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The module introduces state-of-the-art methodologies which are used by professional portfolio managers. It develops skills based on modelling of asset price procedures and empirical research findings. It also takes a wider view considering a variety of issues concerning portfolio managers.

Topics covered

• The investment framework
• The investment decision process and investment strategies
• Fundamentals of risk and return
• The global financial environment
• Money and capital market instruments and investment companies
• Diversification and asset allocation
• Efficient diversification and capital market theory
• Market efficiency and behavioural finance
• Equity portfolio management and evaluation
• Bond portfolio management and performance evaluation.

Learning outcomes

If you complete the module successfully, you should be able to:

• Understand and evaluate major portfolio management and risk concepts including the mean-variance optimiser and resampled efficient frontier
• Describe and assess perspectives of economic analysis in capital market expectations
• Explain the Black-Litterman approach
• Demonstrate the applications of fixed-income securities, risk management, portfolio rebalancing and portfolio evaluation
• Critically discuss the relation between economic activity and investor expectations
• Apply portfolio management concepts and techniques to their specific business problems
• Construct advanced portfolios and perform better on CFA examinations
• Utilise professional financial tool skills and case studies to support decisions
• Work both independently and in teams to create and manage financial strategies
• Present highly technical financial material to non-practitioners simply and clearly
• Synthesise and use information and materials from a variety of different sources to support an argument.
• Apply research skills into negotiations and conflict management problems and the application of these in the assembling and analysis of facts and situations.

Assessment

This module is assessed by:

Coursework (50% weighting):

• There is one item of coursework for this module which contributes to the final assessment mark for this module.
• Coursework: a written essay of a maximum of 2,000 or 2,500 words (deadline – weeks 9-12) The coursework is designed to check student progress, extend and reinforce concepts covered and also test individual performance.

Examination (50% weighting):

• The final piece of assessment will be an unseen written examination of 2 hours’ duration.