Fixed Income Investment (FIN404m)
Vietnamese title: Đầu tư thu nhập cố định
Credits: 3
Prerequisites: FIN301

Description:
This Course is based on the Coursera Specialization "Investment Management Specialization", it will help students understand how investment strategies are designed to reach financial goals in a global context. You will learn the theory that underlies strong investment decisions, as well as practical, real-world skills that you can apply when discussing investment proposals with your advisor, managing your personal assets or your client’s investment portfolio.
Students will then learn how to adequately build and manage a portfolio with a long-term view while gaining an appreciation for novel research advances in finance and related areas as well as future trends that are shaping the investment management industry.

*Teaching method: This is a blended-learning course, in which students will take a look at the videos & slides and reading on Coursera first at home, then rewatch & discuss key questions with classmates and teachers at classes.

Learning outcomes:
Demonstrate basic understanding of financial markets, fixed income securities and other markets such as gold, real estate, hedge funds and private markets.
Demonstrate the ability to produce an appropriate wealth plan for clients
Understand the central banks policies and the impact on financial markets
Understand the link between cognitive biases, emotions and moral values and investment decisions
Understand the concept of efficient market hypothesis and behaviral finance theory
Demonstrate basic understanding of building porfolio methodologies
Understand the relationship between risk and return in building a investment portfolio
Apply key risk management tools to hedge market and currency risks
Demonstrate basic understanding of evaluating investment performance methods
Apply key models to measure investment performance

Student tasks:
- Access the learning materials on Coursera for self-study purposes
- Attend at least 80% of contact hours in order to be eligible for the final assessment
- Actively participate in class activities
- Fulfill tasks given by the instructor after class
- Use laptop in class only for learning purposes
- Access FU FLM for up-to-date course information https://flm.fpt.edu.vn/

Tools:
Internet Access

Materials:
description: All learning materials can be found on the Coursera website.
Course 1: Understanding Financial Markets
https://www.coursera.org/learn/understanding-financial-markets?specialization=investment-management
publisher: Coursera
description: Course 2: Meeting Investors' Goals
https://www.coursera.org/learn/meeting-investors-goals?specialization=investment-management
publisher: Coursera
description: Course 3: Portfolio and Risk Management
https://www.coursera.org/learn/portfolio-risk-management?specialization=investment-management
publisher: Coursera
description: Course 4: Securing Investment Returns in the Long Run
https://www.coursera.org/learn/investment-returns-long-run?specialization=investment-management
publisher: Coursera
description: Course 5: Planning your Client's Wealth over a 5-year Horizon
https://www.coursera.org/learn/wealth-planning-capstone?specialization=investment-management
publisher: Coursera

Assessments:
category: Class participation and preparation
type: on-going
weight: 10.0
duration: During the course
question_type: All LOs
knowledge_and_skill: 0
category: Group Assignment
type: on-going
weight: 25.0
duration: During the course
question_type: All LOs
no_question: Case Study
knowledge_and_skill: Guided by instructor
grading_guide: Test students' ability to understand and apply the skills and knowledge of the delivered units
note: Complete the Case study assignment according to the instructions and data on Coursera, as well as teacher's guide. Then, submit the work to the instructor to be graded.
Example: "Planning your Client's Wealth over a 5-year Horizon
category: Progress test 1 (10%)Progress test 2 (15%)Progress test 3 (10%)
type: on-going
weight: 35.0
duration: 30-45'
question_type: All LOs
no_question: Multiple choice
knowledge_and_skill: 20-30 questions/test
grading_guide: Progress test 1 (10%): LO1->LO2; Progress test 2 (15%): LO3->LO7; Progress test 3 (10%):LO8,9
note: In-class test
category: Final exam
type: Final exam
weight: 30.0
duration: 60'
question_type: All LOs
no_question: MCQ
knowledge_and_skill: 50

