• Course title: Empirical Finance
• Number of ECTS: 4
• Course code: WEALMG2-1
• Module(s): Module 1.1
• Language: EN
• Mandatory: Yes

•    Distinguish between the different types of programming languages•    Plot graphs in Excel•    Handle dates and time in Excel•    Use built-in functions in Excel•    Implement sensitivity analysis in Excel•    Be more productive in Excel using macros, shortcuts, named variables•    Work with random variables and perform basic statistical analyses•    Generate financial reports in pdf.•    Introduction to Visual Basic for Applications for simple programming on Excel•    Create subprograms on VBA to automate tasks in Excels•    Get financial data on Bloomberg•    Analyse a financial instrument on Bloomberg

Pre-requisites: Basic finance knowledge (e.g., present value), and computer knowledge (e.g., open Excel)Part I:  Financial Applications using ExcelTopic 1: Introduction to modeling•     Modeling and its uses•     Principles of model designTopic 2: Statistics basics•     Functions (sum, average, standard deviation, histogram, descriptive statistics function, etc. )Topic 3: Statistical analysis•     Statistical significance tests•     Correlation•     Regression analysis•     Hypothesis testing•     Other types of analysis (Solver Add-in)Topic 4: Financial modeling•     Gordon growth model•     Yield curves•     Simple vs. compound interest rates•     Duration analysis•     Portfolio optimization with Markowitz’s Modern Portfolio Theory (MPT)Part II:  VBA and BloombergTopic 5: Programing on Excel using Visual Basic for Applications (VBA)•    Record macros•    Variables, objects, methods and properties•    Logical statements and Loops•    FunctionsTopic 6: BloombergPart III:  Bloomberg Terminal• Introduction to Bloomberg• Equity (company and industry information, appraisal techniques)• Fixed Income (bonds information, duration, yield curve)• Credit rating, rating agencies, credit risk• Market indices, price and return measurement• FX markets, Spot and Forward rates

60% seminar paper (take-home)

2,500-word (minimum) investment analyst report: a group of students will choose any financial instrument (e.g. fund, equity or Bond) and using Bloomberg/Excel will analyse the profitability of investing in this instrument. After the presentation, the students will modify the report to adapt the comments obtained during the presentation session.

30% presentation

10% Attendance

Bibliography:

Financial Modeling, Simon Benninga. (Recommended)Microsoft Excel 2016 Data Analysis and Business Modeling, Wayne Winston. (Recommended)

• Course title: Data Analysis
• Number of ECTS: 5
• Course code: WEALMG2-2
• Module(s): Module 1.1
• Language: EN
• Mandatory: Yes

• Acquire the statistical foundations required to perform statistical analysis in business settings. Very often one needs an accurate and informative analysis of a sample of data. For example, the data might be financial returns, employee salaries, or advertising;• Use descriptive statistics to summarise a set of data;• Apply methods of statistical inference to try to draw generalisations from the sample for the broader population;• Recognize the existence of sampling uncertainty before accepting or rejecting a research hypothesis;• Undertake ‘multivariate’ analysis; • Distinguish the relationships between several variables.

• Acquire the statistical foundations required to perform statistical analysis in business settings. Very often one needs an accurate and informative analysis of a sample of data. For example, the data might be financial returns, employee salaries, or advertising;• Use descriptive statistics to summarise a set of data;• Apply methods of statistical inference to try to draw generalisations from the sample for the broader population;• Recognize the existence of sampling uncertainty before accepting or rejecting a research hypothesis;• Undertake ‘multivariate’ analysis; • Distinguish the relationships between several variables.

Pre-requisites: Previous knowledge of statistical analysis is not a prerequisite. Although many participants will previously have studied statistics, the course will aim to accommodate those who have only had minimal exposure to the subject. Furthermore, previous experience with statistical software is not necessary.Econometrics course using the software R for students interested in the finance tracks in the second year.• Use of R (basic datafile manipulation, descriptive statistics, test theory)• Simple regression analysis • Multiple regression analysis• Principal component and cluster analysis

100% Mid-term exam (written exam on computer during course period)

Bibliography:

• Introductory Econometrics for Finance by Chris Brooks• Introductory Econometrics: A Modern Approach by Jeffrey M. Wooldridge• Statistics: An introduction using R by Michael J. Crawley• Econometric Analysis by William H. Greene

• Course title: Corporate Finance
• Number of ECTS: 3
• Course code: WEALMG2-3
• Module(s): Module 1.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

At the end of this course students will have learned about the trade-off between risk and return in financial investments. Students will be able to value stocks and bonds in textbook exercises and will be able to conduct real-life stock research on their own. They will have learned how to set-up and make use of financial spreadsheets.

The course introduces students to corporate finance, particularly the capital budgeting decision, the capital structure decision, and valuation approaches. The course starts with an introduction to the corporation, its relations to financial markets and the issuance of periodical financial statements to the public. Three pillars of corporate finance are introduced. The first pillar is the discounted cash valuation approach. Students learn how to value bonds and stocks for given parameter values of risk and return, and to value and compare projects in the net present value framework. The second pillar is the capital asset pricing model. Systematic and unsystematic risks of assets are discussed in the contexts of the capital market line and the security market line. We also allude to alternative pricing models of risk such as the arbitrage pricing theory. The third pillar is the Modigliani and Miller theorem of optimal capital structure with and without taxes, and the limits to the usage of leverage. Building on these pillars, we discuss three approaches to discounted cash flow valuation: the flow-to-equity approach which assumes that firms have a constant leverage ratio, the APV approach which assumes that firms have a pre-specified debt level, and the WACC approach which is flexible in the leverage ratio. We also discuss relative valuation and contingent valuation. Throughout the course, the theoretical concepts are illustrated through textbook problems and real-world applications. We set-up and apply financial spreadsheets to data gathered in real-time from internet sources.

75% – final written exam25% – take-home assignment bonus points – Virtual stock market game

Literature

Ross et al. Corporate Finance Damodaran Applied Corporate Finance Damodaran, Investment valuationErhardt/Brigham Corporate Finance Berk/ DeMarzo Corporate Finance Brealey/ Myers Principles of Corporate FinanceShefrin, Behavioral Corporate Finance

• Course title: Money, Credit and Banking
• Number of ECTS: 3
• Course code: WEALMG2-4
• Module(s): Module 1.2
• Language: EN
• Mandatory: Yes

The course will help students understand :

– The microfoundations: the role of banks in the economy and the key policy challenges raised by their activities- The role of banks and central banks in monetary policy- The optimal regulation of banks

 

The goal of this course is to help students understand the role of banks in the economy, the money and credit creation process and the drivers of bank performance. Based on flow of fund statistics, the course will first provide students with an overview of the financial system of the United-States and Europe and the allocation of credit in the economy. We will then cover the microfoundations of financial intermediation, reviewing the concept of moral hazard, adverse selection and credit rationing. We will also cover the maturity transformation role of banks and the inherent fragility of the banking system. We will then explore the role of banks in creating money and their interaction with the central bank and monetary policy. Finally, we will study the optimal regulation of banks and discuss current issues such as the banking union.

60% final exam30% presentation10% class participation

Bibliography:The textbooks for the class are The economics of money, banking, and financial markets by F. Mishkin and Contemporary financial intermediation by S. Greenbaum, A. Thakor and A. Boot and The Prudential Regulation of Banks by M. Dewatripont and J. Tirole.

