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.