Global wealth portfolio Risk Management Report analysis, advice and recommendations

Its 1st January 2021, you’re a wealth management advisor- specific focus on financial risk management, to an Irish family which has a substantial investment portfolio.

Continuous Assessment Requirement:

You are required to prepare a report for the family presenting your analysis, advice and recommendations on some risk management issues facing their global wealth portfolio.   

The report should be @2,500 – 3,000 words in length, excluding list of contents, data appendix etc.. There should be a Data Appendix showing your workings.

You should employ the risk management tools, techniques and metrics from our module materials to conduct your analysis and inform your recommendations.

  1. Recommend a currency risk-management strategy for two foreign exchange transactions pending in 2021. Explain your recommendations and support them with data analysis. Use the data in Tables 1 & 2.                   (12marks)                                                                                 
  1. The family has held US Treasury bonds since 2010, as a key element of the conservative part of the family’s global investment strategy and has a sizable holding worth approximately $25m in these assets., see Tables 3 & 4. Calculate the current value of this holding and discuss the risks associated with it.                                                                                                   (24 marks)
  1. The family has heard of the German Federal Government’s 2020 Green Federal Security initiative, and asks your opinion on whether the fixed income holding should be divided in two, and half of the fixed income portion of the wealth portfolio now invested in these new German bunds?

Analyse this investment proposition, make a recommendation to the family and explain your reasoning, supported by data analysis.  Table 4.  below sets out the details of the German Federal Government Green Securities which could be invested in.                                                                                (22 marks)

  1. One member of the family believes passionately that US equities represent the last bastion of safety and value in global financial markets in the current uncertain world and insists that a new investment of $ 25m in two stocks, at the very minimum, be made in 2021.

You are not convinced by this idea but as the family insists, will propose three different possible 2-stock US equity portfolios for the family to begin its US equity investment activity. These portfolios should address a spectrum of low risk to high risk. You may select any stocks from the S&P500 index and should support your recommendation with data analysis and explain your reasoning.

 (22 Marks)

  1. In your opinion what are the key financial risks facing investors in developed bond and equity markets in 2021 and in the foreseeable future? Discuss, and explain your reasoning.                                                                      (20Marks)                                                                                                                                                                                                                                                                                              

Type of assignment: Report

Subject: Finance

pages: 9/2475

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