| Unit name | Investment Management |
|---|---|
| Unit code | ACFIM0023 |
| Credit points | 20 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Mr. Diedrich |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
None |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why is this unit important?
Investment is the process by which a household or firm acquires asset holdings that are suited to their individual needs. Investment theory provides us with deep conceptual insights and powerful quantitative tools for this process. Professional fund managers, financial analysts, financial advisers and wealth managers all rely on these insights and tools. The unit lets you develop key competences for such roles.
How does this unit fit into your programme of study?
The TB2 unit is offered as an elective to several finance-related programmes in which the TB1 unit ECONM2035 Asset Pricing is also available. ECONM2035 is a pre-requisite for the present unit; the elective ECONM2030 picks up key themes of the earlier mandatory unit and develops these further.
Taking part in this unit will enable you to gain maturity in your understanding of portfolio management decisions and it will give you a reliable conceptual and analytical framework for the assessment of concrete investment vehicles. In terms of your MSc studies, the unit also opens up a wide range of relevant topics for your summer dissertation.
An overview of content
The unit provides you with a unifying conceptual framework for portfolio decisions, based on the mean-variance and factor-model approaches from Asset Pricing. We focus on the tension between “active investment” (finding sources of superior performance) and “passive investment” (utilising the information-gathering and diversification powers of competitive markets). The key to active management is the processing of specialist information, and we study how such information is translated into buy or sell decisions (Fisher/Black, Black/Litterman, Grinold/Kahn). Based on the underlying optimisation model, we identify suitable measures of a fund manager’s performance. Beyond the active-passive dichotomy, we learn how to construct “factor investing” funds that reflect specific investment styles (such as momentum strategies or value investing).
Our theoretical studies will be accompanied by concrete modelling work in Excel. This builds a highly valued professional skill and prepares you for modelling aspects in possible dissertation projects.
How will students personally be different as a result of the unit?
You will gain competence and confidence in using general finance principles in the specific context of professional investment management.
Learning Outcomes
Develop competence and confidence in:
How you will learn
The weekly 2-hour lecture combines presentation by the lecturer with short discussion breaks that re-enforce the learning. The weekly exercise class further re-enforces the learning from the lecture sessions. You are given exercises in advance, these are discussed with your peers and your tutor in class, and full solutions are published after class. Exercises include practical modelling in Excel (or another programming environment). The moderated online Forum allows you further to explore your queries with your peers and with the lecturer.
Your total learning time for this unit is expected to be some 200 hours. This is made up of contact time, directed learning tasks, independent learning and assessment activity.
Tasks which help you learn and prepare you for summative tasks (formative):
Lectures include regular breaks to compare notes with other students and to put questions to the lecturer. Weekly exercise classes offer an opportunity to receive feedback from the tutor and from your peers. Full written answers to all exercises are published. For modelling aspects, sample Excel files are provided.
The unit uses an online Discussion Forum as a core part of its normal operation. The Forum is actively moderated by the lecturer. Comments by peers and by the lecturer provide you with an important individual feedback loop.
Tasks which count towards your unit mark (summative):
100% exam. Duration 2 hours. Assessing LO1, LO2, LO3 and LO4
When assessment does not go to plan
Resit exam in same format as the main exam.
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFIM0023).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
