Portfolio Tournament

Stok-Trak Portfolio

Investment Policy Statement (IPS)

Investment objective:

The Policy is designed for a client who is 25 years old who holds a steady job, is a valued employee, and has adequate insurance coverage. The goal is to build a retirement fund. The strategy is to carry moderate to high amount of risk because the income stream from his job will grow overtime. Low risk strategy is inappropriate for his retirement fund goal. Total return or capital appreciation objective would be most appropriate. Invest funds in a variety of moderate to high risk investments. The average risk of portfolio should exceed risk of a broad stock market index, such as the NYSE.

The Portfolio will include:

· Domestic equity which consists of 65% of total portfolio allocated to different companies (large or small) within many sector.

· Mutual funds with 27% of portfolio.

· Remaining funds of 8% should be invested in corporate bonds.