Investment Policy Statement

            Introduction

            The objective of an investment statement policy is to determine the appropriate guidelines for the investment of funds portfolio (Haight, Morrell, and Ross, 38).  The investment statement additionally incorporates standards of accountability which are to be utilized in monitoring the program of investment portfolio. In addition it is also purposed for providing evaluations of the mangers contributions who are employed in the context of funds as well as the beneficiaries. The purpose of the investment policy is therefore to deliver a better comprehension between the involved parties who are the client, the investor and Mr. Muhammad. The transparency of the statement is based on the objectives of the projects and the appropriate policies that are to be utilized in the context of the customer and the investors.

            This investment portfolio will conduct the following:

            Sets forth objectives of the investment, policies of distribution as well as directions for investing in order to monitor the committee’s activities and other parties

• Ensure that returns are generated maximum with low involvement of risks.
• Ensure that the allocation of assets in conducted by the utilization of a well-developed framework. This is appropriate in ensuring that based on the demands of the investors returns are generated with the involvement of low risks.
• Effective interactions and communication shall be ensure between the involved parties that is the investment advisor, the customer and the investor to increase satisfaction and satisfy each parties expectations.
• The portfolio will additionally made recommendations of the nature and structure of investment. This will mainly involve assets allocations, asset status and classes, proposed portfolio risks and the potential disclosure.

            Based on the context of this investment statement policy it will be evaluated by a knowledgeable attorney in the law field particularly.  Therefore any transformations to the statement policy must therefore be communicated formally through writing from period to period to all the involved individuals for effective communication.  Thus if the stated terms of the statement policy are in a tangle with any document plan or trust, this policy document shall therefore act in control provided that he particular terms are dependable with the existing law.

Scope and Purpose

            An investment scope should particularly be based on investments and those assets that are developed by the customer prior and past the policy statement development (Cmt, 396). This IPS’s purpose is based on helping the proposed investment committee in administering, appraising and monitoring the retirement plan of the company’s investment asset. The investment program plan is described in the distinct parts of the current IPS through the following

• Affirming in written reports the attitudes, objectives, guidelines as well as the expectations of the committee for all the assets plans investment
• Promoting effective communication and interactions amid the involved individuals and the committee in regard to the decisions made by the investment management.
• Developing a structure and nature of investment in administering assets plans
• Guidelines provision for every portfolio of investment involved in controlling general liquidity and risks
• Provision of risk features for every asset class that is depicted by several options of investment

            The Portfolio

            The major aim of this portfolio is to develop and sustain a continuous allocation approach of investment assets (Reilly, Frank and Brown, 41).  This investment portfolio will solemnly be based on shared reserves and in that no other funds source will be utilized.  In short this means that all the assets in this specific portfolio will be considered as liquid.  This was resulted by the low horizon period of the project which will last for only six weeks as per 20^th of September 2016.

            In selecting the suitable investment manager the company’s administrators as well as the trustee bodies should conduct this in a way that I appropriate. Based on this legal and transparent law the following criteria will this be utilized in selecting the actual investment manager for every shared fund for the consumer.

• The manger should possess the capability of choosing the suitable individual for every investment.
• The manger should hold appropriate acquaintance and understanding in regard to shared funds investment.
• The manager should be able to assess the performance and results of each investment.

            This there means that for all the selected managers they have to possess knowledge of the actual aims as well as policies of the shared investment fund.  Despite the formulation of the above criteria all the customers have the responsibility of reading the directions of every shared fund prior to approving an investment.

            Period Horizon

            The investment directions are centered upon a short investment horizon period of only six weeks.  The strategic portfolio’s allocation is also based on a short period and therefore the returns fluctuate within this same period. The possibility of any investment and the associated risks should thus be reviewed by an investor of a customer before an investment.

            Asset Allocation

            In any investment asset allocation is the most essential section as it is believed to the main feature that is directly linked to threats. This portfolio developed the following recommendations after an evaluation of asset classes and risks review.

	After two weeks	after four weeks	After six weeks
Possible return	6.0%	6.0%	6.0%
At 95%	9.6%	12.3%	14.0%
At 5%	5.2%	2.2%	1.0%

 

            It is essential to note that in different periods the shared funds are bound to vary from a situation to the next based on the situation of the market. Therefore in order to make the allocation of asset stable the committee will review the portfolio after every four days in order to balance it to its ordinary weight.

Asset modules	Normal loads
Equity	20%
cash	30%
Fixed revenue	50%

 

            Responsibilities and Duties

            Muhammad will serve as the visible third person expert who is retained in order to help the investment committee in administering the general process of investment.  He is therefore responsible for providing directions to the committee by rigorous and disciplined procedure of investment in order to assist the committee in meeting the responsibilities of fiduciary that is developed above.

            Guardians

            Custodians hold the responsibility of providing assets portfolio safety.

            Investor

            Bashir, the investor is responsible for providing the investment advisor with the current and suitable data in regard to the financial situation and tolerance of risk. This therefore means that the occurrence off any change should be communicated immediately.

 

 

 

INVESTMENT POLICY STATEMENT ACCEPTANCE

I have adopted and made my approval on the overhead described investment statement policy by B.M.A investment advisors.

………Muhammad…………16^th September 2016………………………

Muhammad                                                            Date

………Wesley……………… 16^th September 2016……………………..

Wesley                                                                   Date

……..Bashir…………………… 16^th September 2016……………………

Bashir                                                                     Date

 

           

 

 

 

 

            Work cited

Cmt Level Ii: Theory and Analysis. , 2016. Print.

            Haight, G T, Stephen O. Morrell, and Glenn E. Ross. How to Select Investment Managers and Evaluate Performance: A Guide for Pension Funds, Endowments, Foundations, and Trusts. Hoboken, N.J: Wiley, 2007. Print.

            Reilly, Frank K, and Keith C. Brown. Investment Analysis and Portfolio Management. Mason, Ohio: South-Western Cengage Learning, 2012. Print.