Investment Management MSc

• Professor Yacine Belghitar

This core module provides a basic foundation in the essentials of corporate financial management.  The course focuses on three principal aspects of corporate finance: the investment decision; the cost of capital; and the financing and payout decisions.  Emphasis is put on empirical research in order to provide participants with a solid understanding of underlying theory and principles of corporate finance.

The module will cover the following:

• The Objective Function for Corporations
• Corporate Governance
• Making Investment Decisions with the NPV Rule
• Valuing Bonds and Common Stocks
• Introduction to Risk and Return
• Portfolio Theory and the CAPM
• How Corporations Issue Securities
• Capital Structure I
• Capital Structure II
• Payout Policy

On successful completion of this module a student should be able to:

1. Describe the impact of the separation of corporate ownership, management and control.
2. Understand the concept of the time value of money and the theoretical justifications for using discounted cash flow techniques in project appraisal.
3. Be aware of the range of investment appraisal techniques including traditional as well as discounted cash flow methods.
4. Appreciate and incorporate risk in project appraisal and investment.
5. Discuss the factors a company should take into account in determining the firm’s capital structure and dividend policy.

• Dr Nemanja Radic

Finance is a highly quantitative subject and this core programme provides the relevant mathematical and statistical training necessary to be able to conduct appropriate empirical studies and apply theoretical financial models in practice.

The module will cover probability theory, sampling and estimation, hypothesis testing, analysis of variance, regression analysis, and logistic regression.

On successful completion of this module a student should be able to: 

1. Understand a variety of statistical techniques for data analysis.
2. Learn application of appropriate statistical techniques to analyse a variety of problems in finance.
3. Understand and appreciate finance theory and related empirical work covered in other subjects within the programme.

• Dr Matthias Nnadi

The key objective for this course is that students develop a clear understanding of the basics of accounting.  By the end of the course, students would be able to interpret accounting information with confidence and use it to make decisions and be able to communicate accounting numbers to others.

• The course is split approximately 50/50 between Financial Accounting and Management Accounting.
• Financial Accounting covers the preparation and presentation of accounts by firms for outside parties such as shareholders or creditors.  
• Such preparation is governed by certain fundamental principles and various rules.  
• Over the first five sessions students will cover these principles and rules in order to understand how the key financial statements (income statement, balance sheet, cash flow statement) are prepared.  
• The module also covers the interpretation of financial statements.  This involves learning financial ratio analysis and interpreting the information contained in a full set of annual accounts.
• The last five sessions are devoted to Management Accounting that covers internal accounting by managers for planning and control. 
• Students will cover the nature and classification of costs, break-even analysis, allocation of overheads; preparing and using budgets, variance analysis.

On successful completion of this module a student should be able to:

1. Understand the fundamental principles of financial accounting.
2. Prepare key financial statements from basic information.
3. Analyse and interpret company accounts.
4. Classify different types of costs and conduct break even analysis.
5. Understand the different ways in which overheads can be allocated.
6. Prepare budgets and interpret variances from budget.
7. With this knowledge, be able to identify the financial information relevant to a wide range of business issues, using this information effectively for decision making, and also recognise the limitations of such information.

• Valentina Battista

• To provide an introduction to the individual and the group in the organisation – how and why people differ - and to introduce frameworks that aid interpersonal understanding, communication and relationships.
• To introduce the notion of personality and its application.
• To consider the importance of relationships at work.
• To introduce the concept of effective teams.
• To explore the concept of leadership style.
• To provide an introduction to power, politics and influence in organisations.

The module covers:

• Overview of organisational behaviour theory
• Individual and team characteristics, using Myers-Briggs
• Leadership and management
• Organisational power and politics
• Negotiation skills
• Presentation skills

On successful completion of this module a student should be able to:

1. Identify the factors that affect peoples (including their own) behaviour within teams and organisations.
2. Evaluate their own behaviours, showing knowledge of personal strengths and weaknesses.
3. Use appropriate tools to demonstrate understanding of how individual differences affect interpersonal behaviours/interactions between people.
4. Present organisational information in persuasive and interesting ways.
5. Apply a range of leadership and management theories to real-life organisational settings.
6. Discuss the nature and role of power and politics within organisations.
7. Apply negotiation skills within organisations.

