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Module Descriptor

Faculty of BSSS School of Business


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

Level: Location: Teaching Staff: Mode of Delivery: Owning Programme (optional): Aims of the Module

Money Management (i) (ii) 7 Robert Kennedy College

Module Code: Date Amended via FASC: CAT credits: Module Leader:

MNGT7904

20 Roy Damary / David Costa

David Costa and Course Team Part Time FDL Start Date: June 2010 Available as a stand alone module:

No

The successful management of financial assets, be they of an individual, a small business or a large corporation demands a knowledge of financial markets, how they operate, what instruments and investment vehicles are available, and what macro-economic forces are acting upon them. This module is designed to provide a broad understanding of financial markets (as distinct from a narrow specialist approach) but with sufficient details of their many components so that students can make their own investment decisions and interact with 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 interest rates, liquidity Investment instruments: equities, fixed-income, money markets, derivatives, options, real property. Primary versus secondary markets The various actors: banks, brokers, fund managers, hedge funds, private equity/venture capital The authorities: central banks, Ministries of Finance/National Treasuries, 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 liquidity Students successfully completing the module will be able to make basic investment decisions for their own account or for their business. They will also master the technical concepts and terminology to be able to draw maximum benefit from their specialist advisers. As an academic course, the module aims at providing the quantitative and theoretical underpinning to investment decisions. However, it also aims to be practical in the sense that participants will learn how to make real decisions and interact with financial markets. The knowledge they acquire will be applicable in both their professional and personal lives.

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 rebalancing The very breadth of financial markets makes traditional textbooks very voluminous and inclined to the theoretical. Nevertheless, a solid textbook is needed for reference and background reading, and this need will be filled by Investment Management see below. 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 and discussion in class.

Indicative Student Workload Directed Study Case Study Preparation Case and other online discussion Interim and final assessment prep

60 50 65 25

Hrs Hrs Hrs Hrs

Assessment Plan Complete table below. Refer to ILOs as numbered above, ensuring all ILOs are assessed.
Method of assessment Wordage/ hourage ILOs asses sed 1,2,3,4 1,2,3,4 Weighting (%)

Interim Coursework Final Coursework

1500 3000

30 70

Intended Learning Outcomes


1. 2. 3. 4. To critically evaluate the financial instruments available for investments To analyse and evaluate the role and influence of the main actors in financial markets, both private and public. To analyse the link between macro-economic forces and financial markets To evaluate the risk and reward of investment possibilities and develop an investment strategy and portfolio that demonstrates informed investment decisions 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

Reassessment Reassessment in the failed component(s) will be as stated in the Academic Regulations Indicative Core Bibliography
Arnold, G., 2004. The Financial Times Guide To Investing: The Definitive Companion To Investment and The Financial Markets. illustrated edition ed. London: FT Press Koesterich, R., 2008. The ETF Strategist: Balancing Risk and Reward for Superior Returns. New York: Portfolio Rogers, J., 2007. Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market. London: Random House Trade Paperbacks Weiss, L.A., 1998. How to Understand Financial Analysis. New York: INSEAD

Indicative Module Content


Additional Notes