Stock-Trak Report

Investment Policy Statement (IPS)

This portfolio is designed for an individual investor who is 22 years old and has a portfolio with the aim of maximizing return. The investor has a moderately aggressive tolerance for risk. The investment is using an appropriate variety set of objectives and goals to be attained through the investment of the portfolio’s assets. The primary goal entails long term growth focused on price appreciation, whereas secondary objective includes total return strategy through interest and dividend income. For worst case scenario, one year’s loss limit should be controlled within 20%.

The portfolio will reach an annual total return of 10% based on a 3-year statistical data of return. The portfolio with allocation of assets is diversified with different classes of financial assets to reduce business risk. The portfolio has average 1.2 which indicates the stocks’ price swings more wildly than most stocks. Financial assets include 80% stock, 10% bonds, and 10% cash. Other portfolio assets include mutual funds, options, futures, equities, and exchange-traded funds. The portfolio will be rebalanced annually at the beginning of each financial year when an asset becomes inefficient relative to its peers. The portfolio will be rebalanced annually at the beginning of each financial year when an asset becomes inefficient relative to its peers. The benchmarking peers include 25% Barclays Agg Total Bond Market TR, 5% three-month T-bill, and 70% S & P 500 Index TR.

In a nutshell, the investment portfolio is diversified to achieve the financial goals of the moderately aggressive risk-tolerant investor. The investor aims to maximize return through mutual funds, options, futures, equities, and exchange-traded funds. The portfolio manager is going to rebalance portfolio annually at the beginning of each financial year when an asset becomes inefficient relative to its peers.