• Dr Constantinos Alexiou

To introduce the concepts and techniques of Microeconomics (e.g. market analysis, price theory, rationality)  and Macroeconomics (e.g. inflation, exchange rates and interest rates) in a way which provides a core foundation for later applied financial analysis in a range of other core and elective courses on the MSc in Finance and Management and MSc in Investment Management. 

In the Context of the Financial markets, it is imperative that students be aware of the fundamental principles and concepts pertaining to Economic Theory per se. Studying economics not only does it provide knowledge for making decisions but it also offers a tool with which to approach questions such as the desirability of a particular financial investment opportunity, the benefits and costs of alternative careers, or the likely impacts of public policies.

The initial few sessions are spent on discussion of the concept of equilibrium as it applies to the micro and macro structures of a broad range of financial markets. In next four sessions, an understanding of choice theory and rational economic decision making as it applies to the levels and structure of prices of assets in a broad range of financial markets is developed. Finally, remaining sessions are devoted to discussion of the concepts and ideas in macroeconomics which have a direct relevance to financial markets. Particularly, discussion is centered on understanding of monetary economics and the institutional context to which it applies. Discussion of structure of money and capital markets rounds up this module.

On successful completion of this module a student should be able to:

1. An awareness of the concept of equilibrium as it applies to the micro and macro structures of a broad range of financial markets.
2. An understanding of choice theory and rational economic decision making as it applies to the levels and structure of prices of assets in a broad range of financial markets.
3. An understanding of monetary economics and the institutional context to which it applies, in particular money and capital markets in the UK and the US.
4. An ability to use economic theory.
5. An ability to use relevant geometric and quantitative models to explain and analyse monetary and financial phenomena.
6. An ability to apply economic theory to real world problems, e.g. via case study analysis.

• Dr Vineet Agarwal

A good understanding of techniques of valuation of firms as well as the different securities issued by firms is vital for managers and financial analysts. This understanding has a bearing on both financing decisions (issue of equity or debt) and investment decisions (identifying securities for inclusion in a portfolio, acquisitions, buy-backs, divestitures etc.). In addition, building sound financial models is critical for understanding and communicating valuations. This course provides the framework for valuing equity and firms as well as financial modelling to aid decision making.

The module covers:

• Different valuation approaches: discounted cash flow, relative valuation, residual income valuation, and real options framework
• Estimating the cost of capital using models like CAPM
• Estimating earnings, cash flows, growth and terminal value
• Principles of good financial modelling
• Building a robust financial model
• Simulation methods and how to run simulations in Excel
• Using Excel built-in functions and simple macros in VBA to enhance the power of models

On successful completion of this module you should be able to:

1. Basic principles of corporate valuation.
2. Estimating discount rates.
3. Range of valuation methods.
4. Assumptions and limitations of valuation models.
5. Building Valuation models and scenarios using Excel.
6. Working with Monte Carlo methods.
7. How to improve the power of models using VBA.

• Dr Walter Gontarek

The course begins in Part I with an overview of the international financial markets, the major financial institution participants and product types. Students will understand the roles, motivations and behaviours of market players including the importance of risk-taking. The role of regulation will be highlighted and examined in Part II. This will include the aims and structures of regulation. In Part III, students will examine using a seminal textbook on business ethics the role and limitations of ethics in financial markets, ethical decision-making frameworks, and evaluate real world cases of lapses in culture and impact upon society and the markets. The challenge of identifying and promoting ethical behaviour will be acknowledged.

This module will identify key financial intermediaries including banks and non-banks (i.e., FinTech firms, finance companies, mutual banks, multilateral banks, insurers, pensions, hedge funds, retail investors, shadow banks).

Financial products overview includes equity, subordinated debt (notably issued by financial institutions including their motivation), senior debt (including loans, bonds) as well as the role and consequences of deposit-taking/money market activities for financial institutions given the regulatory context of this module.

The role, advantages and dis-advantages and recent market developments associated with cash versus derivative markets will be identified and discussed.  Lastly, simple securitisations of credit portfolios will be examined both as a funding tool but how it was misused before the crisis in sub-prime markets.

