Finance & Investment – (M.Sc.)

Contents

Induction to The Finance & Investments course starts with an induction programme, mainly dedicated to a refresher course of basic financial mathematics, statistics, computing and electronic databases.

Year 1 - Term 1

Two core modules (30 hours each)

Theory of finance

In this module students are introduced to some of the most important concepts in finance. Knowledge of these concepts and ideas are essential for any student of finance. Students will learn about the issues involved in measuring returns and risks for individual assets and for portfolios of assets. They will also benchmark models of risk, such as CAPM and the important decisions surrounding the choice that a firm must make regarding its financial structure and dividend policy. These issues will arise in other modules in the programme and therefore constitute the foundations of the course.

Quantitative methods for Finance

This module will provide students with a review of the classical linear regression model and a discussion of how econometric models can be validly estimated. Both univariate time-series and multivariate structural models will be considered. Emphasis is placed on the practical applications of methods. The module also involves an extensive investigation of VaR as a way of quantifying risk.

Year 1 - Term 2

Two core modules (30 hours each)

Securities

The purpose of this module is to introduce students to the two most important cash asset classes: bonds and equities. However, emphasis is placed not only on the cash instruments themselves, but also on some of the derivative contracts which are based on these securities. By bringing fixed income together with equities in one module students will also be able to appreciate both the differences between these two asset classes, but just as importantly the similarities too.

Financial statement analysis

This module will provide students with a clear understanding of how users of financial information interpret accounting reports when making business decisions. The emphasis is on the valuation of both equity and debt instruments. Coverage includes a broad discussion of measurement issues and is based on international accounting standards.

Year 1 - Term 3

Students choose between one and three electives. If all three are completed in year one students can finish the taught part of the course within 18 months.

Electives offered in 2011 are:

• Behavioural Finance
• Corporate Governance
• Corporate Restructuring
• Credit Risk Management
• Exotic Options
• Fixed Income Securities and Derivatives
• Hedge Funds
• Islamic Finance
• Mergers and Acquisitions
• Private Equity Investment
• Project Finance
• Raising Equity Capital
• Real Estate Securitisation
• Technical Analysis and Trading Systems
• Trading and Hedging in the Forex Market

Year 2 - Term 1

wo core modules (30 hours each)

Financial risk management

The purpose of this module is to analyze the most important approaches to financial (market) and credit risk management for banks and financial institutions. This module analyzes the best practice techniques used to measure and manage these risks. Students will also cover the role of risk management to guide business strategy and achieve shareholder value. Risk management will also be set in the context of the international prudential regulation of financial markets' activity.

Portfolio management

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. Includes practical case studies in portfolio construction and performance and asset allocation. Students use software packages to gain practical experience.

Year 2 - Term 2

Two core modules (30 hours each)

Select two of three

Derivative Applications

The aim of the course is to develop students' understanding of swaps, options, exotic options and embedded options and their application risk management situations. There will be practical trading simulations and the students will be using the dealing room to gain practical experience.

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.

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.

Year 2 - Term 3

Up to three electives, depending on how many were completed in year one, and a Business Research Project

Electives offered in 2011 are:

• Behavioural Finance
• Corporate Governance
• Corporate Restructuring
• Credit Risk Management
• Exotic Options
• Fixed Income Securities and Derivatives
• Hedge Funds
• Islamic Finance
• Mergers and Acquisitions
• Private Equity Investment
• Project Finance
• Raising Equity Capital
• Real Estate Securitisation
• Technical Analysis and Trading Systems
• Trading and Hedging in the Forex Market

In addition all students will also study a Research Project Management Skills module. This 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 Finance & Investment 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 Finance & Investment as strong preparation for their professional 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 Finance & Investment will also be eligible for the award of the CISI Diploma without having to take any of the CISI exams.