SFU-009 - Module 3 (Simulation)

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Materials Needed

Public access to financial information

Computer with internet access

Spreadsheet software

Worksheet

You'll need the worksheet to complete this module and submit your work!The workbook is available to fill in alongside the steps, you'll just need to download it once you've answered everything

websites like FT, Reuters, or Bloomberg

like Microsoft Excel or Google Sheets

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Simulation

As a reminder, below are the steps we're going to take in order to complete the simulation. These timings are simply there for guidance, so there is no pressure to finish before or after the time is up!

If you're ready, click the arrow button on the side of the screen to get going!

Preparation Task (20 minutes)

Research Task (30 minutes)

Analysis Task (30 minutes)

Create Task (20 minutes)

Document and Present (15 minutes)

Reflection Task (15 minutes)

Expected Outcome

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Preparation task (20 minutes):

As you complete this simulation, you are an Investment Manager working within a major wealth management firm, such as Goldman Sachs or Morgan Stanley. The tasks you’re about to complete will challenge you to carry out the work expected of an Investment Manager in these workplaces. Objective: Familiarise yourself with the provided investor profile.

Step one: Read the provided investor profile, making note of any important details.

Investor Profile

Personal Information

Financial Objectives

Risk Tolerance

Constraints & Considerations

Investment Vehicles Used

Future Plans & Adjustments

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Research task (30 minutes):

Having a comprehensive understanding of investment options allows you to provide reliable advice to your clients. Research investment options suitable for your investor profile to build your understanding. Objective: Research investment options suitable for your investor profile. Step one: Research potential investment options, including:

• Equity
• Bond
• Funds
• Real estate
• Derivative instruments
• Any other suitable investment options

Remember to take note of their risk-return trade-off, liquidity, time horizon and other constraints mentioned in the investor profile.

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Analysis task (30 minutes):

Use your understanding of suitable investment options to assess the most appropriate choices. Remember the importance of providing tailored recommendations, relying on your understanding of the investment market and your client's. Objective: Analyse investment options and divide the investment into appropriate assets.

Step one: Divide the investment into the appropriate assets using Excel or Google Sheets. Consider the asset allocation, diversification to reduce risk, and potential return for reaching the financial objectives. You can use this template to structure your spreadsheet:

Click to zoom in!

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Create task (20 minutes):

As an Investment Manager, it’s important to compile your recommendations in a well-informed and tailored manner, drawing both on market insights and an in-depth understanding of the client’s needs. Objective: Create an investment advisory document.

Step one: Create an investment advisory document based on your research and analysis. If you’re not sure where to start, try breaking down the document into:

• Introduction: build an understanding of the client profile
• Chosen investments, with reasons why they’re suitable
• Breakdown of asset allocation
• Risk analysis
• Project performance

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Document & present (15 minutes):

Being an Investment Manager requires communicating with various individuals - from colleagues and clients to investors and stakeholders. Effectively presenting information to diverse audiences is a crucial skill in this career. Objective: Compile your investment advisory document into a presentation.

Step one: Prepare a short presentation based on your investment advisory document. Highlight key points like the investment breakdown, projected outcomes, and how it aligns with the client's goals. Remember, this presentation could be shown to your client, prospective clients or stakeholders at your organisation. So, make sure it’s accessible to diverse audiences.

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Reflection task (15 minutes):

Reflection ensures constant growth in your career by assessing past experiences and identifying opportunities for improvement. Objective: Reflect on the process of Investment Advisory.

Step one: Answer the following reflection questions:

• Which task were you most successful in, and why?
• What challenges did you face during this simulation, and how did you overcome them?
• How can the skills you’ve used in this simulation be applied to other careers in Finance?

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Expected Outcome

By the end of this activity, you will have developed a comprehensive investment advisory based on a fictional client's profile. You will practise your research skills, analysis of financial instruments, decision-making in terms of asset allocation, and articulation skills in conveying your recommendations to your client. This simulation will provide you with hands-on experience in the process of investment advisory and preparation for a career as an Investment Advisor.

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Future Plans & Adjustments

• Transition towards more conservative asset allocation by age 60.
• Further expansion of international real estate holdings.
• Increase allocations to sustainable and ESG investments.
• Set up a private foundation to fund global education initiatives.
• Explore opportunities in AI-driven financial technologies and biotech.

Risk Tolerance

• Moderate to High – Willing to take calculated risks, particularly in private equity, hedge funds, and alternative assets.
• Diversification Priority – Ensures exposure across multiple asset classes to mitigate volatility.
• Market Downturn Tolerance – Comfortable with short-term market fluctuations due to a long investment horizon and high liquidity.

Investment Vehicles Used

• Family Office & Trusts – Structured to manage assets and optimize tax strategies.
• Hedge Funds & Private Equity – Diversified portfolio of high-yield alternative investments.
• Direct Real Estate Holdings – Luxury residential and commercial real estate investments.
• Donor-Advised Funds & Foundations – Vehicles for structured philanthropic giving.
• Cryptocurrency & Digital Assets – Small allocation for exposure to blockchain and Web3 innovation.

Financial Objectives

1. Wealth Preservation & Growth – Maintaining multi-generational wealth while achieving steady capital appreciation.
2. Retirement Planning – Ensuring financial security and tax-efficient wealth distribution for retirement at age 60.
3. Legacy & Estate Planning – Structuring assets to minimize estate taxes and support heirs through trusts and foundations.
4. Philanthropy & Impact Investing – Expanding contributions to charitable foundations, focusing on education and healthcare.
5. Private Business Investments – Allocating capital to private equity, venture capital, and direct investments in emerging industries.

Constraints & Considerations

• Liquidity Needs: Maintains at least $5 million in liquid assets for business opportunities and personal lifestyle.
• Tax Optimisation: Utilises offshore accounts, tax-efficient trusts, and complex estate planning strategies.
• Regulatory & Compliance: Works closely with tax attorneys and wealth managers to ensure legal compliance in international investments.
• Succession Planning: Has structured family trusts and advisory teams managing generational wealth transition.
• Philanthropic Commitments: Endows scholarships and funds major healthcare research projects.

Personal Information

• Name: Alexander Whitmore
• Age: 52
• Marital Status: Married with three children (ages 16, 18, and 22)
• Occupation: Founder & CEO of a private equity firm
• Annual Income: $5.2 million
• Net Worth: $85 million
• Primary Residence: New York City, NY (owns multiple properties globally)