Statement: Investment and Investment Policy Statement Essay

Submitted By mdub03
Words: 475
Pages: 2

Investment Policy Statement


Prepared For:

Prepared By:
MW Investment Services


The purpose of this investment policy statement is to define and make clear the investment strategy and objectives of John Jones retirement savings as prepared by the investment advisor Michael Wendlandt.

This statement was constructed in line with Mr. Jones goals and portfolio expectations. This statement will provide guidelines to effectively monitor and evaluate the performance results for each investment.

Investment Objectives

• Present the client with diverse investment opportunities across a large spectrum of asset classes. • Diversified portfolio of different levels of risk/return • Provide the client with returns similar or exceeding those in the market and other investment options

The advisor will select from a wide variety of asset classes that will be compiled into mutual funds to make up the clients portfolio.

Asset Classes Include:

• Balanced-Value Equity • Government Fixed Income • Small/Mid/Large Value • Small/Mid/Large Growth

Investments will be selected on risk/return characteristics as well as historical performance. All investments will comply with the clients investment objectives.
The portfolio will be evaluated for performance on a quarterly basis. Each investment option will be compared with market activity and will be found suitable or insubstantial with this investment policy’s strategies.

Portfolio Constraints

The following are a list of guidelines and policies to be taken under consideration when evaluating investment opportunities to be placed in Mr. Jones portfolio. If any one parameter is not met, the option will not be considered.

Time Horizon

This portfolio has an expected time period in excess of 20 years. The client does understand that values of risk and return will fluctuate over the short term. The extended horizon of return however historically shows that risk will be reduced and capital loss minimized with a long term diversified portfolio.

Risk Tolerance and Performance Returns

The investor assumes the risk of this profile and the volatility of the market. The