Students are expected to look over the Financial Times or the Wall Street Journal every day as current events related to the course will be discussed in class.

• Course title: Portfolio Theory
• Number of ECTS: 3
• Course code: WEALMG2-5
• Module(s): Module 1.2
• Language: EN
• Mandatory: Yes

-evaluate portfolios-critically assess key assumptions of the CAPM-understand the role of active vs. passive asset management in wealth management-critically evaluate the empirical evidence surrounding portfolio choice-apply portfolio choice from a long-term as well as short-term perspective-give science based advice on investing

We will investigate how investors should invest in various assets to form and efficient risk return trade-off. We start pointing out that investment outcomes are random. A first step is understanding class Arrow and Pratt contributions. We then investigate how this can be extended to the multi-asset case and how it is related to Moskowitz (1952). Based on this, we will look at the Capital Asset Pricing Model (CAPM) to determine how assets are priced in equilibrium. Relevant academic contributions here are Treynor (1962), Sharpe (1964), Lintner (1965), and Mossin (1966).We will critically evaluate the underlying assumptions. Among others, the assumption of risk-free borrowing Fisher Black (1972) and short sell restrictions (Ross (1977)) will be discussed. The shape of the utility function is also discussed (Borch paradox (Borch (1969)).We will investigate relevant empirical literature on the CAPM. A special focus will be given on active vs. passive asset management.Apart from the mean-variance analysis, we will also look at the concepts first and second order stochastic dominance. Here, we will see how portfolios can be evaluated based on characteristics of the (portfolio) distribution of returns. Finally, we will look at optimal investment portfolios for long-term investors (such as pension funds or family offices). All topics will be done both, theoretically as well as empirically.

70% written exam 30% Participation, presentation, cases

Bibliography:

Donaldson, John and Jean-Pierre Danthine. Intermediate Financial Theory. Elsevier Science & Technology, 2005. Berk and DeMarzo “Corporate Finance”, various editions, Bodie, Kane, and Marcus “Investments”, various editions, lecture notes, academic articles.

• Course title: Sustainable Finance
• Number of ECTS: 4
• Course code: WEALMG2-6
• Module(s): Module 1.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

Understand the importance of sustainable finance, including in financial services

Understand different standards and have a high level understanding of the EU regulatory framework

Understand principle responsible/sustainable investment strategies and their use in sustainable finance products

Understand how sustainable finance is featured in financial instruments and products 

Understand the importance and different aspects of transparency and reporting in sustainable finance and sustainable financial products 

Understand the roles of the key players of the sustainable finance ecosystem

Introduction to sustainable finance & responsible investing• History of sustainability• What is sustainable finance and impact investing?• What are Environmental, Social and Governance/ESG factors?• Sustainable Finance and ESG in Luxembourg• EU Green Deal • EU Action Plan on Sustainable Finance – EU sustainable finance legislative initiativesSustainability standards and instruments• Sustainability risks and opportunities• Global sustainability goals and standards• Responsible/Sustainable Investment Strategies• Green, social and sustainability bonds• Sustainable financial products: investment funds, insurance products, discretionary mandates• Sustainability indicesTransparency and reporting• EU Sustainable Financial Disclosure Regulation• EU Taxonomy• Green bond reporting• Labelling of financial products• ESG data providers• ESG rating agencies• Impact reportingThe sustainable finance ecosystem• Investors and asset owners• Financial market participants• Public authorities and development finance institutions• Regulators• Stock Exchanges• International networks and NGOs• Associations and other organisations

100% final written exam

Bibliography:

EU Commission – NextGenerationEU – Make it GreenLuxembourg Sustainable Finance Roadmap – by UNEP Finance InitiativeLuxembourg Sustainable Finance Strategy (2021)Luxembourg Action Plan for sustainable finance (2024)

• Course title: Fixed Income
• Number of ECTS: 2
• Course code: WEALMG2-7
• Module(s): Module 1.3
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

Understand and use analytical techniques in the field of fixed-income securities (present value, forward rates, yield-to-maturity, term structure theories, duration calculation and management of interest rate risk)

Acquire the key fundamentals for investing in fixed income securities issued by sovereigns, banks and corporates.

Introduction to Fixed Income Instruments: Features of Debt SecuritiesBond Sectors and Instruments: Sovereign, Agency, Corporate Bonds, Asset Backed & Primary and Secondary MarketsRisks Associated with Investing in BondsIntroduction to the Valuation of Debt SecuritiesYield Measures, Spot and Forward RatesMeasurement of Interest Rate RiskTerm Structure and Volatility of Interest RatesInterest Rate Derivatives and Valuation of Interest Rate DerivativesCredit Analysis and Credit RiskIntroduction to Bond Portfolio ManagementManaging Funds against a Bond Market IndexPortfolio Immunization and Cash Flow Matching

100% Written Exam (1h30 hours, closed book, no cheat-sheet allowed, calculator allowed)

Bibliography:

Fixed Income Analysis (Third edition) by Barbara S. Petitt, Jerald Pinto, Wendy Pirie, CFA Institute Investment Series, Wiley.

Fixed Income Analytics by Kenneth D. Garbade, MIT Press

Credit Risk Measurement by A. Saunders, Wiley Frontiers in Finance.

 

• Course title: Equities
• Number of ECTS: 3
• Course code: WEALMG2-8
• Module(s): Module 1.3
• Language: EN
• Mandatory: Yes

Students will be able to understand and analyze the tendencies of financial markets and our global economies, they will use different financial techniques and theories to evaluate an investment opportunity and develop their critical thinking on equity investing practices, as well as the biggest actors in the market. By completing the course, students will have both the theoretical knowledge and the practical skills to discuss financial markets ongoing developments, as well as to assess the economic, social, and environmental values of an investment.

1) Building Equity Conviction a. Introduction to the Equity Markets  b. Equity Investing and Management c. Asymmetric Information2) Firm valuation I. a. The Dividend-Discount Model b. Free Cash Flow Valuation Models3) Firm valuation II. a. Relative Valuation Based on Comparable Firms b. Market Psychology and Behaviors4) Macro Environment: Central banks, Governments, and International Trade a. Understanding External Forces and their Influences b. Central Banks: Interest Rates & Inflation c. Government Policies d. Business Cycles5) Financial Economics  a. The Cost of Capital and the Portfolio Theory  b. International Finance  c. Capital Structure 6) Sustainable Finance and ESG Investing  a. Trends and Dilemmas of the Green Transition  b. Measuring Social and Environmental Contribution  c. Greenwashing

60% written exams during course sessions (Test 1 (30%) and Test 2 (30%)

30% active participation (Group work, presentations, problem-solving, debate)

10% readings

 

Attention: Students must re-enroll for the course in order to retake the exam as there is no final exam, the assessment is made during lectures

Literature

Berk and DeMarzo, “Corporate Finance”

Selected papers and articles on current issues

• Course title: Financial Accounting
• Number of ECTS: 3
• Course code: WEALMG2-19
• Module(s): Module 1.3
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

