Portfolio Construction draws on core investment principles, theories and techniques previously studied. The objective of this course is to introduce students to portfolio construction and asset allocation. It will focus on gaps in theory and how they can be managed in practice. Examples include challenges/realities in estimating and implementing portfolio optimisation programs, role of liquidity, and importance of plan governance. Topics will include: types of investors and their objectives; dimensions of risk; asset allocation; the nature and role of various asset classes (equity, fixed income, alternative assets, FX); building multi-manager portfolios, and implementation issues.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Implement portfolio construction at the overall plan level, taking into account investor objectives and the practical challenges of implementation.
2. Discuss the use and limitations of portfolio theory.
3. Describe the main characteristics of key asset classes, and the role they each play within a balanced portfolio.
4. Communicate portfolio structures and strategies to a diverse audience.
5. Work effectively in group environments.

Research-Led Teaching

Students undertaking this course will be taught fundamental skills in Finance that will be applied to many real life applications. The course materials draw on recent concepts, issues and practical information on portfolio construction and asset allocation from various sources, including academic papers, industry research publications and CFA materials. Students are required to read and understand these materials and apply their understanding to tutorial tasks designed to reflect a real life environment.

Field Trips

There are no field trips for this course

Additional Course Costs

Students are required to have access to a non-programmable scientific calculator for tutorials, in-tutorial quizzes, and the final examination. Financial calculators, graphics calculators, and other programmable calculators are not permitted. No other additional class costs are anticipated.

Examination Material or equipment

The Final exams will be centrally timetabled by Examinations, Graduations & Prizes prior to the examination period. Please refer to ANU Timetabling for further information. Detailed information regarding examination materials and equipment will be provided on the Canvas course site closer to the relevant assessment date.

Required Resources

Reading List

The Course Reading List will be provided on Canvas. The list is divided into ‘examinable’ and ‘supplementary’ readings. Examinable readings may be directly tested in the exams.

Supplementary materials are provided for additional information and/or assistance in preparation of the assignment or tutorials and will not be directly tested in exams beyond the extent covered in the lectures, workshops or tutorials. Additional course readings may be made available during the semester. Students should check Canvas to ensure they are using an up-to-date reading list.

Readings will come from a range of sources, including journal and industry articles, websites and the textbook SPH (Stewart, S., Piros, C. and Heisler, J., Portfolio Management: Theory and Practice, John Wiley & Sons, 2019, purchase optional). With the exception of the textbook, all readings will be provided on Canvas.

Recommended Resources

Stewart, S., Piros, C. and Heisler, J., Portfolio Management: Theory and Practice, John Wiley & Sons, 2019 [denoted 'SPH'].

Electronic copies are available at ANU library: https://ebookcentral.proquest.com/lib/anu/detail.action?pq-origsite=primo&docID=5741214

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups, individuals, focus group etc

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Other Information

Tutorials

The tutorial exercises comprise two types of activities: discussion questions and Excel-based "learning by doing" exercises. The tutorials have two primary objectives. First, they provide students with exposure to Excel-based quantitative modelling techniques used in portfolio analysis, helping to prepare them for the assignment. Second, they reinforce the theories and practical applications discussed in lectures through the analysis of real-world data.

Students should note that some calculations and concepts covered in the tutorial exercises are examinable. Students are therefore strongly encouraged to engage with and complete the tutorial exercises in accordance with the lecture and tutorial schedule.

Workshops

Workshops are dedicated to supporting students with the assignment. During workshops, the lecturer may address common questions and provide guidance on how to approach specific aspects of the assignment. Students are encouraged to submit assignment-related questions in advance to help ensure that workshop discussions are relevant and beneficial to the class.

Consultations

Questions relating to lecture content and the assignment should be directed to the lecturer. Questions relating to tutorial content should be directed to the relevant tutor.

