FINISM14
Provide equity capital research and analysis support
for portfolio management activities
Overview
This unit is about the development of an understanding of the asset class which
informs those dealing with portfolio design and maintenance. The unit is for you
if your job role includes specialist analysis of equity capital markets and the part
played by equity capital in portfolios.
FINISM14 Provide equity capital research and analysis support for portfolio management activities
1
FINISM14
Provide equity capital research and analysis support for portfolio
management activities
Performance
criteria
You must be able to:
P1
identify the potential part to be played by equity capital in a portfolio by
analysing its investment objectives, risk profile and investment strategy
P2 review the part that could be played by different categories of share
capital in a portfolio
P3 analyse the diversification pattern of a portfolio and the limits it sets on
the use of equity capital within the portfolio
P4 analyse the correlations and negative correlations between the
performance of equity securities and other asset classes
P5 explain commonly used valuation ratios and measures and their
significance for the inclusion of equities in a portfolio
P6 explain the relevance of dividend analysis and valuation to the inclusion
of equity capital in a portfolio
P7 explain different methods of raising equity capital and the significance of
new issues to portfolio investments
P8 make recommendations regarding equity asset holdings
P9 respond to requests for reporting on equity asset performance in a way
that informs clients in a way that is clear, fair and not misleading
P10 devise regular and routine reports on equity asset performance and
prospects to support portfolio design and maintenance
FINISM14 Provide equity capital research and analysis support for portfolio management activities
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FINISM14
Provide equity capital research and analysis support for portfolio
management activities
Knowledge and
understanding
You need to know and
understand:
K1
K2
K3
K4
K5
K6
K7
K8
K9
K10
K11
K12
K13
features of investment objectives, risk profiles and investment strategy
which demand information about equity capital and markets
classes of equity capital and the characteristics of different types of
stocks and shares
the part played by equity capital in diversification of portfolios and how
that can be managed
the nature of correlation and negative correlation between different asset
classes and its effect on portfolio management
valuation methods and ratios that support the analysis of equities for
portfolio purposes
approaches to dividend analysis and valuation which help to support
portfolio management
different methods of raising equity capital and their relationship with
value to portfolios
methods of analysing individual equity investments to present clear
recommendations to portfolio managers
communication methods which help to present regular reports on equity
capital markets which are clear, fair and not misleading
how to devise effective responses to portfolio managers and their clients
regarding specific queries about equity capital matters.
your organisation's practice and procedures for applying the regulatory
and legislative requirements common to all employers/sectors
your organisation's practice and procedures relating to the application of
industry regulation and standard codes of practice
your organisation's practice and procedures relating to the recognition,
promotion and application of ethical standards
FINISM14 Provide equity capital research and analysis support for portfolio management activities
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FINISM14
Provide equity capital research and analysis support for portfolio
management activities
Additional Information
Behaviours
1.
2.
3.
4.
5.
you encourage others to share information and knowledge within the
constraints of confidentiality
you identify the implications or consequences of a situation
you carry out tasks with due regard to your organisation's policies and
procedures, including those covering regulatory and statutory duties
and ethical considerations
you identify a range of elements in a situation and how they relate to
each other
you develop systems to gather and manage information and knowledge
effectively, efficiently and ethically
FINISM14 Provide equity capital research and analysis support for portfolio management activities
4
FINISM14
Provide equity capital research and analysis support for portfolio
management activities
Developed by
Financial Skills Partnership
Version number
1
Date approved
July 2009
Indicative review
date
July 2011
Validity
Current
Status
Original
Originating
organisation
Financial Skills Partnership
Original URN
ISM14
Relevant
occupations
Accounting and finance; Finance
Suite
Investment Strategy and Management
Key words
Investment strategy, investment management, investors, investment
operations, investment portfolios, financial analysis, fund management, wealth
management, portfolio management
FINISM14 Provide equity capital research and analysis support for portfolio management activities
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