Domestic and International Portfolio Management

Module title	Domestic and International Portfolio Management
Module code	BEAM036
Academic year	2019/0
Credits	15
Module staff	(Convenor)

Duration: Term	1	2	3
Duration: Weeks		11

Number students taking module (anticipated)	218

Module description

Summary:

The general aim of this module is to equip you with the ability to analyse major issues confronting managers of portfolios of assets invested domestically and internationally and translate their analysis into portfolio decisions. Competence in this area of fund management requires understanding of the operation of the world’s major equity, bond and currency markets.

Additional Information:

Sustainability
All of the resources for this module are available on the ELE (Exeter Learning Environment).

External Engagement
Previously, we had the manager of the company RBC give a session on his own experience in fund management and answered questions posed by the students concerning their practical projects.

Employability
In this module, students learn how to work with portfolios, using data from Bloomberg and Datastream, which is highly valued by employers in the finance industry. Students also develop their presentation and team working skills.

Module aims - intentions of the module

The module has four aims:
• to equip students to analyse major issues confronting managers of portfolios of assets invested domestically and internationally and translate their analysis into portfolio decisions.
• to review some of the considerable empirical academic literature studying current issues in portfolio management. This may include forecastability, style choice and timing etc
• to give students experience of practical fund management through seminars conducted by practising fund managers;
• to develop expertise in the valuation and use, especially for hedging, of foreign currency derivatives such as options, futures and swaps.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. Be able to appraise the current research literature on all major aspects of international investment. Ability to appraise critically portfolio performance using attribution and risk-adjustment measures. Be able to make quantitative forecasts of global stock, bond and equity returns. Be able to critically appraise current practise in leading investment houses. Be able to value and manage foreign currency derivatives towards stated goals.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

2. To isolate, analyse and evaluate research results generated in a wide ranging research environment. To use appropriate data and statistical methodology to produce quantitative decision rules. To appraise the appropriateness of conclusions drawn from approximate models for complex data generating. To isolate and present key features of a many sided research process.

ILO: Personal and key skills

On successfully completing the module you will be able to...

3. To present in documents, and personally, a decision process involving many choices and to isolate the key features of the process. To design, and operate within, an efficient group framework, analysing problems arising in an international context. The framework and analytical methods are developed within the mode of instruction.

Syllabus plan

• Introduction – Portfolio Management - Processes
• Asset Pricing Models in Portfolio Management
• International Aspects- Currencies and International Asset Pricing
• Using Futures and Options to Hedge Currency and Market Risks
• Using Currency/Interest Rate Swaps
• International Equity Investing – Top/Down Asset Allocation, International Ratio Comparison, Value and Momentum Strategies, Tactical Asset
• Allocation, Timing Value/Growth Styles
• Emerging Markets in International Investing
• International Bond Returns – Forecasting Returns, Political and Credit Risk Evaluation, Default (Credit) Spread, Corporate Bonds
• Completion and Presentation of Practical Project
• Module Review and Revision

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
27	123	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Contact hours	27	Lectures

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Homework	Assigned in lectures and discussed in tutorials	1-3	Written/ Oral feedback

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
30	70	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Group Project	30	Group project assessed by presentations (2 presentations, approx 5 minutes in length) and a group report (maximum length 1500 words	1-3	Oral feedback
Written Examination	70	1.5 hours	1-3	Written feedback

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Group project & Exam	Examination (100%) 1.5 hours	1-3	Aug/Sep

Indicative learning resources - Basic reading

Basic reading:
Solnik, B., and D. McLeavey, 2004, International Investments, 5th ed., AIMR, Addison Wesley

Additional reading:
Reilly, F.K., and K.C. Brown, 2006, Investment Analysis and Portfolio Management, 8th ed., Thomson South-Western
Hull, J.C., 2003, Options, Futures, and Other Derivatives, 5th ed., Prentice Hall

Key words search

Portfolio management; international investment; International Bond returns

Credit value	15
Module ECTS	7.5
Module pre-requisites	None
Module co-requisites	None
NQF level (module)	7
Available as distance learning?	No
Origin date	01/09/2010
Last revision date	12/09/2013