This course focuses on the business of investment decision making from the perspective of the portfolio manager with an emphasis on the delivery of sound investment advice and solid performance to investors. The course builds on earlier investment coursework and requires students to have taken a previous securities course. The course assesses the major components of the investment business from the client’s perspective and concentrates on the investment process, asset allocation and investment performance. In particular, the emphasis is on the job of managing a portfolio of securities within a mix of asset classes including equities, fixed income, and international alternatives. Learning tools and techniques include the use of Excel spreadsheets and the analysis of public data.
1. Client objectives for diversified portfolios: risk and investor preferences.
2. Asset allocation: Portfolio analysis, Markowitz Risk-Return Optimization, Portfolio selection, delineation of efficient portfolios and techniques of calculating efficient frontiers.
3. The investment management process: Efficient market hypothesis and the key elements of the investment process.
4. Equity portfolio construction.
5. Fixed-income management.
6. Global investment opportunities.
7. Alternative investment classes.
8. Performance measurement and attribution.
9. Managing client relations.
Methods of Instruction
A combination of lectures, supplementary materials & presentations and class presentations.
Means of Assessment
At the end of the course, the successful student should be able to:
1. evaluate and describe the techniques required to select an optimum portfolio;
2. describe various strategies of capital allocation to create optimal mix portfolios;
3. evaluate portfolio returns of a small, active portfolio;
4. explain the portfolio evaluation techniques of earning estimation and bond pricing techniques;
5. describe the valuation and uses of financial futures in the management of portfolios;
6. use real data of securities to estimate risk, estimate returns, and adjust the returns in accordance with inflation and money exchange rates;
7. select the appropriate asset mix for an investor’s profile;
8. estimate the capital allocation weights and asset allocation weights through the use of Excel spreadsheets in order to create an investment portfolio;
9. evaluate a portfolio’s performance and identify the main reasons that underlie its performance;
10. provide recommendations to clients (investors) to maintain an appropriate portfolio allocation.
(FINC 3350 or FINC 3390) with a grade of “C” or Instructor permission
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.