Schedule:
session: Course 1: Understanding Financial Markets
Course Pre-requirements & Introduction
1. Video: Why a specialization on Investment Management?
2. Reading: Course syllabus
learning_outcomes: I
T
materials: FIN404m
session: 3. Video: The role of financial markets 4. Video: Basic concepts in finance
5. Practice Exercise
learning_outcomes: I
T
materials: FIN404m
session: 1. Video: How much is a company worth on the stock market?
2. Video: Fixed income - government bonds
3. Video: Money markets - UBS guest lecturer
learning_outcomes: T
U
session: 4. Video: Risk-adjusted returns in practice - UBS guest lecturer
5. Practice Exercise
6. Reading: The risks and returns of financial markets
learning_outcomes: T
U
session: 1. Video: Emerging markets: stocks & bonds
2. Video: Gold: the ultimate currency?
3. Video: Real estate
learning_outcomes: T
U
session: 4. Video: Hedge funds: definition and origins, going long ...or short
5. Video: Private markets - UBS guest lecturer
6. Reading: Alternative versus traditional investments
7. Practice Exercise
learning_outcomes: T
U
session: 1. Video: Central banks' conventional & unconventional policies
2. Video: The link between equity markets and the growth-inflation mix.
learning_outcomes: T
U
session: 3. Video: How interest rates affect equity and bond portfolios
4. Reading: The added value of central banks' unconventional policies
5. Practice Exercise
learning_outcomes: T
U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
learning_outcomes: U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
- Progress test 1 (10%)
learning_outcomes: U
session: Course 2: Meeting Investors' Goals
General Introduction and Key Concepts
1. Video: An example: buying is easy, but when is it a good time to sell?
2. Video: The key things you need to know to define your investment profile - UBS guest speaker
3. Video: Rational decision making
learning_outcomes: T
U
session: Course 2: Meeting Investors' Goals
General Introduction and Key Concepts
4. Reading: Course syllabus
5. Practice exercises
learning_outcomes: T
U
session: How Individuals Make Financial Decisions
1. Video: How our brain may misinterpret information
2. Video: Biases
3. Video: How our emotions impact our investment decisions
learning_outcomes: T
U
session: How Individuals Make Financial Decisions