Before attending consultations with the lecturer, students should ensure they have reviewed all relevant lecture, tutorial and workshop materials, including any available recordings. If a question has already been addressed during a workshop, students may be directed to review the relevant workshop recording before further assistance is provided. This approach helps ensure that consultation time is used efficiently and remains available for students requiring additional support. The lecturer appreciates students' understanding and cooperation in this regard.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Lecture: Course introduction Overview of portfolio managementWorkshop: No workshop this weekTutorial: No tutorial this week
2	Lecture: Objectives, Dimensions of riskWorkshop: Excel functions and formulas; Different forms of returnsTutorial: Tutorial 1 Questions (Week 1 Lecture and Workshop content)
3	Lecture: Asset allocation: Theory and practice; Mean-variance modelWorkshop: Excel “solver”Tutorial: Tutorial 2 Questions (Week 2 Lecture and Workshop content)
4	Lecture: Asset allocation: Asset assumptionsWorkshop: Introduction of the assignmentTutorial: Tutorial 3 Questions (Week 3 Lecture and Workshop content)	In-tutorial test
5	Lecture: Asset allocation: Additional methods; Alpha and BetaWorkshop: Get started with the assignmentTutorial: Tutorial 4 Questions (Week 4 Lecture and Workshop content)
6	Lecture: Traditional assets - EquitiesWorkshop: Decide the approach/approachesTutorial: Tutorial 5 Questions (Week 5 Lecture and Workshop content)
7	Lecture: Traditional assets - Fixed incomeWorkshop: Apply quantitative analysis methodsTutorial: Tutorial 6 Questions (Week 6 Lecture and Workshop content)
8	Lecture: Alternative assets - Overview; Property; InfrastructureWorkshop: AssignmentTutorial: Tutorial 7 Questions (Week 7 Lecture and Workshop content)
9	Lecture: Alternative assets continued - Hedge funds; Private equity; CommoditiesWorkshop: Write up the reportTutorial: Tutorial 8 Questions (Week 8 Lecture and Workshop content)
10	Lecture: Global investing and currency hedging; The investment processWorkshop: AssignmentTutorial: Tutorial 9 Questions (Week 9 Lecture and Workshop content)	Group Assignment due
11	Lecture: Other topics part 1Workshop: No workshop this weekTutorial: Tutorial 10 Questions (Week 10 Lecture and Workshop content)
12	Lecture: Other topics part 2Workshop: Final exam reviewTutorial: Tutorial 11 Questions (Week 11 Lecture)

Tutorial Registration

Tutorials commence in Week 2 of the semester and will be held on campus. Each tutorial will discuss questions related to content covered in the previous week’s lectures. Tutorial questions for each week are listed on the class Canvas page; students are expected to attempt these questions before attending and come prepared to discuss their responses during the

class. Students should enrol in their tutorial using MyTimetable. ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse,then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage (https://www.anu.edu.au/students/program-administration/timetabling).

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
In-tutorial test	15 %	17/08/2026	28/08/2026	1,2,3
Group Assignment	30 %	16/10/2026	04/11/2026	1,2,3,4
Final Exam	55 %	05/11/2026	09/12/2026	1,2,3

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines , which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Canvas’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Course content will be delivered via:

Weekly lectures and workshops, which will be delivered in person, recorded, and made available via Echo360 on the course Canvas site. Lecture slides provide a summary of the key concepts discussed each week and will be published in advance on Canvas. Students are expected to engage with these materials before attending class. Workshops are designed to reinforce and apply practical applications and problem-solving activities and to provide guidance for group assignment. Students are expected to engage actively in workshop activities and come to class prepared to participate in discussion; and

Weekly tutorials, commencing in Week 2 and delivered in person. Tutorials are designed to reinforce and apply lecture and workshop material through discussion and problem-solving. Students are expected to attempt all prescribed tutorial questions before attending and come to class prepared to discuss their answers.

Attendance at lectures, workshops and tutorials, while not compulsory, is strongly encouraged and expected in accordance with the Code of Practice for Teaching and Learning. Students should be aware that effective learning requires active engagement with course material and participation in learning activities, rather than relying solely on recorded content.

Examination(s)

The final examination will be scheduled centrally by the Examinations, Conferrals and Prizes Office, with the date, time and location of the examination published prior to the examination period. The date referenced in the "Assessment Summary" section represents the commencement of the examination period rather than the scheduled date of the examination. Students should refer to ANU Timetabling for further information.

