BAFN610 - Responsible Investment Management

Year

Credit points

Campus offering

Prerequisites

Teaching organisation

Unit rationale, description and aim

BAFN610 is a specified unit of the Master of Finance and Graduate Certificate in Finance.

In this unit students will learn and apply concepts of the investment setting, market efficiency, investment objectives, responsible investment, portfolio strategies and risk pricing, valuation of equity, debt and property investments, managed funds, and alternative investments. Students will also learn how to adopt a value biased view of investing which challenges conventional valuation techniques and approaches. The unit also considers investing from the point of view of the individual, as well as from the standard institutional perspective. The unit emphasises socially responsible investment and the stewardship of scarce resources. This study of portfolio management will enhance students' ability to make knowledgeable investment decisions and build wealth. The unit aims to equip students with essential knowledge and skills to enable you to construct a portfolio and conduct a portfolio analysis.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - evaluate the various investments available to investors and assess how portfolio management can contribute to the better stewardship of scarce resources in terms of risk-return trade-off. (GA3, GA5)

LO2 - apply portfolio management techniques. (GA5, GA6)

LO3 - distinguish between the major investment theories. (GA4, GA5)

LO4 - examine and interpret competing risk perspectives and their impact on the valuation of equity, debt and property investments. (GA5, GA10)

LO5 - evaluate the performance of an investment portfolio. (GA5, GA8)

Graduate attributes

GA3 - apply ethical perspectives in informed decision making

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA8 - locate, organise, analyse, synthesise and evaluate information 

GA10 - utilise information and communication and other relevant technologies effectively.

Content

Topics will include: 

• Investment analysis 
• Stewardship in management of scarce resources 
• Socially responsible investment 
• Portfolio management techniques 
• The investment environment 
• Investment return and risk 
• Investing in shares 
• Bond Investments and managed funds 
• Real estate and other investments 
• Value Investing principles 
• Investment policy statement 

Learning and teaching strategy and rationale

The teaching and learning strategy is built on a “student-focused approach,” which can be described as “Level 3. Focus: what the student does” instead of a “teacher-focused approach,” ACU’s teaching policy focuses on learning outcomes for students. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning from others. ACU promotes and facilitates learning that is autonomous and self-motivated, is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied. 

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher order thinking. The unit ensures that learning activities involve real-world scenarios that in turn assist with ‘real-world’ preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.  

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Intensive” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups.  

Attendance Mode 

In a weekly attendance mode, students require face-to-face attendance in specific physical location/s. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise. 

Intensive Mode 

In an intensive mode, students require face-to-face attendance in weekends or any block of time determined by the school. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.  

Online Mode 

This unit uses an active learning approach to support students in the exploration of the essential knowledge associated with corporate finance. Students can explore the essential knowledge underpinning corporate and develop knowledge in a series of online interactive lessons and modules. Students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge of corporate finance. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning. 

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning which seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. Assessment is an integral part of the learning process. Assessment tasks in this unit are aimed at measuring and developing student’s achievement of both the learning outcomes and graduate attributes noted above. In this unit there are multiple forms of formative assessment for a student to assess their progress against the learning objectives as well as three (3) main pieces of summative assessment. Using constructive alignment, the assessment tasks are designed for you to demonstrate your achievement of each learning outcome.  

Overview of assessments

Attendance mode ;

Intensive mode 

Online mode 

Representative texts and references

Bodie, Z, Drew, M, Basu A, Kane A & Marcus, A 2020, Investments, 12e, McGraw-Hill, ISBN10: 1260013839, ISBN13: 9781260013832 

Fitton, GD, Hayes, T & Kiddell, R 2017, Australian financial planning handbook 2017-18, Thomson Reuters.