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Unit of study_

FINC3302: Applied Portfolio Management B

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 fund activities. There is an emphasis on team-based learning and interaction with industry professionals who act as mentors to students.

Code FINC3302
Academic unit Finance
Credit points 6

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/Bloomberg 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

Unit outlines

Unit outlines will be available 2 weeks before the first day of teaching for the relevant session.