Investment Policy Statement: Mr. Carlos Ribeiro

This Investment Policy Statement (IPS), meant for an individual investor, outlines the strategic framework for managing a significant amount of savings to meet the client's long-term financial goals. With a moderate risk tolerance, the client aims to reach €500,000 (€742,252.81 adjusted for inflation) over 16 years starting with an amount of €300,000, requiring a minimum annualized return of 5.83%. The investment strategy focuses on Exchange Traded Funds (ETFs), with a preference for value investing and market timing techniques. The portfolio's construction and optimization are guided by Mean-Variance Theory to balance risk and return effectively. The proposed portfolio has a projected annualised return of 8.37% with an annual volatility of 1.51%. Risk management is addressed through measures such as Value-at-Risk (VaR) and Expected Shortfall (CVaR) with constraints on short selling, non-regulated assets as well as allocation limits. The IPS includes a robustness analysis to evaluate exposures to various risks and ensure compliance with CFA Institute guidelines. Regular performance monitoring and periodic reviews will ensure that the portfolio remains aligned with the investment objectives, adapting to any changes in financial conditions or market environments. This IPS aims to achieve the client's investment goals while managing risks effectivetly.