Financial Analysis (Advanced)

The first part of the module (CFA Level II training) aims to prepare students to take the CFA Level II examination.

The second part of the module (capstone project) is aimed at providing the knowledge and skills necessary to conduct empirical investigation of key current financial issues. The main aims are to:

• allow students to demonstrate critical thinking and analytical skills;
• develop in students the ability to write an extended report based on empirical analysis;
• prepare students for a career in particular specialist roles;
• provide a sound basis for future professional development and/or qualifications;
• relate cutting-edge research to recent and prospective developments in practice;
• give students the ability to address applied financial problems using quantitative methods of analysis;
• the ability to present written work, and to proceed to doctoral research.

The financial markets and the world of investment management has undergone significant change since the global financial crisis. Investment managers need to keep abreast of these developments and take advantage of such changes. This module introduces the key changes in market condition, including high frequency trading, dark pools and the move to bring off exchange instruments such as credit derivatives, on exchange. Within the world of investment management we look at developments in liability-driven investment, alternative investments and new approaches to diversification.

The key objectives are to

• Endow students with an understanding of today’s financial markets, trading processes and decision making (also on a high-frequency level)

• Endow students with the concepts and ideas of advanced portfolio analysis

• Endow students with an understanding of the subtleties of investment decisions and dealing with clients

• Endow students with the relevant quantitative skills in this area for further advanced studies

This module looks at the core tool set of the buy-side analyst, and emphasises that the key to adding value is in understanding where to find the ‘raw materials’ to include within the calculations, and the impact accounting policy choices have on the outcome. Estimation of intrinsic valuation is obtained by the application of valuation techniques. These techniques will determine the value based on assumptions of future performance and several other judgements. The base of these forecasts will be derived from the current financial position of a company. As what happened in the past is not necessarily what will happen in the future, an integrated financial model will allow research analysts to predict key indicators of performance and value by forecasting key financial drivers. It will further their ability to explore the potential developments of a company in the future. In addition to basic valuation techniques, insights are provided into how to use best practice to construct a good, professional model.

The module aims to address advanced financial reporting issues from both conceptual and technical angles within the context of International Financial Reporting Standards and US GAAP. It assesses the impact of accounting theory in resolving major reporting issues and examines the importance of relevant academic research to the area. Additionally, it examines the importance of financial reporting for business analysis.

The aim of the course is to provide a thorough understanding of the issues that are relevant to the asset management industry with special emphasis on understanding and measuring investment performance. Our discussions will focus on mutual funds, hedge funds and exchange traded funds with less emphasis given to other fund management vehicles. The course will not cover security analysis.

The purpose of this module is to give students a very solid grounding in the quantitative empirical research skills that are necessary in producing high quality research, both in the academic as well as in the applied context, in the areas of empirical asset pricing and portfolio allocation.

This module consists of three parts: communication, client management as well as leadership and development. It addresses concerns of the insufficient set of "soft skills", which is raised on various occasions by employers. Students will receive training and guidance on how to present themselves to employers, how to build rapport and make a lasting impression of themselves; receive training and guidance on how to interact with many different types of personalities and to achieve a positive outcome whilst remaining compliant and providing excellent client service; receive training and guidance on how to build awareness of their brand, to develop an understanding of others, to apply the correct level of assertiveness and to adapt their communication style to varying situations.

The module aims to equip students with a good background in software packages and programming languages commonly used in the finance industry, such as Excel/VBA and R. In addition, it will provide training in advanced features of Bloomberg to retrieve and manage financial data and create reports. Participants are advised to use a Windows laptop for this course. MacBooks are not supported in this class.

To enable students to understand the key concepts and methods in data science, econometrics, and quantitative finance to carry out independent empirical work required for the job market, more advanced modules in accounting and finance and the MSc dissertation streams.

This module aims to prepare students to take the CFA Level I examination.