CORPFIN 3501 - Portfolio Theory & Management III

North Terrace Campus - Semester 1 - 2014

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.

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Course Details

Course Code	CORPFIN 3501
Course	Portfolio Theory & Management III
Coordinating Unit	Adelaide Business School
Term	Semester 1
Level	Undergraduate
Location/s	North Terrace Campus
Units	3
Contact	Up to 3 hours per week
Prerequisites	CORPFIN 2500
Assumed Knowledge	SACE Stage 2 Mathematical Studies and ECON 2508
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Dr Ivan Obaydin

Semester 1 - Course Coordinator
Dr Syed Zamin Ali
syed.ali@adelaide.edu.au

Semester 2 - Course Coordinator
Dr Ivan Obaydin
ivan.obaydin@adelaide.edu.au

Course Timetable

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

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

Investments by Bodie, Kane and Marcus, 9th 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: Fundamentals of Modern Portfolio Theory

Week 2: Overview of the Financial Market and Basic Performance Measures

Weeks 3 and 4: Investment Policy Statement (IPS) and the Asset Allocation Decision

Week 5: Active Equity Portfolio Management Strategies

Week 6: Bonds Portfolio Management Strategies

Week 7: Real Estate, International Investments, and Emerging Markets

Week 8: Passive Equity Portfolio Management Strategies

Week 9: Issues in Portfolio Management Strategies

Week 10: Hedge Funds

Week 11: Behavioural Finance

Week 12: Performance Evaluation – Theory, Evidence and Issues

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

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

Assessment Summary

This course has 4 assessment components:
1. Two tests worth 20% each
2. Tutorial participation worth 10%
3. 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

· (20%) Test 2: 1 hour test. Multiple Choice Format and Short Answers. This is a closed book test

· (10%) Tutorial participation

· (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
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator