PORTFOLIO MANAGEMENT - 2017/8

Module code: MANM325

Module provider

Surrey Business School

Module Leader

VESSEY J Ms (SBS)

Number of Credits

15

ECT Credits

7.5

Framework

FHEQ Level 7

JACs code

N321

Module cap (Maximum number of students)

N/A

Module Availability

Semester 2

Overall student workload

Lecture Hours: 33

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test CLASS TEST (50 MINS) 30
Examination 2 HOUR CLOSED BOOK EXAM 70

Alternative Assessment

Not applicable

Prerequisites / Co-requisites

None.

Module overview

The module studies the various stages of the investment management process from the award of an investment sponsor’s mandate through investment manager selection to the portfolio and performance outcome of that selection. Consideration is made at each stage of who makes the decisions and what those decisions are based upon. This includes asset allocation, benchmarking, active versus passive investment, investment style and investment performance. Seminars investigate real asset allocation problems. The module is the lynchpin of an investment management programme. This module is particularly useful for students considering a career in finance; investment management, investment banking or investment consultancy but is also useful for those involved in other areas of the financial sector such as insurance and pensions; the main users of investment management services.

Module aims

The aim of the module is to break down what is often thought of as the ‘investment decision' into its component parts and illustrate that the decision is comprised of several key stages which may or may not be taken by one individual.

The student will gain an understanding of the decisions made and the information they are based upon. Students will gain an insight into some behavioural aspects of investment including different investment styles.

Learning outcomes

Attributes Developed
Understand and be able to evaluate how investment mandates are awarded
Critically appraise the role of asset allocation and the decision to be a passive investor or active investor.
Critically evaluate financial opportunities and be able to make appropriate investment decisions given the goals of the client
Be able to articulate and implement an investment process.
Identify and critically appraise different investment styles and the investment criteria they use.
Select a portfolio based on appropriate valuation methodologies and mandate objectives.
Critically think both theoretically and strategically about financial investments and be able to apply the theories to develop a portfolio strategy
Understand and evaluate how style creates portfolio biases and affects performance- the behavioural aspect of investment
Evaluate investment performance against a peer group or an investment benchmark such as an appropriate stock market index

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:


Overview of Investment Management: Investment Philosophies & the Investment Process
Asset Allocation: Which Asset Classes?
Benchmarks
Fixed Income Investment Portfolios
Equity Investment Portfolios
Passive or Active Investment
Portfolio  Construction  and Portfolio Characteristics
Performance Evaluation

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

The teaching and learning strategy is designed to facilitate students understanding of applied finance; how to form a portfolio of financial assets and how to assess the performance of that portfolio.

The learning and teaching methods include:

The teaching and learning methods includes lectures to establish key principles, seminars to focus on practical application and the use of SurreyLearn to facilitate discussion and distribution of additional materials and data sources. 

Additional resources such as Company Accounts, Bloomberg and DataStream will be used where appropriate.

Lectures will comprise 2 hours per week for 11 weeks plus 1 hour per week of seminars.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate


Knowledge of the decision making process that lies behind the formation of an investment management portfolio.


Thus, the summative assessment for this module consists of:


Closed book class test 50 minutes based on the first 4 weeks lectures to be held in week 6
A 2 hour closed book exam covering all topics will be held at the end of the module.


Formative assessment and feedback

Students will receive oral feedback during seminars.

Feedback and guidance will be given via SurreyLearn throughout the module.

The class test provides feedback on theoretical underpinnings and typical calculations giving students an early indication where more work may be required.

Reading list

Reading list for PORTFOLIO MANAGEMENT : http://aspire.surrey.ac.uk/modules/manm325

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Investment Management MSc 2 Compulsory A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.