Business – Fordham University
Lincoln Center Campus
33 W. 60th Street
New York, NY 10023, USA.
Mail: gcooper7@fordham.edu

LUISS Business School – Executive Education
Viale Pola, 12 – 00198 Roma
Roma, Italia
Phone 06 85 222 239 -385
Mail segreteriaexecutiveedu@luiss.it