This module develops the student’s understanding of the financial industry by focusing on delegated portfolio management and alternative investments. The course is made up of two components. The first focuses on delegated portfolio managers, namely the financial institutions that manage assets on behalf of investors. In particular, we discuss the role of institutions such as mutual funds, asset managers, hedge funds, and private equity. Furthermore, we evaluate the risk profiles, fee structures, and investment strategies of these entities. We also analyse how Environmental, Social, and Governance (ESG) concerns affect the decision-making of delegated portfolio managers. The second component of the module focuses on alternative investments such as commodities and real estate assets. The course will discuss the salient features of these assets, their trading, as well as their historical performances. It will also discuss the impact of ESG considerations on these alternative investments.
By the end of this module, students will have a deep understanding of the delegated portfolio management industry. Furthermore, they will expand their knowledge of the asset menu by learning about alternative investments and comparing them to more conventional assets, e.g. stocks and bonds. The course will involve both lectures and seminars. The assessment is conducted via a mixture of a group coursework (30%) and a final exam (70%) at the end of the course. Overall, the students will significantly improve their commercial awareness and communication skills.