–    demonstrate a conceptual knowledge and understanding of the accounting framework and the basis of Financial Accounting-    understand and interpret the information gained from the primary Financial Statements –    analyze Balance Sheet Items and Income Statement Items according to International Financial Reporting Standards-    understand the concept of specific items such as Tangible and Intangible Asset, a Provision, a Contingent Liability, or Revenue-    apply the definitions, recognition and measurement criteria for Property, Plant and Equipment, Intangible Assets, Provisions, Contingent Liabilities, or Revenue-    know the basic financial products and figures in order to prepare a Bank’s Balance Sheet and evaluate it, as well as analyze the main Financial Statements of a bank

1. Recap the Basics2. Information for Decision Making: International Financial Reporting Standards3. Selected Balance Sheet Items and Income Statement Items•    Property, Plant, and Equipment•    Intangible Assets•    Provisions and Contingent Liabilities•    Revenue Recognition etc.4. Bank Accounting

100% final written exam

Literature:

 •    “Applying international financial reporting standards [IFRS]”, Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Janice Loftus, Leo van der Tas, 4th Edition, 2016.•    “Study guide to accompany Accounting principles”, 10th ed. / Douglas W. Kieso, Kimmel, Paul D. Hoboken, N.J. : Wiley, 2017.•    “ Wiley 2017 interpretation and application of IFRS standards”, Erwin Bakker, John Wiley & Sons (UK), 2017.Ruth Picker et al. (2016): Applying IFRS Standards, 3rd edition.•    Case Studies distributed via Moodle & teacher’s notes.  

• Course title: Derivatives
• Number of ECTS: 3
• Course code: WEALMG2-12
• Module(s): Module 2.1
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Understand what options, futures, and swaps are;• Understand the uses of different derivatives;• Understand key applications of derivatives in portfolios;• Distinguish between hedging, risk management and speculation;

This course is designed to introduce students to the theoretical and real world aspects of financial futures, options, and other derivatives. Over the years, the markets for these versatile instruments have grown enormously and have generated a profusion of innovative products and ideas, not to mention periodic crises. Derivatives have become one of the most important tools of modern finance, from both the academic and the practical standpoint. The goal is for you to understand the principles of how these instruments and markets work.Course outline1. What are derivatives ?2. Futures and Forwards3. Swaps4. Options5. Key applications of derivatives: hedging, risk management, arbitrage and speculation

– 75% written exam- 25% presentation

Bibliography

Hull, John C., Options, Futures, and Other Derivatives, 2014, Pearson Prentice-Hall.

Brealey, R., Myers, S., F. Allen & Edmans, A., 2023, Principles of Corporate Finance. New York: McGraw-Hill Irwin.

• Course title: Structured Financial Instruments
• Number of ECTS: 3
• Course code: WEALMG2-13
• Module(s): Module 2.1
• Language: EN
• Mandatory: Yes

 

On completion of the course unit successful students will be able to:

• Understand how structured products are structured and sold;• Use Vanilla and Exotic Options to create structured products;• Know most common structure, how quoted, structured and priced;• Understand the risks of structured products from the buyer’s viewpoint; • Understand the pricing and hedging of structured products;• Understand securitization structures (ABS, RMBS, CDO);• Understand the role structured products played in the Great Financial Crisis.

 

 Financial innovation has been one of the most influential trends prevailing in international financial markets since the 1990s. The ability of structured finance to repackage risks and create assets of various risk profiles has led to a dramatic expansion, for better and for worse, in the issuance of structured securities. The creation and customization of structured financial products are of interest to pension funds, foundations, endowments, insurance companies, banks, investment intermediaries, and retail investors. This course introduces elements of structuring, pricing, and risk management of structured securities. The main topics covered in this class are: • Structured Products. Securities that combine financial instruments to meet specific investment objectives. • Securitization. Structured Investments backed by collateral, such as RMBS, ABS, CMBS, and CDO. This course emphasizes the functional understanding of various structured products in engineer- ing risk exposures.  

100% written exam

class participation and optional group presentations for up to 2 bonus points.

Attention: Students must re-enroll for the course in order to retake the exam

Textbooks

• Sundaram, R. K., & Das, S. R. (2011). Derivatives: principles and practice. New York, NY: McGraw-Hill Irwin. • Petitt, B. S., Pinto, J. E., & Pirie, W. L. (2015). Fixed Income Analysis. John Wiley & Sons. Case studies

• Denis Gromb and Joël Peress. “Big Game: Goldman Sach’s Elephant Hunt in Libya.” INSEAD Case 6274, 24 Sep 2018. • Vallée, Boris, and Jérôme Lenhardt. “Deutsche Bank: Structured Retail Products.” Harvard Business School Case 217-037, November 2016. (Revised March 2018.) • Stefano Gatti, Andrea Florio, Gianluca Massimi, and Alberto Nobili. “Viveracqua Hydrobond: When Infrastructure Investments Meet Securitization.” SDA Bocconi Case n° 13759, 2016.  As class develops, other references will be assigned for further advanced background readings.

• Course title: Insurance
• Number of ECTS: 2
• Course code: WEALMG2-14
• Module(s): Module 2.1
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to: – Develop an understanding of the legal, regulatory and tax considerations relevant to insurance for wealth management – Acquire a working knowledge of insurance in a wealth management context and an appreciation of the key elements of Luxembourg life assurance on the global stage- Build an understanding of how investment-linked (and to some extent non-investment linked) insurance can contribute to wealth and succession objectives- Leave with an appreciation of the levers of insurance-based planning and an ability to identify effective insurance solutions for clients and wealth managers

 

The course is organized around the following main themes:Orientation: Legal framework and classificationLife assurance in the wealth management contextStructure, participants and beneficiary nominationsLuxembourg and life assurance, including:Interaction with the insurance regulatorThe Triangle of SecurityInternal insurance fundsInvestment rulesDouble tax treatiesDistribution within and outside the European Union, and governing lawIngredients of an effective life assurance contract seen through legal, regulatory and tax lensesProduct features, death cover and value propositionInternational portability and succession with an eye on civil and common lawLife assurance and trusts or alternative structures. Life assurance as the alternativeCase studies and exam preparation

100% written exam

Bibliography

Recommended reading will be highlighted during the course.

• Course title: Private Equity
• Number of ECTS: 3
• Course code: WEALMG2-9
• Module(s): Module 2.1
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Describe the state of the private equity industry• Critically assess different organizational structures• Evaluate the financing side of private equity deals• Structure and propose private equity deals

The course consists of three parts: 1. An introduction to the state of the private equity industry, in particular relating to Luxembourg. 2. An asset pricing perspective of private equity. In particular, we will discuss.a. Private equity as an illiquid asset with a focus on exit.b. Private equity and information asymmetriesc. Private equity, debt financing, and betting against betad. Private equity and costly effort from the investors. 3. In the last part of the course, students should present investment ideas, picking a particular private equity target. In this exercise, participants should focus on : a. The financing sturture : where is the equity coming from, who provides debt financing ?b. The legal structure and exit strategyc. The target companyd. The interplay of the first three pointsTo achieve the last point, participants should i) present their investment idea in class and provide a written case.

40% written exam20% seminar paper20% presentation20% class participation

Bibliography:

Research papers will be discussed and distributed during the course.

