A83067 Managing Risk in Family Office and Wealth Management Firm

Scuola di Economia e Management
Academic Year 2019/20 Second Semester

Docente TitolareEnrico Vitali
Office"Torre" (main tower), 7th floor

Learning Objectives

The modern concept of family office has its roots in the 19th century, thanks to the insights of people such as art collector JP Morgan and the Rockfellers, who founded their own family office to manage their family assets.

Today, family offices – different kind of organizations which manage large private fortunes -- are among the most active and fast-growing segments of the wealth management industry, with over 10,000 firms (as estimated by EY in its 2016 EY Family Office Guide) in a market worth 5.1 trillion USD (Source: UBS Group/ Pricewaterhouse Coopers).

The purpose of this course is to give participants a good understanding of this industry’s background and to make them familiar with notions such as risk profiling, investment process and consolidation of complex portfolios pertaining to the same family. In other words, we aim to give participants an edge in terms of knowledge.

For further information, please do get in touch at the following email address: familyofficecourse@liuc.it

Learning targets

Course Content

Session 1 (3h): Family office industry, services, and activity: overview of the industry of FO, its positioning within the wealth management industry and its main activities. How FOs can be independent and transparent, while offering a tailor-made service.

Session 2 (3h): Client risk profiling: the MIFID framework and its impact on client’s risk profiling, how to combine them. In-class risk profiling simulation.

Session 3 (3h): Investment process: theory and asset allocation: main steps of the investment process, the investment committee. Simulation of an investment committee and definition of the asset allocation (both strategical and tactical) in a roundtable with the class.

Session 4 (3h): Investment process: portfolio consolidation and risk management: implementation of the asset allocation in the portfolio, the role of bond, stock and fund picking. Performance measurement and risk management, how the latter can reframe the portfolio. Portfolio audit, consolidation of portfolios.

Session 5 (4h): Portfolio simulation game and course conclusion: we will involve the class in a simulation game, asking gropus of students to build their own portfolio within the above-defined framework. The class will end with a note on the manager-related risk.

Course Delivery

Traditional class lectures with simulation games (risk profiling, investment committee and portfolio simulation).

Course Evaluation

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