Finance: Leading the Way with a Clear Investment Policy Statement (Essay Sample)

THE CREATION OF AN INVESTMENT POLICYS STATEMENT
Jose Smith: Individual age 24
Portfolio: Individual taxable
State: Florida
Tax id: 12345
Current asset; $100 MILION
OBJECTIVES
Leading the Way with a Clear Investment Policy Statement
Tine horizon: 5 weeks
Short term liquidity needs: None
RISK
Foundation portfolio is under many forms of risk and in this case, volatility which in most occasion used to define risk is not necessarily an important measure our or view. The most important and critical risks are the permanent and the inability of the organization to enhance its mission due to lack of the access to the liquidity. Volatility is more important for any given institution as spending rates rises randomly( Thorp, Edward 2010.)
INVESTMENT CONSTRAINS
Foundation and the Endowment constraints are more varied than any own objectives .this are all typically broken for the purpose of spending policy and any other consideration in the market. The most organization usually use the total return policies an important portfolio constraint and on the other hand, Foundation and the Endowment usually need a more constant cash flow from their portfolios(Jacques, Ryan 2008.)
TAXES
All the require portfolios is built up in the context of the corporate class platform which in turn may allow rebalancing between the taxable event and the rebalance and In such case the tax deferral may lead to the relatively high compound growth over a long term.
Also, the high interest you redeem from the program. Such tax deferral leads to increased compound growth over the long term. Furthermore, highly taxed interest income is turned into tax-advantaged capital gains, whenever possible. The Corporate Class structure minimizes or eliminates annual taxable distributions.
INVESTMENT THEORY
Usually, the investment policy statement is an expressing of the objectives risk of the clients and returns with any other constraints in their implantation policy and govern by the decision and rules of the clients. Also, all the investment of the policy share most of their features, and they differ in a constraint on the ...