Investment Policy Statement: Adam Miller

This Investment Policy Statement is developed for Mr. Adam Miller, a 25-year-old Polish professional tennis player seeking to allocate PLN 4,000,000 of accumulated savings over a 10-year horizon. The client’s objective is to finance planned entrepreneurial activity and preserve capital for lifestyle support after retirement from professional sport. This requires a pre-tax terminal portfolio value of PLN 8,180,355, equivalent to a gross nominal return requirement of 7.42% per year. The client’s risk profile is classified as adventurous, reflecting a high need and ability to take risk, supported by moderate-to-high behavioral loss tolerance. The main constraints include no planned withdrawals during the accumulation phase, tax awareness, preference for transparent UCITS ETF instruments, no leverage or short selling, ethical exclusions, and limits on single-security concentration. The investment policy follows a long-term, predominantly passive, and globally diversified approach. A mild factor tilt toward value, quality, and low volatility characteristics is incorporated into the ETF selection process to support more balanced equity exposure. The recommended Strategic Asset Allocation consists of 70% equities, 20% fixed income, and 10% gold, combining return-seeking exposure with stabilizing and diversifying components. Portfolio construction is supported by ETF screening, Mean-Variance optimization, and efficient frontier analysis. Risk analysis was conducted using three different Value-at-Risk methods, Monte Carlo simulation, and a qualitative risk matrix. The optimized portfolio generates an expected annual return of 7.78% and annualized volatility of 10.05%. Overall, the IPS provides a disciplined framework for pursuing the client’s terminal wealth objective through structured portfolio allocation, transparent implementation, and regular monitoring.