4. Video: The role of media in financial markets
5. Video: Honesty and trust in investment decision making
6. Practice exercise
learning_outcomes: T
U
session: Market Efficiency, Bubbles & Crises
1. Video: Defining market efficiency
2. Video: Testing for the efficient market hypothesis
3. Video: Overview of different origins of financial crises
learning_outcomes: T
U
session: Market Efficiency, Bubbles & Crises
4. Video: A first example for the development and fallout of a real crisis, anticipation crisis
5. Video: A second example for the development and fallout of a real crisis, anticipation crisis
6. Activities: Examples dicussion
learning_outcomes: T
U
session: Market Efficiency, Bubbles & Crises
1. Video: The perfect storm: the global financial crisis
2. Video: How do central banks deal with the issue of financial (in)stability?
3. Video: An interview with Prof. Jean-Pierre Danthine
learning_outcomes: T
U
session: Market Efficiency, Bubbles & Crises
4. Activities: Examples discussion
5. Practice exercises
learning_outcomes: T
U
session: Portfolio Construction and Investment Styles
1. Video: Building a portfolio the top-down way
2. Video: Portfolio construction via bottom-up - UBS guest speaker
learning_outcomes: T
U
session: Portfolio Construction and Investment Styles
3. Video: Value versus growth
4. Video: Fundamental or quantitative driven style? - UBS guest speaker
learning_outcomes: T
U
session: Portfolio Construction and Investment Styles
1.. Video: Contrarian versus momentum
2. Video: Core & satellite
learning_outcomes: T
U
session: Portfolio Construction and Investment Styles
3. Video: Thematic investing - UBS guest speaker
4. Practice Exercises
learning_outcomes: T
U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
- Release Group Assignment
learning_outcomes: U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
- Release Group Assignment
learning_outcomes: U
session: Course 3: Portfolio and Risk Management
General Introduction and Key Concepts
1. Video: Some common mistakes you will no longer make after this course
2. Video: Distribution of returns
3. Video: The risk-return trade-off - UBS guest speaker
learning_outcomes: T
U
session: Course 3: Portfolio and Risk Management
General Introduction and Key Concepts
4. Reading: Course syllabus
5. Practice exercises
learning_outcomes: T
U
session: Modern Portfolio Theory and Beyond
1. Video: The impact of correlation
2. Video: The efficient frontier with a risk-free asset
3. Video: Expanding the asset universe
4. Video: Do investors diversify internationally?
5. Video: The impact of constraints on optimal portfolios
learning_outcomes: T
U
session: Modern Portfolio Theory and Beyond
6. Video: The pitfalls of Modern Portfolio Theory
7. Video: Two-fund separation
8. Video: Capital market equilibrium - The Capital Asset Pricing Model
9. Practice Exercises
learning_outcomes: T
U
session: Asset Allocation
1. Video: How our age and wealth affect our investment profile
2. Video: The path from an investor's profile to his/her optimal investment strategy - UBS guest speaker
3. Video: Strategic asset allocation
learning_outcomes: T
session: Asset Allocation
4. Reading: The importance of asset allocation
5. Video: Asset allocation versus stock picking: what matters more?
learning_outcomes: T
session: Asset Allocation
1. Video: Rebalancing a portfolio to maintain the SAA
2. Video: Key drivers of tactical asset allocation
3. Video: Timing the market with tactical asset allocation
learning_outcomes: T
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session: Asset Allocation
4. Video: How tactical asset allocation depends on macroeconomic fundamentals
5. Video: How to combine strategic and tactical asset allocations
6. Practice exercises
learning_outcomes: T
U
session: Risk Management
1. Video: Defining forwards and options
2. Video: Risk as volatility?
3. Video: What about illiquidity? - UBS guest speaker
learning_outcomes: T
session: Risk Management
4. Video: Currency risk
5. Video: Defining the Value-at-Risk
6. Video: Defining the Expected Shortfall
learning_outcomes: T
session: Risk Management
1. Video: Risk management applied to portfolio allocation
2. Video: Banking regulation & Basel recommendations
3. Video: Hedging against market falls (using options)
learning_outcomes: T
U
session: Risk Management
4. Video: Hedging against currency risk (using forwards)
5. Practice exercises
learning_outcomes: T
U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
learning_outcomes: U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
- Progress test 2 (15%)
learning_outcomes: U
session: Course 4: Securing Investment Returns in the Long Run
General Introduction and Key Concepts
1. Video: Some common mistakes you will no longer make after this course
2. Video: What is useful to know before this course?
3. Video: Some products you will master when you next meet your bank advisor
learning_outcomes: T
U
session: Course 4: Securing Investment Returns in the Long Run
General Introduction and Key Concepts
4. Video: Introduction to active versus passive management
5. Practice exercises
learning_outcomes: T
U
session: Assessing Performance
1. Video: Choosing the right benchmark - UBS guest speaker
2. Video: Shifting from relative to absolute return mandates
3. Video: The Sharpe, Treynor and Sortino ratios
4. Video: Tracking Error - UBS guest speaker
learning_outcomes: T
U
session: Assessing Performance
5. Video: Using asset pricing models to estimate fund performance
6. Video: Defining performance analysis
7. Video: Performance attribution
8. Practice exercises
learning_outcomes: T
U
session: Investment Vehicles
1. Video: Dimensions in ETF selection - UBS guest speaker
2. Video: Beating the benchmark or the peer group?
3. Video: The information ratio says it all
learning_outcomes: T
U
session: Investment Vehicles
4. Video: What are the pros and cons of a structured product?
5. Practice exercises
learning_outcomes: T
U
session: Investment Vehicles
1. Video: Searching for hedge fund alpha: lessons from academia
2. Video: Do active funds really outperform passive funds?
3. Video: Active versus passive management
learning_outcomes: T
U
session: Investment Vehicles
4. Activities: Examples dicussion
5. Practice exercises
learning_outcomes: T
U
session: Future Trends
1. Video: Corporate sustainability and sustainable investing
2. Video: Does sustainable investing perform in line with traditional investing?
3. Video: Climate change and capital markets
4. Video: What is Neurofinance?
learning_outcomes: T
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session: Future Trends
5. Video: Can business analytics (Big Data) improve the value-added of TAA?
6. Video: Using a Robo-advisor to better shape the SAA
7. Practice exercises
learning_outcomes: T
U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
learning_outcomes: U
session: Tutorial
- Solve questions and problems;
- Practice Exercise
- Progress test 3 (10%)
learning_outcomes: U
session: Review and Preparation for Final Project
learning_outcomes: U
session: Review and Preparation for Final Project
learning_outcomes: U
session: Review and Preparation for Final Project
learning_outcomes: U
session: Review and Preparation for Final Project
learning_outcomes: U
session: Review and Preparation for Final Project
learning_outcomes: U
session: Submit Group Assignment
learning_outcomes: U
session: Final Project Presentation
learning_outcomes: U
session: Final Project Presentation
learning_outcomes: U
session: Final Project Presentation
learning_outcomes: U
session: Final Project Presentation
learning_outcomes: U