Product types identified will include equity and debt (including loans and debt securities), investment banking/advisory, and asset/wealth management. Recent controversies will be looked at in market practice including the scope for market abuse, conflicts of interest, moral hazard, and financial institution misconduct.  Various stakeholders will be identified for the key market types.

Students will investigate criticisms of financial market policies and shortcomings of supervision and review the response by regulators, notably in the banking sector for greater capital, more conservative liquidity provisions, and improved risk governance. Key corporate governance theories will be identified. While regulation presents a legal means to mitigate misconduct by institutions and individuals operating in the financial markets, ethical decision-making and an effective risk culture can offer greater hope over time when conventional supervision and law fail to live up to their promise. Two ethical-decision making frameworks will be introduced in a case study format, one from Jennings (2013) and the other via Ferrell et al. (2011).

On successful completion of this module a student should be able to:

1. Understand different financial market structures, players including their roles and respective stakeholders
2. Develop a basic knowledge of key financial markets, major product types, and the scope for misconduct, agency failures and moral hazard
3. Identify the aims, role and structures to provide financial markets supervision including their limitations and recent criticisms
4. Identify the key theories for corporate governance and risk governance practices for financial institutions, and how governance mechanism may interact to impact performance or risk-taking
5. Examine the potential for ethical behaviour and improved conduct to fill the void where law and regulations fail to succeed

• Dr Vineet Agarwal

This module is designed to impart greater understanding of empirical methods in finance and develop important skills in the assessment, analysis and interpretation of published financial research. The module also discusses some of the “unresolved” issues in finance and some of the paradigms in financial research methodology.

• This module uses the positivist approach to finance and introduces the need for and validity of empirical models.
• It will cover empirical design, model testing, interpretation of results and acknowledgement of limitations in empirical research designs.
• During the module we will discuss topics of continuing interest in finance such as asset pricing and efficient markets hypothesis anomalies, capital structure and new issue puzzles, corporate governance, accounting information and asset returns, and mergers and acquisitions.

On successful completion of this module a student should be able to:

1. Understand the nature of empirical testing of various models.
2. Understand a range of methodologies employed in empirical finance.
3. Understand the limitations of empirical methodologies.
4. Draw conclusions from empirical studies.
5. Explore some of the unresolved issues in finance.
6. Re-evaluate theories in the light of empirical evidence.
7. Conduct empirical research.

• Professor Sunil Poshakwale

This module is one of key modules for the programme as it deals with foundations of investment and portfolio theory. The module aims to develop an understanding portfolio construction, portfolio management and portfolio evaluation. The module will focus on imparting knowledge of the investment process, portfolio theory, efficient market hypotheses, asset pricing models, analysis and management of common stock portfolio, portfolio evaluation and basic understanding of equity options and futures and their application in management of portfolios. The module’s aim is to help participants acquire knowledge of investment and portfolio management. The module introduces some of the principal ideas and concepts underpinning the theory and practice of investment. By the end of the module you will be able to understand the main issues involved in investment management and develop skills to construct equity portfolios and manage their risk.

This module covers:

• Background to investments and investment process 
• Investment objectives settings
• Efficient capital markets
• Portfolio theory
• Asset allocation
• Asset pricing models
• Capital Asset Pricing Model
• Arbitrage Pricing Models
• Fama and French Three factor Models
• An introduction to security valuation
• Technical Analysis and EMH
• Equity portfolio management
• An informative to equity options and futures
• Application of equity options and futures in managing equity portfolio
• Portfolio evaluation

Upon successful completion of this module, you will have an understanding of the principles of investment management with specific emphasis on asset pricing and development and management of equity portfolios.

Knowledge & Understanding:

1. You will have a good understanding of the investment process and challenges and issues faced by portfolio managers in setting investment objectives.
2. Gain understanding of portfolio and capital markets theory.
3. Will know how to price equity stock and be exposed to different asset pricing models.
4. Have an understanding of Efficient Market Hypotheses (EMH) and reflect on the theory in view of various anomalies reported in the literature.
5. Will learn how to implement technical analysis and whether these models can generate abnormal returns.
6. Will develop basic understanding of equity options and futures.
7. Know how to apply equity options and futures in managing equity portfolios.
8. Understand how portfolio performance could be reviewed using different performance ratios and tools.

