Study-Unit Description

Study-Unit Description


CODE BKF5280

 
TITLE Investment Management

 
UM LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
MQF LEVEL 7

 
ECTS CREDITS 5

 
DEPARTMENT Banking and Finance

 
DESCRIPTION In this unit, we discuss the major players in the investment environment, provide an overview of the type of securities traded in financial markets and explain how these securities are traded. We discuss the key concepts of modern portfolio theory and practice: risk and return, investor’s risk preferences and asset allocation, portfolio optimization and index models. Unlisted private equity/venture capital securities and their valuation are also examined. We review models and techniques used for stock and option securities analysis and valuation in the context of (passive and active) applied portfolio management including diversification and performance evaluation.

To further the understanding of (i) financial instruments and respective risks and rewards, (ii) trading and investment strategies and (iii) portfolio management techniques students are required to perform a “live” investment management simulation over a period of nine weeks.

The unit provides an opportunity to gain trading and investment knowledge and experience with various asset classes. Students will learn how to:

1. Establish an investment philosophy, define objectives and implement portfolio and trading strategies to achieve them;
2. Discuss critically investment assumptions and perform the fundamental and/or technical analysis leading to portfolio allocation and asset decisions within the investment constraints set by the investor and the market;
3. Analyze positions which (over)underperformed expectations and understand the conditions or factors which created the performance gap;
4. Calculate and analyze alternative portfolio performance measures and attribution;
5. Relate investment management experience to investment theory i.e. modern portfolio theory (MPT), capital asset pricing model (CAPM) and the efficient market hypothesis (EMH);
6. Reflect how their investment management experience will influence investing in the future.

Study-unit Aims:

The aims of this unit are to inform participants about investment decisions by providing a foundation of core investment concepts and tools. It introduces students with the required information and knowledge for implementing and monitoring successful investment decisions.

Learning Outcomes:

1. Knowledge & Understanding:
By the end of the study-unit the student will be able to:

− Understand the basic concepts of investments;
− Understand the importance of bonds, stocks and options;
− Understand risk, return and portfolio management concepts;
− Understand the practical and theoretical dimensions of investing in marketable equity, fixed-income and derivatives securities;
- Understand how to invest in/value unlisted private equity/venture capital securities;
− Know how to analyze, value, invest and actively manage various types of assets (stocks, closed-end funds, ETFs, ETCs, GDRs, options, etc);
− Know how to design, manage and re-balance an investment portfolio to meet risk-adjusted performance objectives.

2. Skills:
By the end of the study-unit the student will be able to:

- Understand the investment management process with the aim to meet specified investment goals for the benefit of investors;
- Combine an in-depth understanding of the assumptions/limitations of investment/portfolio theory together with hands-on trading and investment experience;
- Develop the critical and analytical skills required to be successful in the current investment environment.

Main Text/s and any supplementary readings:

BODIE, Z. KANE, A., MARCUS, A.J. 2014, Investments, McGraw-Hill, 10th Edition, 1080 pages. ISBN: 0077161149.
LEACH, J.C. & MELICHER, R.W. 2011. Entrepreneurial Finance, South Western Educational Publishing, 4th Edition, 688 pages. ISBN: 0538478152.

References:
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ADDITIONAL NOTES Pre-requisite Qualifications: Bachelor Degree in Banking and Finance, Commerce, or equivalent.

Pre-requisite Study-unit: BKF5140

 
STUDY-UNIT TYPE Lecture and Seminar

 
METHOD OF ASSESSMENT
Assessment Component/s Sept. Asst Session Weighting
Performance No 10%
Report No 20%
Examination (3 Hours) Yes 70%

 
LECTURER/S Pierre Nadeau

 

 
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It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years.

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