25625 UTS Student Managed Fund

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Note

Enrolment in the subject requires a student to have completed at least 24 credit points within a Finance major.

The enrolment period will commence between December - January for the Autumn session and May - June for the Spring session.

Further information about the program and application process is available at UTS Anchor Investment Fund.

Description

This subject provides high-achieving students with advanced training in equity research and portfolio management in the context of a real investment fund. The subject challenges students to apply their training and investment knowledge to manage a live portfolio of Australian securities, providing a unique internship-like experience of the functioning of the funds management industry.

Under the supervision of an Investment Advisory Committee (consisting of the subject coordinator, UTS staff, and industry practitioners), students are responsible for formulating investment recommendations and for pitching their ideas to the committee. Students are also required to assist in the construction, monitoring and management of the fund, providing students with an appreciation of the day-to-day operations of a real investment fund. For example, how trade ideas are generated and approved, how trades are executed, and how investment performance is measured and managed.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1.	Generate trading ideas and defend them in a team environment
2.	Reflect on the underlying drivers of value within an investment portfolio
3.	Ability to operate in a team environment, including advising and supporting others
4.	Develop fund management skills appropriate to industry requirements
5.	Evaluate the different tools and techniques used for making investment decisions

Contribution to the development of graduate attributes

The subject provides students with an internship-like experience and helps them prepare for a variety of careers in finance and the investment management industry (including equity research, investment banking, portfolio management, credit and financial analysis, wealth management and investment consulting). Specifically, the subject is aligned with the following Graduate Attributes of the UTS Business School:

Intellectual rigour and innovative problem solving
Communication and collaboration
Professional and technical competence

Teaching and learning strategies

Enrolment into the subject is selective with the expectation that students will be self-motivated learners with a high level of engagement and participation.

Before the start of the teaching session, students will be provided with online learning modules to help them consolidate their existing knowledge and to prepare them for the application of this knowledge throughout the session and when managing the live fund.

Students will also receive intensive training at the start of the teaching session which will provide all students with an overview of the investment management process and the investment philosophy of the fund. It will also provide training in the areas of asset valuation, portfolio construction, and risk management; skills which will be required by students to undertake their specific roles within the fund.

This training will be provided via a blend of both self-paced learning and group discussions of the learning material. Resources will be placed on the learning management system for students to engage with independently and then class time will be reserved for discussing the concepts as a group and working through guided activities and examples. The learning philosophy is to enable students to master the foundational concepts required to successfully apply them in a real-world setting.

After the initial training, students will be allocated a well-defined role within the fund and they must work both independently and collaboratively toward their given objectives. Students are expected to meet and engage with the teaching team in weekly progress meetings, but are also strongly encouraged to meet more frequently outside of these times in order to complete the required work.

In addition to the training provided, students will also learn by doing. Specifically, by assisting in the management of the fund and its activities, and through undertaking research in support of investment recommendations and the design of the investment processes. In essence, the subject is an advanced form of activity-based learning, where teaching staff provide direction and support through workshops and consultations.

Feedback will be frequent and takes several forms including self-assessment and peer review. Since all students will be working toward a common goal (the successful management of the fund), it is crucial that students work well as a team and that they provide constructive feedback to their peers.

Content (topics)

Developing an investment philosophy
Understanding the investment process
An overview of different investment styles
Macroeconomic analysis
General and sector-specific valuation
The theory and practice of portfolio construction
Security selection and stock pitching
Portfolio risk management
Performance evaluation and attribution

Assessment

Assessment task 1: Sector, Macroeconomic and Industry Analysis (Group)

Objective(s):	This addresses subject learning objective(s): 1, 2 and 3
Weight:	10%
Length:	1,200 words
Criteria:	Depth of analysis of key macroeconomic and industry drivers; Clarity of communication Quality of group work and collaboration

Assessment task 2: Stock Screening and Selection (Individual)*

Intent:	Part 2.A (20%): Stock Screening Presentation* Part 2.B (20%): Fundamental Stock Selection Presentation* Part 2.C (30%): Final Report
Objective(s):	This addresses subject learning objective(s): 1, 2, 4 and 5
Weight:	70%
Length:	Part 2.A: 5 minutes Part 2.B: 5 minutes Part 2.C: 2000 words
Criteria:	Part 2.A: Stock Screening Presentation* Appropriateness of screening choices Justification of screening choices, including references to which tools and techniques were used to inform the decision Clarity of communication Peer review based on industry standards (e.g., CFA Global Research Challenge template; UBS Stock Pitch Competition template) Note: Late submission of the assessment task will not be marked and awarded a mark of zero. Part 2.B: Fundamental Stock Selection Presentation Soundness and clarity of the student’s arguments and justification of their stock choice Accuracy of (and assumptions used in) the company’s valuation and risk analysis Peer review based on industry standards (e.g., CFA Global Research Challenge template; UBS Stock Pitch Competition template) Note: Late submission of the assessment task will not be marked and awarded a mark of zero. Part 2.C: Final Report Appropriateness of screening and stock selection choices Justification decision making, including references to which tools and techniques were used to inform the decision Incorporation of feedback from presentations and in class discussions Clarity of communication

Assessment task 3: Portfolio Construction, Legacy and Reporting (Group)

Objective(s):	This addresses subject learning objective(s): 1, 3 and 4
Weight:	20%
Length:	ongoing throughout the session
Criteria:	Investment Advisory Committee’s rating of entire cohort based on industry standards (e.g., CFA Global Research Challenge template; UBS Stock Pitch Competition template). Quality of participation in the investment fund activities and ability to fulfil the assigned role within the investment fund (e.g., Risk Management).

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

There is no required textbook. All resources will be made available through the learning management system.

References

The subject will draw on many areas of finance and a list of useful resources will be provided to students via the learning management system.