Investor Objectives

C

Return objectives are considered under "investor objectives." Liquidity needs, time horizon and proxy voting are considered under "investor constraints."

When formulating an investment policy for a client, various factors need to be considered, including the client's investor objectives. Investor objectives refer to the specific goals or targets that the client aims to achieve through their investments. These objectives help guide the investment strategy and decision-making process.

Let's go through each of the options provided and determine whether they fall under "investor objectives":

A. Proxy Voting: Proxy voting refers to the process of voting on behalf of shareholders in a company's corporate governance matters. While proxy voting is an important aspect of owning shares in a company, it does not directly relate to the investor's objectives. Therefore, it does not fall under "investor objectives."

B. None of these answers: This option suggests that none of the given options fall under "investor objectives." However, it would be incorrect to choose this option since there are other options that do fall under "investor objectives."

C. Return Objectives: Return objectives are a crucial part of the investor's objectives. It represents the desired level of return or profitability that the investor aims to achieve through their investments. Return objectives may vary depending on the client's risk tolerance, financial goals, and investment time horizon. Considering this, return objectives do fall under "investor objectives."

D. Time Horizon: Time horizon refers to the duration or length of time for which the investor plans to hold their investments. It is an essential consideration in investment decision-making as it helps determine the appropriate asset allocation and investment strategy. Time horizon influences investment choices and risk tolerance. Thus, time horizon falls under "investor objectives."

E. Liquidity Needs: Liquidity needs refer to the investor's requirements for readily available cash or assets that can be easily converted into cash. It reflects the investor's need for short-term funds to meet financial obligations or unexpected expenses. Liquidity needs are an essential component of investor objectives as they influence the investment choices and portfolio composition. Therefore, liquidity needs fall under "investor objectives."

F. Investable Funds: Investable funds represent the amount of money available for investment. While investable funds are crucial for implementing an investment strategy, they are not considered an objective in themselves. Investable funds provide the means to pursue the investor's objectives, but they do not define those objectives. Thus, investable funds do not fall under "investor objectives."

In summary, the options that fall under "investor objectives" are C. Return objectives, D. Time horizon, and E. Liquidity needs. These factors are critical in formulating an investment policy as they help align the investment strategy with the client's goals and constraints.