Develope an investment portfolio for a high net worth client

Assignment Help Portfolio Management

Reference no: EM131174237

Investment Management - Creating an Investment Portfolio

Needed: "Developing an Investment Portfolio for a High Net Worth Client"

Atleast 2200 words not including the Reference List

References: ATLEAST 9 PLUS the text-book.

This should include at least one other book and one journal article.

Use Harvard referencing. Use EBSCO database for research online or google scholar

You have been appointed to advise one of Australia's wealthiest persons who has just received a cheque for $A1 billion dollars from the sale of his coal mining business. He is aged 58 years, happily married with four children who have completed university and are each engaged in professional practice. Your client wishes to retire and pursue his recreational and charitable interests. He has no debts and does not wish to incur any.

He is a moderately conservative investor but is willing to take a certain amount of risk in order to grow his investment portfolio. He wishes to set up a diversified investment portfolio which - over the next 10 years - will provide him with an income of $5 million a year, which he will draw from the portfolio, whilst seeking growth of his capital balance of at least CPI plus 2% per annum.

You are required to prepare a summary of your recommendations for how much of his capital should be invested in your selected asset classes [cash, Australian fixed interest, Australian equities, Australian property, overseas fixed interest, shares and / or property and alternative investments (if any - see chapter 18 of the text-book)]. State reasons for your choices and your estimate of his expected annual income and expected annual capital growth likely to be achieved from your recommended portfolio. Summarise the risks of your recommendations.

Research and Referencing

You should begin by studying various chapters of the text-book (including Chapter 18 on alternative investments) dealing with the above asset classes.

Prescribed Text: Brailsford, T., Heaney, R., and Bilson, C., 2015. Investments, concepts and applications, 5th ed. Australia: Cengage.

Reference no: EM131174237

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