Investment Management – (M.Sc.)

Contents

We review all our courses regularly to keep them up-to-date on issues of both theory and practice, therefore there may be some change to the detailed content of the modules and occasionally to module titles.

Four core modules (30 hours each)

Equity Analysis

This course provides the fundamental and advanced techniques/tools used by practitioners to analyse equity markets, measure corporate performance, estimate equity values and ultimately sharpen students' judgement regarding stock market investment. The lectures are highly participative and use practical case studies in measuring cash-flows, understanding relative valuation approaches, performing residual income analysis as well as exploring equity investment tactics.

Fixed Income Analysis

The aim of this module is to introduce students to all the tools necessary to enable them to understand the problems involved in managing a fixed income portfolio. The focus of this module is on fixed income security markets, pricing and uses for portfolio management or for hedging interest rate risk. It will also cover term structure analysis and the use of derivative instruments in bond portfolio management.

Portfolio Theory

Provides students with an understanding of modern portfolio theory and its implications for the pricing of assets. It gives unified approach to asset pricing, asset management and risk management. Topics covered include: portfolio diversification, optimal portfolio construction, expected utility theory, capital asset pricing model and arbitrage pricing theory with applications.

Quantitative Methods in Investment Management

This module provides students with the tools required for modelling financial data ranging from the classical linear regression model to nonlinear volatility modelling. Value at Risk (VaR) analysis will also be introduced as a tool for measurement and management of risks in the financial markets. In-depth analysis and practical implementation of VaR approaches including the RiskMetrics system developed by JP Morgan and alternative simulation based techniques is central to the course. VaR validation and stress testing within the Basel regulatory guidelines will also be discussed. Emphasis is placed on the practical applications of methods, and the teaching involves an examination of some empirical studies designed for equity and fixed income markets.

Four core modules (30 hours each)

Alternative Investments

Following the collapse of the world's equity markets between 2001 and 2003, many investors are investing in, or are thinking of investing in, less traditional asset classes as an alternative to equities. The integration of these alternative asset classes into traditional investor portfolios is still at an early stage, leaving investment managers with significant challenges as they seek to satisfy investor demand for these alternatives. It is intended that this module will give students the background in commodities, hedge funds and private equity necessary for today's investment management industry.

Derivative Applications

The aim of the course is to develop students' understanding of derivatives, particularly forwards, options and swaps in both vanilla and exotic forms. A strong emphasis is placed on the use of derivatives in practical applications including risk management and structured products. The students make extensive use of Bloomberg and gain practical experience of the process of designing structured products.

Foreign Exchange

The increase in the pace of portfolio internationalisation over the past few years means that it is now essential that fund managers understand the foreign exchange markets. Furthermore, foreign exchange is being seen more and more by investors as a separate asset class. This module will demonstrate how foreign exchange risk can be either hedged or managed effectively so that portfolio returns can be enhanced.

Portfolio Management

The course enables students to understand how modern portfolio and asset pricing theory can be employed for the attainment of investment objectives. It covers in detail the formulation and implementation of various active and passive investment strategies, as well as the analysis and management of risks associated with particular strategies. It includes practical case studies in portfolio construction and performance and asset allocation. Students gain further practical experience through a portfolio management simulation game and the use of use software packages.

Applied Investment Workshop & Portfolio Management Simulation

In addition to the core modules students are required to participate in this series of additional workshops, seminars and practical applications which aim to introduce issues related to financial markets.

Presentations are given by leading practitioners and expert academics in a relaxed atmosphere that encourage students to participate, ask questions and express their own views. The topics covered and length of seminars may change from year to year.

The Applied Investment Workshop aims to familiarise students with practical applications of econometric methods and financial risk modelling whereas the portfolio management trading game will enable students to gain practical experience in asset management vis an online portfolio manager simulator.

Five electives (18 hours each)

OR

One elective and a Business Research Project

Electives

You may choose from a wide variety of electives. For example:

• Financial Risk Management
• Pension Finance
• Regulation of Financial Services
• Asset Liability Management
• Advanced Company Valuation
• Money Market and Treasury Management
• Technical Analysis and Trading Systems
• Private Equity Investment
• Market Analysis and International Investments
• Risk Analysis and Modelling
• Marketing and Regulation of Financial Services
• Investment Banking
• Market Microstructure
• Advanced options trading
• Quantitative Asset Management
• Finance in Emerging Markets
• Mergers and Acquisitions and Divestments
• Index Construction and Performance Measurement
• Property Economics and Financial Markets

Research Methods Module

This compulsory module trains students to undertake independent research either in the context of a single organisation or by using third-party sources. It provides the necessary tools and skills to initiate, research and write up a business project and includes training in research methodology, availability of data sources, project writing, time-management and presentation skills. These skills will be invaluable to students in their future career whether or not they choose to complete a project.

Accreditation

CFA programme partner

The CFA, the global association of investment professionals, recognises the rigour and the relevance of the MSc in Investment Management and has awarded this programme partner status.

The CFA is the essential qualification for those wishing to pursue a career in the finance sector and the CFA recognises the MSc in Investment Management as strong preparation for their professional exams.

You also have the option of some additional preparatory classes for the CFA exams.

CISI Centre of Excellence

Cass Business School is one of a select group of UK universities to be designated a Chartered Institute for Securities & Investment (CISI) Centre of Excellence.

The CISI designation means that Cass graduates who complete the MSc in Investment Management will also be eligible for the award of the CISI Diploma without having to take any of the CISI exams.

Member of CAIA Academic Partnership Programme

The Chartered Alternative Investment Analysts Association (CAIA) is an independent organisation committed to education in the field of alternative investments and is recognised globally as the hallmark of excellence.

The partnership recognises that the content of the MSc in Investment Management reflects the concepts, tools and practices required by investment professionals working with products ranging from hedge funds to commodities.