Investment Policy Statement: José Madeira

This thesis focuses on the development and application of an Investment Policy Statement (IPS) as a structured framework for guiding investment decisions from an initial capital allocation toward a defined financial goal. It aims to demonstrate how a well designed IPS integrates core principles of finance such as the risk return tradeoff, diversification, time value of money, strategic asset allocation, hedging strategy, and the use of Exchange Traded Funds (ETFs) to establish a disciplined and goal oriented investment approach. The research combines theoretical foundations with practical analysis, highlighting the importance of aligning investment strategies with an investor's objectives, constraints, risk tolerance, and market context. The findings underscore the IPS's critical role in achieving long term financial goals through informed, consistent, and risk aware decision making.