• Course title: Personal Portfolio Management
• Number of ECTS: 3
• Course code: WEALMG2-15
• Module(s): Module 2.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Consider the client from the point of view of his/her preferences for risk and return;• Determine the risk and return of various asset classes and explain where the risk premium comes from;• Understand and master the notion of risk factors and how they explain portfolio returns;• Master the Equity Risk Premium and be able to discuss its determinants and evolution;• Understand the basics of prospect theory and its influences on the PB client;• Link the MiFID “suitability” criterion to investor profiles and identify their dimensions; • Identify and avoid the pitfalls in portfolio advice;• Go beyond the notions of strategic and tactical asset allocation to better serve the client;• Include the investor’s objectives and constraints in the portfolio construction process;• Adequately report portfolio performance and explain it is a clear fashion to investors;• Adapt the measurement of portfolio performance to the preferences of the investor;• Distinguish the types of managerial skills that generate the portfolio returns.

1. Personal Portfolio Management Ia. Investors’ preferences for risk and returni. The notion of risk and the risk premiumii. Investment objectives and constraintsiii. Classical view of investors’ preferencesiv. The risk-return frameworkb. The personal asset allocation processi. The portfolio management processii. Principles of integrated asset allocationiii. Specific individual criteria2. Personal Portfolio Management IIa. The client-centric view of the investori. The investor’s profile: Rational vs. Emotionalii. Risk perception and preferencesii. Preferences for ESG investingb. Personal portfolio construction and managementi. Selection of asset classesii. Portfolio construction and monitoringc. Performance measurement and reportingi. Traditional performance measuresii. Explaining performance to investorsiii. Preference-adjusted performance measurement3. Personal Portfolio Management applied to the current market environmenta. The logic of the bond market applied to current marketsb. The challenge of forecasting realistic returns and risk parameters c. Active vs. passive portfolio management and the fundamental law of asset managementd. Adjustment of portfolio risk using betae. Measuring the risks of investment productsd. Diversification in times of market stres

70% – written exam

30% – Participants will be split up in subgroups which will solve two cases during class. Each subgroup will be responsible for presenting the solution of a dedicated part of the second case in class. Each subgroup receives an individual grade for the quality of both the presentation and quality of the solution. The grade holds for the entire subgroup.

Bibliography:

François, P. and Hübner, G. (2024), The Complete Guide to Portfolio Performance. Wiley

Other references to be distributed in class

Slide decks to be distributed in advance

• Course title: Private Banking
• Number of ECTS: 3
• Course code: WEALMG2-16
• Module(s): Module 2.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Explain basic structures in Private Banking and principles of Corporate Finance applied to Private Banking;• Recognize how the players, the banks and their organizational structures provide value for their clients and their shareholders.

This course should give to the students the general framework of what Private Banking is. The course will be a combination of theoretical elements, practical examples and short exercises.

The large chapters are the following : – The transformation process in Wealth Management- C/I Ratio : How to improve the Productivity in Wealth Management- Growth in Wealth Management : M & A, Strategic Partnerships and Alliances, Organic Growth- Empathy: the importance of the unique client Relationship. How to create Enthusiasm?- Segmentation in Wealth Management : traditional ways to segment and new ways to segment- The four lines of defence in Wealth Management and the importance of ethical values- Corporate Governance in the framework of Wealth Management- American vs European business models in Wealth Management including the lasted trends- Domestic vs International Wealth Management Centers- Luxembourg : looking back, where do we stand, the image, the brand and the vision- Geographical overview of important and emerging International Financial Centers ( full review of 10 centres)- Luxembourg’s future in such a competitive environment : Value proposition of Luxembourg, the importance of booking platforms- What does Luxembourg have to do to enter the new dimension?

100% written exam

• Course title: Estate Planning
• Number of ECTS: 2
• Course code: WEALMG2-17
• Module(s): Module 2.2
• Language: EN
• Mandatory: Yes

• Have a good knowledge of Luxembourg succession law as well as basic knowledge on international private law applicable to succession and Luxembourg estate planning tools.

Luxembourg  Estate- Principles- EU Succession regulation -Devolution rules- Matrimonial regimes- Forced heirship rules- Taxation -Estate planning -Wills- Donations- Corporate planning tools- Trusts and foundations.

100% written exam during course period

Recommended bibliography:

Estate Planning Principles and Problems (Gazur Phillips), Wolters Kluwer, 4th edition, 2015The principles of international tax planning (Roy saunders), IBSA, 2014

• Course title: Financial Analysis
• Number of ECTS: 2
• Course code: WEALMG2-18
• Module(s): Module 2.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Understand the purpose and objective of financial statement analysis• Develop a framework to perform the analysis, including modelling on Excel• Collect data from financial statements and other public sources to perform the analysis• Process the data and analyze/interpret it and express opinions• Give conclusions and recommendations on a company’s financial position and current valuation vs. forecastsAt the end of the course, the students will be able to perform financial statement analysis in evaluating entrepreneurs’ financial situation in a wealth management context.

• Scope of financial analysis: purpose and objective of the analysis• Financial statement analysis framework: main steps of the analysis• Overview of financial statements and other information sources, including the income statement, balance sheet, cash flow statement, financial notes and management’s discussion and analysis, published in annual and interim reports• Financial analysis technique, including processing data (collection, adjustments, ratios computation…), interpreting the processed data (level, trends…) and develop conclusions/recommendations on a company’s financial position• Valuation of companies, with calculation of free cash-flows, preparation of a DCF analysis, determination of multiples and benchmarking with peers.

50% – Powerpoint presentation based on an Excel financial model, analysis of historical trend, valuation and investment recommendation50% – Active class participation

 

Bibliography:

Valuation: Measuring and Managing the Value of Companies (7th Edition)McKinsey & Company (2020)CFA Program Curriculum: Level I (2020) – Financial analysis and Equity valuationCFA Institute – Pearson, 2020CFA Program Curriculum: Level II (2020) – Financial analysis and Equity valuationCFA Institute – Wiley, 2020

• Course title: International Taxation
• Number of ECTS: 3
• Course code: WEALMG2-20
• Module(s): Module 2.3
• Language: EN
• Mandatory: Yes

This course is designed to provide students with an overview of the Luxembourg and international tax environment and its recent developments as well as to understand the (i) tax challenges of the private wealth management industry, (ii) tax concepts/strategies applicable to private clients and (iii) Luxembourg toolbox/practical cases.

• Luxembourg corporate tax principles (CIT, MBT, NWT)• International tax principles and recent developments• Double tax treaties mechanism/provisions• Exchange of information (e.g. treaty, CRS, FATCA)• Anti-abuse rules• Tax strategies for private clients• Luxembourg toolbox for private clients/practical cases

100% written exam

Bibliography:

OECD model

• Course title: Governance and Ethics
• Number of ECTS: 3
• Course code: WEALMG2-21
• Module(s): Module 2.3
• Language: EN
• Mandatory: Yes

 

On completion of the course unit successful students will be able to:

● detect ethical and organisational/governance issues & the related risks ● understand if and how business is influenced by ethical considerations & governance options  ● find the right words to describe ethical and governance issues & explain why they need attention● analyse and assess ethical issues and governance problems● understand that each business requires tailor made governance and applicable ethical guidelines ● understand the commitment of staff and other key stakeholders is key to sound governance & business ethics● link ethics and governance with the sustainability of financial firms, including ESG sustainability● distinguish different governance models on strengths and weaknesses● detect potential reputational risks related to poor governance & conduct

 

