LOMA | Evaluated Learning Experience
Institutional Investing: Principles and Practice (LOMA 357)
Independent study and proficiency examination administered from the central offices of LOMA.
November 2014 - Present.
Upon successful completion of course, students will be able to: identify the types of insurance products supported by general account and separate account assets; describe the movement of funds in and out of general and separate accounts; define and describe different ways that investors can measure investment returns; explain how investors use volatility and standard deviation to estimate investment risks and returns; explain how interest-rate risk affects bond investments, interpret interest-rate sensitivity using bond duration, and explain how market interest-rate changes can result in margin compression or margin expansion for insurers; explain some of the investment objectives and the investment constraints of life insurance companies; describe insurer investment strategies related to asset-liability management (ALM); explain how investment professionals create a portfolio's strategic asset allocation (SAA); describe diversification and hedging and explain how institutional investors can use each strategy to manage specific risks in portfolios; explain how investment professionals use certain metrics to measure the level of risk that a portfolio has accepted and the portfolio's risk-adjusted returns; explain how capital adequacy requirements, asset and liability valuation standards, and accounting and financial reporting standards contribute to insurer solvency regulations; and describe the effects that the Investments of Insurers Model Acts, investment reserve requirements, and restrictions on general account holdings have on insurers' investments.
LOMA 357 is an online course that provides an understanding of the investment environment and investing for life insurance companies and similar institutions. Learners will learn about investment returns and risks, investment performance, and fund options for retirement products and other products with fund options. Students will distinguish among various investment types and strategies important for institutional investors, including fixed-income investments, real estate-related investments, equity investments, and derivatives.
In the upper division baccalaureate category, 3 semester hours in Business Administration or Finance (11/14) (3/20 revalidation).