FINANCE Updated 16 October 2018

Transcription

1 CORE FINANCE COURSES 1. FNCE FNCE102 Financial Instruments, Institutions and Markets 3. FNCE103 For Law 4. FNCE201 Corporate FINANCE ELECTIVES 5. FNCE203 Analysis of Equity Investments 6. FNCE204 Analysis of Fixed Income Investments 7. FNCE305 Analysis of Derivative Securities 8. FNCE210 International 9. FNCE307 Portfolio Management 10. FNCE213 Entrepreneurial 11. FNCE313 Financial Innovation 12. FNCE221 Investment Banking 13. FNCE311 Mergers and Acquisitions 14. FNCE314 Sustainability 15. FNCE231 Real Estate Investments and 16. FNCE232 Project Financing 17. FNCE234 Real Estate Valuation and Taxation 18. FNCE235 Real Estate Development 19. FNCE217 Wealth Management 20. FNCE222 Financial Planning & Advisory 21. FNCE225 Consumer Banking 22. FNCE229 Corporate Banking 23. FNCE310 Trade 24. TRAD201 Shipping Business

2 Course code/title FNCE101 FNCE102 Financial Instruments, Institutions and Markets FNCE103 For Law FNCE201 Corporate FNCE203 Analysis of Equity Investments FNCE204 Analysis of Course Description This course serves as an introduction to managerial finance. The aim is to provide students with a strong foundation in finance. Students will be exposed to key financial concepts and tools commonly used by managers in making sound financial decisions, which include time value of money, risk-return analysis, asset pricing and cost of capital. The course focuses on basic financial activities undertaken by a firm to create value for its shareholders. These activities include financial planning and management, investing and financing. This course focuses on the role of financial markets and financial institutions in facilitating the flow of funds to finance investments by corporations and governments. This course systematically evaluates each market and describes the participants and types of instruments offered. We examine four key markets: equity markets, debt markets, foreign exchange markets, and derivative markets. We will also examine the role of financial institutions such as commercial banks and mutual funds. This course builds on the foundations provided by FNCE101 but focuses on learning how the principles of finance can be applied in a market setting. This course will also prepare students for other more advanced finance courses. This course is specially customized to serve as an introduction to business finance for the legal profession. The aim is to provide aspiring lawyers with a strong foundation in finance. There will be a strong emphasis on financial statements analysis and valuation. Students will be exposed to key financial concepts and tools commonly used by managers in making sound financial decisions, which include time value of money, risk-return analysis, asset pricing and cost of capital. The course focuses on basic financial activities undertaken by a firm to create value for its shareholders. These activities include financial planning and management, investing and financing. This course continues the analysis of financial problems confronting the corporate financial manager, a theme that was introduced in the introductory course. The major objective of this course is to help students develop further understanding of current theories and their implications for solving financial problems. The approach taken is that of financial strategy. The major topics covered include wealth creation, the enhancement of shareholder value, managing corporate growth, corporate capital investments, capital structure policy, corporate payout policy, real options, investment banking and capital raising, mergers and acquisitions, and working capital management. Throughout the course, we will study the problems which corporations face in making investment decisions with an emphasis on valuation. Research results from recent empirical work, case studies, and their implications for corporations will also be discussed, where appropriate. This course seeks to provide the student with a clear and comprehensive understanding of the main aspects of stock valuation. The first portion of the course covers discounted cash flow (DCF) valuation, which derives the stock price as the discounted value of future cash flows. The second portion of the course covers relative valuation, which uses appropriate multiples (such as the price-to-earnings ratio) to identify over-valued and under-valued stocks. We will examine the fundamental factors that affect stock valuation, as well as the similarities and differences between DCF valuation and relative valuation. We will also study various examples of stock valuation, using both DCF valuation, relative valuation, option pricing approach and covering a wide variety of industries and countries. Fixed-income securities deliver fixed cash flows, where value and risk are strongly influenced by interest rates. This course will cover the pricing, valuation, and management of fixedincome securities, portfolios, and derivatives. This course aims to provide students with a

