BSc Management (Human Resources) with Industrial/Professional Experience

Year of entry: 2021

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Course unit details:
Applied Practical Investing

Unit code BMAN32082
Credit rating 10
Unit level Level 3
Teaching period(s) Semester 2
Offered by Alliance Manchester Business School
Available as a free choice unit? No

Overview

The course will study the practical element of investing. Students will study the background of financial markets and investment communities.  We will look how this has developed into the roles and the player’s active in today’s investment industry.  Students will research, present and apply practical investment styles, strategies, evaluation and selection techniques that have been used by very successful investors over time as well as new strategies applied today.

Students will gain knowledge about different investment vehicles that can be used such as mutual funds, investment trusts, exchange traded funds or single lines of stocks etc. Students will also provide understanding and practise about different types of investors and their requirements and limitations when investing.

Trying to solely understand financial markets is not enough to be successful in the financial industry today. To be able to understand clients’ specific needs, how to create an investment mandate and suitable investment portfolios for different types of investors are also key skills.  Therefore the students will conduct client role plays and provide a client recommendation for investing.

The students will also participate in numerous active stock trading simulations to be able to apply their investment knowledge at different stages.

The course will mainly be taught by Patricia Perlman-Dee who has spent over 11 years in the industry on trading floors in numerous investment banks such as Citigroup, JP Morgan and Nomura, followed by Wealth Management at Barclays. The course has large input from industry professionals.

Pre/co-requisites

Unit title Unit code Requirement type Description
Foundations of Finance A BMAN23000 Pre-Requisite Compulsory
Foundations of Finance B BMAN23000B Pre-Requisite Compulsory
Investment Analysis BMAN20072 Pre-Requisite Compulsory
BMAN20072 and BMAN23000(A)/(B) are the pre-requisite for BMAN32082. Available to students on BSc Mgt/Mgt Specialism, IM, IMABS, BSc Accounting, IBFE, BA (Econ) Accounting and Finance Pathways, BSc Economics & BSc Maths with Finance.

Pre-requisites: BMAN23000(A)(B) Foundations of Finance and BMAN20072 Investment Analysis

It is strongly preferred that students have achieved 60% or higher in the pre-requisite course units listed above. 

Aims

The course unit aims to:

  • Understand the background and roles in financial markets, investment banking and fund management industry.
  • Discuss theories of market efficiency; active vs passive management
  • Critically examine and evaluate practical investment techniques used by some of the world’s most successful investors
  • Explain how different types of investors make investment choices
  • Apply a range of investment techniques/strategies in creating and managing a portfolio for different investor ‘s needs
  • Apply acquired investment knowledge in trading a portfolio of Equities
  • Review and critically evaluate choice of benchmark and choice of investment vehicles
  • Present  and explain investment advisory solutions according to clients’ needs
  • Review and critically evaluate the impact of constraints, ethics and behavioural finance in the investment industry
  • Provide an overview of the practical aspects and terminology in the investment industry

Syllabus

The syllabus involves a combination of lectures, guest speaker, workshops, trading sessions, role plays, group projects and presentations as per suggested Topic and Teaching outline below with mostly every other week a lecture and workshop (exception lecture 3 and 4 which are delivered consecutively to allow time for students to prepare for the Group Assignment in week 5). Workshop 5 and Lecture 6 are delivered after the Easter Break. Workshop groups will be limited to 40 students per group because of room restrictions for Computer clusters (following discussion with central time tabling) as well as timings for Group Assessment and Role Play exercise.

