Outline

Overview

Applied Portfolio Management is a two-semester program that enables undergraduate students to apply their academic knowledge and acquire practical skills by managing a portfolio of Australian equity securities using real money in real time. Students gain exposure to the world of asset management by assuming the role of analysts and are responsible for construction, monitoring and management of the University of Sydney Student Managed Fund. Analysts are divided into industry teams and begin with an evaluation of the existing investments. Following thorough economic, industry and company research and analysis, each team of analysts is required to identify opportunities in their industry and present an investment thesis to highlight undervalued stocks that may offer superior investment performance. Students make presentations on potential investments to academics, industry professionals and other analysts, who perform the role of an investment committee. Students report to the investment committee and advisory board and produce an annual report of the fund's activities. There is an emphasis on team-based learning and interaction with industry professionals who act as mentors to students.

Unit details and rules

Unit code	FINC3301
Academic unit	Finance
Credit points	6
Prohibitions ?	None
Prerequisites ?	FINC2012
Corequisites ?	FINC3015
Assumed knowledge ?	None
Available to study abroad and exchange students	No

Teaching staff

Coordinator	Jiri Svec, jiri.svec@sydney.edu.au

Type	Description	Weight	Due	Length
Presentation	Investment update presentation Oral presentation	10%	Week 09 Due date: 26 Apr 2022 at 13:00 Closing date: 09 May 2022	10 minute presentation
Outcomes assessed:
Assignment	Stock pitch and sector outlook report Written report	40%	Week 10 Due date: 02 May 2022 at 23:59 Closing date: 16 May 2022	30 pages
Outcomes assessed:
Assignment	Stock pitch Oral presentation	10%	Week 11 Due date: 02 May 2022 at 13:00 Closing date: 16 May 2022	15 minute presentation
Outcomes assessed:
Presentation	Functional team analysis Oral presentation and written task	10%	Weekly	n/a
Outcomes assessed:
Participation	Stock pitch ideas and discussion Participation	30%	Weekly	n/a
Outcomes assessed:
= group assignment ?

Assessment summary

Investment update report: You are required to revisit the stock that you pitched during the application process and evaluate the performance of your recommendation. How did the stock perform relative to the market index and the sector index? Did you correctly identify the key drivers of the stock’s recent performance? Do you believe the stock is still a good buy/sell? Why or why not? You should use tables and charts to support your discussion.
Functional team analysis: Each of the functional teams (macroeconomic, quantitative, risk and performance, portfolio construction) is required to perform regular tasks and update the fund on issues relevant to their area. This assessment will take into account oral and written output from each functional team.
Stock pitch and sector outlook report: Each sector team is to select a number of stocks from within their industry that they propose to be included in the portfolio. The report and presentation must detail the arguments justifying your buy recommendation, company and sector overview, catalysts that will cause the market to adjust to meet your expectations, company valuation and risk factors. The reports will be peer-reviewed. There will be two pitch opportunities for each team during the semester.
Investment update presentation: Sector teams will provide an update on the performance and drivers of stocks in their sector and look ahead to earnings season in August.
Stock pitch ideas and discussion: Students are expected to attend all classes and actively contribute to class discussion. Students will need to discuss a stock from their industry sector early in the semester that their sector team is considering pitching. Other aspects of participation include monitoring what is happening in financial markets within and outside of their sector as well as preparing the minutes and agenda. The emphasis here should be on the quality of participation, though the quantity of participation is also relevant.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	1. Introduction and expectations; 2. Investment mandate and processes; 3. Ethics; 4. Review of current portfolio	Workshop (3 hr)
Week 02	1. Sector and functional teams. 2. Top down and bottom up investing. 3. Reporting season wrap; 4. Current economic environment; 5. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 03	1. Investment committee and governance; 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 04	1. Investment philosophy; beliefs and circle of competence 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 05	1. Portfolio theory; 2. Eikon functions 3. Stock pitch ideas; 4. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 06	1. Valuation; 2. Sell discipline; 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 07	1. Sector specific valuation; 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 08	1. Sector specific valuation; 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 09	1. Portfolio construction. 2. Weekly updates from sector and functional team	Workshop (3 hr)
Week 10	1. Investment framework and competitive advantage 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 11	1. Stock pitches and discussion. 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 12	1. Stock pitches and discussion. 2. Weekly updates from sector and functional teams	Workshop (3 hr)
Week 13	1. Performance evaluation and attribution; 2. Weekly update from functional teams;	Workshop (3 hr)

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. Demonstrate an understanding of the key drivers of value for the Australian equity market. Identify how to use economic indicators, company announcements, and economic forecasts to gauge the health of the economy and individual companies. Generate a trading strategy based on this information. Build an equity portfolio based on fundamental and quantitative analysis using the above skills. Identify and manage the risks inherent in the portfolio.
LO2. Evaluate the performance of the portfolio and your stock forecasts. Reflect on the underlying drivers of value that you did or did not forecast correctly.
LO3. Understand both the quantitative and qualitative sources of information that affect stock value. Identify and backtest fundamental and quantitative portfolio trading strategies. Enhance your knowledge of Excel and become proficient in the use of Eikon for data, news and analytics. Identify other sources of data to aid in forecasting firm value and portfolio construction.
LO4. Effectively communicate, both orally and in writing, your trading recommendations using a range of modes of communication including analyst reports and presentations. Critically analyse and peer-evaluate presentations and contribute to discussion for the benefit of the fund.
LO5. Articulate the fund’s investment philosophy and understand and act in accordance with your ethical responsibilities as a portfolio manager. Understand the benefits and costs of socially responsible investing.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Additional information

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

FINC3301: Applied Portfolio Management A

Semester 1, 2022 [Normal day] - Remote

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect