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INVESTMENT PORTFOLIO PAPER – SAMPLE THIS ATTACHMENT INCLUDES THE SAMPLE OF THE INVESTMENT POLICY (IT CANNOT BE COPIED-OTHERWISE THE GRADE WILL BE 0 :)The project of investment portfolio with the description of the portfolio being constructed and the methodology for asset selection, to include return objectives, risk tolerance, time frame, applicable restrictions and diversification objectives, the breakdown is as follows: The grade breakdown is as follows: Introduction to the topic of the investment with your choice of securities: WHAT I EXPECT- THE INVESTMENT TOPIC MUST BE WELL INTRODUCED- a well structured introduction as it would explain the whole scenario for your investment project.Structure of the portfolio investment policy (the main body) includes:a) Description of the portfolio: b) Methodology for asset selection which must include the following:i- return objectives: ii- risk tolerance: iii- time frame: iv- applicable restrictions: v- diversification objectives: Conclusion/References: FINC 340Portfolio Description PaperSAMPLE 2OverviewSustaining a high quality standard of living in this day and age requires a tremendous amount of assets to subsidize an individual’s retirement from the labor force. With this knowledge, many individual investors leverage retirement accounts of various types to sustain them, which must be actively managed in order to maximize their return in the long run. The overall objective of this project shall pertain to the management of a hypothetical individual investor’s retirement account. Unfortunately, by it’s very nature, some requirements & constraints of the portfolio will shift over time, most notably coupled with how close the hypothetical individual investor is to their impending retirement. For the purposes of this paper, the following assumptions are hereby defined: Assumption 1The “start” point for this hypothetical individual investor’s retirement portfolio shall be at age 22. Assumption 2The “end” point for this hypothetical individual investor’s retirement portfolio shall be at age 67Assumption 3The adjustment of requirements & constraints to this hypothetical individual investor’s retirement portfolio shall be broken up into the following three defined stages:Growth StageSustainment StageWithdrawal StageAssumption 4The hypothetical individual investor expects to live to the age of 85Assumption 5The hypothetical individual investor expects to require $150,000 per year in dividends for the 18 years they withdraw from the retirement portfolio. Assumption 6The hypothetical individual investor wishes any assets remaining in the portfolio at the time of their death to be passed on to their descendents. (IE – The individual investor does not expect to fully draw-down the assets in the portfolio) Requirements & ConstraintsReturn Objective:Generally speaking, the return requirement of the portfolio shall be growth of the value of the assets in the portfolio to reach the $2,700,000 minimum required to sustain the individual investor for the eighteen years they expect to be drawing on the portfolio to sustain their retirement.To reach this return objective, the individual investor will have specific return objectives for each of the three previously defined phases in the portfolio’s lifespan. Growth Stage: In this stage, the return objectives of the portfolio shall be the maximization in the growth of the value of the assets within the portfolio. Due to the effects of compounding returns, higher growth in the early stages of investment yield more accelerated appreciation of value for the assets in the portfolio.Sustainment Stage: In this stage, the return objectives of the portfolio shall shift away from maximizing growth and more towards long-term solid rates of return.Withdrawal Stage: In this stage, the return objectives of the portfolio shall be minimal. Risk Tolerance:The risk tolerance of the portfolio shall vary depending which of the previously defined stages the hypothetical individual investor is currently in.Growth Stage: The risk tolerance of the investor for the portfolio shall be very high.Sustainment Stage: The risk tolerance of the investor for the portfolio shall be moderateWithdrawal Stage: The risk tolerance of the investor for the portfolio shall be extremely low. Investment Time Horizon:The time horizon for the portfolio shall be a period of forty-five years. Investment Limitations:The portfolio shall have the following restrictions established:The portfolio shall not invest in assets tied to illegal or illicit behaviorThe portfolio shall make use of both pre-tax retirement accounts (such as 401K’s and IRAs) as well as post-tax retirement accounts (such as Roth IRAs). Diversification Objectives:The portfolio shall be diversified on multiple levels, including, but not limited to:Diversification between securities, debt instruments, and cash equivalents.Diversification between domestic and international investments.Diversification between different size companies (large-cap, small-cap, etc). Asset AllocationAsset Allocation, like some requirements & constraints for the investment portfolio shall vary depending upon which of the three previously defined stages the hypothetical individual investor currently resides in. The asset allocation for each of the three stages is defined as:Growth Stage:70% SecuritiesMostly Growth Funds20% Bonds10% Cash EquivalentsSustainment Stage: 70% SecuritiesMostly Large & Small Cap Funds20% Bonds10% Cash EquivalentsWithdrawal Stage: 60% Bonds15% Securities15% Cash EquivalentsFurther – for the purposes of diversification, all Securities & Bonds held shall be part of funds actively managed by investment houses.
Investment Writing assignment

Investment Writing assignment

Question # 00500173 Posted By: Nesio12 Updated on: 03/14/2017 09:50 AM Due on: 03/18/2017
Subject Finance Topic Finance Tutorials:
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Good Morning,

Please follow Assignment Rubric for maximum grade efficiency.

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Writing assignment as well as a sample to follow format.  
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Attachments
FINC_340_IPS_Writing_Assignment.docx (22.07 KB)
Sample_IPS_for_assignment.pdf (23.83 KB)
FINC_340_Writing_Rubric.docx (23.42 KB)
FINC340+Investment+Policy_+(SAMPLE++2).docx (19.87 KB)
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  1. neil2103
    Tutorial # 00496823 Posted By: neil2103 Posted on: 03/14/2017 03:02 PM
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