17779 Investment Asset Allocation
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Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 25742 Financial Management
Description
This subject studies the underlying principles of assembling a mixture of assets in a portfolio. It examines the principles of diversification, risk and return within the practical application of property asset allocation in a current setting. Asset allocation provides the discipline to portfolio management and the subject examines the rationale of passive and active asset allocation strategies. This subject examines Australia's property investment industry, analysing alternative investment structures and their benefits and weaknesses within a portfolio context. It is designed to provide the foundation for understanding how property performs in a diversified portfolio.
The subject undertakes a review of economic and financial cycles and how they impact upon property asset allocation and portfolio performance. Students gain an understanding of how external factors impact on various property investments and the influence of these factors on the asset allocation decision process. The role of gearing in both its cost and availability is examined in the context of both passive and active asset allocation strategies. This subject equips students to design a portfolio within a defined asset allocation strategy.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Formulate, design and communicate an investment strategy for the current investment environment. |
|---|---|
| 2. | Evaluate the role of risk and return in the asset allocation decision. |
| 3. | Formulate an appropriate risk management strategy for a selected portfolio. |
| 4. | Analyse the current economic and financial market conditions and apply them to investment strategy formulation and asset allocation. |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Effectively apply a variety of communication skills and technologies in professional contexts (C.1)
- Apply appropriate technical analytic skills to a professional standard (P.1)
- Engage in an advanced level of critical and reflective thinking and judgement in property investment contexts (R.1)
- Source, evaluate and use information within defined parameters (R.2)
Contribution to the development of graduate attributes
The term CAPRI is used for the five Design, Architecture and Building graduate attribute categories where:
C = communication and group work
A = attitudes and values
P = practical and professional
R = research and critique
I = innovation and creativity
Investment Asset Allocation encourages student learning to develop these graduate attributes. The course content, learning strategies and assessment structure is explicitly designed with these attributes in mind.
Teaching and learning strategies
The subject is undertaken a block mode over two Friday/Saturday blocks.
Videos of senior industry practitioners which demonstrate the application and challenges of investment strategy, asset allocation and portfolio management are used to demonstrate principles and theories that underpin topics in the subject.
The subject incorporates flipped learning strategies with content available on UTS Online to be viewed prior to each block. Key points from this online content are then integrated into each session with active learning opportunities incorporating group discussion, class workshops and in class participation by students. Using both quantitative and qualitative methods in-class will promote student's ability to articulate the rationale behind their chosen asset allocation of a property portfolio.
During blocks students will work collaboratively solving problems through discussion and workshops that directly relate to the subject content covered through both the online and in class material. Feedback will be made available through UTS Online. Grades and marks for submitted tasks will be made available via ReView.
Content (topics)
- Property assets and businesses, their attributes and how they can be combined in an operational business
- Specialised property assets and their function in an operational business
- The impact of economic and financial cycles on asset allocation decisions
- Using case studies the implementation of an asset allocation strategy
Assessment
Assessment task 1: Analysis of Asset Sectors
| Intent: | This assessment task challenges students to source relevant information and to undertake qualitative analysis. They are then to evaluate this analysis in the context of financial and economic events and using qualitative analysis discuss the results and report in a professional format. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.1, P.1 and R.2 | ||||||||||||||||
| Type: | Report | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 30% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Portfolio Construction
| Intent: | This assessment task challenges students to apply their understanding of economic and market conditions with portfolio theory in a real-world situation. This requires sourcing appropriate market information coupled with discussing the relationship between their chosen portfolio and their investment strategy. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): .3, C.1 and P.1 | ||||||||||||||||
| Type: | Report | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 40% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Portfolio Evaluation
| Intent: | This assessment challenges students to incorporate their previous learning activities and identify and formulate a response to potential market outcomes. This requires students to show an in-depth understanding of economic and financial markets and how they impact on portfolio performance. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): .3, C.1, P.1 and R.1 | ||||||||||||||||||||
| Type: | Report | ||||||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||||||
| Weight: | 30% | ||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
Minimum attendance of 80% of timetabled hours.
Required texts
Regular reading of the financial media; recommended sources are the Australian Financial Review, the Business
Sections of Leading Daily newspapers and business, finance and investment publications.
Websites including, Australian Securities and Investment Commission (ASIC), Australian Stock Exchange (ASX) also
contain relevant information
References
Andrew Baum and Andrew Hartzell, Global Property Investment: Strategies, Structures, Decisions, Wiley-Blackwell, 2012. Online ebook available through UTS Library.
Patrick Rowland, Australian Property Investment and Financing, Thomson Reuters, 2010.