Introduction to the course & frameworks Key concepts & definitions related to ethics and to governance – relation between ethics & governance. -Why authorities & companies are spending money on governance & ethics. -Why ethics & governance have always been considered as necessary to human interaction & organisations.-Meaning of reputation, stakeholders, fit & proper, transparency, confidentiality, sound organization, sustainability… -Several points of view: of staff, board members & authorities…Part 1 Corporate governance: -key stakeholders; shareholders and others; to vote or not to vote; participation and proxy voting; parent-daughter issues…-Decision making processes, agency theory, stakeholders’ theory-Corporate Governance models in & outside EU.-Key roles: Chair(wo)men, Independent Directors, Board committees, Executive Management; Control functions-Audit, Compliance, Risk… -Outsourcing issues; corporate codes of ethics and codes of conduct. -Applicable governance rules from financial authorities (EU & CSSF) to banks and management companies of investment funds. -Alternative and upcoming governance models: Sociocracy, Holacracy: Autocracy: opportunities & risks for organisations.Part 2. Ethics in Business, ethical finance, ethics in the financial sector: -Ethical principles and theories. -Moral – ethical – legal issues: limits between ethics & regulation in banking and wealth management activities. -Trust vs suspicion & prudence in the financial industry. -Moral dilemmas; moral hazard.-Reputational risks.Part 3. Specific issues & case studies combining both, ethics & governance.-Managing conflicts of interests. -Remuneration policies. -Product governance and other MIFID principles clear, fair & not misleading communication; ban on inducements; consumer protection.-Sustainable finance, green deal, Human rights, international treaties and local rules related to climate neutral finance & ESG criteria…-Tax compliance.-Whistleblowing.

60% written exam during course period (Show sensitivity to ethical & governance issue, capacity to analyse, to communicates & propose solutions )30% seminar paper (One page or two about a personal governance issue, ethical dilemma, or similar issue in a professional perspective)10% active participation (Interaction during workshops, case discussions and course)

Bibliography:

For students who want to deepen the topics. The list is optional & non limitative, it mentions texts where major ideas come from. Other references are given in the courses & supporting slides.

All below documents are freely available on the internet & is regularly updated.

1/ related to corporate governance (with focus on the financial sector)● The Art and Practice of Corporate Governance by David F. Larcker and Brian Tayan● Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism by Jeff Gramm● Corporate Governance: An International Perspective, 2017, Samuel O Idowu, Kiymet Tunca Çaliyurt● Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (3rd Edition)by David F. Larcker and Brian Tayan● Owning Our Future: The Emerging Ownership Revolution (overview of the ethical aspects) by Marjorie Kelly● The Future of Boards: Meeting the Governance Challenges of the Twenty-First Century by Jay W Lorsch● EU directive 2013/36 & EBA Final Guidelines on Internal Governance (revised in 2021)● EBA & ESMA guidelines on the assessment of the suitability of members of the management body● EBA & ESMA final joint guidance on fit and proper requirements● ECB Guide to fit & proper assessments of board members● Keynote speech 11/06/22 by F. Elderson : Supervising banks’ governance: structure, behaviour and culture https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220611~01ae4a6b1c.en.html● Paul Buysse Code III – Recommendations for unlisted companies (2017)● Corporate governance & directors’ duties in Luxembourg, Selim Souissi and Anastasiya Chuiko, Luther S.A.● The 10 Principles of Corporate Governance of the Luxembourg Stock Exchange2/ related to Governance ‘in general’ within human organisations:• Sociocracy & Holacracy by Ross A. Wirth & Reginald A. Butterfield (2021)• Reinventing organisations by Frederic Laloux (the text book or illustrated summary: “An Illustrated Invitation to Join the Conversation on Next-Stage Organizations”)• Participation in Sociocratic Organizations- relevance & limitations, C. Pölderl (722-Polderl-Claudia-paper.pdf (vse.cz)3/ related to financial ethics:● The Ethics of Money & Finance, Joakim Sandberg, 2019 (part of the Oxford Handbook of Ethics & Economics)● Handbook on Ethics in Finance, 2021, L.SanJose, J. L. Retolaza, L. van Liedekerke (part of the International Handbooks in business ethics)● Ethics in Finance (3rd edition), John R. Boatright● Ethics & finance, Camebridge University press● William Shakespeare: The merchant of Venice (1599); text & available video recordings of the play● Jacques Ellul: Money and Power (L’homme et l’argent, 1954), chapter IV & V● ICMA White Paper No. 44 – The Financial Crisis and the Collapse of Ethical Behaviour● Code of Conduct for high level ECB officials (2019/C89/3)● The Ethics of Sustainability – Charles J. Kibert, Leslie Thiele, Anna Peterson and Martha Monroe (2018)● 5th Ethical and value-based finance in Europe annual report from FEBEA (October 2022)

• Course title: Legal Structures
• Number of ECTS: 3
• Course code: WEALMG2-22
• Module(s): Module 2.3
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Choose the right structure for clients wishing to set up an estate planning or wealth management legal arrangement• Understand the differences between the different Luxembourg company forms and fund structures • Explain the main features of trusts, foundations, dedicated funds, limited partnerships, and holding companies;• Identify the client’s needs in terms of estate planning and asset protection and suggest the use of some alternative legal structures to address such needs;• Coordinate with the client’s legal and tax advisors for the set-up of the relevant legal arrangements;• Work out the implications of different legal arrangements for the purposes of banking transactions.• Appreciate the main features of the common law and civil law systems in relation to wealth management and estate planning

This course gives an overview of the different types of legal structures mainly used for wealth management, asset protection, and estate planning purposes. The focus is on the legal structures ordinarily practised in the international financial industry (trusts, foundations, partnerships, companies) as well as on some specific Luxembourg law arrangements (companies, funds). Some emphasis is placed on the main differences between the common law and the civil law systems.

100% written exam as a Multiple Choice Questions – Closed Book

Bibliography:

A full list of compulsory and recommended reading materials is included in the detailed course programme in the Moodle

• Course title: Hedge Funds
• Number of ECTS: 1
• Course code: WEALMG2-24
• Module(s): Module 3.1
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Recognize the characteristics of alternative investments;• Understand the risk and return profiles of hedge funds and the characteristics of major hedge fund strategies;• Understand the techniques that hedge fund managers use to trade and invest;• Grasp the parameters for building a successful hedge fund portfolio;• Understand the benefits and pitfalls of hedge fund investing.