Teaching and learning methods

Lecture Topics

Week 1

Lec 1

Welcome and Course overview and administration, What is Capital Markets, Why do Capital Markets exist, Review of overview of Asset Classes, Development of Investment Banks, Industry participants, buy side vs sell side, etc. Market Impact exercise

Week 3

Lec 2

Asset Allocation/Strategic/Tactical, Passive vs Active vs market efficiency, Introduction Style Investing and Group Assignment in Week 5 - Workshop 2 -Introduction to Behavioural Finance;External Guest speaker

Week 4

Lec 3

Overview theory equity valuation, Equity Research analyst work, Importance of data and assumptions, Sources of information, Equity valuation in practice, The real value in equity research, Understanding Equity Research reports, External Guest Speaker

Week 6

Lec 4

Different type of investors; private, institutional: How does pension fund invest/manage risk, what are hedge funds and different hedge fund strategies. etc. Establishing a policy statement, Understanding individual risk and return, External Guest Speaker

Week 8

Lec 5

What is an investment mandate, Practical investment mandates, Understanding of different types of investment vehicles and how they are used in investment mandates, The investment selection process, Understanding benchmarks, Performance evaluation,

Week 11 (after Easter break)

Lec 6 (1 hr only)

Learnings from client meetings, Revision topics

WORKSHOP

Week 2

Workshop: 1

Topics: Trading session 1, Efficient Market, understanding different type of trading orders

Example Activities: Active trading on Fin Lab, numerous trading sessions with separate learnings, discussions and reflections

Week 5

Workshop: 2

Topics: Group Presentations of 5 Successful investors (groups of 4/5)- Formal Assessment

What is investment style; value, growth, contrarian etc. Study of 5 successful investors over time, technique, style, application and implementation-Peer to Peer learning. Detailed time schedule will be on BB.

Example Activities: GROUP ASSESSMENT 1 -Each group to present for 10 min; power point pres + 2 page fact sheet, each group member to provide detailed peer to peer feedback (participation). Investment professionals invited to take part in panel

Week 7

Workshop: 3

Topics: Exercises; Usage of Beta, VIX. What is market neutral? Trading session 2. Understanding; trading orders, introduce short selling, analysing company data. Introducing prep for role play in WS4.

Example Activities: A number of calculation exercises regarding beta and  risk in market neutral positions. Active trading, including short selling.  Analysing orders and discussion of company specific news impact

Week 9

Workshop: 4

Topics: Role play Client meeting.Each group conduct a 30 min meeting looking to build report, find out information and suggest an investment portfolio. Investment mandate AA exercise

Example Activities: Students will in groups of 2 take the role of bankers or clients, suggested allocation; 2 banker, 1 client, 1 observer. The students will have to come up with a recommended portfolio that will need to be submitted to BB and discussed/presented in WS5 (classroom participation)

Week 10 (after Easter break)

Workshop: 5

Topics: Investment mandate case study from role play, Trading session 3; trading/investing with constraints

Example Activities: Discussion of investment mandate case studies, trading session where individual client constraints are imposed

Knowledge and understanding

  • L1: Explain, compare and contrast and critically evaluate the analytical tools and evaluation methods used by some of the world’s greatest investors
  • L2: Identify the participants in the financial markets and their roles (investment focus)
  • L3: Demonstrate the understanding of different investor needs, requirements and constraints.
  • L4: Recognize the importance of both team and specialist input.

Intellectual skills

  • L5: Demonstrate the analytical skills of evaluating and selecting investments
  • L6: Compare and contrast theoretical knowledge with investor needs in creating financial solutions

Practical skills

  • L7: Create an investment portfolio
  • L8: Illustrate, analyze, organize and implement investment solutions/recommendations for different clients
  • L9: Ability to conduct a client meeting
  • L10: Create, run and conduct trading of a portfolio of equities

Transferable skills and personal qualities

  • L11: Demonstrate group work and team decisions
  • L12: Understand the importance of collaboration, recognizing strengths and weaknesses and how to use these most efficiently in the investment industry.
  • L13: Demonstrate confident presentation skills
  • L14: Demonstrate professional relationship & communication skills

Employability skills

Other
If students acquire the learning outcomes, this will greatly enhance their ability and capability to apply for employment in the financial sector (e.g., investment firms, multinational corporations, and international organizations). The course will provide students with a good level of underlying theory but also a huge advantage of practical knowledge and skills, equipping them for interviews and employment in the finance sector.

Assessment methods

  • 50 % 1 hour MCQ  exam – Date to be confirmed

25% Group work and presentation – 8 minutes Powerpoint presentation of max 8 slides, 2 pages “factsheet” to be produced in addition to the presentation

SUBMISSION DEADLINE 9am, Date: (TBA) in BB. ORAL PRESENTATION Week 4 at allocated time slot.

