Stock-Trak Report

Chen Huang

Ghulam Sarwar

FIN 435

11 April 2019

Investment Policy Statement (IPS)

This portfolio is designed for investor who around 65-year-old. In general, long-term investment performance depends on asset performance. Historically, stock assets have provided higher returns and greater volatility. Fixed assets generally produce lower returns, are less relevant to stocks, and are less risky. Fixed-income securities will account for 60% of the total portfolio, 15% of which will be invested in short-term securities to obtain liquidity and security. The remaining 25% will be invested in similar risky as the S&P 500 index. Use Benchmark to measure the portfolio. It is recommended to diversify across assets geography and scale. According to the client's conservative risk profile, the portfolio asset allocation will be 60% stocks 30% bonds 10% cash. At least annually, the overall portfolio will be monitored to consider whether the initial target is in place or has changed. Clients and consultants will work together to determine the direction of the future portfolio.