Hedge funds are the fastest growing sector of the financial industry that is at the forefront of investment innovation. This course provides an introduction to the major developments in the hedge fund industry. It delves into the techniques used by hedge fund managers to trade and invest. This course aims at giving participants a good understanding and workable knowledge of the techniques that should be part of the toolkit of anyone investing in, analysing and/or advising private clients on the inclusion of hedge funds in their portfolios.1. Hedge fund overview   1.1. Evolution of the hedge fund industry   1.2. Defining a hedge fund: key characteristics   1.3. Operational and organizational structures2. Hedge fund strategies   2.1. Understanding the tools used by hedge funds   2.2. Hedge fund strategies3. Investing in hedge funds   3.1. Evaluating hedge fund performance   3.2. Benefits and risks of hedge fund investing   3.3. Incorporating hedge funds in asset allocation   3.4. Outlook

50% group assignment (take home exam) Students will have a deadline to submit their group assignment during the exam session period

50% presentation on the case study (assessed during the second session of the course)

Bibliography:

• Slide deck containing course material, including references for academic papers • Case Study:o “AQR’s Delta Strategy”, Harvard Business School (HBS 9-212-038)• Optional background reading: o Lhabitant, F.-S., Handbook of Hedge Funds, Wiley (ISBN: 978-0-470-02663-2)o Lo, Andrew W., Hedge Funds: An Analytic Perspective – Updated Edition (ISBN: 9780691145983)

• Course title: Financial Innovation
• Number of ECTS: 5
• Course code: WEALMG2-39
• Module(s): Module 3.1
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

• Understand the main driver(s) underlying technological innovations in the financial sector.• Understand, and able to critically assess modern technologies driving innovations within the financial sector.• Assess the socio-implications of financial innovations, while considering the current business cycle.

This course attempts to conceptualize and demystify the complex theme of financial innovation from multiple perspectives.Firstly, an introduction to financial innovation would be provided to the students, leading to an understanding of the motives underlying the increasing adoption of technology-intensive tools and systems by businesses and end-users.Secondly, an introduction to three (3) relevant and disruptive technologies revolutionizing traditional business processes in finance would be taught to the students. A special emphasis would be put on peer-to-peer networks and distributed ledgers, machine learning (ML) as a subset of artificial intelligence (AI), and cloud computing: 1) Through distributed ledgers, students would overall be exposed to an understanding of the Blockchain rudiments. 2) With regards to machine learning, an overview of the modelling tools would also be taught with the aim at raising a “critical-thinking” mindset, while preparing the students to act as “genuine” innovators through the design of innovative ideas relevant to their future career paths.3) With regards to cloud computing, students would be taught its basics, and understand how different cloud models help in solving real business problems.Eventually socio-economic analyses of financial innovations would be discussed during this module with the aim at raising an awareness, by the students, of the mutation of the financial ecosystem (incl. overall economy) and its corollary at human levels.

40% written exam60% presentation

Bibliography:

Both commercial and academic documentation. They will be provided prior to the beginning of the course, where relevant.

• Course title: Real Estate
• Number of ECTS: 3
• Course code: WEALMG2-25
• Module(s): Module 3.1
• Language: EN
• Mandatory: Yes

After the class, participants should be able to:

• Describe the state of the real estate industry• Critically assess investment decisions and risks in real estate  • Evaluate real estate investments and their performance drivers• Structure and propose real estate deals

The course consists of 3 parts: 1. An introduction to the real estate industry, its  characteristics and market segments. 2. Investing in Real Estatea. Real estate as an illiquid asset class: Direct and indirect investmentsb. Real estate valuationc. Real estate investment decisionsd. Real estate: performance attribution and risk management 3. In the last part of the course, students should present investment ideas, picking a particular real estate target. This exercise should focus on : a. The real estate object. What, where and why ?b. The financing structure: where is the equity coming from, who provides debt financing?c. The legal structure and exit strategyd. The interplay of the first three pointsTo achieve part 3, participants should i) present their investment idea in class and ii) provide a written case.To achieve the last point, participants should i) present their investment idea in class and provide a written case.

60% written exam20% presentation20% class participation

Bibliography:

Research papers will be discussed and distributed during the course.

• Course title: Behavioral Finance
• Number of ECTS: 3
• Course code: WEALMG2-27
• Module(s): Module 3.2
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

•    Explain how the insights of behavioral finance complement the traditional finance paradigm, how individuals’ attitudes and behavior affect their own financial decisions and the financial markets overall;•    Apply the necessary skills for taking into account behavioral factors in various aspects of financial market analysis;•    Recognize behavioral factors that systematically influence financial markets and address how behavioral finance applies to individual investors’ holdings and investment decisions.

The standard paradigm in finance assumes that investors are rational and that their decisions are consistent with expected utility maximization. Behavioral finance suggests that deviations from this standard paradigm are possible; some investors are not fully rational or their choices are not consistent with expected utility maximization because they maximize their utility in a different way than proposed by the standard theory. Departing from the standard paradigm in financial economics, expected utility and the capital asset pricing model, we pinpoint anomalies that show up in the data from the real world and the laboratory. The course includes behavioral models of choice, noise trader risk, psychological biases, and lessons of bounded rationality that help to understand the divergence between observed behavior and the standard paradigm in finance. Finally, behavioral finance suggests nudges to overcome undesired behavior to gain efficiency.Topics covered:•    Decision making under risk and uncertainty•    Intertemporal choice•    Efficient markets•    Behavioral biases•    Bounded rationality and smart heuristics

100% final written exam

Bibliography:

This course is not based on a single textbook but on academic papers. A reader with the required readings will be made available.

• Course title: Investment Funds
• Number of ECTS: 3
• Course code: WEALMG2-28
• Module(s): Module 3.2
• Language: EN
• Mandatory: Yes

• Course title: Philanthropy
• Number of ECTS: 1
• Course code: WEALMG2-30
• Module(s): Module 3.2
• Language: EN
• Mandatory: Yes

• Gain a thorough insight in the motivations and expectations of today’s philanthropists and how to meet these demands as part of a wealth management proposition;• Understand the legal and fiscal context of cross border philanthropic giving, as well as various approaches and structures for efficient impact-driven philanthropy;• Be proficient in advising wealth management clients in terms of their philanthropic strategy and structuring.

This course gives an overview of the different types and approaches towards philanthropy. We will discuss philanthropic motivations and objectives, as well as legal and tax aspects of philanthropic endowments and inheritances. The course will be interactive and examine several contemporary case studies. Topics covered will include:- Current trends in philanthropy with a focus on what drives European donors. – The philanthropic engagement journey: transforming an idea into a structured approach and implementing it. – Legal and tax issues to take into consideration for wealth managers. – Understanding the complexities of contemporary cross border philanthropy.

80% written exam during the course period20% class participation & interaction

Bibliography:

(not mandatory reading) • Advising philanthropists: Principles and Practice: Edition directory for Social change 2023 by Emma Beeston and Beth Breeze• Do More than Give; The Six Practices of Donors who Change the World by Leslie Crutchfield, 2011 by John Kania & Mark Kramer• Philanthrocapitalism: How giving can save the world by Mathew Bishop and Michael Green, 2009• La Philanthropie – Un regard Européen, Edition Economica 2023 by Brigitte Duvieusart & Luc Tayart de Borms• Vers une Philanthropie Stratégique, Edition Odile Jacob 2020 by Peter Frumkin, Anne-Claire Pache and Arthur Gautier• La philanthropie – une affaire de familles by Arthur Gautier & Anne-Claire Pache, Edition Autrement 2014

• Course title: Microfinance
• Number of ECTS: 2
• Course code: WEALMG2-40
• Module(s): Module 3.3
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

– Explain how microfinance works.- Illustrate examples related to the fields of microfinance.- Criticize the debates around microcredit.- Synthetize the financial mechanisms attached to financing projects.- Appraise the upcoming stakes of financial development and financial/social inclusion.