This module will also provide opportunities you to develop and/or enhance the following transferrable skills:

• Security valuation.
• Understanding of investment risk.
• Critical thinking.
• Ability to use asset pricing models.

Financial derivatives are now commonly used in many financial and non-financial companies and play an important role in financial risk management processes. A good understanding of the principles underlying derivative securities will enable you to appreciate the benefits and dangers associated with their use.

This module examines the pricing and usage of derivative securities (forwards, futures, options and swaps) in financial markets. It covers the conceptual and analytical aspects of derivatives as well as the practical applications of derivative securities in the areas of investments, portfolio insurance and risk management. Thus, valuation models as well as hedging strategies will be examined.

This module will cover:

• Futures Markets
  • Mechanics of futures markets
  • Pricing of futures contracts
  • Hedging strategies using futures
• Options Markets
  • Mechanics of options markets
  • Pricing of option contracts
  • The Greek letters
  • Hedging and trading strategies using options
  • Exotic options
• Value-at-Risk (VaR)
• FRAs and Swaps
• Credit Risk and Credit Derivatives
• Lessons from Derivatives Use and Misuse

On successful completion of this module you should be able to:

1. Have an understanding of the principles underlying derivative securities, the valuation of these securities and their use for risk management purposes.

Knowledge & Understanding:

1. Demonstrate knowledge and understanding of the mechanics of different types of derivative securities such as forwards, futures, swaps and options.
2. Demonstrate the ability to price derivative products using appropriate valuation models and simulation techniques.
3. Demonstrate knowledge and understanding of specific derivative instruments for managing interest rate risk, currency risk and credit risk.
4. Evaluate the use of alternative derivative products as risk management tools.
5. Evaluate the dangers and risks arising from the use of derivatives products

This module also provides opportunities for you to develop or enhance the following transferable skills:

1. Problem solving and analytical skills.
2. Critical thinking.
3. IT skills - ability to use computer packages to implement derivative pricing models.

• Professor Yacine Belghitar

To provide the participants with a solid knowledge of a variety of econometric techniques, useful in modelling and solving financial problems.

The module covers:

• Extensions to Multiple Regression Analysis covered in the course Statistical Analysis in Finance
• Relaxing the assumptions of the classical model: multicollinearity, heteroscedasticity and autocorrelation
• Panel data analysis
• Stochastic regressors and the method of instrumental variables
• Stationarity, Unit Roots and Cointegration in Time Series
• ARCH/GARCH Models

On successful completion of this module a student should be able to:

1. Model financial problems, using econometric techniques.
2. Understand the advantages and limitations of regression analysis.
3. Use a number of tools designed to improve financial modelling.
4. Use a system of equations to solve problems that occur simultaneously.
5. Investigate the properties of financial data and understand their influence on financial modelling.

• Dr Andrea Moro

The module is designed to introduce you to the issues raised by corporate mergers and acquisitions. The subject is one that calls on the services of many professionals including company executives involved in the initial search and screening of candidates, investment bankers and stockbrokers who may advise on bid tactics, dealing with regulations and raising finance. The module integrates various technical skills learned earlier in the MSc programme such as accounting, corporate finance, and valuation.

The module covers:

• How are firms sold
• Corporate governance in M&A
• Merger Valuation
• Merger Financing
• Merger Arbitrage
• Theoretical Research in M&A
• Empirical Research in M&A

On successful completion of this module you should be able to:

• Identify motivations driving mergers and acquisitions.
• Recognise fiduciary duties of the board of directors.
• Apply valuation techniques in valuing targets for acquisition.
• Understand the impact of methods of payment in mergers and acquisitions.
• Understand merger arbitrage and price pressure.
• Measure acquisition performance.

Private equity, as opposed to public equity markets, has become a major source of capital for innovation, growth and corporate restructuring. It now accounts for billions of pounds of investments and has become a global phenomenon. The module will cover topics on the nature of private equity, the spectrum of PEQ activities, the rationale for PEQ, performance record and measurement issues, the importance of PEQ markets and public policy issues.

