1

Financial Instruments and Portfolio Project

Student’s Name
Professor’s Name
Institute Name
Date
 2

a) Investor Policy Statement

My client’s age is 38 years old, and a partner in a law firm, and they are married with one

child aged 10. Below is the summary of the Investment Policy statement of the client. In terms of

Risk Tolerance, Client 3 indicates a strong inclination towards the risk aversion, prioritizing the

predictability and stability in the investment strategy. As a partner in the law firm, the client has

specific goals that include finding education for the child, planning retirement, and indulging in

personal hobbies through the purchase of a narrowboat. The primary investment objectives of a

client are income generation and long-term growth to secure a comfortable retirement.

Additionally, the client desires to generate funds for the education of the child and to pursue a

passion for nature watching and sailing. The client has a long-term investment horizon that is

aligned with a strategy that combines growth and stability. The estimated total wealth of a client

is £825,000 that provides the foundation for a well-diversified investment portfolio. The current

annual income of £300,000, and estimated annual expenditure of £300,000 shows a balanced

financial lifestyle. The amount available for investment is £525,000, and it is calculated by

subtracting the annual expenditure from total wealth yields. Finally, the recommended strategy is

a balanced portfolio encompassing fixed income instruments, equities, and alternative

investments. This approach provides stability, and long-term growth and helps in the generation

of income.