3 Fixed Income Investments FNCE305 Analysis of Derivative Securities solid understanding of fixed-income securities, as well as the ability to apply this knowledge to investment decisions in the real world. Financial derivatives have applications across many areas of finance, such as hedging, swaps, convertible claims, and corporate decision making. The course objective is for students to understand profoundly the valuation of forward, futures, options and other derivative securities, and their use in hedging risk exposures, such as commodity price risk, currency risk, interest rate risk, stock portfolio risk, and so forth. Furthermore, students will be given the opportunity to explore a comprehensive online financial markets simulation system (Stock-Trak) to obtain hands-on experience (of a fund manager :) in trading in the real market. For instance, students can trade futures and options on commodities such as gold, silver, corn, oil etc at the market prices through Stock- Trak. Finally, given the advance nature of this module, strong math and statistics backgrounds and good achievements in other finance courses (e.g., Portfolio Management, Analysis of Equity Investments, and Analysis of Fixed-Income Investments) may provide some advantages in handling this challenging module. FNCE210 International This course introduces the principles of finance in an international context. In a globalized environment, investors and corporations embrace an expanded set of investment opportunities, yet they also face additional risks. The course gives an overview of the international financial environment, and covers issues including currency exposure, international parity conditions, foreign exchange risk management, international asset pricing, international investment strategies, and currency hedging for international stock markets. This course is a blend of theory and practice where the focus is on: - Understanding the basics of financial decision making - Appreciating the international financial landscape that an investor or firm operates in - Evaluating the instruments available to navigate the international financial environment - Discussing real world global financial events FNCE307 Portfolio Management This course would cover the current theories of portfolio management and provide a conceptual framework for the evaluation of investment strategies. It aims to provide students with exposure to the process of investment management including identification of investment objectives and constraints, determining asset allocations, and measuring portfolio performance. It will also cover the fundamental concepts of investments, including risk and return, market efficiency, portfolio diversification, CAPM and risk management using derivatives. The coverage will include applications and implementation, in particular performance evaluation and international diversification. Lessons will also include extended and interactive discussions and analyses of the contemporary investing scene and global capital markets. FNCE213 Entrepreneurial The primary objective of this course is to provide an understanding of a wide variety of issues related to the financing of entrepreneurial firms. The approach will be based on the economics and finance of entrepreneurial firms and financial intermediation. The course has an analytical nature, not an institutional or descriptive one. The course will teach students how to understand rigorous theoretical arguments, read and perform simple econometric analyses, and analyze practical situations through case study discussions and group exercises. The course will require both individual and team work. Individual work will be necessary to prepare for class discussions and for the academic readings required for the exam. Team work

4 in the valuation exercise and case studies will lead students to a unique opportunity to experience the discussion and management of complex, real-world problems. FNCE313 Financial Innovation This course assembles economic theories related to financial innovations, and investigates ongoing innovations as well as important innovations in the past to prepare students for the evolving financial industry of the future. Innovations and technology shape the landscape of the business world. As a result, the required skill set of financial professionals and entrepreneurs also largely depends on the features of concurrent innovation. We will discuss the disruptive and constructive impact of innovation on products, investors, service providers, customers, regulators, and marketplaces with a focus on strategic planning and optimization. The goal is mainly twofold. First, the course will shed light on the current industry demand of young talent and serve as a guideline for basic knowledge and skills relevant to the new business models. The second goal is to promote methodology of continuous learning, adaption, and inter-temporal planning so that students can be better prepared for new challenges from future innovations. FNCE221 Investment Banking FNCE311 Mergers and Acquisitions This course aims to provide students with insights into the role of the investment banking industry in facilitating the raising of capital for corporations, in the equity and debt, or mergers & acquisition (M&A) markets, to assist a corporation to grow. The structure of investment banks and how each division inter-relate, will be discussed, e.g. corporate finance, ECM, DCM, Sales & Trading, Operations, Global Markets, Compliance, etc. Participants will learn about how primary market deals relating to equity, debt and M&A are structured to maximize share value, as well as how these are skilfully executed to ensure that values are preserved and achieved. Participants will also be taught about the fundamentals of valuation as well as the best practices in financial modelling. This course is not only useful for investment banker wannabes but also for those who are interested to learn about raising capital in corporations. This course is structured to provide participants with an insight into the various facets of the Mergers & Acquisitions (M&A) market. It aims to explain the role that M&A play in corporate strategy development. In this respect, some of the related questions will be explored: Why firms undertake these transactions? What is the genesis of value in these transactions? How much value, if any, is created? Who gains from these transactions? What is the track record of value creation for M&A deals? How does M&A market relate to corporate restructuring? The course aims to actively blend theories of M&A to the practical aspect of a deal, including valuation techniques and issues; structuring considerations; aspects of M&A execution including negotiation strategies, due diligence, documentations, legal and regulatory issues. Post-acquisition integration which is a crucial part of M&A transactions will also be discussed. FNCE314 Sustainability NEW course for AY 2018/2019: Today s businesses and investors are increasingly dealing with the risks and opportunities of environmental, social and governance (ESG) issues, due to the scarcity of resources, conflicts in community and labor relations, and climate change. Meanwhile, more and more investment managers have stepped in to offer impact products in their portfolios as investors begin to evaluate how they can invest in ways that can meet financial goals and support social and environmental change. Bridging the gap between traditional capitalism and a new context of shared economic and social value, sustainable finance is quickly becoming a core part of the mission of financial institutions and companies. This course couples established and emerging theory on how finance can be used to address sustainability challenges. It covers diverse aspects of sustainable finance, including ESG measurement, socially responsible and impact investing, integrated reporting, risk management, product market competition, and ESG issues along the supply chain to provide

