UCL School of Management

Module Fact Sheet

MSIN0082: Investment Management

Taught by
Level
Masters, level 7
Prerequisites
None
Eligibility
MM Route B finance pathway, SOM PGT affiliates by prior agreement
Terms
Term 1
Delivery method
3-hour lecture plus workshop (x 10 weeks)
Assessment
30% In-class test (1 hour), 40% Group presentation and 30% Group Report
Previous Module Code
MSING028

Course overview

The purpose of this module is to provide students with a theoretical and practical understanding of the principles of investment management in the current and future environments.

We will study the essence of the decision-making and subsequent management processes relating to investment in stocks, bonds, mutual funds, and other securities. We will consider the nature of these assets and their roles and management within a investment portfolio. We will also explore investing in derivatives, their valuation and risk, and their mainagement.  We will also explore investment in real estate.

To establish a base level of understanding of financial concepts, this module sets a required text. However, we will also cover readings from relevant case studies as well as news from the financial markets.  As the financial industry is dynamic and constantly changing, rather than recommend specific investment strategies in specific circumstances, this module will equip investment managers with the skills to consider new strategies as new circumstances arise.

Learning outcomes

By successful completion of the module, students should be able to:

  • Understand the structure and operation of securities markets.

  • Understand the nature of the risk/return trade-off and analyse its impact and treatment within the investment management framework.

  • Understand and discuss portfolio objectives and the significance of the roles of betas, standard deviations, and the capital asset pricing model (CAPM).

  • Understand, assess, and apply the principles of investment management in the context of ordinary shares (common stocks), with particular emphasis on stock valuation.

  • Explain the attributes of bonds as fixed-income securities and issues in their valuation and pricing, with particular emphasis on yields and volatility.

  • Understand issues in portfolio management, asset allocation, and portfolio returns.

  • Understand the nature and characteristics of mutual funds, issues in their valuation and management, and their roles within investment portfolios.

  • Apply appropriate investment management principles to derivatives and real estate.

Topics covered

  • The Investment environment

  • Modern Portfolio Theory & Efficient Markets

  • Behavioural Finance & Technical Analysis

  • Investing in Fixed Income Securities

  • Investing in Common Stocks

  • Portfolio Construction in Practice

  • Risk Measurement & Management

  • Using Derivatives in Investment Management

  • Alternative Investments - Real Estate, Private Equity, Hedge Funds & Commodities

Assessment summary

30% In-class test (1 hour), Group presentation 40% and Group Report 30%

Current students should refer to Moodle for specific details of the current year’s assessment.

Essential reading

Gitman, L., Joehnk, M.D., and Smart, S.B. (2014). Fundamentals of Investing. 12th ed. International ed. Harlow, England: Pearson Education Inc.

Past versions of this module

MSIN0082 18/19

MSING028 17/18

MSING028 16/17

Last updated Friday, 17 August 2018