Publicação
Investment policy statement : Karen Smith
| Resumo: | The Investment Policy Statement (IPS) is a document that outlines the client's investment policy and serves as a communication bridge between the advisor and the client. Ms. Karen Smith aims for a minimum annual return of 4.32%, adjusted for 2% inflation, over a ten-year period. Her primary objective is to increase the initial investment of €1,000,000 to €1,526,000 in ten years, accounting for inflation. With a moderate risk tolerance, the client aims to primarily preserve capital for their children's education. The investment philosophy focuses on value investing through Exchange Traded Funds (ETFs) to maximize the Sharpe ratio, employing a diversified asset allocation based on macroeconomic projections and industry constraints. The strategy excludes leverage and short-selling investments, and there are no specific liquidity needs. The proposed portfolio aims to achieve an expected annual return of approximately 9.1% with a standard deviation of 10.2% and a Sharpe ratio of 0.68. The advisor is responsible for monthly performance reports, quarterly risk assessments, and annual rebalancing proposals to ensure the portfolio remains aligned with the client's objectives. A comprehensive risk analysis includes Value-atRisk (VaR) assessments and the construction of a risk matrix to identify and prioritize potential risks, evaluating their likelihood and impact. Back testing was also employed to reinforce the risk assessment. |
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| Autores principais: | Santos, David Alexandre Arraias dos |
| Assunto: | Asset Management Portfolio Theory IPS Individual Investors ETF Gestão de Ativos Teoria da Carteira IPS Investidores Individuais ETF |
| Ano: | 2024 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The Investment Policy Statement (IPS) is a document that outlines the client's investment policy and serves as a communication bridge between the advisor and the client. Ms. Karen Smith aims for a minimum annual return of 4.32%, adjusted for 2% inflation, over a ten-year period. Her primary objective is to increase the initial investment of €1,000,000 to €1,526,000 in ten years, accounting for inflation. With a moderate risk tolerance, the client aims to primarily preserve capital for their children's education. The investment philosophy focuses on value investing through Exchange Traded Funds (ETFs) to maximize the Sharpe ratio, employing a diversified asset allocation based on macroeconomic projections and industry constraints. The strategy excludes leverage and short-selling investments, and there are no specific liquidity needs. The proposed portfolio aims to achieve an expected annual return of approximately 9.1% with a standard deviation of 10.2% and a Sharpe ratio of 0.68. The advisor is responsible for monthly performance reports, quarterly risk assessments, and annual rebalancing proposals to ensure the portfolio remains aligned with the client's objectives. A comprehensive risk analysis includes Value-atRisk (VaR) assessments and the construction of a risk matrix to identify and prioritize potential risks, evaluating their likelihood and impact. Back testing was also employed to reinforce the risk assessment. |
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