private investor programme

NyeNrode CeNter for Private Wealth MaNageMeNt

private investor programme

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Private Investor Programme Uncertainty Why a Private Investor Programme? The Private Investor Programme How do we do this? Simulations Personal guidance Programme duration Experts

Programme parts/General structure of parts

Cost/Registration and information


UncertaintyNothing is as changeable as the weather. If you believe that you know what the weather is going to be like in the coming months you may be heading for disaster. After all, it is not even easy to predict the weather for the next few days! Nevertheless, few people are going to dispute the value of meteorology. Knowledge of the weather itself, of its forces and caprices, transcends the realm of speculation and gambling. Knowing which scenarios are possible and what their implications are can remove a great deal of uncertainty.

The investment world is no different. Nobody can profess to know how stock market prices will develop in the coming years. We learn this lesson daily. But if you have a better understanding of market forces and of which scenarios are possible or impossible you will be well prepared, able to take soundly motivated decisions and consequently better able to protect yourself (and your capital) from disasters.

Why a Private Investor Programme?Many surveys among wealthy investors around the globe indicate that there is a great need for better knowledge of, and insight into, the financial markets and (responsible) investments. In the current uncertain financial climate, this need has become even greater.

Today’s financial markets are more volatile than ever and just as diffuse and unpredictable as the weather. More than ever before, you and other investors are confronted with innumerable questions and challenges. The constantly changing market prices indicate that it is difficult – even for most professionals – to determine a long-term trend. The investment selection and the timing of buying and selling are clearly the most difficult aspects, even for professional players. It is precisely this that makes investors so insecure. Who can you, or should you, believe and trust? Why do the opinions of experts vary so greatly?

Would you not prefer to hold the reins in your own hands? Are you concerned about your pension? Do you want to do more with your capital? When do you want to make use of your investments to enjoy life? Do you wish to pass your wealth on your children? These are very

important questions. It makes quite a difference whether you need your money tomorrow or only in a couple of years´ time.

The Private Investor ProgrammeThis is precisely why Nyenrode Business University (‘Nyenrode’), in cooperation with Oxyor, has developed a unique and exclusive programme: the Private Investor Programme. You receive in-depth knowledge, valuable skills and unique insights into the field of investment, analysed and explained by top experts. Our experts are strictly independent and train professional investors worldwide. They manage this programme with great enthusiasm and such lucidity that it is very easy to follow for the interested investor.

The basic starting point is a dynamic, interactive and above all practical programme. You interact with the experts and other participants through an internet portal, and you take part in group meetings and discussions. The programme pushes you to actively join these meetings and discussions, because even if you outsource your investment decisions, you will still need to understand what the asset manager is doing with your money.

We are confident that, by following this programme, you will be able to make sound investment decisions yourself, should you so wish. By the end of the programme, we expect that you will have reached the same level as many professional investors. In order to achieve this goal, we expect a high level of commitment from you personally through taking part in simulations and completing assignments. Your own investment portfolio plays a central role in the simulations and guidance. Our optimally customised programme allows you to put everything you have learned into immediate practice.

How do we do this?In this programme, we expect considerable commitment by all involved. Not only from the experts who will be supporting you on a regular basis, but also from you and the other participants. Because a great deal will be happening over a period of five months:• �Every�month, there will be a meeting at the campus of Nyenrode for


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all programme participants. Here you acquire important investor knowledge and skills, you share ideas and experiences with the other participants and above all, you learn how to invest and trade responsibly yourself.

• You gain an understanding of the advantages and disadvantages of investing short, medium and long term. We show you how to gather and use information and knowledge about markets and products in a professional way. In this way, you will learn how to invest at a level that is at least equivalent to that of the majority of professional investors in the market.

• Throughout the duration of the programme, you will also manage investments in your own ’virtual’ portfolio during a portfolio simulation. This is available via the Internet 24�hours�a�day,�7�days�a�week.

• Every�week, you will participate in an Internet market analysis session lasting between one and two hours at a time. In this session the market developments of the previous week will be analysed. Time is allotted for your input in a Q&A moment at the end of each session.

• Every�week, you will receive a detailed commentary on developments (or the lack of them) in your virtual investment portfolio. You will receive professional guidance from top experts and will be expected to explain all your trading transactions and choices. In this way, both the experts and you will learn to identify your personal do’s anddon’ts.

• �Every�week,�you will take part in weekly online discussions with your investment group about the developments in your portfolios and in the market. We work with groups of 4-5 participants, selected on the basis of similarities in their investment style, investment portfolio, size of capital, knowledge and vision.

