Project

Wealth planning and asset allocation for a wealthy family

MFIN7030 Group project & presentation (3_28_23)

A big family with three generations. The grandfather Benyu Wang is 76 years old, who
owns an export-oriented garment manufacturing company. Benyu owns the majority
shares of the company. The company’s revenue was about USD 100 mn per year in
2021 mainly exporting to the US, EU and ASEAN countries. The company has been
facing increasing challenges including rising competition of international fast fashion
brands, low-cost neighbor countries, geopolitical pressure, etc. Benyu has
accumulated a portfolio under his name worth of USD 200 mn mainly cash, some
stocks and some properties.

Benyu has two sons. The elder son, Chuan Wang (from his first wife, dead), is 53 years
old and is in charge of managing company. The younger son, Cheng Wang, is 41 years
old and is also involved in family business but often disagrees with Chuan. Chuan
emphasizes quality of garments, while Cheng prefers fast fashion.

Chuan has 1 son (DD1) and 1 daughter (DS1). DD1 is 27 years old, master in finance,
interested in investment, mainly PE. DS1 is 23 years old, college graduate majored in
Art. Neither of them has interest in family business. Cheng also has 2 kids, both are
boys and still in college.

Project requirements:
Students need apply knowledge learned from the class to work out a plan to help the
family well preserve and grow their wealth and meet diversified needs of the family.
1. Students need first identify needs of each family member and list clearly in your
PPT, which will be the basic assumptions of your story. You could add your own
features of the family and add family members to make story more interesting.
2. You need set a wealth planning framework, for example, a trust, to preserve the
wealth and pass it to decedents. You could identify the components of the USD
200 mn portfolio.
3. You need structure an asset allocation plan to make the portfolio generate positive
returns. Please use SAA and TAA strategies.