CISI Training: Hedge Funds – Understanding the Risks and Returns Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities, IISI DEFINITION Although hedge funds seem to have hit the headlines only recently, the first of these funds was actually started in 1949. Hedge funds are normally run by small teams of portfolio managers, traders, and…
CISI Training: Derivatives Markets – Their Structure and Function Relevant to the following CISI qualifications: ICWIM, ICAWM, Derivatives, IISI DEFINITION Derivatives markets attract three main types of participants: hedgers, speculators, and arbitrageurs. Hedgers reduce the risk that they face in terms of asset prices by using futures or options markets. Speculators focus on future price…
The Tadawul Book Club The Alchemy of Finance: Reading the Mind of the Market (George Soros) Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities Why Read It? · Gives insight into Soros’s investment strategies, and the decision-making processes of the most successful money manager of our time. · Depicts how he ran the hugely…
CISI Training: Methods for Dealing with Inflation Risk Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities, Risk in Financial Services DEFINITION Inflation risk can be defined as the risk that the value of physical or financial assets willbe eroded by inflation. To protect against that loss, investment managers need to employ one or more…
CISI Training: Corporate Governance and Its Interpretation Relevant to the following CISI qualifications: ICWIM, ICAWM, Risk in Financial Services DEFINITION Corporate governance is the system by which organizations are directed and controlled. The defects of poor corporate governance have recently been very visible in financial institutions around the world. Since the endorsement of Sarbanes–Oxley, companies…
CISI Training Review: Understanding Key Financial Terms and Statements Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities DEFINITION Publicly traded companies are under an obligation to deliver regular trading updates to the market, ensuring that at all times they present a reasonable reflection of their actual trading performance. However, the terms commonly used in…
CISI Training IFQ: An Overview of Shariah-Compliant Funds Relevant to the following CISI qualifications: Islamic Finance Qualification DEFINITION Shariah-compliant funds are investment vehicles which are fully compliant with the principles of Islam. The funds are prohibited from making investments in industries categorized as morally deficient, such as those related to gambling or alcohol. Because Islam…
3 mistakes students make when studying for CISI Exams Throughout the years we’ve been teaching CISI, we’ve seen students make all sorts of mistakes. Three of these mistakes stand out because they can be the main reason students fail. So, what are these mistakes and how can you avoid them? Mistake #1: Not Giving It…
Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities, Risk in Financial Services DEFINITION The time value of money is based on the premise that most people would choose to receive, say, $10,000 now, rather than the same sum in five years’ time. Why? Firstly, because any rational person knows that the $10,000 will almost…
CISI Exam Prep: Identifying and Managing Exposure to Interest and Exchange Rate Risks Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives DEFINITION The successful management of a portfolio includes maximizing returns from shifts in exchange and interest rates, which in turn requires an appreciation of the associated exposures. Not knowing the exposure…