Introduction

This is a course on the theory and practice of wealth management. It covers the building blocks and fundamental theoretical and practical aspects of investment management and financial planning for individual investors as well as applications that put the former to use by practitioners in the industry. Students will be exposed to some of the information, tools, and analysis available to investment management professionals today.

Prerequisites: One of the following courses, or by instructor’s permission: Private Equity & Venture Capital (FIN 626), or Investment Management (FIN 627), or Portfolio Theory and Applications (FE 630), or Derivatives (FIN 628), or Pricing and Hedging (FE 620), or Fixed Income (FIN 629).

Course Objective

This course will teach theoretical and practical aspects of private wealth management – core topics to be explored include the following, among others
• Client acquisition and relationship management
• Risk profiling for private investors, risk tolerance questionnaires
• Investment policy statement preparation and on-going maintenance
• Goals-based portfolio management
• The psychology of investing
• Risk management for private investors
• Ethics, compliance, and regulatory aspects of private wealth management

Teamwork: Students will develop the skill of working together and taking on roles in advisor teams to manage client relationships and investment portfolios throughout the course.
Use of Technology: Students will rely on technology to manage client investment portfolios. They will need to utilize data sources and software available at the Hanlon Labs.
Analytical Problem-Solving Skills: Students participate in a team project, which promotes
analytic and creative thinking as they learn how to construct and manage client portfolios.

Course Outcomes

Upon successful completion of this course, students will be able to:

1. Master the framework of building and managing investor wealth.
2. Apply a systematic process for constructing investment portfolios that help clients achieve their life goals.
3. Understanding how investment analysis and management, and behavioral finance are synthesized in the practice of wealth management
4. View the investor-client relationship as an ongoing process, which ensures that the client’s wealth is managed such that the client’s life goals remain on track to be served

Textbook

• Required Text: Private Wealth Management: The Complete Reference for the Personal Financial Planner, by G. Victor Hallman, and Jerry S. Rosenbloom, 9th Edition, McGraw- Hill, ISBN: 978-0071840163. HR
• Other required readings: White papers and other industry publications
• Additional Materials: Topical reports to be provided during the semester

Grading Policies