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Investment Policy Statement
    
    April 8
Portfolio Investment solution (PIS)
Purpose, Attitude, Expectations
Portfolio Investment solution PIS is a professional body established in April 2010, as an external investment pool fund. A pool fund is an arrangement that collects money of more than one legally separate entity and invests in suitable investment asset class on the participants’ behalf.
The Fund is named as “Long-Term Wealth Creator” (LTWC). This document defines the Investment Policy for the LTWC. The Board is responsible for handling the investment process of the Fund in a prudent manner with regard to preserving capital while generating reasonable wealth.
The goal of the LTWC for the Fund is to yield a real total return from endowed assets invested that will preserve the purchasing power of Fund principal, while giving a rational income stream to support the spending needs of the Investor. Accomplishment of the real total return will be pursued from an investment strategy that offers an opportunity for superior total returns within tolerable levels of risk and volatility. The Board has adopted a long-term investment horizon such that the risk and duration of investment losses are carefully managed against the long term potential for appreciation of assets.
Primary Duties and Responsibilities
PIS and its Investment Committee hold pool as a fiduciary. The committee has delegated responsibility over its investment decision to experienced professionals in investment and finance fields.
These include but are not limited to:
• Investment Manager – has decision to hold, purchase or sell investments decided by the committee to meet the objectives of the policy.
• Custodian – will maintain custody of investments owned by the firm, accumulate dividend and interest payments, redeem maturing investment, and effect receipt and delivery of purchases and sales. The custodian will
also do prudent accounting of all investment purchased, owned or sold.
• Additional professional such as auditors, attorneys, and others may be hired by the firm to help in achieving its responsibilities and duties to manage investment assets sensibly.
Risk Tolerance
In order to achieve its long-term objectives, as described above, the Fund assumes various investment risks inherent in global financial markets. Given the long-term time horizon, the Fund assumes significant short-term risk, as measured by the volatility of annual returns, in order to achieve its investment purposes. The Fund’s primary long-term risk is “shortfall risk” – the risk of not maintaining the purchasing power of the Fund’s assets by not earning a real total return sufficient to cover spending distributions.
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