Assessment Task 1

In-tutorial test

The in-tutorial test will be held in person during the Week 4 tutorial. The test will comprise 5 minutes of reading time and 45 minutes of writing time.

Permitted materials are a non-programmable calculator and one A4 page of notes (written or typed) that may be used on both sides.

The test will include a mixture of theoretical and practical questions covering all material from Weeks 1 to 3. Questions may include multiple-choice questions, short-answer calculation questions, and short-answer written questions.

Further information regarding the structure of the test will be provided in Week 3.

The test is redeemable. If redeemed, its weighting will be transferred to the final examination.

Assessment Task 2

Group Assignment

The assignment requires students to prepare portfolio construction advice for a client. and is to be completed in groups of three to four students. All students must sign up for an assignment group on Canvas by the end of Week 4. A dedicated Student Forum will be available on Canvas to assist students in forming groups. Assignment group sign-up is not restricted by tutorial enrolment.

Students wishing to complete the assignment individually must obtain approval from the lecturer. Students who have not joined an assignment group by the end of Week 4 and have not received approval to work individually will be randomly allocated to a group. It is the responsibility of students to contact their allocated group members.

The assignment requires students to undertake both quantitative and qualitative analysis to develop an asset allocation recommendation for a specified client, taking into account the client's objectives and constraints.

Weekly workshops will provide information about the assignment and guidance on the required analysis, commencing in Week 2. All members of a group will receive the same assignment grade.

The marking criteria will be discussed during the Week 4 workshop, which will introduce the assignment in detail. A detailed marking rubric used by the lecturer will be attached to the assignment file and made available on Canvas no later than the end of Week 4.

The assignment is due at 2:00 pm on Friday of Week 10 and must be submitted via Canvas. Assignment grades and feedback will be released on Canvas approximately two weeks after the due date and prior to the final examination. Students will have the opportunity to discuss their assignment grade and feedback with the lecturer before the final examination.

Assessment Task 3

Final Exam

The final examination will be a compulsory, closed-book examination held in person on campus during the University examination period. The examination will assess students' understanding of all concepts introduced during the course and may include a mixture of theoretical and practical questions.

The examination will comprise 15 minutes of reading time and 2 hours of writing time. Permitted materials are a non-programmable scientific calculator and one A4 page of notes (written or typed) that may be used on both sides. Dictionaries, financial calculators, graphics calculators and other electronic devices are not permitted.

Students are expected to review all examinable course material, including prescribed readings and material covered in lectures, workshops and tutorials. Further information regarding the structure of the examination and the material to be assessed will be discussed in lectures and summarised on the course Canvas site.

The examination will be scheduled centrally by the Examinations, Graduations and Prizes Office, with the date, time and location published prior to the examination period. The date referenced in the Assessment Summary section represents the commencement of the examination period rather than the scheduled date of the examination. Students should refer to ANU Timetabling for further information.

Examination scripts will not be returned to students.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Assignments are submitted using the course Canvas site. Hard copy or email submission is only acceptable by the approval of the lecturer before the assignment is due on a case by case basis. Only one submission is required from each group. Please keep a copy of the assignment for your records. Important: to correctly record assignment marks in the Gradebook, each student must sign up for a Group on Canvas, including one-person groups.

Hardcopy Submission

There is no hard copy submission for this course.

Late Submission

Late submission permitted.

Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Students should note that extensions for the group assignment will not normally be granted. The assignment is designed to be completed progressively by student groups over an extended period (Weeks 4–10), allowing sufficient time for planning, coordination and completion. Group members are expected to manage the allocation of tasks and ensure that the assignment can be completed even if one or more members are unable to contribute as originally planned. Similarly, extensions or special consideration will not normally be granted on the basis that a group has fewer members than originally intended due to the withdrawal or non-participation of one or more students.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material. Any use of artificial intelligence must be properly referenced. Failure to properly cite use of Generative AI will be considered a breach of academic integrity.

Returning Assignments

Assignment grades and feedback will be provided via Canvas or email prior to the final examination.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

Resubmission of assignment is not permitted in this course.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Accessibility for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents all ANU students