5 sophisticated and rigorous training at the nexus of sustainability and financial management. The course will also explore the meaning and importance of sustainable business practices that respect and adhere to ethical social responsibility standards through several case studies and simple econometric analyses. By the end of this course, students will gain a foundation in the understanding of how regulations and market forces provide incentives that encourage desired corporate and investor behaviors. FNCE231 Real Estate Investments and FNCE232 Project Financing NEW course for AY 2018/2019: This course focuses on real estate investments and financing from a commercial perspective. It discusses the four quadrants for investments and financing public debt, private debt, public equity and private equity employed by institutional investors. The course will evaluate real estate investments and financing in each of the four quadrants using a variety of techniques including discounted cash flows and capitalization rates. The course will also cover real estate investment trusts (REITs) and private equity real estate funds. NEW course for AY 2018/2019: The course focuses primarily on large projects - those costing at least USD200 million. Through this course, students will learn the mechanics of project finance and the critical success factors for such transactions, including creating value and managing risks. Students will learn how to structure a robust Project Term Sheet to facilitate investment and financing decisions. The course will include discussions on China s One Belt One Road Initiative ( OBOR ), and strategies to capture the opportunities arising from OBOR through Project pathways. Students will also appreciate how finance, economic and political forces are interwoven into project financing especially in the Asia Pacific region. In 2016, USD228 billion worth of project finance transactions were signed globally, of which USD96 billion were transacted in the Asia Pacific. This transaction volume is expected to grow in the years ahead. This course will benefit students who are seeking a career in Corporate, Investment Banking, or Commercial Banking. FNCE234 Real Estate Valuation and Taxation FNCE235 Real Estate Development NEW course for AY 2018/2019: This course introduces students to the theory and practice of real estate valuation and appraisal for both commercial and statutory/taxation purposes. It integrates the knowledge and methods from several real estate-related disciplines such as land law, urban economics, urban planning, finance & investment, building design and construction, and government policies, into a specialized field of study that supports the real estate industry. Students will learn about the unique characteristics of real estate, the distinct features of the real estate market, and learn to apply the universal valuation principles and methodologies on which real estate decisions are based. The extensive use of actual examples and case studies in this course will help students relate to the real and practical issues which they are likely to encounter as real estate professionals and practitioners in both the private and public sectors. NEW course for AY 2018/2019: This course focuses on the real estate development cycle. The main stages of real estate development are (a) pre-development planning, (b) project inception and roll-out, and (c) post-project management. The first stage consists of activities centred on a feasibility study and due diligence, which will include site planning and development parameters. The next stage is to commence the development, which will include site selection, investigation and evaluation, market study, project management, procurement and regulatory issues. The last stage involves implementing post-project activities including leasing or selling the property, post-construction management and yield enhancement. Each stage has business, financial and operational risks. The course will discuss the embedded

