Developing an Investment Portfolio for a High Net Worth Client

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


DUE: AUGUST 26, 2016

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.


Recommended Readings:

  • Hirt, G. A., and Block, S. B., 2012. Fundamentals of investment management, 10th ed. McGraw-Hill.
  • Bodie, Z., Kane, A., and Marcus, A. J., 2014. Investments, 10th ed. Australia: McGraw-Hill.
  • Gitman, L., Joehnk, M. D., Juchau, R., Wheldon, B. J., and Wright, S. J., 2011. Fundamentals of Investing, 3rd ed. Australia: Pearson.


Periodicals Readings:

  • Australian Financial Review
  • Australasian Accounting, Business and Finance Journal
  • Australian Journal of Financial Planning
  • Journal of Banking and Finance
  • Journal of International Financial Markets, Institutions & Money
  • Journal of Financial Research
  • Money Management
  • The Australian – Business section


Useful Websites: The following websites are useful sources covering a range of information useful for this subject. However, most are not considered to be sources of academic peer reviewed theory and research. If your assessments require academic peer reviewed journal articles as sources, you need to access such sources using the Library database, Ebscohost, or Google Scholar.



ANALYSIS. Discussion and understanding of the client’s goals, analyzing his income and capital needs against the current economic and investment outlook, explorations of the recommended  asset classes, including expected returns and risks, and your recommended portfolio.


RESEARCH – EXTENT AND APPLICATION. Discussion and detailed understanding of the construction of the investment portfolio construction and management process, including reasons for investing in them. Extent of research and source referencing.


RECOMMENDATIONS / CONCLUSIONS. Following the above analysis and application of your research, state – in separate sections and pages – any recommendations for the client’s portfolio and summarise your overall conclusions in another page.


PRESENTATION. Clear and concise expression, professional presentation, grammar, spelling and the use of graphs, tables and appropriate source referencing of material, charts, tables, etc.,



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