Investment Policy Statement for Individual Investor: Mr. Edgar Velasco

This investment Portfolio Statement is created to Mr. Edgar Mauricio Velasco, 26 years old, Mexican, with special interest on achieve a retirement fund sufficient to hold his lifestyle from age 65 onward. The retirement strategy accounts for annual adjustments, with the purpose of overperform the Mexican inflation rate, to maintain purchasing power over time. This goal aims to provide a consistent and secure income stream that reflects both current and future cost-of-living needs. Mr. Velasco’s risks are high, due to the long investment horizon, but it may be adjusted as the retirement age approaches. The liquidity needs are minimal, as the funds are designated primarily for long-term retirement purposes. Additionally, it is also important to consider the Mexican regulations for retirement investments, current Regime of the 1997 Law of the Mexican Social Security Institute. As the client wants to have his portfolio in a Mexican intermediary, all the transactions must be operated through the International Quotation System (SIC), by its acronym in Spanish, which is a platform within the Mexican Stock Exchange that enables Mexican investors to access and trade international stocks, exchange-traded funds (ETFs), and other financial instruments with a previous registration in the SIC. To manage risk effectively, a set of risk evaluation metrics are applied as Historical and Parametric Value at Risk (VaR) and Monte Carlo Simulation to provide forward-looking risk assessments. Additionally, correlation matrix is used to identify overexposure to correlated risks and uncover opportunities. To ensure transparency, semi-annual performance and risk reports are generated, offering detailed insights into portfolio performance, adjustments, and risk management strategies.