6 activities in the value chain of real estate development for the various sectors, namely, residential, offices, industrial and commercial properties. FNCE217 Wealth Management FNCE222 Financial Planning & Advisory This course focuses on the process of wealth management of private clients. It discusses solutions to help affluent individuals and their families manage their wealth. It provides a framework for the iterative wealth management process, including client profiling, evaluation of investment products and implementation of a suitable investment plan. It emphasizes the need for a client-centric approach by wealth advisors and adequate portfolio diversification for private clients. It uses cases and current industry practices as learning supplements. This course will address the required technical and soft skills of a wealth advisor, as both a generalist and a specialist, to be a trusted advisor of the client. This course teaches students how an individual can manage her personal finance and assets, so that she can meet her financial needs over her lifetime, and improve the likelihood of meeting her financial goals. Students will learn and understand the issues which need to be addressed and the principles to be adopted in personal financial planning and asset management, as well as the practical implementation of these principles. Students will appreciate that financial plans have to be customised to suit the individual s personal circumstances, financial and otherwise. Financial planning involves recognising the financial risks an individual is exposed to and the measures which may be taken to mitigate these risks. Students will evaluate these risks over the life cycle of the individual and develop practical methodologies for developing financial plans which take into account these risks. Students will be exposed to a wide range of topics on personal financial planning which include the personal financial planning process, tools for financial planning, asset management, credit management, personal risk management (including insurance planning), retirement planning, tax and estate planning, obtaining financial advice, risk profiling and asset allocation strategies. Students will be provided with some basic information on each of these elements, but will largely discover through discussion and exercises how to develop practical methods for better financial planning which can be used by the person in the street. Students will be expected to have basic knowledge of the time value of money, investment portfolio theory and the features and risks of the more typical investment instruments. Students should also be familiar with Excel software but will not be required to perform any macro programming. The group project will be based on an Excel worksheet which the students will develop over the duration of the course. FNCE225 Consumer Banking This course is designed to impart key knowledge and skills elemental to a deep understanding of the retail banking industry, as well as some micro-specific skills an entry-level bank employee could immediately deploy. Prior to the global financial crisis, GFC, of , much learning regarding consumer banking focussed around sales and marketing, branding and service distinction. Post-GFC, entry-level employees must still avail of and develop such capabilities, but there is an additional need for a competent awareness of product mix, revenue models, risk, and regulation. Students of this course will thus explore a wide variety of content germane to consumer banking. Topics herein span product digitisation, market disruption, wealth management product and service evolution, how regulation improves the standing of retail banking in larger financial concerns. The course involves examination of certain retail banking products, such as credit, investments, and remittances, but not simply in the context of a product survey. Instead, each exploration of a particular product is the jumping off point for understanding key industry trends and evolution. For example, a case involving the de-construction of dual currency investment (a popular wealth management product) into its component parts, serves as the jumping off point to teach key aspects of the risks banks must manage in the promotion and sales of leveraged wealth management products.

7 Students are given frequent exercises, some of which are intended to be completed as short 30-min in-class application of industry-specific skills. While others are intended to stimulate participation by the group and lead to full examination of key industry trends. The course is taught by a former banker, who has developed and led several courses for SMU s business schools. FNCE229 Corporate Banking FNCE310 Trade TRAD201 Shipping Business This course is designed to provide students with a conceptual foundation of Corporate (or Wholesale) banking and to apply the principles and techniques specifically to banks credit risk management and decisions, product-mix, and competitive strategy. The loan portfolio is generally the major asset category on a commercial bank s balance sheet, and therefore the establishment and management of this asset requires understanding and practical application of modern techniques to achieve loan quality, risk control, client relationship management, and relevant product-mix. Additionally, corporate loans may not always constitute a bank s highest quality source of income, this due to competition and regulation. And therefore, the course includes key learning regarding how corporate banking in the modern era includes a widening array of merchant banking and capital markets offerings, and hedging and transactional products. The course is designed to appeal to students who expect to be either on the sell- or buy-side of international corporate banking. The course will provide participants with the basic theory and traditional definition of the various payment / financing products applicable in international trade finance. Such product knowledge shall be applied to some case studies relating to structuring trade transactions. This course helps students to understand the fundamentals of the various segments of the shipping industry. In particular, students will see the relationship between Shipping and International Trade. Students interested in a career in Shipping or Trading may consider taking this course.