This course aims at presenting the main stakes attached to the microfinance industry, as initially introduced in Bangladesh by M. Yunus (2006 Nobel peace prize), and replicated all over the world since then (including Europe and Luxembourg). Several European institutions (private, public, NGOs) are specialized in that field (ex.: Luxembourgish Ethical Funds, European Investment Fund, ADA, ADIE, etc.).Microfinance encompasses (1) microcredit, (2) micro-saving, and (3) micro-insurance. This course insists on the main difficulties of traditional banking (e.g. commercial banks) to finance (or insure) poor entrepreneurs, despite their individual talents, or level of innovation.The specific mechanisms of microfinance are them presented and analysed in detail: group lending, women empowerment, flexible approach to collaterals, impact on poverty and development, financial sustainability, managerial incentives, etc.The reference book of this lesson is the seminal and renowned manuscript from Armendariz and Morduch, published at MIT Press©: The Economics of Microfinance.During this course, the students are given the opportunity to prepare a take-home presentation on a subject (10 min. oral presentation, up to 2-students per group) of their choice about microfinance / finance and development.Outline (depending on the pace of the class):1. Introduction2. The specificities of the credit market (the various forms credit markets)3. Microcredit and Group Lending (information, mechanism, new contracts, women targeting)4. Micro-insurance & Savings5. The impact on poverty and development (methodology issues, empirical findings)[6]. Can microlending be sustainable? (the role of subsidies, two examples)[7]. Incentives, management & organization (case study, multiple objectives, incentives)[8]. Conclusion

100% written exam

Bonus (0 to 3points): Groups of students (up to 2) can make an elective 10 min. oral presentation, which can lead to a bonus (0 to 3pt(s), depending on the presentation), integrated into the written exam grade. The students who do not make such presentation are rated normally.

Bibliography:

 

Reference Book:- Armendariz B. and J. Morduch: “The Economics of Microfinance”, MIT Press.Essays:- YUNUS M.: “Banker to the Poor”, PublicAffairs Ed.- YUNUS M.: “Creating a World Without Poverty”, PublicAffairs Ed..Other References:- ZELLER M., R. MEYER: “The Triangle of Microfinance” [collective book], Johns HopkinsUniversity Press.- MATTHÄUS-MAIER I., J.D. Von PISCHKE: “Microfinance Investment Funds” [collective book],Springer.- BOYE S., J. HAJDENBERG, C. POURSAT: “Le Guide de la Microfinance”, Ed°. D’organisation,Eyrolles.- CIRAD: “Le microfinancement dans les pays en développement”, Les bibliographies du CIRAD.- Applied Experiments: come from a W.P. by Nicolas EBER (IEP Strasbourg).

• Course title: Client Communication
• Number of ECTS: 1
• Course code: WEALMG2-32
• Module(s): Module 3.3
• Language: EN
• Mandatory: Yes

On completion of the course unit successful students will be able to:

To meat wealth management client and to find out the client’s need and to give the right advice

Etiquette of meeting and seating clients PersonalityD I S CDress CodePresentation of the: Bank, Wealth Management, Relationship Manager EnthusiasmPerseverance: Courage (bravery)Being organized and methodicalBeing psychologicalCompetenceBeing oneselfOptimismHonesty, loyaltyTriple Force: Morality, Technic, Physic How to discover the client’s needThe deep motivationsThe different possible kinds of motivationThe Technic ofThe questioningThe listeningThe silenceDifferent tips of questionsActive listening – advice for better listeningSilenceFeedbackObjections – Complain   how to handle……. Body language How to conclude in ten points Q & A  and if time roll game

100% Take-home exam during exam session

Bibliography:

Seminar support

• Course title: Client Acquisition and Relationship Management
• Number of ECTS: 3
• Course code: WEALMG2-33
• Module(s): Module 3.3
• Language: EN
• Mandatory: Yes

• Understand what are the specificities of the Wealth Management industry and the importance of Long Term Profitable (LTP) relationship with the client• Understand why Private Client profiling is key in building a LTP relationship with him• Understand why selling services and providing solutions are equally important in building a LTP relationship with the client • Understand how are Wealth Mangers organized to deliver a high quality service for building a LTP relationship with the client• Understand the key concepts and key metrics in WM to develop a LTP relationship with the client• Understand part of the specific vocabulary used in running efficiently and effectively a WM institution“Without clients – no business, with poor client interactions – poor business, with good client understanding – long term profitable relationships for both the client and the client relationship manager”.

Topic 1: Key characteristics of the wealthy clients • What is specific in the Wealth Management Industry concerning the clients• Who are the customers, what evolution can we notice• What do we mean by Wealth, what are the key constituents of wealth• What are the key expectations from clients are there similarities and differences in the world• Who are the actors in the WM Industry, the complementarity between themTopic 2: Know Your Customer, client profiling process • Legal, regulatory and tax requirements• Customer segments  • Customer life-cycle and needs  • Customer behaviour profiles and needs• Customer risks profiles and needs• Customer balance sheet, sources of incomes for nthe professionals in WMTopic 3: Targeting and acquiring clients • What separates great private bankers from the good ones? Choose the type of banker you want to be• How to prospect successfully and develop a business relationship? Data collection, data analysis, data comparison, data review• How to transform leads into real business: networking, referrals, … • Building a client portfolio: not all the eggs in the same basket …Topic 4: Retaining and developing clients• How to adapt to client needs• How to handle client objections• Why negotiating with clients and not selling to clients• How to close a deal with the client• How to handle a “problem” client• How to overcome client resistance• How to gain client commitment• How to deal with successes and disappointmentsTopic 5: Covering client needs• “Banking” Products and Services • “Investment Management” Products and Services • “Wealth Management” Services and Solutions  • Other services and solutions clients might require from their wealth manager • Product, services and solutions development with a Long Term Profitable relationship approachTopic 6: Servicing clients to their satisfaction• Leveraging client – centricity• Organising client facing organisation, now and in the future• How to respond to client multiple needs, now and in the future• Different existing models with strengths and weaknesses

50% oral exam (10 minutes Questions & Answers per student)50% Presentation (During each session an individual or a group of individuals will deliver a speech and prepare a presentation for the case study. Class participation grade will be based on 3 elements: speech mark, case study contribution mark, class participation)

 

ATTENTION: Students must attend both: presentation and oral exam in order to have a final grade.Participation in class (speeches, case studies, comments and suggestions) is mandatory and represents 50% of the grade as well as the final exam which represents 50% of the grade.If a student is absent from the presentation part, he/she will automatically have to re-enroll again for the course.

Bibliography: 

Provided in advance to serve as reference material for course, student speeches, case studies  

• Course title: Digital Currency
• Number of ECTS: 2
• Course code: WEALMG2-51
• Module(s): Module 3.4
• Language: EN
• Mandatory: Yes

After the class, participants should be able to:

• Be knowledgeable about the story behind the high level of support for the euro and how the European Central Bank works from the inside and plays its role to ensure that monetary policy and payment systems function smoothly. • Know the world of Web 3 and the plans behind the digital euro

As digital enthusiasts, many students try to understand the contemporary trends of in digital currencies. And for many it is still perceived as only a disruption on currencies. Crypto currencies or assets vs central bank digital currencies? What is the point? The domain has developed so much though that even if they may have a vague idea about all possible applications, it makes sense to take a crash course to know how this all works. However, one needs to get first the basic knowledge on money, monetary policy, the role of the European Central Bank, payment systems, their impact on our democratic principles and how all this works in all types of contexts, including in time of high volatility of these markets. These changes will be revolutionizing our daily lives and already impacting the functioning of our economies: over 134 countries & currency unions aim at developing a Central Bank Digital Currency (CBDC) and the digital euro in particular. This course will benefit from contributions of experts from the European Central Bank and from the European Investment Bank and go deeper on monetary policy, payment systems, digitalization and CBDC while gathering students ’views. 

