Instructions for Wealth Management Portfolio

1) Final Project:

• Objectives of portfolio: build a portfolio designed for a wealth management client

• Client: HNWI = high net worth individuals, FO = family offices and standard

• private client, portfolio of £1m - £20m

• Write a report and submit by week 13

• Short presentation in class / seminars in weeks 9-12 - voluntary - no marks but

• recommended as peers and lecturers give you valuable feedback (10-15 minutes

• with Q-A)

• Individuals or groups of maximum four (the larger the team the more detailed the

• report has to be)

• Paper explaining process, selection and investment objectives.

• Report of 5-20 pages with portfolio calculations

2) Follow the General Approach of WM Firms and Private Banks:

a) KYC = know your customers
o Eligibility of the client
o Understanding of the client's risk return profile and his expectations etc.

b) Advisory mandate versus discretionary mandate

c) Investment mandate: asset classes (equities, bonds, commodities, FX, real estate, ETF, HF, Funds of Funds etc); strategies / styles (long-short, trading, emerging market, other)

d) Investment objectives: S-T, M-T, L-T; value, growth; defensive, moderate, aggressive.

e) Implementation / strategy

f) Portfolio: asset allocation (strategic and tactical), display risk factors (alpha, beta, duration, FX et al) as applicable. Correlation to markets.

g) You might also want to backtest the portfolio.

Recommended: use of Bloomberg or Reuters software / terminals.

i) For Portfolio characteristics use industry format, e.g. the BH Global termsheets / monthly reports on Blackboard.