The module covers:

• The PEQ cycle
• fund raising
• investing
• exiting
• Risk and return assessment of investment projects
• Corporate governance issues
• Managerial reward systems in PEQ firms
• Choice of exit strategies and relevant factors
• Management buyouts
• Leveraged buyouts
• Distressed and turnaround investments
• Measuring PEQ performance
• Regulation of PEQ firms

On successful completion of this module you should be able to:

1. What PEQ is and how it differs from public equity.
2. The range of products on offer – financing of ventures, seed ideas, development, expansion, and different types of buyouts.
3. The importance of PEQ in promoting innovation, growth and corporate restructuring.
4. How PEQ firms raise capital and make investments in portfolio companies.
5. The range of players in the PEQ markets.
6. PEQ firms’ business models and value creation strategies.
7. How General Partners (GPs) evaluate venture and buyout opportunities, operate portfolio companies and monitor their performance.
8. Performance measurement issues.
9. Public policy issues – economic contribution vs risk.
10. Regulation of PE firms and recent regulatory changes.

This elective aims to take you beyond security analysis and into the broader topic of investment management, and how portfolios can be constructed to meet client objectives. You will come away with a deeper understanding of how investment managers differ from each other, how to assess them, and an appreciation of the issues involved in setting realistic risk and return objectives. We look at how managers design their decision making processes, including asset allocation, risk budgeting, and implementation and trading.

The investment management industry has often appeared opaque to outsiders, in spite of the fact that most of us are or will be its clients in one way or another. The purpose of this elective is to shed light into the workings of an industry that affects us all, and to look at how theory is actually implemented in practice, and consider the latest developments in the industry.

This module will cover:

• Overview of the institutional investment management industry; industry structure, clienteles; regulation and governance.
• Types of manager; internal organizational structure; active and passive management; hedge funds; quantitative managers; managers of managers.
• Portfolio construction; factor models, building a decision-making process; sources of added value; the information ratio and the fundamental law of active management; risk budgeting; style analysis; setting realistic risk and return targets.
• Implementation issues. Managing the trading function; measuring frictional costs; how much turnover makes sense; how much capacity in terms of assets under management does the manager have to add value?
• Contemporary asset allocation and the move towards outcome based investing.
• Performance measurement techniques and interpreting fund performance.
• Choosing an investment manager.

On successful completion of this module you should be able to:

1. Understand how investment managers construct portfolios including asset allocation decisions.
2. Use style analysis to categorise the different types of investment manager.
3. Understand the arguments for and against active and passive management.
4. Assess critically a manager’s investment decision-making process, and delve into how managers attempt to add value and the impact of transaction costs.
5. Evaluate the performance of fund managers and interpret fund reports.
6. Communicate effectively with members of the industry.
7. Consider trends in the industry, including greater use of liability driven investment, separation of alpha and beta and hedge fund strategies.

Through the use of lectures and case studies, and following the module you will gain a solid understanding of the theory and practice of fund management.

• Dr Vineet Agarwal

The global bond market exceeds $36 trillion which is more than the world’s stock markets. The market has become increasingly quantitative due to the proliferation of new products. Combined with increased volatility of financial prices and exposure to new sources of risk, there are now greater risks and opportunities for fixed income portfolio management.

This module provides the participants with a solid grounding in the mechanics of fixed income markets and introduces them to bond portfolio management techniques. 

The module will cover bond mathematics, product fundamentals, the structure of the yield curve and yield spreads, risks of investing in bonds, bonds with embedded options, securitisation, credit derivatives and basics of bond portfolio management.

On successful completion of this module you should be able to:

1. The risks involved in fixed interest securities and how to price fixed rate and floating rate bonds;
2. Duration and convexity of bonds and their use in hedging and investment;
3. The term structure of interest rates and using yield curve to price fixed rate bonds;
4. Basic analytics for bonds with embedded options;
5. Some basic structured products; and
6. The basics of active and passive bond portfolio management.