35% – take home assignment (a short analysis and proposal on a subject that could be linked to a workshop)35% – presentation (A PowerPoint presentation of a few slides)30% – class participation (Active participation of all students is encouraged individually and in group works by students. This will be considered during each session for the general assessment)

 

Attention: Students must re-enroll for the course in order to retake the exam

Bibliography:

 

Recommended readings: Read regularly the Financial Times and the Economist. Useful links :1. History-of-things-before-bitcoin-cryptocurrency-part-one2. History-of-things-before-bitcoin-cryptocurrency-part-two3. Before-bitcoin-pt-3-90s-cryptowars4. Before-bitcoin-pt-4-00s-new-milleniumBooks and Studies: Le futur de la monnaie (Michel Aglietta – Natacha Valla edition Odile Jacob 2021)https://www.odilejacob.fr/catalogue/sciences-humaines/economie-et-finance/futur-de-la-monnaie_9782738153999.phpReport on a digital euro (ECB 2020)https://www.ecb.europa.eu/pub/pdf/other/Report_on_a_digital_euro~4d7268b458.en.pdfPublic Consultation on a digital eurohttps://epsilon.escb.eu/limesurvey3/434111?lang=enLes NFT en 40 questions (DUNOD)Les NFT en 40 questions – Des réponses claires et détaillées pour comprendre les Non Fungible Tokens – Livre et ebook Economie générale de Jean-Guillaume Dumas – DunodBlockchain et cryptomonnaies (Que sais-je ?) Primavera De Filippi : Livres – Bibliographie | Que sais-je ? | Une question à toutes les réponses (quesaisje.com)https://tokenomicsdao.substack.com/p/tokenomics-101-bitcoin-and-ethereumhttps://tokenomicsdao.com/European Commission Flash eurobarometers, Standard Eurobarometer 92, and Standard Eurobarometer 93The First Euros: The Creation and Issue of the First Euro Banknotes and the Road to the Europa Series. Antti Heinonen. Director Banknotes. ECB 2015 https://www.bundesbank.de/de/publikationen/bargeld/die-ersten-euros-664166Anderton, R., Jarvis, V., Labhard, V., Morgan, J., Petroulakis, F. and Vivian, L. (2020), “Virtually everywhere: digitalisation and the euro area and EU economies”, Occasional Paper Series, No 244, ECB, Frankfurt am Main, June.The Euro and the Battle of Ideas, Markus Brunnermeier, Harold James, Jean-Pierre Landau, Princeton University Press, 2016. Movie and documentaries:  CRYPTOPIA  –  Torsten Hoffmann and Michael WatchulonisBitcoin, Blockchains and the Future of the Internet Nate Martin from 99Bitcoins Crypto whiteboard Bitcoin Explained Simply for Dummies; Bitcoin Trading for Beginners (A Guide in Plain English); What is Bitcoin Cash? – A Beginner’s Guide; What is Bitcoin Mining? Blockchain Technology Explained Simply ; What is Ethereum? videos of Hasheur https://www.youtube.com/c/hasheurReady player one – Steven Spielberg

• Course title: Risk Management
• Number of ECTS: 4
• Course code: WEALMG2-35
• Module(s): Module 3.4
• Language:
• Mandatory: Yes

On completion of the course unit successful students will be able to:• Understand common categories of risk• Measure risks• Take decisions on risk, including risk mitigation, while being mindful of common pitfalls and biases in decision making under uncertainty• Achieve compliance with the key regulatory requirements as regards wealth and risk management• Design sound risk governance arrangements

Pre-requisites: Students should be familiar with basic calculus and financial concepts taught at Bachelor level. The course will be structured around 5 main themes:1. Understanding risk. We reconsider the concept of risk and guide students through the main classes of risks that are relevant in (financial) wealth management.2. Measuring risk. We provide reminders of the main techniques used to quantify risks with a view to take wealth management decisions under uncertainty (risk).3. Managing risk. We show students how to judiciously apply risk management techniques, having due regard to pitfalls and biases that commonly arise when decisions are taken under uncertainty.4. Ensuring compliance with regulatory provisions. We teach the students the key regulatory requirements with respect to wealth and risk management and show them how to ensure compliance5. Designing sound risk governance at the firm wide level. We provide students with an understanding of how to achieve sound and prudent risk management.

45% assignment45% written exam10% active participation during the lectures

Bibliography:

Risk Management and Financial Institutions, John Hull, John Wiley & Sons Inc

Risk Management for Investment Funds, Neuberg Luc & all, McGraw Hill

• Course title: Compliance
• Number of ECTS: 2
• Course code: WEALMG2-36
• Module(s): Module 3.4
• Language: EN
• Mandatory: Yes

• Understand the regulatory environment and framework• Find their way to major applicable financial laws and regulations• Identify in which domains compliance plays a major role• Improve their capacity to identify, map, assess & mitigate compliance risks• Understand how to interact & cooperate with the compliance function in a constructive and efficient way• Understand how the compliance function interacts with authorities and with key internal & external functions• Understand how a compliance programme is built• Acquire a positive attitude and a clear view on the main compliance tasks and challenges

• Compliance: Fundamental aspects and overview of regulatory requirements. The concept of the Compliance Principles, the Compliance Policy and the Compliance Charter• Banking secrecy and data protection: Legal framework. Types of confidential and data leak possibilities.• Fight against money laundering and terrorist financing: Overview and update of legislation and regulation. Money laundering functions and associated main techniques, including case studies.• Market Abuse: Objective and scope of the EU Market Abuse Directive and of the relevant Luxembourg regulation. Case studies on Insider Trading and Market Manipulation.

100% written exam

Bibliography:

Recommended:* Compliance and the compliance function in banks (http://www.bis.org/publ/bcbs113.pdf) 16p.* Executive Summary of the impact assessment of MIFID II(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52011SC1227&from=EN) 7p*The 9 FATF special recommendations to combat terrorism financing (www.fatf-gafi.org/media/fatf/documents/reports/FATF%20Standards%20-%20IX%20Special%20Recommendations%20and%20IN%20rc.pdf) 3p*CSSF AML regulation 12-02 (www.cssf.lu/fileadmin/files/Lois_reglements/Legislation/RG_CSSF/RCSSF_No12-02eng.pdf) 18p*The fight against Market Abuse (ALCO Bulletin 29:  http://www.alco.lu/Bulletin/Bulletin%2029%20-%20FR-EN.pdf) 6p* Some thoughts of a compliance officer about crypto currencies (June 2018) and other articles out of the ALCO Newsletter (www.alco.lu) 3p.

• Course title: Applied Master Thesis (including Internship)
• Number of ECTS: 21
• Course code: WEALMG2-52
• Module(s): Module 4.1
• Language: EN
• Mandatory: No

• Course title: Academic Master Thesis
• Number of ECTS: 21
• Course code: WEALMG2-47
• Module(s): Module 4.1
• Language: EN
• Mandatory: No