You are on page 1of 2

Wassim Zhani, Ha Cao, Xifeng Zhu, Jongin Baek

FIN 434 & 435


Dr. Tarek Zaher
Investment Policy Statement
This policy applies to the investment of all funds traded In OTIS website of

Group 4. It will be managed by Wassim Zhani, Ha Cao, Xifeng Zhu, Jongin Baek. The

Investment Policy Statement (IPS) is intended to serve the following purposes: Establish

investment objectives and guidelines, which support the financial goals, investment objectives,

and risk and return expectations; provide a communications between members of the group;

outline standards and procedures for on-going compliance monitoring and performance

evaluation and policy review.

We will strive to invest with judgment and care, to maintain the safety of principals, maintain

liquidity to meet cash flow needs as well as the probable income to be derived.

Our client is John William. He is 38 years old. He worked in a manufactory company as a

marketing manager. He has a family with one child. Johns income is pretty high because of his

position and experience. Our client is not going to retire in the next ten years, so our strategy will

be aggressive. We are looking for every opportunity to make Johns money grow. He is willing

to invest $200,000 for 20 years. Our goal is to make 15% profit over inflation each year. Since

John wants high profit, he is willing to take more risk in getting weighted average beta of stocks

around 1.6. We can accept a loss of 20% in a five-year period.

This fund seeks to provide capital growth and current income from stocks and bonds. We

will arrange 70% to 80% in stocks and 10% to 15% in bonds. Cash levels are targeted between

10% to 15% in case emergency happened. Our Objective is to identify investments opportunity
in assets that would maximize our return and maintain appropriate levels of risk that protects the

capital.