STAT40990 Core Actuarial Principles 2

Academic Year 2024/2025

The module is one of a set of three modules that map to the syllabus of the Institute and Faculty of Actuaries's professional examination Actuarial Practice 1 (CP1). It builds on the technical material covered in all the earlier subjects of the BAFS degree and uses the techniques learnt to solve practical problems that might arise in any area in which actuaries practice.

The focus of this module is how to build and monitor an investment portfolio is meet liabilities as they fall due, appropriate for the aims and risk appetite of the institution. It overviews the characteristics of all markets - bond, equity, property, derivative, and collective investment vehicles. It shows how to monitor risk and return. Techniques include matching, immunisation, and stochastic modelling.

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Curricular information is subject to change

Learning Outcomes:

The student will understand how actuaries invest funds to meet future liabilities, including assessments of appropriate risks and how to manage them. They will know the tools and techniques to apply and the key management decisions that must be made.

Indicative Module Content:

Overview of the Financial Markets

Cash & Bond Markets

Equity Markets

Constructing an Investment Strategy

Collective Investment Vehicles

Monitoring investment portfolios

The Property Market

The Derivatives Markets

Sundry Topics

Student Effort Hours: 
Student Effort Type Hours




Autonomous Student Learning




Approaches to Teaching and Learning:
We apply the tradition approach, with lectures and tutorials where the students attempt to apply the material in the lectures to practical situations. 
Requirements, Exclusions and Recommendations

Not applicable to this module.

Module Requisites and Incompatibles
Not applicable to this module.
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade

Not yet recorded.

Carry forward of passed components
Resit In Terminal Exam
Summer Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Self-assessment activities

How will my Feedback be Delivered?

There are regular tutorials with problem sheets the student attempts prior to the tutorial, each tutorial treating a section of the course. The student is shown the ideal approach to the questions and shown where marks are awarded, and can thus assess their own attempt at the problem sheet. The level of understanding required to do well in the problems sheets is of a similar order as required to do well in the final examination.

Name Role
Mr Andrew Smyth Lecturer / Co-Lecturer