25% Active class participation and mandatory attendance in workshops (participation activity will be objectively measured through Trading activity, role-play, portfolio submissions, Quizzes and black board activities, submission of class exercises, Peer -review Detailed description of each Assignment and how marks are awarded and allocated can be found on Blackboard under Assignment Info

Feedback methods

Feedback will be provided through multiple channels.

In-class feedback will be provided through discussions and questioning, with both lecturer, peer-to-peer and through interaction with guest speakers. Students will also receive instant feedback in the lectures and workshops though the use of Turning Point Polling which will be used for students to test acquired knowledge as well as possibilities of own drawn conclusions.

The workshops will provide immediate feedback though discussion of cases and exercises. Students will receive feedback from workshop leader but also through Peer-to-peer learning through for example role play.

Students will receive written and/or verbal feedback on assessed group work and group presentations. Students will receive generic written feedback on examination through Blackboard. Students wishing to discuss individual exam performance should follow established Alliance MBS procedures for performance review.

Student emails and questions will be responded to within 48 working hours.

I very much welcome feedback from students. Students will have the opportunity to fill out a course evaluation form as well as providing ongoing feedback though out the course. I will encourage students to provide ongoing feedback as this will be a new course.

Recommended reading

An up to date suggested reading resource list will be provided on BB before the course starts.

The recommended text books are; (indicative chapters)

Reilly, Brown & Leeds, Investment Analysis & Portfolio Management, 11th Edition, Cengage (RB) Chapters; 1,2, 5, 6, 7, 8, 9, 10(353-356) ,11,17, 18,

It is desired that this will be available on  Kortext

Students will use a range of practical literature such as; Peter Lynch with John Rothchild; One up on Wall Street, Benjamin Graham; The Intelligent Investor, Robert Hagstrom; The Warren Buffet Way, David Dreman; Contrarian Investment Strategies, etc.

The final literature list will be confirmed closed to course start

CFA Institute material; Standard of Practice Handbook, 2010, 10th edition, CFA Institute, see heep://www.cfapubs.org/doi/pdf/10.2469/ccb.v2010.n2.1

Journal Articles, Daily Articles from FT etc

Students are encouraged to do their own research through sources as Thomson One, Stockopedia, Validea, Investorguide.com, Yahoo Finance, Morning Star, FT.com, Bloomberg, Citiwire etc.

A trading platform; Finance Lab Pro will be made available for students to trade a portfolio of equities.

The readings will also consist of specifically tailor-made videos by investment professionals from for example Seneca Investment Management, Barclays Wealth, Instructus Markets, TilneyBestInvest, Simon Baynes Ltd., Julius Baer, Brown Shipley, Brewin Dolphin and Corvinus Capital.

A separate suggested reading resource list will be provided on BB before the course starts.

Study hours

Scheduled activity hours
Lectures 11
Practical classes & workshops 10
Independent study hours
Independent study 79

Teaching staff

Staff member Role
Patricia Perlman-Dee Unit coordinator

Additional notes

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.

Pre-requisites:
BMAN23000(A)(B) Foundations of Finance
BMAN20072 Investment Analysis

It is strongly preferred that students have achieved 60% or higher in the pre-requisite course units listed above. 

Programme Restrictions: ONLY for BSc Management, BA (Econ) Accounting and Finance, BA (Econ) Finance, BA (Econ) Economics and Finance, BSc in Accounting, , BA/BSc International Business, Finance and Economics, BSc Maths with Finance, BSc/BA Economics, BSc Economics 

The course has a restriction of maximum 130 participants due to room constraints of workshops and computer labs as we would like to make sure we can get allocation to labs that are within AMBS’s facilities. This would mean four workshop groups with maximum 35 participants in each as per room restrictions (accounting for faulty computers etc). This restriction could possibly be reviewed for future years.

For Academic Year 2021/22

Updated: March 2021

Approved by: March UG Committee

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