Overview

• The characteristics and roles of investment institutions.
• Investment objectives and the asset allocation decision.
• Principles of portfolio management.
• Bond valuation
• Bond portfolio management.
• Credit rating agencies and rating practices
• Equity portfolio management strategies.
• Performance measurement.

Assessment Strategy

Threshold c- to c+ (50-59%): Satisfactory performance. No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. Knowledge of key areas/principles only. Weaknesses in understanding of some areas. Limited evidence of background study. Answer inadequately focused on task and with some irrelevant material and poor structure. Arguments presented but lack coherence. Minor factual/computational errors. Lacking original interpretation.

Good B- to B+ (60-69%): Good performance. Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills. Understands most but not all concepts/issues. Evidence of background study. Focused answer with good structure. Arguments presented coherently. Mostly free of factual errors. Some limited original interpretation. Well known links between topics are described. Problems addressed by existing methods/approaches. Good presentation with accurate communication

Excellent standard: 70+ An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse appropriate benchmarks and methods for the evaluation of the performance of a portfolio of investments.

• Apply the principles of investment theory and practice to the optimal selection of investments to satisfy a specific set of risk-return objectives.

• Construct a portfolio from a range of available investment instruments, including bonds, equities and derivative securities.

• Demonstrate awareness of the process of investment management.

• Explain the different sources of risk and return in managing equity and bond portfolios.

• Explain the key considerations in risk management and risk management of portfolios.