Domestic and International Portfolio Management

Module description

Summary:

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.

Additional Information:

Sustainability
All of the resources for this module are available on the ELE (Exeter Learning Environment).

External Engagement
Previously, we had the manager of investment funds give a session on his own experience in fund management and answered questions posed by the students concerning their practical projects.

Employability
In this module, students learn how to analyse real-world financial issues and work with portfolios

Full module specification

Module title:Domestic and International Portfolio Management
Module code:BEAM036
Module level:M
Academic year:2020/1
Module lecturers:
  • Dr Linquan Chen -
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

11

Module aims

The aims of the module are:

  • 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 forecast ability, style choice and timing etc.
  • To give students experience of practical fund management through seminars conducted by practising fund managers;
  • To understand the determination of foreign exchange and develop expertise in managing exchange risk exposure.

ILO: Module-specific skills

  • 1. appraise the current research literature on all major aspects of international investment;
  • 2. critically appraise portfolio performance using attribution and risk-adjustment measures;
  • 3. make quantitative forecasts of global stock, bond and equity returns;
  • 4. critically appraise current practice in leading investment houses;
  • 5. value and manage foreign currency derivatives towards stated goals.

ILO: Discipline-specific skills

  • 6. analyse and evaluate research results generated in a wide-ranging research environment;
  • 7. use appropriate data and statistical methodology to produce quantitative decision rules;
  • 8. appraise the appropriateness of conclusions drawn from approximate models for complex data generating.

ILO: Personal and key skills

  • 9. present in documents, and personally, a decision process involving many choices and consolidate the key features of the process;
  • 10. present key features of a many-sided research process and, analyse problems arising in an international context.

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
271230

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity27Lectures
Guided Independent Study123Reading, research and reflection; preparation for lectures; preparation for assessments.

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Independent StudyAssigned in lectures and discussed in tutorials1-10Written/Oral feedback

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Mid-term written examination2040 minutes1-10Written feedback
Final written examination802 hours1-10Written feedback

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Mid-term and Final written examinationExamination (100%, 2 hours)1-10August/September Reassessment Period

Syllabus plan

  • Introduction: portfolio management process
  • Asset pricing models in portfolio management
  • Measuring and managing market risk
  • Asset valuation and asset allocation
  • Active portfolio management and algorithmic trading
  • International portfolio diversification
  • International parity conditions
  • Currency determination and international asset pricing
  • Module review and revision

Indicative learning resources - Basic reading

Basic reading:

  • Solnik, B., and D. McLeavey, 2013,  Global Investments : Pearson New International Edition, 6th ed., Pearson


Additional reading:

  • Reilly, F.K.,  K.C. Brown, and Leeds S.J. 2019, Investment Analysis and Portfolio Management, 11th ed., Cengage Learning

Module has an active ELE page?

Yes

Origin date

01/09/2010

Last revision date

19/05/2020