CORPFIN 3501 - Portfolio Theory & Management III

North Terrace Campus - Semester 2 - 2015

This course is an in-depth study of the funds management theory and practice. Participants will first develop a strong theoretical knowledge of asset pricing, market efficiency and funds management. Students will then be exposed to the managed funds industry and be required to apply their theoretical knowledge to understand the process of developing, managing and evaluating these assets. In addition, students will practically develop an Investment Policy Statement (or a Statement of Advice) for an investor, forecast characteristics of various asset classes in an economy, and be able to create an investment vehicle to satisfy investors' needs. The students will also learn various strategies to manage funds, issues that impact performance, and issues in benchmarking and performance evaluation. Equities, Fixed Income Securities, Commodities, Real Estate, Alternate Funds, Emerging, Developing and Developed markets will be examined in the context of portfolio construction.

  • General Course Information
    Course Details
    Course Code CORPFIN 3501
    Course Portfolio Theory & Management III
    Coordinating Unit Business School
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites CORPFIN 2500
    Assumed Knowledge SACE Stage 2 Mathematical Studies and ECON 2508
    Course Description This course is an in-depth study of the funds management theory and practice. Participants will first develop a strong theoretical knowledge of asset pricing, market efficiency and funds management. Students will then be exposed to the managed funds industry and be required to apply their theoretical knowledge to understand the process of developing, managing and evaluating these assets. In addition, students will practically develop an Investment Policy Statement (or a Statement of Advice) for an investor, forecast characteristics of various asset classes in an economy, and be able to create an investment vehicle to satisfy investors' needs. The students will also learn various strategies to manage funds, issues that impact performance, and issues in benchmarking and performance evaluation. Equities, Fixed Income Securities, Commodities, Real Estate, Alternate Funds, Emerging, Developing and Developed markets will be examined in the context of portfolio construction.
    Course Staff

    Course Coordinator: Dr Syed Zamin Ali

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    The main objective of this course is to understand and bridge the gap between portfolio theory and the delegated funds management industry. This objective will also fulfil the portfolio and funds management component of the CFA body of knowledge.

    This course will draw upon your previous knowledge gained from courses such as FEII and/or BVII, and IEII. The aspects of theory covers Modern Portfolio Theory (MPT), including Markowitz Efficient frontier, CAPM and APT, Active and Passive portfolio formulation and management techniques, and benchmarking/performance evaluation techniques. This course also considers various asset classes such as Domestic and International Equities, Fixed Income Securities, Real Estate, Commodities, and Hedge Funds. Fund manager specific aspects are also investigated such as Capacity Issues and AUM considerations as well as Ethical Issues.

    Graduates from this course have been motivated to enter the Funds Management and the Financial Advisory industry both in Australia and overseas. At the very least, this course will help in making wise financial investment decisions for specific purposes such as retirement planning. Students graduating from this course should also consider the Chartered Financial Analyst qualification.

     On successful completion of this course, students should be able to:

    1. Critically evaluate the framework of the Modern Portfolio Theory

    2. Evaluate long and short term characteristics of core and non-core asset classes and their linkages with economic and business cycles.

    3. Implement and manage passive and active investment strategies, and understand associated costs and benefits.

    4. Evaluate any existing or proposed investment vehicles using both quantitative and qualitative methodologies.

    5. Create investment vehicles for specific client needs that are consistent with ethical and regulatory framework of the Delegated Funds Management Industry.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. All
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2 and 4
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 3 and 5
    A proficiency in the appropriate use of contemporary technologies. 2 and 4
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 5
  • Learning Resources
    Required Resources
    Running Money: Professional Portfolio Management
    by Stewart, S. D., Prios, C. D., and  J. C. Heisler, 1st Edition, published by McGraw-Hill

    Other readings from academic, semi-professional and professional sources.
    Recommended Resources

    Students are encouraged to stay abreast of global financial issues. The Australian Financial Review and finance commentary on the ABC network are an excellent source of current financial news and should be referred to on a regular basis. The internet is also abundantly populated with all aspects of this course, and should be used as well.

    Online Learning

    Discussion board will be the primary source of interface between students and the academic staff.

    Lecture material such as presentation, articles, tutorial questions and lecture recording will be available on MyUni.

  • Learning & Teaching Activities
    Learning & Teaching Modes
    The approach in this course is to first establish the theoretical foundations and then to build upon these to understand real-world issues. This will be done through lectures, tutorials, tests, and examination.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.

    Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
    Learning Activities Summary
    Week 1: Introduction

    Week 2: Client Focus

    Week 3 and 4: The Asset Allocation Decision

    Week 5: The Investment Management process

    Week 6: Equity Portfolio

    Week 7: Fixed Income Portfolio

    Week 8: Global Investing

    Week 9: Alternative Investment Classes

    Week 10: Portfolio Management through Time

    Week 11: Performance Measurement

    Week 12: Investor and Client Behaviour


  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    This course has 4 assessment components:
    1. Test 1 worth 20%
    2. Test 2 worth 25%
    3. Tutorial Work worth 5%
    4. Final Examination worth 50%

    Assessment Related Requirements
    Tests and Final/Replacement examination will be closed book (no reference material allowed).

    Assessments from previous semester(s) cannot be redeemed.
    Assessment Detail
    The assessment components are as follows:

    · (20%) Test 1: 1 hour test. Multiple Choice Format and Short Answers. This is a closed book test

    · (25%) Test 2: 1 hour test. Multiple Choice Format and Short Answers. This is a closed book test 

    · (5%) Tutorial Work

    · (50%) Final/Replacement Exam: 3 hours exam as per examination schedule. These are closed book examination
    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
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