Investment Process in Asset Management

As an asset manager, you are responsible for implementing an investment process that adheres to the Asset Manager Code's standards. Consider the following scenario:

Your firm has been approached by a large institutional client that requires a customized investment strategy aimed at long-term capital appreciation. The client has specific restrictions regarding the types of securities and sectors that can be included in the investment portfolio. Additionally, the client expects regular performance reporting and transparency throughout the investment process.

Discuss how you would structure the investment process to align with the Asset Manager Code's principles while incorporating the client's requirements. In your response, ensure that you address the components of the investment process, including the investment policy statement, portfolio construction, ongoing monitoring, and communication with the client.