• Every�week,�the experts will be available to help you with your portfolio, deal with questions on (new) topics or to explain topics in greater depth. They provide active instructions via the Internet and are actively at your disposal one day a week.

SimulationsThe portfolio simulation that Oxyor offers is a unique experience: true-to-life, but with the assurance that you have not lost money if

your investments turn against you. Incidentally, pilots, doctors and astronauts also train using this method. Experience your computer screen as a mirror of your abilities and limitations. In the portfolio simulation, you will manage your own virtual portfolio online during the course of the programme in a realistic environment. We use real stock exchange prices and real markets for this. You will first draw up an investment plan based on your objectives, create your own ‘asset mix’ and decide what risks you do or do not wish to run. You will also indicate in advance in which products you wish to invest so as to create a portfolio of your preference. It would be very practical from your point of view to inform us of any existing portfolio you may have, so that we can guide you from day 1 on a basis geared to your actual situation.

While theoretical knowledge is important, the focus will be on your doing ‘everything’ yourself in the most realistic way possible. For example, during the second meeting at Nyenrode, you will set to work just like a real trader. In the trading simulation, you sit on the trader’s chair experiencing how a dealing room works, how you react to the market developments and how you react to risks. You will also acknowledge the importance of liquidity in the market and, above all, what your trades says about your own investment style and personal risk profile. You will experience the real dynamics of the financial markets.

The investorDuring the Private Investor Programme you will be working hands-on. As well as logging in daily to the portfolio simulation to follow the market developments, you will have weekly market analysis sessions and the investment discussions with your group. In addition, you will need to reserve approximately two hours per week for reading and looking at background material and working on case studies. Should you need further explanations, you can always reach the experts for help. Your own efforts will determine your success in this programme, and in the longer perspective. You will, furthermore, be asked to attend the monthly meetings at Nyenrode.



Personal guidanceDuring the length of the programme, you will be assisted online by independent experts with many years experience in the investment community. Since you have to trade every week and keep a logbook of your trades, a clear pattern will become visible and your investment decisions will be assessed against your objectives. At least once a week, you will receive feedback from the experts regarding your objectives, strategy, market vision and portfolio.

In addition, you will learn to ‘read’ the market through analysis during the weekly market analysis sessions. In order to ensure maximum benefit from this, your and the other

participants own input is crucial. This naturally also applies to the weekly discussion sessions of your group. These will also be led by an expert.

Know yourselfPrior to the start of the programme, you will be asked to use a self-assessment tool in which you will describe your investment vision, investment strategy, objectives and attitude to risk-taking. This will increase your awareness and make it possible to optimally customise the programme. In addition, a personal intake interview forms part of the programme. These two elements will provide the experts with a picture of your investment style, which will help them guiding you. Furthermore, the self-assessment will play an important role during the programme as a benchmark for your decisions.

Many investors have little insight into their own behaviour and perception of money and investment. During the simulations, you will find (often to your surprise) that you deviate from your own –

consciously formulated – objectives, strategy, investment style and desired risk profile.

In a secure environment you will practise what has been ‘preached’. One of the programme’s sub-objectives is that you and the other participants are able to exchange thoughts with each other - exclusively, discretely and in privacy – about your practical investment experiences.

In order to achieve the desired professional level of the programme, you need to be prepared to invest a minimum of two to four hours per week in the programme.

What aspects will the programme cover?In the programme, you will be looking at the way the financial markets work, the products and the players. You will be introduced to a number of topics, economic scenarios and visions which can subsequently serve as input for the simulations. There are a number of ways you can gain knowledge about these topics: during the monthly meetings at Nyenrode, during the weekly online sessions and/or through self-study in your own time.

Topics may include:• Understanding financial markets (money flows, products, players and

risks);• Overview of the most important investment categories and products;• Comparison of the return and risk of different investment categories;• Importance and (dis)advantages of the ‘asset mix’;• Determination of the value of investment products;• Technical analysis;• Fundamental assessment of companies and their various risks;• Behavioural finance: ‘overconfidence’, ‘cold feet’, ‘mental accounting’,

‘framing’ and ‘loss aversion’;• Portfolio impacts of economic developments;• Relation between economics and sentiment.

Know your toolsNo craftsman can work without good tools. This most certainly also

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applies to investors. This is why the experts will be dealing in detail with the characteristics of the following securities, looking at how they work and how prices are formed:• Shares;• (Convertible) bonds, including handling new structures;• Interest, credit and currency derivatives;• Options;• Futures;• Structured (investment) products.

