Career Development and Lifestyle Planning



|[pic] |Wealth Management |

| |2 Credits |

| | |

| |BU.232.730.xx |

| |Class Day/Time & Start/End date |

| | |

| |Semester |

| |Class Location |

Instructor

Full Name

Contact Information

Phone Number: (###) ###-####

E-mail Address:

Office Hours

Day/s Times

Required Text and Learning Materials

Dalton, Michael A. and James F. Dalton (2011), Personal Financial Planning Theory and Practice, (7th edition ISBN 13: 978-1-4277-3585-0). Kaplan, Inc.

All necessary supplementary reading materials will be made available on Blackboard.

Reading List

Arnott, Rob, (2012), “The Glidepath Illusion,” Fundaments, Research Affiliates, September.

Asness, Clifford S., Moskowitz, Tobias J., and Pedersen, Lasse H. (2009), “Value and Momentum Everywhere,” NBER/AQR.

Gross, Bill, (2012), “Cult Figures,” PIMCO Investment Outlook, August.

Humphreys, Joshua et al, (2010), “Educational Endowments and the Financial Crisis: Social Costs and Systemic Risks in the Shadow Banking System,” Center for Social Philanthropy Tellus Institute.

Hurst, Brian, Bryan W. Johnson, and Yao Hua Ooi, (2010), “Understanding Risk Parity,” AQR Capital Management.

Hurst, Brian, Yao Hua Ooi, and Lasse H. Pedersen, (2012), “A Century of Evidence on Trend-Following Investing,” AQR Capital Management.

Keating, Con and William F. Shadwick, (2002), “An Introduction to Omega,” The Finance Development Centre Limited.

Liew, Jim, (2011), “Chapter 37: Equity Hedge Fund Strategies,” CAIA Level II Book.

Blackboard Site

A Blackboard course site is set up for this course. Each student is expected to check the site throughout the semester as Blackboard will be the primary venue for outside classroom communications between the instructors and the students. Students can access the course site at . Support for Blackboard is available at 1-866-669-6138.

Course Evaluation

As a research and learning community, the Carey Business School is committed to continuous improvement. The faculty strongly encourages students to provide complete and honest feedback for this course. Please take this activity seriously because we depend on your feedback to help us improve so you and your colleagues will benefit. Information on how to complete the evaluation will be provided towards the end of the course.

Disability Services

Johns Hopkins University and the Carey Business School are committed to making all academic programs, support services, and facilities accessible. To determine eligibility for accommodations, please contact the Carey Disability Services Office at time of admission and allow at least four weeks prior to the beginning of the first class meeting. Students should contact Rachel Pickett in the Disability Services office by phone at 410-234-9243, by fax at 443-529-1552, or email: carey.disability@jhu.edu.

Important Academic Policies and Services

• Honor Code

• Statement of Diversity and Inclusion

• Student Success Center

• Inclement Weather Policy

Students are strongly encouraged to consult the Johns Hopkins Carey Business School Student Handbook and Academic Catalog and the School website for detailed information regarding the above items.

Course Description

This course is designed for students interested in pursuing a career in Wealth Management. The course covers strategies for coordinating financial planning for individuals/high net worth to institutional investors/sovereign wealth funds. Students will become skilled at identifying and dealing with client’s goals, needs, and problems, as well as becoming well-versed in the critical areas of investment allocation, risk management, and investment planning. This course is designed to address the importance of taxation, retirement, capital accumulation and investment planning for prudent investors.

Wealth Management broadly defined consists of investment advisory services made available to clients. Clients may include: retail investors, high net-worth individuals, family offices, institutional investors, pension funds, sovereign wealth funds, etc. The fiduciary responsibilities inherent in Wealth Management will be stressed throughout this course. Moreover, students should gain a deep understanding of the relevant issues when recommending investments to potential clients. The course will train students how to optimally manage investments in light of the many known and unknown risks and constraints. Students will learn how to better position their advice by establishing trust and understanding the client’s needs.

This course will not only cover the most recent topics currently being debated within the Wealth Management industry but also review the prior academic knowledge regarding Wealth Management. The goal will be to obtain a keen understanding of the arguments on the opposing sides of the current and past issues in Wealth Management.

Prerequisite: BU.231.620 Corporate Finance

Course Overview

Wealth Management is a rapidly growing industry birthed from the investment advisory discipline. This discipline consists of bespoke financial planning, asset allocation, portfolio management, risk management, investment selection as well as many other financial services. In this course we examine recent developments within the Wealth Management industry with a hands-on approach. In particular we delve into the recent development of the Endowment Model, Risk-Parity Methodology, and Holistic Approach to Wealth Management.

The course goes beyond traditional personal financial texts by showing students how to do actual implement financial planning programs and how to integrate the rich theory of finance with real-world market frictions.

