Domestic and International Portfolio Management
The general aim of this module is to equip you with the ability to analyse major issues confronting managers of portfolios of assets invested domestically and internationally and translate their analysis into portfolio decisions. Competence in this area of fund management requires understanding of the operation of the world’s major equity, bond and currency markets.
All of the resources for this module are available on the ELE (Exeter Learning Environment).
Previously, we had the manager of the company RBC give a session on his own experience in fund management and answered questions posed by the students concerning their practical projects.
In this module, students learn how to work with portfolios, using data from Bloomberg and Datastream, which is highly valued by employers in the finance industry. Students also develop their presentation and team working skills.
Full module specification
|Module title:||Domestic and International Portfolio Management|
|Duration of module:||
Duration (weeks) - term 2: |
The module has four aims:
• to equip students to analyse major issues confronting managers of portfolios of assets invested domestically and internationally and translate their analysis into portfolio decisions.
• to review some of the considerable empirical academic literature studying current issues in portfolio management. This may include forecastability, style choice and timing etc
• to give students experience of practical fund management through seminars conducted by practising fund managers;
• to develop expertise in the valuation and use, especially for hedging, of foreign currency derivatives such as options, futures and swaps.
ILO: Module-specific skills
- 1. Be able to appraise the current research literature on all major aspects of international investment. Ability to appraise critically portfolio performance using attribution and risk-adjustment measures. Be able to make quantitative forecasts of global stock, bond and equity returns. Be able to critically appraise current practise in leading investment houses. Be able to value and manage foreign currency derivatives towards stated goals.
ILO: Discipline-specific skills
- 2. To isolate, analyse and evaluate research results generated in a wide ranging research environment. To use appropriate data and statistical methodology to produce quantitative decision rules. To appraise the appropriateness of conclusions drawn from approximate models for complex data generating. To isolate and present key features of a many sided research process.
ILO: Personal and key skills
- 3. To present in documents, and personally, a decision process involving many choices and to isolate the key features of the process. To design, and operate within, an efficient group framework, analysing problems arising in an international context. The framework and analytical methods are developed within the mode of instruction.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Homework||Assigned in lectures and discussed in tutorials||1-3||Written/ Oral feedback|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Group Project||30||Group project assessed by presentations (2 presentations, approx 5 minutes in length) and a group report (maximum length 1500 words||1-3||Oral feedback|
|Written Examination||70||1.5 hours||1-3||Written feedback|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Group project & Exam||Examination (100%) 1.5 hours||1-3||Aug/Sep|
• Introduction – Portfolio Management - Processes
• Asset Pricing Models in Portfolio Management
• International Aspects- Currencies and International Asset Pricing
• Using Futures and Options to Hedge Currency and Market Risks
• Using Currency/Interest Rate Swaps
• International Equity Investing – Top/Down Asset Allocation, International Ratio Comparison, Value and Momentum Strategies, Tactical Asset
• Allocation, Timing Value/Growth Styles
• Emerging Markets in International Investing
• International Bond Returns – Forecasting Returns, Political and Credit Risk Evaluation, Default (Credit) Spread, Corporate Bonds
• Completion and Presentation of Practical Project
• Module Review and Revision
Indicative learning resources - Basic reading
Solnik, B., and D. McLeavey, 2004, International Investments, 5th ed., AIMR, Addison Wesley
Reilly, F.K., and K.C. Brown, 2006, Investment Analysis and Portfolio Management, 8th ed., Thomson South-Western
Hull, J.C., 2003, Options, Futures, and Other Derivatives, 5th ed., Prentice Hall
Module has an active ELE page?
Last revision date