Coursework Brief and Requirements

Section B: Coursework Brief and Requirements The scenario you will be working with revolves around a High Net Worth couple who are looking for advice…

Section B: Coursework Brief and

The scenario you will be working with revolves around a High Net
Worth couple who are looking for advice

HNW couple are married with two children, one still at University

husband is a 60-year-old Partner at a Law firm.

annual (gross) salary is £90,000

has a Final Salary Defined Benefit Pension Plan from his employer
(paying 50% of earnings).

expects to continue working for another five years

(58 year old) wife was a Lawyer, but did not return to work after
having children. She has a modest Final Salary Pension paying c.
£15,000 per annum

couple own (Mortgage free) 4-bed home in Virginia Water Surrey,
currently valued at c.£2.0m

wife recently inherited £0.85million.

husband expects to inherit c.£0.5 million within five years

do not know what to do with the money, but have the following ideas:

value education & dislike the thought of student debts.

would like to cover their child’s tuition and maintenance costs for
the remainder of their time at university (one year).

they have no investment portfolio, but do have £150,000 in various
accounts between them.

are potentially conservative investors with little experience of the
Financial Markets

Objectives & Profiling

How much money is the Client thinking of Investing?


What percentage of your current liquid (cash or cash equivalent)
Assets does this represent?


How long would you expect this money to remain invested?


What is the purpose of this Investment?

Preservation though hoping for some growth in the long term

How much of a drop over one year would cause you to ask us to sell
and re-invest the proceeds in something risk-free?


Has your attitude toward risk changed in the last five years?

less risk averse

If your attitude toward risk has changed recently, what has been the

Retirement & children leaving University

Do you intend to take a regular income from the Portfolio?


How would you rate your knowledge of investing in Bonds, Equities,


Have you ever worked in the Financial Services sector?


working in groups will create an investment portfolio with an initial
value of £1.0m that best meets the requirements and preferences of
the HNW couple.

your discretion to rank the couple’s needs and explain your
assumptions and reasoning.

will write a report describing the portfolio: the report should
resemble an investment prospectus.

report’s content will describe and explain the following:

(short & long term) requirements and preferences using a logical

objectives & Investment strategy, e.g. active, passive, etc.

risks that may affect the performance of the portfolio

composition and qualitative and quantitative reasons for composition,
e.g. asset class and security characteristics

and/or construction of an appropriate benchmark

historical performance, both absolute and relative to the benchmark

future returns

to expect future performance to remain the same or improve; and,

that future performance may be poorer.

transaction, and administration fees will not be considered.

Spelling, Grammar, Clarity & Report layout will be taken into

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