7/27/2019 3.Money Management Module Descriptors

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Module Descriptor

Faculty of BSSSSchool of Business

Module Title: Money Management Module Code: MNGT7904

(i)Date (i) Validated:(ii) Revalidated: (ii)

Date Amendedvia FASC:

Level: 7 CAT credits: 20

Location: Robert Kennedy CollegeModuleLeader:

Roy Damary / David Costa

Teaching Staff: David Costa and Course Team

Mode of Delivery: Part Time FDL Start Date: June 2010

Owning Programme(optional):

Available as a stand alonemodule:

No

Aims of the ModuleThe successful management of financial assets, be they of anindividual, a small business or a large corporation demands aknowledge of financial markets, how they operate, whatinstruments and investment vehicles are available, and whatmacro-economic forces are acting upon them.

This module is designed to provide a broad understanding offinancial markets (as distinct from a narrow specialist approach)but with sufficient details of their many components so thatstudents can make their own investment decisions and interactwith their specialist advisers.Money Management is designed around six axes: Basic concepts: risk/reward, volatility, yield curves,

exchange rates, spreads, carry, Libor and other key interestrates, liquidity

Investment instruments: equities, fixed-income, moneymarkets, derivatives, options, real property. Primary versussecondary markets

The various actors: banks, brokers, fund managers, hedgefunds, private equity/venture capital

The authorities: central banks, Ministries of Finance/NationalTreasuries, regulatory authorities, sovereign investment

funds Macro-economic concepts: balance of payments, inflation,

global rebalancing, exchange rates, reserve currencies Building a portfolio: the mix of securities of currencies to

reflect risk/reward, time horizon, degree of liquidityStudents successfully completing the module will be able to makebasic investment decisions for their own account or for theirbusiness. They will also master the technical concepts andterminology to be able to draw maximum benefit from theirspecialist advisers.

As an academic course, the module aims at providing thequantitative and theoretical underpinning to investment decisions.However, it also aims to be practical in the sense that participantswill learn how to make real decisions and interact with financialmarkets. The knowledge they acquire will be applicable in boththeir professional and personal lives.

Intended Learning Outcomes1. To critically evaluate the financial instruments available for

investments2. To analyse and evaluate the role and influence of the main

actors in financial markets, both private and public.3. To analyse the link between macro-economic forces and

financial markets4. To evaluate the risk and reward of investment possibilities

and develop an investment strategy and portfolio thatdemonstrates informed investment decisions

Indicative Module Content The Macroeconomic environment Asset classes (bonds, shares, commodities etc). Greed versus fear the psychology of markets

Bubbles, their growth, recognition and impact of bursting

Momentum versus value trading in stock markets Alpha versus Beta, time horizons

Various types of bonds: Government, corporate, emerging,junk, convertibles

Investment Vehicles (ETFs, ETNs, Mutual Funds) Currency risk Duration and yield curves Hedging The carry-trade US-centrism and world rebalancingThe very breadth of financial markets makes traditional textbooksvery voluminous and inclined to the theoretical. Nevertheless, asolid textbook is needed for reference and background reading,and this need will be filled by Investment Management seebelow. In addition, each participant must choose a book,probably of a popular type but aimed at sophisticated investors,and provide a summary of, say, 2000 words, for posting anddiscussion in class.

Indicative Student Workload

Directed Study 60 Hrs

Case Study Preparation 50 Hrs

Case and other online discussion 65 Hrs

Interim and final assessment prep 25 Hrs

Assessment PlanComplete table below. Refer to ILOs as numbered

above, ensuring all ILOs are assessed.Method of assessment Wordage/

hourageILOsassessed

Weighting(%)

Interim Coursework 1500 1,2,3,4 30

Final Coursework 3000 1,2,3,4 70

ReassessmentReassessment in the failed component(s) will be asstated in the Academic Regulations

Indicative Core BibliographyArnold, G., 2004. The Financial Times Guide To Investing:The Definitive Companion To Investment and TheFinancial Markets. illustrated edition ed. London: FT Press

Koesterich, R., 2008. The ETF Strategist: Balancing Riskand Reward for Superior Returns. New York: PortfolioRogers, J., 2007. Hot Commodities: How Anyone CanInvest Profitably in the World's Best Market. London:Random House Trade PaperbacksWeiss, L.A., 1998. How to Understand Financial Analysis.New York: INSEAD

Additional Notes