Know your playing fieldAn investor’s habitat is the ‘market’, an abstract concept with numerous concrete domains. Each domain is undergoing developments that may or may not be in association with other domains. No party operates alone in any market. Some parties work with you, others don’t. What role do ‘hedge funds’ play and are they of interest to you? What does private equity mean? What are its risks and returns? What selection criteria should a solid fund manager fulfil?

During the programme, we will take a detailed look at the structure of markets and trading parties and at new developments and changes such as: online trading, OTC and exchange listed products, future developments like margin pressures and the trend towards more complex structures. Attention will also be paid to the impact of increasingly refined regulation, the importance of cash flows and liquidity, the influence of major market players such as insurance companies, asset managers, pension funds, banks (investment, retail and private) as well as hedge funds and private equity. We will also discuss the market myths, fables and hard facts. Know your cardsBy many investors, shares are still considered the trump card among investment products. This is why we will be giving a lot of attention on this tried and tested investment product and other instruments derived from it. What is (not) possible? What are the most suitable instruments for a certain trading strategy?

We will also be going deeper into the in’s and out’s of daily trading: How is trading done? How are the different products used? What new developments and changes have taken place?

In recent decades, trading in derivatives has undergone unbridled development. Like thoroughbred horses, derivatives are highly desired and praised for their performance, but due to their ‘temperament’ also dangerous in inexperienced hands. It is therefore not surprising that regulators wish to get a grip on unintended and undesirable consequences of investing in derivatives. But what are the consequences of this for you as a private investor?

Factors that influence the option price are by no means always adequately known. How does the price of the underlying value come about? And what about the strike price? How do you determine the maturity period, volatility, interest and level of the dividends? The ‘classic’ Black & Scholes option pricing model is still very much in use. What are the limitations of this model? What is the importance of volatility for option pricing? These items are also important aspects of the Private Investor Programme.

Calculating your profitHow can you reliably calculate the profit from your investments? How does a ‘yield curve’ work and how is a sound interest rate risk analysis performed? An overview of bond products and their application shows what is possible or impossible. Attention will also be paid to the role of rating agencies. Concepts such as capital sum, coupon rate of interest, maturity period and embedded options will be placed in their context.

Know your strategySuccess does not simply happen by itself. It is always preceded by a plan. Strategies determine the choice of tools, and the tools determine the choice of which instrument is most suitable for a specific goal. The programme provides an overview of the most important investment categories and methods. What alternative investments are there? Which investment philosophy fits with which strategy? In the programme, different investment styles and their return will be analysed.


Know your risksEvery investor knows that no return is possible without at least some risk. Most investors also realise that investing responsibly cannot be done without risk control. This is why we will be looking at the many different aspects of risk management. After all, you cannot have an investment plan without a section on risks. Return and risk criteria should link up seamlessly with each other. You will therefore be studying not only strategic risk, but also operational risks with all their implications.

In the programme, you will discuss and evaluate various aspects of risk and return as well as risk models. What is value at risk (VAR)? What returns are possible in an international environment? What option strategies exist and how do the basic strategies work: ‘long and short call’ / ‘long and short put’, ‘bull and bear’ strategies and what are ‘market neutral’ strategies?

What are the risks and returns of commodities and commodity futures?

ExpectationsAfter following the Private Investor Programme, you can expect to:• Know how the international financial markets and products work;• Know how portfolio management works and which portfolio

strategies exist;• Understand option strategies and be able to apply them to your own

situation;• Understand how (active and passive) portfolio strategies work in your

own situation;• Know and experience what the relationship is between risk and

return;• Be able to estimate the value of price patterns and select fund

managers;• Know and experience that your own behaviour is an essential factor

in the whole process (‘behavioural finance’);• Handle your own investments with confidence;• Involve others for support in an efficient way;• Detect (worldwide) market trends and act on them;

• Understand and be able to determine the valuation of different products and companies;

• Create your own online environment of investors with similar objectives and vision;

• Know how to avoid big losses and thereby improve your investment return by at least 2% without increasing the risk;

• Ensure your investment portfolio corresponds with your personal profile and investment style;

• Know how you should formulate and analyze your investment ideas;• Recognise your own pitfalls and be able to invest at a professional

level.

