Investment Policy Statement: Ms. Sarah S. Readsun

This Investment Policy Statement (IPS) is tailored for Ms. Sarah S. Readsun, focusing on the strategic management of her investment portfolio valued at 6 million Brazilian reais. Given Ms. Readsun's proximity to retirement and her medium to high-risk tolerance, the primary objectives of this IPS are to surpass the inflation indices, ensuring the preservation of purchasing power, and to generate a financial surplus for recurring use. The investment philosophy adheres to a holistic approach, incorporating a mix of fixed income products, structured operations with options, and investments in international markets to capitalize on diverse financial instruments while mitigating risks through strategic asset allocation. The strategy emphasizes long-term growth and stability by optimizing asset distribution across various maturities and quality ratings, ensuring alignment with appropriate tolerance and liquidity needs. Specifically, the portfolio is designed to allocate over 75% in Brazilian fixed income products, with a strategic emphasis on products covered by the Credit Guarantee Fund (FGC) to protect against default risks. Foreign securities and alternative investments constitute the remaining portion, providing necessary diversification and exposure to potentially higher yields. Risk analysis within the IPS is rigorous, addressing various potential financial and operational risks. The document outlines strategies to manage market valuation risks, liquidity risks, credit risks, regulatory changes, and foreign exchange fluctuations. A key aspect of the risk management approach involves continuous monitoring and reallocation of assets to manage and mitigate risks effectively, ensuring that the portfolio's performance aligns with the set objectives and Ms. Readsun’s financial goals. This comprehensive IPS serves not only as a roadmap for achieving targeted financial outcomes but also as a dynamic tool for adapting to changing market conditions and personal circumstances, thereby supporting Ms. Readsun's financial security as she approaches retirement.