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2011/2 Provisional Module Catalogue - UNDER CONSTRUCTION & SUBJECT TO CHANGE
 Module Code: MANM241 Module Title: INVESTMENT MANAGEMENT
Module Provider: School of Management Short Name: MANM241
Level: M Module Co-ordinator: MASON A Dr (SoM)
Number of credits: 15 Number of ECTS credits: 7.5
 
Module Availability
Spring
Assessment Pattern

Unit(s) of Assessment  

Weighting Towards Module Mark (%) 

Small group assignment based on seminar work 

30 

Two hour closed book examination  

70

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, although the emphasis is on equity investment management, and comprises active versus passive investment, drivers of value, security selection, investment style and investment performance. 

The assignment will involve investment analysis, portfolio construction and portfolio evaluation. This module is particularly useful for students considering a career in finance; investment management, investment banking, investment consultancy or asset management 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.
Prerequisites/Co-requisites
None
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

On successful  completion of the module students will:

  1. Understand how investment mandates are awarded
  2. Understand the role of asset allocation and the decision to be a passive investor or active investor
  3. Understand the investment process
  4. Be able to identify different investment styles and the investment criteria they use.
  5. Select appropriate companies for a portfolio based on an appropriate valuation methodology and industry drivers
  6. Understand how style creates portfolio biases and affects performance- the behavioural aspect of investment
  7. Be able to evaluate investment performance against a peer group or an investment benchmark such as an appropriate stock market index
  8. Be able to select an investment style in accordance with their own beliefs or biases.
Module Content
  1. Overview of Investment Management: Investment Philosophies & the Ivestment Process
  2. Asset Allocation: Which Asset Classes, What Mandates?
  3. Equity Investment: Passive or Active
  4. Drivers of Value: Industry Drivers
  5. Security Selection: Valuation styles
  6. Equity Investment Style
  7. Portfolio Characteristics & Style
  8. Performance Evaluation
  9. Putting It All Together
Methods of Teaching/Learning

The teaching and learning strategies is designed to facilitate students understanding of applied finance; how investment decisions are taken and by whom. 

  1. Two hours of  lectures per week including some discussion time
  2. Four one hour seminars which will be held fortnightly where small groups will undertake investment analysis, portfolio construction and performance evaluation which will form the basis of the group assignment
  3. ULearn discussion forum to address any issues related to the module
  4. ULearn delivery of additional information sources e.g. investment bank or investment managers information
  5. Utilizing ULearn as an efficient means of communication of course information and distribution
  6. Weekly office hours of lecturer
  7. Support of lecture material by directed reading and use of DataStream and Bloomberg for  active market involvement.
Selected Texts/Journals

Required:

John L. Maginn, CFA, Donald L. Tuttle, CFA, Jerald E. Pinto, CFA, Dennis W. McLeavey, CFA (editors) Managing Investment Portfolios: A Dynamic Process, Third Edition ISBN 978-0-470-08014-6

Recommended:

‘Stewart, Piros & Heisler – Running Money- Professional Portfolio Management’

 

Managing Investment Portfolios: A Dynamic Process, Third Edition - John L. Maginn, CFA, Donald L. Tuttle, CFA, Jerald E. Pinto, CFA, Dennis W. McLeavey, CFA (editors)
ISBN-13: 9780470080146 ISBN: 0470080140

Damodaran - Investment Philosophies

Bernstein & Damodaran - Investment Management

Fabozzi & Markowitz - The Theory and Practice of Investment Management

Reilly & Brown - Investment Analysis & Portfolio Management

Coggin & Fabozzi - The Handbook of Equity Style Management

Journals:

Journal of Finance, Financial Analysts Journal, Journal of Portfolio Management, Journal of Financial Economics, Review of Financial Studies 
Last Updated
09/12/2010