Programme durationThe Private Investor Programme takes five months. During this period, you will have one meeting at Nyenrode Business University in Breukelen per month comprising two half-day sessions. Each half-day session consists of a module of approximately three hours, including a break. Participants follow the modules in the afternoon and evening from 14.30 to 21.30. A dinner is served to give you an opportunity to relax from the intense programme for a while.In addition, you will have the following on a weekly basis:• Portfolio analysis (online);• Market analysis (online);• Guided discussions and cases with investment group (online);• Possibility for discussion/explanation with the experts (online);• Instructions and information (online);• Case studies and questions.

Experts• �Simon�Meijlink�MSc (subject expert and fellow Nyenrode Business

University and founder Oxyor) theoretical and practical knowledge transfer, moderation of market analysis sessions, simulations and guidance of participants;

• �Thea�Pronk�RBA (subject expert Nyenrode Business University and partner Oxyor) theoretical and practical knowledge transfer, moderation of portfolio simulation and guidance of participants;

• Guest�speakers.

programme partsPART 1 PART 2 PART 3 PART 4 PART 5

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1. Understand the stock markets, who the players are and what instruments are used

2. Identify market characteristics and practices

3. Understand how professional market players make their investment decisions

4. Explain the group assignments

5. Explain the portfolio simulation

6. Explain the market analysis sessions

1. Understand the ba-sics of bond markets and prices

2. Be able to analyse yield curves

3. Understand the basics of shares and share valuation

4. Be able to make a simple credit analy-sis of a company

5. Be able to form an own opinion about an analyst report

1. Understand (equity) derivatives

2. Be able to calculate the prices of various financial products

3. Assess and value private equity funds

4. Know what questions you should/could ask your advisor

5. Be able to assess your (own) investment risks

6. Know how to avoid, limit or mitigate your risks

1. Apply technical analysis

2. Apply strategic asset allocation

3. Understand macroeconomic factors and predictions

4. Understand whether and when hedge funds add investment value to (your) portfolio

1. Self-analysis: Identify your personal pitfalls

2. Recognise the behavioural influences of others on the market movements

3. Be able to apply various analytical methods to your own portfolio

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1. Programme introduction and explanation of parts

2. Understanding of the financial markets

3. Team / group sessions: individual and group themes

1. Time value of money2. Bond (fixed income)

markets3. Bond valuation4. Yield curve analysis

1. Equity derivatives2. Simple option

structuares3. Structured

(derivatives) products

1. Technical analysis2. Practical application

(of technical analysis)

3. Truth aand fiction4. Hedge funds

1. Behavioural finance 2. Personal pitfalls

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1. Macro economic environment

2. Current state of the financial environment (globally)

3. The future: What are the scenarios?

1. Equity markets2. Equity valuation3. Enterprise risk

analysis4. Reading analyst

reports5. Assessment of

analysts

1. Interest rate futures2. Credit derivatives3. Derivatives valuation4. Derivatives risks5. Private equity

1. Strategic asset allocation

2. The importance of adaptation to market and personal circumstances

1. Implementation of own portfolio plan

2. Personal and group development plan

There are five programme parts. One part takes 4-8 weeks.

general structure of partsmonday tuesday wednesday thursday friday-sunday

Wee

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PLENAIR SESSIONSat Nyenrode

TRADE IDEASOnline

CASE STUDIESOnline

WORK ON CASE STUDIES

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HAND IN CASE STUDIESOnline

MARKET (ANALYSIS) SESSIONOnline

TRADE IDEASOnline

CASE STUDIESOnline


Wee

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TRADE IDEASOnline

CASE STUDIESOnline


Wee

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TRADE IDEASOnline

CASE STUDIESOnline


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registration and information

mr. Roy Kramer RA (Programme Director)m +31 6 47 908 286e [email protected]

Ellen J.C. Stevers (Programme Manager)Straatweg 253621 BG Breukelent +31 346 291 497e [email protected]

If your interest has been stimulated, we invite you to register for this programme. Please feel free to contact us at any time for further information, comments, reactions and/or questions. We hope to have the pleasure of meeting you soon.


CostYou are offered five months of top training during this intensive Private Investor Programme for € 9,940 per person (no VAT*). This covers all costs including the use of a professional terminal during the programme.

* At present no VAT is charged on education in the Netherlands. Should the rules change, Nyenrode reserves the right to change the price accordingly.

Nyenrode Business Universiteit

Straatweg 25, 3621 BGPostbus 130, 3620 AC BREUKELENThe Netherlands

t +31 346 291 497e [email protected]

www.nyenrode.nl/PrivateInvestorProgram

private investor programme

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