25793 Advanced Investment Management and Advising

Faculty of Business: Finance and Economics
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25721 Investment Management
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces the process of establishing and implementing an investment plan to meet the needs of both retail and wholesale investors. In addition, it provides the knowledge to address all aspects of the investment of these funds. By being at the interface of the adviser and manager, the subject helps the adviser in his or her evaluation of the managers and the manager in better understanding the needs of his or her clients.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

Understand the basic characteristics of the traditional and alternative asset classes
Define the investment needs of clients and be able to utilise various techniques to establish an investment plan to meet these needs
Determine the best way to implement this investment plan
Apply advanced techniques associated with the management of investment portfolios that span several asset classes
Measure and interpret the performance of the investment plan and the various component parts as an essential part of reviewing the continued suitability of the plan.

Contribution to graduate profile

This subject is designed to provide the knowledge of investment advising to those interested in the investment management and/or investment advising industries. It builds upon training in previous courses to enable students to understand how to tackle the specification and implementation of an investment plan to suit the needs of a diverse set of investors. In addition, it provides students with the knowledge to both manage diverse asset classes and also to combine them in an effective way to meet client needs. It is designed with a practical emphasis to provide the basic knowledge for entry into the funds management and/or financial consulting industries.

Teaching and learning strategies

The lectures will be used to impart knowledge and engender discussion relevant to the subject-matter of the course. The workshops are designed to enable the students to apply their knowledge to practical problems in a supervised environment. Two integrating case studies will be used: one designed to provide students with experience in developing an investment plan customised to the needs of specific investors while the other is designed to provide practical experience in the management of a diversified investment portfolio.

Content

The Objective
The Role of Various Parties
The Investment Alternatives, which includes the traditional asset classes, alternative investments and offshore investing
Portfolio Construction and Risk Control
Implementation Issues
Tactical Asset Allocation
Active and/or Passive Management
How to Chose Between Investment Managers and Investment Products
Performance Review.

Assessment

Case Study (Group)	20%
The case study will be designed to provide the students with an understanding of the factors to take into account when defining the needs of investors and the role of the financial consultant and investment manager in meeting these needs. This will enable students to demonstrate that they have met objectives 1-3.
Portfolio Simulation Project (Group)	10%
The portfolio simulation provides students with the opportunity to make the important investment decisions in a real world setting and to be able to review the outcomes. This will enable students to demonstrate that they have met objectives 1, 4 and 5.
Final Exam (Individual)	70%
This will test the understanding of the individual student of the concepts and techniques introduced in the course. This will enable students to demonstrate that they have met objectives 1-5.

Recommended text(s)

Bird, R., (2001), A Set of Readings on Investment Management and Advising, Faculty of Business, University of Technology, Sydney

Elton, E., and Gruber M., (1995), Modern Portfolio Theory and Investment Analysis, 5th ed., John Wiley and Sons.

Indicative references

Arnott, R. and Fabozzi F., (1993), Asset Allocation: A Handbook of Portfolio Policies, Strategies and Tactics 2nd ed, Probus

Bodie, Z., Kane, A., and Marcus A., (1999) Investments, 4th ed., Irwin McGraw-Hill,

Gibson, R., (1990), Asset Allocation: Balancing Financial Risk, Dow Jones Irwin

Grinold, R. and Kahn R., (1995), Active Portfolios Management, Probus

Jones, C., (1998), Investments: Analysis and Management, 6th ed., Wiley

Michaud, Richard O., (1998), Efficient Asset Allocation, Harvard Business School Press

Reilly, F. (1994), Investment Analysis and Portfolio Management, 4th ed., Dryden.