Sign In
Not register? Register Now!
Essay Available:
Pages:
5 pages/≈1375 words
Sources:
Check Instructions
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 23.4
Topic:

A formal Investment Policy Statement (“IPS”) for the company

Case Study Instructions:

THE ASSIGNMENT:
Your assignment is to write a formal Investment Policy Statement (“IPS”) for the company. The IPS provides the general investment goals and objectives of a client and describes the strategies that the manager should employ to meet these objectives. Specific information on matters such as asset allocation, risk tolerance and liquidity requirements are included in an investment policy statement.
The policy should contain the following sections:
 Governance – define who will have oversight of the investments
 Duties of the investment committee – Who will be serving on the committee and what are the committee’s duties?
 Purpose of the investments – define the purpose of the investments. Why is the company undertaking this approach and what do they intend to use the investments for?
 Investment objectives – describe the company’s risk tolerance and recommend a minimum return for the portfolio.
 Asset allocation - What are the types of investments that are permissible in the portfolio? Define the asset classes that you are going to invest in, and what percentage of the portfolio can be in any category (you can establish minimum and maximum thresholds). Define what benchmarks you are going to use to evaluate the performance of the asset classes.
 Portfolio rebalancing – How frequent should this occur, and who is responsible for making that decision?
 Monitoring portfolio investments and performance – How frequently should there be a review of the performance of the portfolio? Who should the investment committee share that report with?
 Transactional guide – Express what your recommendations are with respect to fees associated with the investment portfolio.
 Prohibited securities – If there are securities that you would not permit the investment committee to invest in, you should discuss that in this section.
The Investment Policy Statement should be typed and well written.
You should approach the assignment as if you were really making this recommendation to the Chief Financial Officer of the company. Under the cover page will be your investment policy statement.
Other considerations:
• The cover letter and report must be typed in a Word document. The completed report and cover letter need to be loaded into Blackboard prior to the due date in order to receive credit for the assignment.
• The cover letter counts as a separate page. The report itself has 5 written pages. If you elect to add any charts that add visual support to your recommendations, they should be added to the back of the report in an “Appendix” section that follows the written report. The Appendix section, if used, does not count in the three to five-page written report count.
• Some financial and other information on the company is provided in links in order to get you started. It is not intended to be the sole information source you access to complete the assignment.
For the instructions of the assignment please see the "instructions for assignment" link, the samples was given in the links, and also some related information please check all 8 links, thanks.
The assignment NEED TO SUMBIT ON THE Turnitin, software to check for plagiarism against other written materials. Make sure you did your own work

Case Study Sample Content Preview:
Investment Policy Statement (IPS) for Shake Shack Company
Introduction and Purpose
Shake Shack is one of the American fast-casual restaurants in New York City, United States. Fast-casual restaurant has been one of the fastest-growing concepts in the hospitality industry over the last two decades. Shake Shack started as a hot dog visual aid in Madison Square Park in 2001. Since its foundation, the company has continued to grow in popularity. The firm offers residents with New York-style hotdogs, fries, hamburgers, and milkshakes at a subsidized price. Eventually, the company became a public corporation filing for an initial public offering of stock during late 2014. According to Garcia Osma, Scarlat, and Shields (2018), Shake Shack has total cash of $29.7 million and investment of $36 million as at the end of the fiscal quarter that ended on June 26, 2019. The Investment Policy Statement (IPS) is a guideline on asset investment for Shake Shack that provides a framework for the management of the possessions.
Governance
Randy Garutti will be responsible for approval of the investment policy and the various subsequent changes on it as one of the trustees and Chief Executive Officer (CEO) of the company. However, Randy Garutti will work collaboratively with the board of directors in developing the investment policy and suggesting appropriate revisions to the plan continuously. Besides, the team will assess and report the achieved results before implementing the system in less than a month. The board of directors will have an opportunity of suggesting the needed changes to the IPS. Equally, Tara Comonte will be part of the committee in facilitating effective operation and strategic leadership. Importantly, Tara will focus on broadening support and day-to-day operations in facilitating effective execution of the organization’s strategic priorities. The Chief Financial Officer (CFO) will be responsible for executing all the involved risk management policies. He will implement all the associated risk management policies relative to the set budget. Furthermore, the company’s senior auditor will work in collaboration with the other board of directors in enhancing integrity of all the financial statements. Notably, each of the committee members will have financial insight in reviewing all the financial statements.
The Board of Directors will have an obligation to set the overall investment policy, asset allocation strategy, and approve all the revisions to the Investment Policy Statement (IPS). Equally, they will establish and maintain broad objectives and plans for all the aspects of investment. All the company’s finance is subject to short term volatility, and it intends to maintain a long-term focus on investment to prevent revisions of investment policies based on market fluctuations. Therefore, they can allocate responsibilities among themselves and designate others to conduct specific tasks, such as maintaining accounting procedures and policies.
Duties of the Investment Committee
The investment committee will play a significant role in expediting the attainment of set objectives of expanding both domestically and internationally. Besides, the committee will have an obligation to monitor fixed income, real ...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

👀 Other Visitors are Viewing These APA Case Study Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now