Investor Policy Statement - Investment Policy
Client Name: Brian
1. Investment Objectives:
The primary investment objective for Brian is to achieve a well-balanced portfolio that aligns with their unique financial goals, risk tolerance, and time horizon. The client seeks one or more of the following investment objectives:
- [ ] Preservation of Capital
- [ ] Income Generation
- [ ] Capital Appreciation
By understanding the client's specific investment objectives, the investment strategy will be thoughtfully designed to accommodate their preferences. The allocation will be continuously monitored and adjusted to ensure it remains in harmony with [Client Name]'s evolving financial needs. This tailored approach aims to optimize the client's investment experience while striving to achieve the desired balance between their selected investment objectives.
2. Strategy Allocation:
The strategy allocation for [Client Name]'s investment portfolio will be determined based on their risk tolerance, investment goals, and other relevant factors. The following are the target percentages for each Investment strategy:
a. Passive separately managed account: [____%]
b. Active separately managed account: [____%]
c. Private partnership: [____%]
3. Diversification:
The investment advisor will design the diversification strategy based on the client's selected investment approach. Here are the key distinctions:
a. Passive Separately Managed Account - ETFs and Index Funds:
For clients opting for a passive approach, the investment advisor will focus on diversification through Exchange-Traded Funds (ETFs) and index funds. These diversified funds aim to track market performance and provide exposure to multiple assets, ensuring broad risk dispersion.
b. Active Managed Account - Individual Securities:
Clients who prefer an active approach will have their portfolio diversified through the careful selection of individual stocks and bonds. The investment advisor will conduct thorough research to identify potential opportunities and capitalize on the underlying success of the selected securities.
c. Private Partnership - Exploiting Market Inefficiencies:
In private partnership investments, the emphasis will be on identifying and taking advantage of market inefficiencies. The investment advisor will seek unique opportunities that might be overlooked in traditional markets to potentially achieve higher returns. Participation in this Private Fund is exclusive to clients who meet the stringent criteria of an "Accredited Investor" or a "Qualified Purchaser," as defined, ensuring that only those with a sufficient financial background and capacity to absorb risk are involved in these sophisticated investment strategies.
4. Risk Management:
The investment advisor will actively manage risk in the portfolio by implementing diversification techniques, conducting thorough due diligence on potential investments, and monitoring portfolio performance on an ongoing basis. The risk level in the portfolio will be reviewed regularly to ensure alignment with [Client Name]'s risk tolerance and investment objectives.
5. Investment Selection:
The investment advisor will utilize a disciplined and research-based approach when selecting individual securities and investment funds for Brian's portfolio. Investments will be chosen based on robust analysis, both qualitative and quantitative factors, and the consideration of long-term performance.
6. Rebalancing:
The investment portfolio will be rebalanced [annually / as needed] to maintain the desired asset allocation. Rebalancing will ensure that the portfolio remains consistent with Brian's investment goals and risk tolerance.
7. Performance Monitoring and Reporting:
Brian will receive periodic reports detailing the performance of their investment portfolio. These reports will include comprehensive information on investment returns, asset allocation, and any relevant benchmarks. Performance reviews will be conducted [annually / semi-annually / quarterly] to assess progress towards Brian's investment objectives and to discuss any necessary adjustments to the investment strategy.
8. Liquidity:
The client's specific liquidity needs will play a pivotal role in determining the allocation of investment strategies within their portfolio. Each investment approach has varying liquidity levels, and the desired allocation will be tailored to align with Brian's individual liquidity requirements.
9. Investment Horizon:
The investment horizon for Brian's overall portfolio is [____ years]. The investment strategy will be thoughtfully tailored to align with this time horizon, taking into account [long-term growth potential / income generation needs / capital preservation objectives]. Additionally, the client has indicated their desired allocation towards short-term, medium-term, and long-term investment horizons as follows:
- Short-term (0-3 years): [_____%]
- Medium-term (3-7 years): [_____%]
- Long-term (7+ years): [_____%]
10. Contributions and Withdrawals:
Brian's approach to contributions and withdrawals for their investment portfolio is as follows:
[ ] Regular Contributions: The client aims to make regular and systematic contributions to their portfolio at the following intervals: [Quarterly / Semi-Annually / Annually]. These contributions are designed to align with their financial capacity and long-term investment goals.
[ ] One-Time Contribution with Future Withdrawals: The client plans to make a one-time contribution to their portfolio, followed by periodic withdrawals once specific investment horizons are reached. This approach allows them to capitalize on potential growth opportunities while strategically managing their financial needs.
[ ] At-Need Basis Contributions and Withdrawals: The client prefers to make contributions and withdrawals on an as-needed basis, without any predetermined intervals. This flexible approach grants them the freedom to react to changing financial circumstances or unexpected opportunities.
11. Investment Review and Updates:
The investment policy and IPS will be reviewed on an annual basis or as needed. Any changes in [Client Name]'s financial situation, investment goals, risk tolerance, or regulatory requirements will be taken into consideration, and the IPS will be updated accordingly.
CONCLUSION
In finalizing this segment of the document, the thorough review of the outlined investment policy underscores the crucial step taken in solidifying the client's investment journey. By meticulously considering the presented policy, the client demonstrates their commitment to a shared understanding of the strategies and approaches that will guide their financial pursuits.
This acknowledgment of the policy serves as a testament to the collaborative nature of the client-adviser partnership, where transparency and alignment of objectives lay the groundwork for a prosperous investment experience. With this informed perspective, both client and adviser are well-equipped to move forward confidently, united by a clear vision and a strategic plan in pursuit of the client's financial aspirations.Ryan Jacobs
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Client Information
What is the color of the sky?:
Today's Date:
Client Full Name: Brian
Email: Briancoulanges@gmail.com
Signed on Wed Nov 29 2023 14:19:54 GMT-0500 (Eastern Standard Time)
IP Address: 108.202.227.73