Portfolio management

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

• Economic Analysis & Investors Expectations
• Asset Allocation
• Mean-Variance Theory: CAPM & APT
• Fixed-Income Portfolio Management
• Equity Portfolio Management
• Alternative Investments Portfolio Management
• Risk Management
• Implementing Portfolio Decisions: Trading & Transaction Costs
• Monitoring & Rebalancing
• Evaluating Portfolio Performance

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.

Essential reading

The following is provided as part of the module materials after you register:

• Maginn, J. L., Tuttle, D. L., Pinto, J. E. and McLeavey, D. W., Managing Investment Portfolios: A Dynamic Process, Wiley & Sons, 2007
• Elton, E. J., Gruber, M. J., Brown, S. J. and Goetzmann, W. N., Modern Portfolio Theory and Investment Analysis (ninth edition), Wiley & Sons, 2014