Investment Management: Objectives, Strategies and Portfolio Performance

Running Head: INVESTMENT MANAGEMENT
Investment Management
Name of the Student
Name of the University
Table of Contents
Introduction.......................................................................................3

INVESTMENT MANAGEMENT
2
Objectives of the Investments.............................................................3
Time Horizon...................................................................................................... 3
Risk Tolerance.................................................................................................... 3
Return requirements.......................................................................................... 3
Unique needs and circumstances.......................................................................4
Legal and regulatory consideration....................................................................4
Tax considerations............................................................................................. 4
Liquidity requirements........................................................................................ 4
Strategy of Asset Allocation................................................................4
Strategy for selecting security............................................................6
Comparing the Portfolio Performance..................................................8
References.......................................................................................11

INVESTMENT MANAGEMENT
3
Introduction
The assessment includes the creation of the IPS or the investment policy statement for
the exploit return of the Fund (Senior Citizen Recreation Club Fund). These funds are related
to the SCRC (Senior Citizens’ Recreation club). The IPS creation of the fund will help the
club maintain comprehensive strategies that will direct all the financial assessment of the
club. The fund will offer a better and consistent financial sustainability, thus maintaining any
troubles will decrease the financial procedure of the club.
Objectives of the Investments
There are two main objectives of the funds and the main objective focuses on the
reliability of the return generation on a regular basis alongside looking for the protection of
the capital that is invested in the long-term. This is the most important objective, as this will
be accounted for any unforeseen event that causes any kind of financial trouble in the future
for Senior Citizens’ Recreation Club. The next or the secondary objective is to decrease the
unpredictability of the many burdens that will occur in the future (Akole et al. 2016).
Therefore, it is important to focus on the diversification.
Time Horizon
When the club fund is aware of the possibilities for the degradation of the capital then
the time horizon is specific about it in regards to an excess of 10 years. This is all processed
in order to retain a strong capital approval rate. The degradation of the capital happened over
a time horizon by engaging in balanced long-term investment as set by the investment policy
statements.
Risk Tolerance
In order to gain a good return production attached with capital approval, there needs
to be some instability that is unpredicted but also does not trouble the objective that is set for
the distribution of the fund. Along with the objective of the mentioned funds, the consistency
has to be made to overflow the funds and time horizon of 10 years should be reduced.
Return requirements
Along with the level of risk tolerance, it is expected to find the return requirements
falling in line with the allocation of the asset’s fund policy. Because of this, the peg has been
allocated with an entire return fund of eight percent higher that is after opposing any increase
impacts on the market.

INVESTMENT MANAGEMENT
4
Unique needs and circumstances
The Senior Citizen Recreation Club Fund evidently stated that the limits valuing the
investments are not available in the following areas:
 Investment is available for a company whose activities poses a threat to the
environment.
 Investing in an energy-based company is not allowed.
 Investments are not allowed for the companies that manufacture tobacco or alcohol or
any unethical products along with that the companies that are not appropriate in the
areas seeming moral, social.
 The investments are not allowed for the companies that are benefiting from
disreputable medicinal research.
Legal and regulatory consideration
The funds of the clubs are clearly stated in the consumer protection act of 2009 and
the native version of the WSR (Wall Street Reform) synchronizes it. The act also includes the
safeguarding the significance of the investors for any kind of losses that are not mentioned. It
is protected by the method of variation from fund objectives or allocated targeted funds.
Tax considerations
All the funds of the Senior Citizen Recreation Club Fund are registered under Section
501(c). And any kind of taxes that are implicated while selling or buying of the investments
mentioned in the IPS is immune and therefore will not be taken into consideration.
Liquidity requirements
There are many other sources for financing the Senior Citizen Recreation Club and
fund is just one of them. For the everyday operation of the club, the fund is very important as
it operates as a support method for financing the club. A steady quantity of sum has to be
cash has to be reserved in a bank account of a trustworthy commercial bank or invested in
cash. There has to be a limit for withdrawal of any kind of money and not more than $40000
should be allowed in a day. This is all to make sure from any periodic withdrawals that may
be necessary for any kind of emergency.
Strategy of Asset Allocation
There are many pieces of research regarding asset allocation and initial research
highlights the fact that in order to steady the instability of the fund the asset allocation is far