2. (10 points) You are a Portfolio Manager and you are about to accept the last 2 investors into your portfolio (fund) b

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2. (10 points) You are a Portfolio Manager and you are about to
accept the last 2 investors into your portfolio (fund) before you
close the fund to new investors. You are looking at the investor
interest and you are about to interview 2 investors from the
following 4 candidates. One of your goals in the interview is to
assess investors Risk Appetite or Risk Tolerance or Risk Aversion
Factor A - process known as KYC. Provide a minimum of 3
questions/answers per investor that will allow you to assess this
investor's A level. Select 2 out the 4 investors below. You can
choose between
a) An Ultra High Net Worth (UHNW) Individual who is heading a
FAMILY OFFICE
b) An Insurance Company that invests in order to meet its
contractual responsibilities towards insureds/policy owners
c) A Bank that invests the deposits of its clients
d) An aspiring Private Equity (PE) Fund with a solid 5 years record
of investments for UHNW investors. The PE Fund is aspiring to
attract institutional client money (i.e. Pension Funds,
Endownments, Insurance and Mutual Funds) and become a recognized
marquee name in Investment Management.
3. (5 points) For each of the 2 investors you interviewed in
Question 3, build a portfolio by allocating a percentage of this
investor's capital (i.e. 10% in Cash, 25% in Real Estate, etc).
Select asset classes from the below list and justify your
allocation (needs to add to 100%) for each of the 2
investors.
Your client portfolio should have an allocation to:
a) Bonds (Government, Corporate, Municipals)
b) Stocks (Single names, Indices and ETFs)
c) Commodities (Metals of all types, Grains and food, Oil, Gas,
Coal)
d) Real Assets (i.e Infrastructure Projects such as Ports, Bridges,
Farm Land, Timber, Art Collections, Intellectual
Property-Royalties, Pattents, Jewelry, etc)
e) Real Estate (Commercial, Residential)
f) Cryptocurrencies and Coins
g) Alternative Investments (Hedge Funds, Venture Investments in
Startups, Private Equity Funds of all investment strategies)
h) Cash and cash equivalents