Learn Portfolio Optimization

Optimization is the process of making a portfolio as effective as possible by maximizing available conditions, constraints, and resources. Typically, the primary goal of portfolio optimization is to ensure that the available human, material, and financial resources are best applied to the appropriate remaining components of the portfolio. Although some organizations schedule regular optimization sessions, typically this activity is triggered when components are added or closed. During this stage, the portfolio manager facilitates discussions with stakeholders to ensure that the organization realizes the intended benefits for the remaining components.

To learn the Portfolio Initiation you need:

  1. Read the chapter ‘Optimization’ in the Standard for Portfolio Management, 4th Edition (Chapter 2.3.4).
  2. Read chapter 5.3 in the Standard for Portfolio Management, 3rd Edition.
  3. Watch the videos:

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