The objective of this course is to construct equity portfolios for Shanghai A and B Boards and actively assess the impact of various dynamic portfolio strategies in a simulated environment. The simulation will be competitive and will integrate the application of all the portfolio theories previously covered in the Program. The competing teams will be required to examine macro-economic factors, term structure slope, and all the capital market theories into portfolio construction and management through monthly detailed portfolio performance reports.
- Review of portfolio management and performance theories.
- Portfolio construction techniques.
- Introduction of the software package and Excel portfolio tracking templates.
- Review of Shanghai Board A and B shares and the index valuations.
- Introduction of the portfolio simulation rules and requirements.
- Weekly portfolio updates (buys, sells and changes in the portfolio mix).
- Weekly performance reports (Investment strategies vs. Actual portfolio performance).
- Monthly portfolio performance report (to be submitted to instructor for evaluation).
- Construction of simple statistical and econometric methods to implement portfolio models of Active Asset Allocation.
Methods of Instruction
Material will be presented with a seminar and distance monthly group reporting format.
Students will be divided into "simulation groups" and will act as "portfolio managers’ responsible for all aspects of tracking and assessing and reporting.
Means of Assessment
|Monthly comprehensive portfolio reports
including charts, some technical and statistical analysis
|Investment Objectives Report
Due withing the first 4 weeks of the semester
|Midterm Progress Report
Defined investment objectives vs Actual performance
|Term End Final Report/Presentation
consoldiation of all the semester's work
The instructor will define the exact format and the criteria for assessment of all the reports required.
At the end of the course, the successful student should be able to:
- define and explain the tasks and responsibilities of a portfolio manager
- describe and differentiate between the various portfolio management and performance tracking strategies
- demonstrate a broad understanding of the capital markets in China within which a portfolio manager must operate
- demonstrate a broad understanding of all the factors, economic or otherwise, which contribute to the behaviour of capital markets
- explain the determinants of pricing of all types of equity stocks and market fluctuations in the Shanghai Stock Exchange
- explain and compute the basic statistical measures of variability and demonstrate their general use in valuing risky stocks
- demonstrate a broad understanding of the concepts, principles, procedures and practices involved in constructing portfolios
- describe the key elements of investment objectives and benefits of the portfolio management and tracking process and be able to compute rates of return on the portfolio mixes
- be able to construct, monitor and weekly assess the portfolio values and portfolio management strategy changes based on investment objectives.
4th year standing in Financial Markets and Investment Management Program
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.