Student Learning Objectives for This Course

All Carey graduates are expected to demonstrate competence on four Learning Goals, operationalized in eight Learning Objectives. These learning goals and objectives are supported by the courses Carey offers. For a complete list of Carey learning goals and objectives, please refer to the website .

|L.O. # |Student Learning Objectives |Corresponding Carey Learning Objective |

|1 |Gain knowledge of the Global Wealth Management |Understand from a historical perspective the current developments of this|

| |industry |industry |

|2 |Gain factual knowledge of all aspects of the |Understand typical terminology, classifications, methods, and trends |

| |financial planning process and the impact of | |

| |inflation, interest and taxes on financial | |

| |decision-making | |

|3 |Construct and analyze personal financial |Construct and analyze personal financial statements |

| |statements. | |

|4 |Traditional assets - historical behavior |Learn the historical performances of traditional assets classes. |

| | |Understand effects of inflation. |

|5 |Understand fiduciary responsibilities |Identify and acknowledge potential conflicts of interest in regards to |

| | |advisory work |

|6 |Non-traditional investments |Acquire product, performance, and fundamental knowledge of |

| | |non-traditional investments |

|7 |Benchmarks |Examine the practical benefits of benchmarks. Performance attribution. |

|8 |Identify the need for and suitability of life, |Identify the need for and suitability of life, health, disability and |

| |health, disability and property insurance |property insurance |

|9 |Learn to apply course material to establish |Learn to apply course material to improve rational thinking, problem |

| |investment policies that are consistent with client|solving and improved decision-making |

| |goals and objectives | |

Attendance Policy

Participation is part of your course grade. Students are expected to attend all scheduled class sessions. Failure to attend class will result in an inability to achieve the objectives of the course. Full attendance and active participation are required for you to succeed in this course.

• The structure of this class makes your individual study and preparation outside the class very important.

• Reading the assigned chapters/handouts before class will greatly assist your understanding of the lecture.

Evaluation and Grading

The following indicates the basis for computing course grades and the relative weight of each assignment.

|Assignment |Learning Outcome |Weight |

|Homework 1 |1, 2, 3, 4, 5, 6 |10% |

|Homework 2 |1, 2, 3, 4, 5, 6 |10% |

|Homework 3 (in class presentation) |1, 2, 3, 4, 5, 6 |10% |

|Class Participation |1, 2, 3, 4, 5, 6 |20% |

|Final Exam - Comprehensive |1, 2, 3, 4, 5, 6 |50% |

Exams and assignments are designed so that students who obtain a high grade have clearly demonstrated their extra effort and interest in the subject, through their own reading and additional practice. Without a substantial amount of practice, it may be difficult to succeed in this course.

All students are expected to view the Carey Business School Honor Code/Code of Conduct tutorial and submit their pledge online.  Students who fail to complete and submit the pledge will have a registrar’s hold on their account.   Please contact the student services office via email carey.students@jhu.edu if you have any questions.

Students are not allowed to use any electronic devices during in-class tests. Calculators will be provided if the instructor requires them for test taking. Students must seek permission from the instructor to leave the classroom during an in-class test. Test scripts must not be removed from the classroom during the test.

Makeup Exam Policy

Makeup exams may be available only to students who have a legitimate excuse for missing an exam such as illness, death in the immediate family, etc. If a student knows in advance that she/he must miss an exam, she/he must contact the instructor in advance, and bring documentation to support the anticipated absence. If a student misses an exam unexpectedly because of last minute illness or accident, the student should contact the instructor when she/he is available, with documentation of the situation.

Important Notes about Grading Policy:

The grade of A is reserved for those who demonstrate extraordinarily excellent performance. The grade of A- is awarded only for excellent performance. The grade for good performance in this course is a B+/B. The grades of D+, D, and D- are not awarded at the graduate level.

Please refer to the Carey Business School Student Handbook for grade appeal information

Tentative Course Calendar*

*The instructors reserve the right to alter course content and/or adjust the pace to accommodate class progress. Students are responsible for keeping up with all adjustments to the course calendar.

|Class |Content |Reading |Assignments |

| | | | |

|1 |Introduction |Chapters 1, 2, 3, 6 |HWK1 Assigned |

| |Fiduciary Responsibilities |Capgemini Reports | |

| |Current Global Wealth Dynamics | | |

| |Potential Clients | | |

| |Understanding the External Environment | | |

|2 |Personal Financial Statements |Chapters 4, 5, 7, 13 | |

| |Establishing Financial Direction | | |

| |Income Tax Planning | | |

| |Education Funding | | |

|3 |Introduction to Insurance and Risk Management |Chapters 8, 9, 10, 11 |HWK1 Due |

| |Managing Life, Health & Disability Risks | |HWK2 Assigned |

| |Personal Property and Liability | | |

| |Social Security | | |

|4 |Long-Term Perspective on Traditional Assets |Siegel’s Chapters 1-2 | |

| |Endowment Model |Supplements | |

| |Risk Parity | | |

| |Permanent Portfolio | | |

|5 |New Investments Approaches |Supplements |HWK2 Due |

| |Hedge Funds | |HWK3 Assigned |

| |Private Equity | | |

| |Real Estate | | |

| |Real Assets | | |

|6 |Operational Due Diligences |Supplements | |

|7 |Retirement Planning |Chapters 15, 16, 18 | HWK3 Due |

| |Basic Retirement Plans | |(in class presentation) |

| |Practice of Financial Planning | | |

|8 |Comprehensive Final Exam |

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Copyright Statement

Unless explicitly allowed by the instructor, course materials, class discussions, and examinations are created for and expected to be used by class participants only.  The recording and rebroadcasting of such material, by any means, is forbidden.  Violations are subject to sanctions under the Honor Code.

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