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Notes On Investment Policy And Portfolio Development

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Investment Policy & Portfolio Development
Assignment 2
Beiyi Qi

FINA-3041 Portfolio Management
Prof. Brad Bishop
April 7, 2015
SECTION 1. INVESTMENT POLICY STATEMENT
1. CLIENT PROFILE Client Name: Hayey Wickett
Age: 45
Gross annual income: $45000
Net worth: $600,000
Anticipated annual contributions (next 5 years): $9,000
Phone: (226) 465-456Anticipated annual contributions (until retirement): $10,000
Date: 03/24/15
Address: 123 King St
Province: Ontario
Postal Code: N6H 0A1
Risk Tolerance: Medium to High
Investment Knowledge: Fair
Objective: Growth
Liquidity: Low 2. INVESTMENT OBJECTIVES
Your primary investment objective is to achieve growth on investments. Generally, there is a correlation between portfolio
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However, unscheduled withdrawals work against your investment plan and are not recommended. Therefore, we will work on this and I will re-organize your asset and put a reasonable amount in your asset allocations.

Tax
Your Marginal tax rate is 31% and average tax rate based on taxable income is 16.25%. One of your goals is tax minimizing. You will not be taxed until your withdrawal money as income.

Regulatory
Any investment activity during the service consider by Act, By-law, Regulation, Rule or the
Criminal Code must be considered a constraint. All the service steps I provided will follow the firm regulation and business law. There will a firm regulation provided if there any law issues happened during the service.

Unique
This stand for any specific requirement or prohibit relate to this investment by client. Examples of unique circumstances include the desire for ethically and socially responsible investing.
➢ No alcohol stock
➢ Maximum stocks 10% of the portfolio
4. LIST OF ACCEPTABLE/PROHIBITED INVESTMENTS
Acceptable:
Cash includes high-interest savings accounts, cashable GICs, money-market funds or T-bills.
Bond includes Government of Canada bonds, GICs or XSB. REITs.
Equities include stocks, index mutual funds or actively managed mutual funds, and US equities, global equity, and emerging markets. Stock portion will not be exceeds 10% in investment portfolio.
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