(in Polish) Fundusze inwestycyjne 2600-IADz1FI
The objectives of the course are:
* to familiarize students with the essence, origins, and evolution of investment funds as a form of collective investment in Poland and worldwide;
* to present the legal, organizational, and economic frameworks of investment fund operations, including the roles of institutions co-creating their structure (Asset Management Companies [TFI], depositaries, transfer agents);
* to discuss the typology of investment funds according to legal and economic criteria, as well as the differences between open-ended, closed-ended, and specialized funds;
* to develop knowledge and skills in analyzing the specifics of selected fund classes: open-ended and closed-ended investment funds, Exchange-Traded Funds (ETFs), hedge funds, private equity, and venture capital;
* to understand the principles of measuring the performance and risk of investment funds using classical and modern risk-adjusted performance measures;
* to prepare students to interpret the results achieved by investment funds and evaluate their activities from the perspective of individual and institutional investors;
* to develop skills in the critical analysis of phenomena and trends in the domestic and global investment fund markets.
Course Content:
The "Investment Funds" course introduces students to the core concepts and operations of investment funds as key components of the modern financial market and financial intermediation institutions. The classes begin with an overview of fundamental terminology, the classification of institutional investors, and the role they play in a market economy.
The next stage introduces the genesis and development of collective investing, the organizational forms of funds worldwide and in Poland, and the legal basis of their operations. Particular attention is paid to Polish and European regulations, as well as the operating principles of Investment Fund Societies (TFI), open-ended investment funds (FIO), closed-ended investment funds (FIZ), specialized closed-ended investment funds (FIZAN), depositaries, and transfer agents.
Students learn about the specific features of debt, equity, mixed, absolute return, and money market funds. A dedicated part of the course is focused on the analysis of alternative funds, including:
* Index funds (ETFs) – their legal structure, operating mechanism, index replication methods, types of transactions, and the specifics of the ETF market in Poland and globally;
* Hedge funds – their investment strategies, legal structures, risk management tools, and regulatory constraints;
* Private equity and venture capital funds – operating models, investment life cycles, exit strategies, typical transactions, the market in Poland and worldwide, and the role of these funds in financing innovation and corporate growth.
The final part of the course analyzes the issues of efficiency and risk in investment funds. Students explore various types of risk (market, credit, liquidity, operational, regulatory risk) and methods for their measurement. Classical and contemporary performance measures are discussed, such as the Sharpe, Treynor, and Jensen (alpha) ratios, the Information Ratio, and downside risk measures.
The classes are practical and analytical, involving the analysis of real market data on investment funds operating in Poland, performance comparisons across different fund categories, and the interpretation of efficiency and risk indicators.
Thematic scope of the course:
1. Basic concepts, classification, and significance of institutional investors.
2. Introduction to investment funds: history, origin, legal basis, and forms of collective investment.
3. Typology of investment funds (legal and economic criteria).
4. Organization of investment funds:
a. Investment Fund Society / Asset Management Company (TFI),
b. Investment Fund (FIO, FIZ, FIZAN),
c. Depositary,
d. Transfer agent.
5. Index funds (ETFs) – operating mechanisms, transactions, market in Poland and worldwide, advantages and disadvantages.
6. Hedge funds – strategies, market, legal structure, advantages and disadvantages.
7. Private equity funds – life cycle, transactions, legal structure, advantages and disadvantages.
8. Venture capital funds – strategies, market, legal structure, advantages and disadvantages.
9. Efficiency and risk of investment funds – performance measures, types of risk, risk measurement, and its sources.
Type of course
Learning outcomes
* K_W01 – knows and understands in depth the core concepts, classifications, and principles of investment fund operations, including the legal, economic, and organizational regulations governing their activities.
* K_W02 – understands the complex mechanisms of collective investment, including the role and significance of structural institutions (TFI, depositary, transfer agent) and their interconnections within the financial system.
* K_W03 – possesses knowledge about various types of investment funds, including traditional, index (ETF), hedge, private equity, and venture capital funds, and understands their importance for economic development.
* K_W05 – understands the economic, regulatory, and technological conditions shaping investment fund markets in Poland and globally, and their impact on investor decisions.
* K_U01 – apply economic, financial, and legal knowledge to analyze the activities of investment funds and diagnose their efficiency and risk.
* K_U02 – correctly interpret financial and market data regarding investment funds and draw conclusions based on financial statements and sector reports.
* K_U03 – compare different types of funds (FIO, FIZ, ETF, PE, VC, hedge) in terms of investment strategies, legal structure, risk levels, and expected rates of return.
* K_U05 – formulate investment conclusions and recommendations based on market data analysis, including under volatile and uncertain conditions.
* K_K01 – critically evaluate investment decisions and fund management strategies in the context of efficiency, risk, and responsibility towards investors.
* K_K02 – recognize the importance of transparency, ethics, and supervision in collective investment institutions, and apply the principles of responsible investing (ESG, ethical funds).
* K_K03 – initiate and support actions contributing to the development of the investment fund market, and make analytical and investment decisions responsibly within the financial environment.
Assessment criteria
The final grade for the course is based on two components:
* Classwork / Participation (20%)
* Group Project (80%)
Classwork includes activity, substantive preparation, and ongoing engagement in analytical tasks during classes. Assessment criteria: participation in discussions, quality of arguments raised, group cooperation, and timeliness/correctness of completed assignments.
The Group Project is the main component of the final grade. It consists of developing a comprehensive analysis of a selected investment fund or fund market segment (e.g., ETF, FIO, PE, VC, hedge), including:
* characteristics of the legal and organizational structure,
* analysis of investment strategy, performance, and risk level,
* application of risk-adjusted performance measures,
* investment conclusions and recommendations.
The project must be prepared as an analytical report and presented in class. Evaluation is based on substantive correctness, data quality, relevance of analysis and conclusions, and presentation style.
Grading Scale:
• 0–59% = 2.0 (failed)
• 60–65% = 3.0 (sufficient)
• 66–74% = 3.5 (sufficient plus)
• 75–84% = 4.0 (good)
• 85–94% = 4.5 (good plus)
• 95–100% = 5.0 (very good)
Condition for passing: achieving a minimum of 60% of total points and meeting the attendance requirements.
Practical placement
Professional internship is not required for this course.
Bibliography
Primary literature:
* D. Dawidowicz, Fundusze inwestycyjne. Rodzaje – metody oceny – analiza (3rd revised edition), Wyd. CeDuWu, 2023.
* J. Lerner, A. Leamon, F. Hardymon, Venture Capital, Private Equity, and the Financing of Entrepreneurship, Wiley, 2012.
Supplementary materials:
Reports on the financial sector situation published by:
* Narodowy Bank Polski (NBP) – financial sector stability reports,
* Urząd Komisji Nadzoru Finansowego (UKNF) – reports on the banking, insurance, and capital market sectors,
* Izba Zarządzających Funduszami i Aktywami (IZFA) – reports regarding investment funds,
* Izba Domów Maklerskich (IDM) – reports regarding the brokerage house sector.
Reports from individual financial institutions (banks, insurance companies, funds, brokerage houses) published on their websites and in Monitor Polski B, used during classes for analytical purposes.