Publicação
Investment policy statement for individual investors : Mr. and Mrs. Mendes
| Resumo: | This Investment Policy Statement (IPS) serves as a way to effectively communicate with the client and create a strategy to achieve the investment objective. Mr. and Mrs. Mendes will be aiming to transform their initial capital of 300,000.00€ to 450,00.00€, which, accounting for a 2.1% yearly inflation turns to 614,608.62€. With a moderately conservative risk tolerance, the ultimate goal is to provide for the children's future. The investment philosophy focuses on value investing through Stocks. The goal is to maximize the Sharpe ratio, whilst minimizing losses over 5%. The strategy excludes leverage and shortselling investments, and there are no specific liquidity needs. The proposed portfolio aims to achieve an expected annual return of approximately 6.93% with a standard deviation of 10.33% and a Sharpe ratio of 0.41. The client will receive quarterly performance reports to ensure openness as well as frequent risk evaluations grounded in quarterly financial reports. If deemed necessary, the advisor reserves the right to rebalance the portfolio at any time to maintain optimal performance. A risk analysis was performed, employing Value-at-Risk (VaR) and Expected Shortfall to assess potential risks. A risk matrix was also created in order to identify and prioritize potential risks in the 15 year-horizon. |
|---|---|
| Autores principais: | Correia, Pedro Lopes |
| Assunto: | Risk Analysis Stocks Sharpe Ratio Value Investing Risk Tolerance Value at Risk Análise de Risco Ações Índice de Sharpe Investimento em Valor Tolerância ao Risco Value at Risk |
| 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: | This Investment Policy Statement (IPS) serves as a way to effectively communicate with the client and create a strategy to achieve the investment objective. Mr. and Mrs. Mendes will be aiming to transform their initial capital of 300,000.00€ to 450,00.00€, which, accounting for a 2.1% yearly inflation turns to 614,608.62€. With a moderately conservative risk tolerance, the ultimate goal is to provide for the children's future. The investment philosophy focuses on value investing through Stocks. The goal is to maximize the Sharpe ratio, whilst minimizing losses over 5%. The strategy excludes leverage and shortselling investments, and there are no specific liquidity needs. The proposed portfolio aims to achieve an expected annual return of approximately 6.93% with a standard deviation of 10.33% and a Sharpe ratio of 0.41. The client will receive quarterly performance reports to ensure openness as well as frequent risk evaluations grounded in quarterly financial reports. If deemed necessary, the advisor reserves the right to rebalance the portfolio at any time to maintain optimal performance. A risk analysis was performed, employing Value-at-Risk (VaR) and Expected Shortfall to assess potential risks. A risk matrix was also created in order to identify and prioritize potential risks in the 15 year-horizon. |
|---|