Course description
The MSc in Investment Management has been running for more than ten years. It has more than 1000 graduates, who work as traders, fund managers, risk managers, security analysts, brokers and corporate treasurers. Since there are such a variety of functions that our graduates are able to perform, this reflects the breadth of the course and the flexibility of the qualification.
The course is founded on three principles: academic rigour, relevant knowledge and international orientation. It also has a strong vocational orientation without compromising its academic rigour. Students acquire a sound knowledge of the theoretical foundations that underpin modern investment and risk management techniques and, at the same time, apply these principles in practice through case studies, the use of the dealing room and in conjunction with institutions from the City of London. Many leading practitioners teach on the course, providing a helpful link between theory and practice.
The MSc in Investment Management is a demanding course. Over a 12-month period, the course covers the traditional syllabus of a general masters degree in finance and develops extensive expertise in a range of specialised areas such as the management of equity and bond portfolios; trading techniques; asset-liability management; risk management; alternative investments; venture capital and management of foreign exchange. An advisory panel of senior practitioners ensures that the course remains at the forefront of developments within financial markets and reflects topical and technical developments in the marketplace.
This is a truly international course, both in its content and in its student population. It has so far attracted students from more than 60 countries.
Course Content - Ahead of the game
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.
The Investment Management course starts with two compulsory induction weeks, mainly dedicated to:
* an introduction to careers in finance and the opportunity to speak to representatives from over 75 companies during a number of different industry specific fairs.
* a refresher course of basic financial mathematics, statistics, computing and electronic databases.
Term 1
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 ones 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 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, and the teaching involves an examination of some empirical studies designed for equity and fixed income markets.
Term 2
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
PThe 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.
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.
In addition to the core modules students are required to participate in Applied Investment Workshop and Dealing Room Training.
A series of workshops, seminars and practical applications aim to introduce issues related to financial markets. Presentations are given by leading practitioners or an expert academic in a relaxed atmosphere that encourage students to participate, ask questions and express their own views. The Applied Investment Workshop aims to familiarise students with practical applications of econometric methods whereas dealing room training will enable students to use online systems such as Reuters. The topics covered and length of seminars may change from year to year.
Term 3
Five electives from the list below (18 hours each)
OR
Two electives and a 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.