Technical analysis is the method of identifying investment opportunities by analysing historical price and volume data. Quantitative methods for evaluating price movements have become the dominant method used for short term forecasting of prices of all traded assets including stocks, bonds, currency and commodities. Technical analysis has become much more than simply identifying trends from charts, it encompasses inter-market analysis, complex indicators, aspects of portfolio construction and multilevel risk control. It is estimated that well over half the managed money uses algorithmic trading. This module covers the basic building blocks of Technical analysis and allows you to develop your own trading strategies by recognising recurring patterns in price movement and determining the most likely result.

This module covers:

• Introduction to charting and Dow theory
• Charting systems and techniques
• Identifying trading signals through regression analysis
• Momentum and oscillators
• Seasonality and cyclicality
• Volumes, spreads and arbitrage
• Adaptive techniques of Technical Analysis
• Trading systems testing and risk control
• Portfolio diversification and asset allocation

On successful completion of this module you should be able to: 

1. Have a comprehensive understanding of theories and techniques of Technical Analysis.
2. Be able to construct charts and test trading rules using real financial data.
3. Understand how statistical tools such as regression analysis can be used for forecasting with technical indicators.
4. Critically assess the performance of technical forecasters and forecasting systems.
5. Develop the ability to select and apply practical techniques for trading.

• Professor Sunil Poshakwale

The landscape of international investing has been constantly evolving. The historical dominance of the developed countries has been declining whilst the relative importance of developing countries with their emerging economies has been on the rise. The high rates of economic growth and access to their large markets have attracted international investors to invest in emerging markets. However, despite these trends, there is not enough known or understood about the opportunities and challenges that international investors face while investing in emerging markets. The aim of this elective is to provide you with a good understanding of rewards and risks of investing in emerging markets.  The module aims to offer both academic research and practical guidance on investing in emerging markets. The module also aims to explain why policies and regulations matter and how to risks can be managed.

 

This module will cover:

• Introduction to Emerging Markets
• Reasons for Investing in Emerging Markets: Growth and Diversification
• Empirical evidence on benefits of investing in emerging markets
• How to Invest in Emerging Markets
• Comparing investment styles
• The risks involved and their management
• Boom to Bust: How, When, and Why?
• Long and short term perspectives of investing in emerging markets
• Regulatory issues and challenges of investing emerging markets

On successful completion of this module you should be able to:

• Understand how and why countries are categorised as emerging markets;
• Research, evaluate and reflect on the investment opportunities and benefits of investing in emerging markets;
• Appraise the different investment styles and routes that can be used for investing in emerging markets;
• Analyse how to pick industries and companies that are likely to do well;
• Update their understanding of the various risks involved in investing in emerging markets and how these can be managed;
• Appraise the regulatory issues and challenges while investing in emerging markets;
• Reflect on the practical relevance of academic research on emerging markets.

• Professor Yacine Belghitar

This elective is concerned with firms that for a variety of reasons experience serious performance decline and begin to destroy value rather than create it. Such firms are generally described as financially distressed firms although the causes of their decline are not entirely financial. The course focuses on some of the most prominent types of corporate restructuring such as debt restructuring, equity restructuring, and corporate spin-offs.  The course will also focus on transactions significantly affecting the corporation’s assets, liabilities and/or equity claims and will stress the economic motives for undertaking them. Transactions will be examined from the perspective of the corporation (e.g., firm managers), from the perspective of capital markets (e.g., investors, stockholders, creditors) as well as from the perspective of the society.

The module covers:

• Definition, nature and causes of corporate restructuring.
• Strategies for corporate turnaround and corporate renewal – operational, strategic, managerial, organisational and financial restructuring.
• Framework for turnaround strategy choices.
• Effectiveness of restructuring strategies – measuring effectiveness, empirical evidence.
• Corporate insolvency and reorganisation – insolvency and bankruptcy regimes in the UK, US, Continental Europe and other countries; empirical evidence on reorganisation.

On successful completion of this module a student should be able to:

1. The circumstances under which companies undertake to restructure themselves;
2. The proximate causes, nature and scope of such restructuring;
3. The financial consequences of restructuring for various stakeholders such as different types of lenders, shareholders, the board of directors and managers and how they generate conflicts of interests among them;
4. The criteria for successful restructuring and reorganisation of firms in bankruptcy/ administration.

