Portfolio Tournament 8

Investment policy statement:

The policy is designed for a young client who holds a steady job, is valued employee, has adequate insurance coverage. The goal of investment is to build retirement fund. Investment objective: the goal of investment is to build retirement fund. The strategy is to carry moderate to high amount of risk among different companies (small, large capital companies) within different sectors (basic materials. Healthcare. utilities….).

Benchmark: invest funds in a variety of low to moderate risk investments and invest in some risky assets to be able to reach the average return that exceeds or equals to the return of S&P 500. The average beta of portfolio should exceed the average beta of the market “S&P risk”.

Assets of portfolio will be allocated as follows:

i. 30% will be invested on Mutual funds,

ii. domestic equity should consist of 70% of total portfolio invested in a broad of stocks in different sectors.