Wealth management
The scenario
You are advising an investor who has BHD100,000 (one hundred thousand Bahraini Dinars) to
invest in asset classes on the Bahrain Bourse and other Bahrain-based investment vehicles.
Clicking the Services and Products tab on the Bahrain Bourse home page here:
https://www.bahrainbourse.com/, will show that there are five asset classes in which
investments can be made through the Bourse. These asset classes are:
(1) Equities
(2) REITs(Real Estate Investment Trusts)
(3) Mutual Funds
(4) Bonds and Sukuk
(5) Treasury Bills
Further selecting one of these from the tab will lead you to a page with more details on that
particular asset class.
To construct an investment portfolio for your client, you will need to consider all the matters
that a professional investment adviser would be expected to consider; the matters that have
been covered in the chapters of the course textbook. Please remember that the focus is on
constructing a portfolio that is appropriate for the client you have created for yourself. This
means that there is no right or wrong answer, except that the portfolio you have constructed
suits the client you have created.
Required:
Using investment asset classes on the Bahrain Bourse and other investments in Bahrain,
construct an investment portfolio which is appropriate for your client.
This is an assessment that should meet LO 1 to LO 4 below. In the process of constructing your
portfolio, show that you meet these learning outcomes.
Appropriate references must be provided to support facts and decisions taken. These
references will be further evidence of your meeting the learning outcomes.Learning Outcomes
Upon completion of this course, students should be able to:
1. Demonstrate a deep understanding of financial market operations and make more informed
risk/reward decisions. (LO 1)
2. Invest effectively considering risk/return parameters. (LO 2)
3. Demonstrate a deep understand of operational modes of different investment vehicles:
mutual funds, private equity, hedge funds, etc. (LO 3)
4. Invest more profitably: increase risk-adjusted investment returns, minimize investment
losses, and operate more effectively financially overall. (LO 4)