• Dr Andrea Moro

This module focuses on financing issues facing small business ventures from the perspective of both the entrepreneur and the investors. The ultimate goal is to provide students with awareness and understanding of the key issues related to the evaluation and financing of entrepreneurial ventures. The students will also explore aspects of deal negotiations and deal structures.

• Overview of entrepreneurial finance.
• Identifying and valuing entrepreneurial opportunities.
• Structuring deals with and without debt.
• Venture capital funding and valuation.
• Growth and exit strategies.

On successful completion of this module a student should be able to:

1. Evaluate entrepreneurial ventures from the perspective of both the entrepreneur and the investors.
2. Determine the funds an entrepreneur requires to successfully start a business venture.
3. Appreciate the critical role that financing plays in new venture creation.
4. Be familiar with the various sources of financing available to small business ventures.
5. Formulate a deal structure for an entrepreneurial venture.
6. Understand the different investment harvesting alternatives.

• Professor Michael Bourne

The module is designed to give you a thorough understanding of what is meant by organisational performance and the theories of control, performance measurement and management. The module will encourage you to consider the applications of direction setting and management control systems, why organisations measure, how performance measure set direction and how performance is delivered.

The aims of this module are twofold:

• For you to fully understand what is organisational performance in different areas and levels of an organisation.
• For you to fully understand theories of control and performance measurement and to equipped them to critique and apply tools and systems in different organisational settings.

The module covers:

• Control theory and control systems
• Direction setting and levers of control
• Strategic control of an organisation
• Management control within an organisation
• Operational control within an organisation
• Financial control for an organisation



Managing Performance

• What is performance?
• What is performance measurement?
• What is performance management?
• The view of performance by different functional groups
• What is a performance management system?
• Quantification vs holistic views of reality
• Reasons for managing performance
• Managing risk to improve organisational performance
• The effects of creating a performance management system



Measuring Performance

• Reasons for measuring
• Performance measurement frameworks
• Elements of a performance measurement system
• Defining performance measures - the PM record sheet
• Quantitative versus qualitative measures
• Measuring intangibles
• Interpreting financial measures and data
• Reporting procedures – internal and external disclosure

On successful completion of this module you should be able to:

Knowledge & Understanding

Demonstrate a critical awareness of:

• The different categories of performance and what is meant by performance measurement, management, direction setting and control.
• How different functions, such as HR, Finance and Marketing, view organisational performance.
• The effects control systems can have on an organisation.
• The ontology of performance, theories of control and measurement.

   

Critically assess

• The difference between quantifying performance and viewing performance as a holistic system.
• The differences between efficiency and effectiveness.
• The different techniques used to direct and control performance at different levels within the organisation.
• How managing risk can improve organisational performance.
• The role of corporate governance in the management of organisational performance.
• Financial measures, qualitative measures and their application to intangible resources.
• The underpinnings of control theory.

Skills and Other Attributes

• Apply the key principles taught to the design of control systems, goal setting and the measures employed.
• Contribute to planning and budgeting cycles within an organisation.
• Contribute to risk management policies within an organisation.

Many countries, especially in developing part of the world are targeting to invest heavily for creating and improving their infrastructure. Those countries that have a well-developed infrastructure are faced with the challenges of maintaining and making further qualitative improvements to their infrastructure. The capital requirements for infrastructure investment are estimated to be huge running into trillions of US dollars. There is an increasing need for people who have the required project management skills with sound knowledge of finance and investment issues. This is particularly relevant since though record levels of investments are required, many governments lack the funding resources due to high level budget deficits especially in emerging economies. This limits governments’ ability to fund infrastructure investment. Thus there is an urgent need for developing innovative investment and financing models to bridge the gap in infrastructure financing. The module aims to fulfil these aims by providing you with an applied knowledge of infrastructure financing models that will help them gain necessary skills for applying these in real world environment. The insights gained from the module will provide you career opportunities in infrastructure finance management.

