- Asset allocation strategies (strategic, tactical, global, insured). - Style investing, style rotation and tactical asset allocation with styles.

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1 MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS Module name Equity Investment Management Module code FR3201 School Cass Business School Department or equivalent UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims There are a number of profitable equity investment strategies which are widely used among practitioners in financial markets. This module provides advanced overview and application of these strategies, that can be broadly grouped into asset allocation, market timing, security selection and passive equity portfolio strategies. This module is essential for the BSc Investment and Financial Risk Management degree as many students graduating from this degree may work in asset management firms or asset management divisions of investment banks in which the investment strategies covered in this course are applied. The course aims to provide you with a good understanding of different types of equity investment management strategies, ranging from more conservative, long-only strategies such as passive index tracking or active style investing, to more alternative investment strategies such as long-short equity market neutral or style rotation strategies. The course aims to familiarise you with the steps used to apply particular styles of equity investment management. The course is highly participative and empirical and it will be based on practical cases and up to date research papers related to the main issues in equity investment management. Content outline - Asset allocation strategies (strategic, tactical, global, insured). - Equity index tracking. - Long-short equity investment strategies. - Style investing, style rotation and tactical asset allocation with styles. - Behavioural finance and its impact on equity portfolio management. - Traditional and advanced portfolio performance evaluation techniques (Sharpe and

2 Treynor ratio, M-squared, Sortino ratio, Information ratio, Jensens alpha Fama-French 3 factor model alpha. Carhart 4 factor model alpha, measuring performance of market timing funds, measuring persistence of performance etc). - Non-traditional equity funds: Sovereign Wealth Funds, Socially Responsible Investment funds, Exchange Traded Funds, Islamic Funds. WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Have a comprehensive understanding of asset allocation, security selection and market timing as active investment strategies and index tracking as a passive investment strategy - Demonstrate an understanding of the implications of the efficient markets theory on contemporary equity investment management process - Demonstrate familiarity with various active and passive equity investment strategies covered in the course - Demonstrate an understanding of the difference between various portfolio performance measures - Demonstrate an understanding of behavioural biases in finance - Have an understanding of what non-traditional equity funds are and how they select assets for their portfolios Skills: - Apply analytical skills to evaluate complex equity portfolio construction and management problems - Develop skills and knowledge to work in different countries - Construct and evaluate performance of an index tracking portfolio - Construct and evaluate performance of various long-short portfolios - Select proper strategic or tactical asset allocation for your portfolio - Analyse performance of portfolios using traditional and advanced methods - Identify and avoid behavioural biases in finance - Apply style rotation, sector rotation, market timing and tactical asset allocation strategies with value/growth/small capitalization/large capitalization styles

3 - Contribute to the equity portfolio construction and evaluation Values and attitudes: - Be sensitive to the perspectives of fund managers, risk managers, security analysts and traders - Appreciate the importance of the regulatory regime guiding some investors' decisions - Have an awareness of the ethics and responsibility involved in the equity portfolio construction and management process - Have an awareness of the wider social context of investment management decisions HOW WILL I LEARN? The course will consist of 10 lectures of two contact time each. Teaching methods will consist of taught lectures, analysis of vast empirical evidence and contemporary issues in the area of equity investment management, case studies and empirical simulation exercises. Teaching pattern: Teaching component Teaching type Contact Selfdirected study Placement Lectures Lecture Totals WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments Group coursework and exam. Assessment pattern: Total student learning Assessment component Coursework Assessment type Written assignment, including essay Weighting Minimum qualifying mark Pass/Fail? 30 0 N/A

4 Examination 2.25 Assessment criteria Written Exam 70 0 N/A Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to students prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. Coursework feedback will be written in detail on every page of your submitted work and it will include the comments on both what you did right and what you could have improved upon or did wrong. Individual feedback will be returned within 3 weeks. Exam feedback will be provided in a more general way, where some of the common mistakes and omissions among students will be highlighted. Also, I will highlight the points that helped students get the highest marks. Exam feedback will be uploaded on Moodle. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Given the broad nature of this course, no single textbook will suffice. A detailed reading list will be given in each individual lecture and extra reading material for this course will be provided. Nevertheless, the following material will provide a general guideline to the topics covered in the course. Fabozzi, F.J et al., Handbook of Equity Style Management, Frank J. Fabozzi Associates. Lofthouse, S, Equity Investment Management, John Wiley and Sons. Arnott, R.D. and Fabozzi, F.J., Active Asset Allocation, Probus Publishing Co. Klein R.A. and J. Lederman, Equity Style Management: Evaluating and Selecting Investment Styles, Irwin Professional Publishing. Fabozzi F. J. and Fabozzi T. D, Current Topics in Investment Management, Harper & Row.

5 In addition to the above, up to date journal articles and research papers will be recommended, where necessary, to update your knowledge and some will be uploaded on Moodle and/or distributed in the class as extra reading material. Version: 2.0 Version date: July 2013 For use from:

6 Appendix: see for the full list of JACS codes and descriptions CODES HESA Code Description Price Group 27 Business and Management D Studies JACS Code Description Percentage (%) N300 The study of financial systems, regulations and reporting. 100