Description
The report is based on a case study on a women called Sophie, who is an investment banker. The word count is 2000 words (can go over 10% more). In this report, you’re a asset/wealth manager and we are to advise her on the feasibility of the purchase of their property
Sophie is a 23-year-old investment banker working in a mid-size investment bank in London.
She earns a very respectable pre-tax income of £80,000 per annum. Sophie is currently.
single and living by herself in a one-bedroom flat paying £2,000 pm. She is tired of forking.
out monthly rents to her landlord and wishes to own a property of her own. Sophie is also a
dealer with her own portfolio investments valued at £200,000 (market value) consisting of
£100,000 short-term investments due to mature at the end of May 2024 and the rests in
long-term investments due to mature in 2050. Sophie’s occupational pension plan (which is
defined contribution) is worth £75,000. She has a savings income of £100,000 and has.
received dividends in the sum of £15,000 this year.
Sophie is thinking of purchasing a 5-bedroom house worth £750,000 with a 25-year.
mortgage outside of London in Oxford, Oxfordshire (she has informed you that
should it be necessary, she is willing to extend the mortgage to the maximum of 31 years).
It is imperative that Sophie acquires this property (i.e. be able to finish with all the necessary
paperwork by 31 July 2023 at the latest!). You can assume that the ‘prevailing interest rates.
will remain the same until that time.
Consider the following questions:
a) As her wealth manager, what further information would you require from Sophie with
respect to her investment objectives and constraints? (15 marks)
b) How would you assess Sophie’s risk appetite in the light of Sophie’s willingness to
consider riskier investments? (15 marks)
c) What vehicles would you recommend to Sophie to optimise her financial
resources? Explain fully what options Sophie has and what your recommendations are.
(50 marks) please use relevant calculations to support this
d) Explain how Sophie can assess the performance of her investments. (10 marks)
10 marks for presentation.
Credit will be given for effective planning, analytical ability, depth of analysis, awareness of
the strengths and limitations of the information produced, logical flow of ideas, relevance,
and well written presentation. Students must demonstrate relevant skills in utilising the
relevant database to undertake research or conduct an exploratory study in banking.
Coursework criteria: assignment weighting
Evidence of extensive and appropriate reading 20
Evidence of understanding the key issues 40
Critical reflection and relation of theory to practice 10
Relevance of materials and appropriate referencing 20
Overall presentation 10
Make sure the following objectives are met:
Propose an investment strategy for clients and modify this as necessary to ensure it meets their specific needs.
Differentiate between the needs of different clients and compare different investment opportunities to determine the most appropriate ones for each different type of client.
Assess the features and benefits of different investment products and choose the most appropriate ones for each different type of clients.
in terms of theories include relevant theories like modern portfolio theory, capital asset pricing model (capm), efficient market hypothesis’s, time value of money, risk tolerance and risk capacity, asset allocation strategies, tax efficient strategies
