---

Investment Policy Statement for Mr. Market, aged 40

::Objective of Portfolio

The objective of this portfolio is to provide steady growth of capital until retirement and an inflation-adjusted of RM50,000 every year for 20 years in retirement.

::Return Expectations

Return expectations are: 3% for cash, 8% for unit trust, 10% for stocks. In which the returns for unit trust and stocks include dividend yields.

::Time Horizon

My target retirement date is 2030 when I am 60 years old. My initial investment is RM200,000, supplemented by annual periodic investment of RM12,000 per year or RM1,000 per month for until 2030.

::Asset Allocation

Cash – 20%, Malaysia Equities – 30%, Singapore Equities – 40%, US Equities – 10%

::Rebalancing

The investment portfolio will be rebalanced to the target asset allocation when new money is added. The portfolio's asset allocation will be checked once every 6 months on June 1st and Dec 1st. I will rebalance back to the target by selling whatever has gone up and buying whatever has gone down.

::Investment Vehicles

Cash will be held in either Fixed Deposit accounts or Merdeka Bonds if applicable. Local equities and foreign markets equities may include direct purchase from the relevant stock markets or through unit trust/ mutual funds run by well reputable fund managers. My portfolio will avoid: investing in options, futures and other derivatives, illiquid companies with average daily volume below 500,000 shares, and companies without proven track records.

::Benchmark and Review

The benchmark for Malaysian equities – KLCI; Singapore – Straits Times Index (STI); U.S.- Dow Jones Index(DJI), Hong Kong- Hang Seng Index(HIS)

Note: This is just a sample investment policy for illustration purpose only. You can customize based on your goals and needs. A good investment policy will be as detail as possible.

---