rick-rothenberg-jBcnGgNu8FM-unsplash (1).jpg

Wealth Manager Simulation

The Wealth Manager Simulation immerses students and professionals in the role of a portfolio manager for a diverse set of clients, making real-time investment decisions, managing risk, and communicating with clients.

Wealth Manager Simulation Overview

In the Wealth Manager Simulation, participants step into the shoes of a new associate at a prestigious wealth management firm. They are entrusted with a portfolio of virtual clients, each with unique financial circumstances, risk tolerances, investment horizons, and life goals. From young professionals saving for their first home to retirees seeking stable income, participants must tailor their investment strategies accordingly.

The simulation runs over multiple compressed "years," with market conditions evolving based on a sophisticated economic engine. Participants must conduct research, allocate assets across equities, bonds, ETFs, and mutual funds, and then actively manage the portfolios.

A key differentiator is the client communication module, where participants must justify their performance and strategic choices, preparing them for the critical soft skills required in the field. Success is measured not just by portfolio returns, but by achieving each client's specific objectives and maintaining their satisfaction.

Wealth Manager Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Modern Portfolio Theory and Asset Allocation
Risk Profiling and Tolerance Assessment
Investment Policy Statement (IPS) Development
Equity and Fixed-Income Analysis
Mutual Fund and ETF Selection
Behavioral Finance Biases
Performance Measurement and Attribution
Client Relationship Management and Communication

Gameflow

What Participants Do

In the simulation, participants will:

Conduct initial meetings to understand client goals, time horizons, and risk appetite.
Create customized Investment Policy Statements for each client.
Execute trades across a wide universe of stocks, bonds, and funds to implement strategic and tactical asset allocation.
Analyze real-time market news, economic indicators, and corporate events to inform decisions.
Adjust holdings periodically to maintain target asset allocation and manage risk.
Write periodic performance updates and respond to client inquiries and concerns.
Use dashboard analytics to evaluate returns, risk metrics, and benchmark performance.

Learning Objectives

By the end of the simulation, participants will be able to:

Construct customized, multi-asset investment portfolios aligned with specific client profiles and IPS.
Evaluate the risk-return characteristics of various securities and their role within a broader portfolio.
Implement strategic asset allocation and tactical adjustments based on changing market conditions.
Measure and interpret portfolio performance using industry-standard metrics and attribution analysis.
Develop strong client communication skills to explain strategy, report performance, and manage expectations during market volatility.
Synthesize concepts from finance, economics, and behavioral psychology into a coherent wealth management practice.

How the Wealth Manager Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Setup Participants are introduced to their firm and assigned their book of virtual clients.

2. Research and Planning They access client profiles, market data, and security screeners to develop their initial strategy and IPS.

3. Trading and Management In a series of rounds (each representing a quarter or year), participants execute trades, rebalance portfolios, and react to market events.

4. Client Interaction At key intervals, participants receive messages from their clients and must respond appropriately to maintain satisfaction.

5. Reporting and Analysis After each round, a detailed performance report is generated, showing returns vs. benchmarks and client satisfaction scores.

6. Debrief The simulation concludes with a comprehensive debriefing session, allowing participants and the instructor to review decisions, outcomes, and key takeaways.

Frequently Asked Questions

Who is the Wealth Manager Simulation designed for? It is ideal for undergraduate and graduate students in finance, MBA candidates, and professionals in banking or finance seeking to transition into wealth management and private banking roles.
What are the technical requirements to run the simulation? Our simulation is cloud-based and requires only a modern web browser (like Chrome, Firefox, or Safari) and a stable internet connection. No specialized software is needed.
Can the simulation be customized for our specific curriculum? Absolutely. Instructors can adjust parameters such as simulation duration, starting capital, client profiles, market volatility, and available securities to fit their course learning objectives.
What is the ideal team size for participants? The simulation works well with individuals or small teams of 2-3 participants. Teams encourage collaboration and debate over investment strategy, mirroring a real-world advisory environment.
How long does a typical simulation last? A standard simulation runs between 4 to 8 rounds, which can be completed intensively over a weekend or spread across a full academic semester.
Do participants need prior trading experience? No prior experience is necessary. The simulation includes tutorial materials and guides. It is designed to apply theoretical knowledge learned in the classroom to a practical, risk-free environment.
How does the simulation incorporate real-world market dynamics? Our proprietary economic engine generates realistic market movements, interest rate changes, and economic news cycles that directly impact the prices of all simulated securities.
How is performance graded in the simulation? Performance is multi-faceted. The grading algorithm considers risk-adjusted returns, adherence to each client's IPS, achievement of specific client goals, and client satisfaction scores from communication modules.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Performance against relevant benchmarks, and progress toward each client's specific financial goals.
Evaluation of how well the participant adhered to the client's IPS, including asset allocation limits and risk constraints.
Penalties are applied for excessive risk-taking or strategy drift.
Ability to communicate effectively, manage expectations, and provide sound rationales for their decisions.
Ability to adapt and revise valuations in light of news shocks or changes.