This module covers:

• An introduction to infrastructure finance.
• Government policy on funding and using private capital for investment in infrastructure.
• An informative look at infrastructure as an investment opportunity for institutional investors.
• Characteristics of project finance.
• The central financial issues in ever changing landscapes of infrastructure management and finance.
• Navigating the dynamic field of infrastructure finance.
• Risk management framework:
  • Cash flow risk
  • Financial risks
• Case study on infrastructure projects like Power. Road, Airports, etc.
• The cost of capital for infrastructure investment and the allocation of risk in contracted delivery.
• Understanding and evaluating different financing alternatives.
• Developing appropriate financing models.

On successful completion of this module you should be able to:

1. Appreciate the importance of early decisions about financing and risk allocation in on-going operation of infrastructure assets.
2. Demonstrate knowledge of investment needs in infrastructure projects especially in developing countries.
3. Demonstrate the ability to price the risks involved in infrastructure projects using appropriate models and techniques.
4. Demonstrate knowledge of innovative sources of funding for infrastructure investments.
5. Evaluate the alternative government and non-government funding models and appreciate the pros and cons of different financing models.
6. Acquire the skills for development of appropriate financing models for various infrastructure projects.
7. Develop a vision of how infrastructure financing will develop in the future.

• Dr Walter Gontarek
• Dr Andrey Pavlov

This module covers three aspects of FinTech:

1. Blockchain technology
2. Cryptocurrencies
3. Smart contracts

The aim of the module is to explain how technology is revolutionising the financial context in particular. The first part of the module provides a short technical introduction to the blockchain technology and explains the principles of its operation. In addition, this part investigates the disruptive potential of this technology with respect to the current structure of the financial system and the regulatory context.

The second part of the module builds on the application of blockchain technology to cryptocurrencies and tokens and how they work. In particular, it explores their current popularity, advantages and risks; ethical implications in terms of fraudulent or criminal use; and the use of cryptocurrencies as an investment tool.

The last part of the module explores the application of blockchain technology to smart contracts. In particular, it introduces the principles of smart contracts; examines their advantages and risks; and discusses the implications of smart contracts for business and finance.

The module covers:

• Overview of the blockchain technology
  • The use of blockchain technology in finance
  • Ledgers in interbank transactions
• Cryptocurrencies and tokens: structure and use
• As currencies
• As investment tools
• As a vehicle for raising capital
• Smart contracts: structure and use
• Ethical and regulatory issues related to blockchain technology
• Blockchain applications beyond finance

On successful completion of this module a student should be able to:

1. Identify areas in finance that can benefit from blockchain technology.
2. Evaluate Blockchain projects from the perspective of both the investor and the firm.
3. Determine risk and advantages of the use of blockchain technology in the financial context.
4. Identify, categorise and evaluate different cryptocurrencies and their risks/advantages.
5. Understand the benefits and risks of the use of smart contracts in finance.
6. Evaluate business and regulatory risks related to cryptocurrencies and smart contracts.

• Dr Andrea Moro

This module focuses on two aspects:

1. Big Data: use and analysis
2. Cybersecurity: Security in the financial transaction/operations

The aim of the module is to explain how Big Data is revolutionising the financial context as well as to explore the issues in cybersecurity in the financial realm. The first part of the module covers the Big Data as source of data in order to take strategic and investment decision in the financial markets. Some analytical techniques to deal with Big Data are also covered. In addition, how Big Data informs human decision making is explored.

The second part of the module deals with the issues raised by the intense use of IT in the financial world and the sharing of information. This part explores the issues linked to the use of Clouds, the level of protection that can be obtained, the issues linked to cyberattacks and techniques that can be implemented to protect data.

Overview of the Big Data:

• Big Data management
• Big Data as a source of information for financial decisions
• Ethical and moral issues in using Big Data



Overview of cybersecurity:

• Major issue in data protection
• Protecting data in the cloud
• Level of protection and its costs

On successful completion of this module you should be able to:

1. evaluate Big Data as a source for strategic and financial decisions
2. to be able to exploit Big Data in financial decision
3. evaluate the ethical implication of Big Data
4. evaluate the relationship between data analytics and human decision making
5. analyse the issues linked to the data protection
6. evaluate the impact of the issues linked to cybersecurity in the financial realm
7. to deal with major issues in data protection