Investment Policy Statement

Investment Policy Statement (IPS) is a written document that outlines the investment objectives, strategy, and guidelines for managing an investment portfolio. It is an essential tool that helps investors make informed decisions and ensures consistency in investment decisions over time.

Below is El Castillo Investments, Investment Policy Statement, which will outline our specific needs and goals:

I. Introduction

A. Purpose of the Investment Policy Statement

The purpose of this Investment Policy Statement (IPS) is to provide a clear and concise framework for the management of the investment portfolio. This IPS outlines the investment objectives, strategy, and guidelines for managing the portfolio and will serve as a reference for all investment decisions.

B. Investment Objectives

The investment objectives of this portfolio are to generate capital appreciation and preservation of capital. The target return for the portfolio is 10% annually, with a target risk level of moderate risk and long capacity. These objectives will be reviewed periodically to ensure they remain appropriate and relevant based on the micro and macro investment environment.

C. Investment Time Horizon

The investment time horizon for this portfolio is long-term. Long-term investing is defined as an asset that is held for more than a year. The portfolio will be adjusted as necessary to align with the company's changing financial circumstances and goals, to accomplish the goal of 10% annual growth and capital preservation.

II. Asset Allocation

A. Asset Classes

The portfolio will be invested in a diversified mix of asset classes, including equities, fixed income, real estate, and exchange-traded funds (ETFs). The specific mix of asset classes will be determined based on the company's investment objectives, risk tolerance, and time horizon.

El Castillo Realty:

El Castillo Investments Equities: Stock Portfolio is subject to change.

Fixed Income - JEPI, PDI, U.S. Treasuries:

B. Rebalancing

The portfolio will be regularly rebalanced to maintain the desired asset allocation and ensure that the portfolio remains aligned with the investor's investment objectives.

III. Investment Strategy

A. Investment Selection

The portfolio will be invested in a diversified mix of individual securities, exchange-traded funds (ETFs), fixed income, and other investment vehicles that align with the investor's investment objective of capital growth and appreciation of 10% YoY, while sustaining a moderate to high risk tolerance for the next five years.

B. Diversification

The portfolio will be diversified across different sectors, industries, and geographic regions to reduce risk and maximize returns.


C. Tax Considerations

The portfolio will be managed with tax considerations in mind. Investment decisions will be made based on their potential impact on the investor's tax liability of 20% capital appreciation, annually.

IV. Risk Management

A. Risk Tolerance

The investor's risk tolerance will be considered when always making investment decisions. The portfolio will be managed to align with the investor's moderate to high risk tolerance for the next 5 years and investment objectives of 10% YoY capital growth and appreciation.

B. Review and Monitoring

The portfolio will be regularly reviewed, on a day-to-day basis and monitored to ensure it remains aligned with the investor's investment objectives of 10% or greater annual capital growth and appreciation, and that any necessary adjustments are made to maintain such objectives and goals.

V. Conclusion

This Investment Policy Statement of El Castillo Investments is designed to provide a clear and concise framework for the management of the investment portfolio. It outlines the investment objectives, strategy, and guidelines for managing the portfolio and will serve as a reference for all investment decisions. This IPS will be reviewed periodically to ensure it remains appropriate and relevant.

El Castillo Investments FY - 23