1.4.5 Unique Circumstances Each investor has his or her own investment requirements and preferences as to what amount of funds should be allocated to which security. In order for investors to have friendly conversations and make decisions that benefit the group as a whole, it is up to the fund manager to communicate any problems that may arise and find a solution that satisfies all investors.1.5 Investment Guidelines (Investment Mandate ) - asset allocation The investment mandate guides fund managers in deciding which asset and in building a diversified portfolio to best meet investors' objectives, as shown above; we selected the assets that will best benefit 100 million investor funds (Hibbert et al., 2012). Since our main objective is capital preservation, it is necessary to take low and moderate risk, therefore 70% will be invested in risk-free government bonds, although they will generate a lower return. Given that investors are aged between 60 and 70, it is important to minimize the level of risk. An 8% cash reserve is also required to offset liquidity needs should losses occur. 1.6 Investment management strategy The investment strategy can be active or passive. The passive strategy is better for this portfolio because it generates returns without carrying high risks. As mentioned by (Becker, 2015), active strategy has higher risk and return while passive strategy has lower risk and return. As mentioned above in point 1.3, risk and reward tolerance should be kept at a low level. The buy and hold strategy should be used in conjunction with the passive strategy implemented.1.7 Monitoring and Review ProcessAs fund managers of this portfolio we need to ensure we keep abreast of market conditions and suggestions...... half of Paper……ve's buy and hold strategy intends to provide long-term benefits such as capital growth while generating income through dividend payments (Borovkova, Permana, & Weide, 2007). Therefore in this case a passive approach is more suitable (Johnson, 1987). Micro and macro market conditions relating to government bonds, securities and liquid assets, as chosen by the fund manager (Johnson, 1987). After analyzing the selection of stocks, bonds and liquid assets, the fund manager will determine the appropriate allocation of funds to achieve the investment objective (Alexander & Venkatramanan, 2011). Despite taking a buy and hold position, the fund manager may consider selling stocks with strong capital appreciation, liquidating stocks with strong capital appreciation, and buying stocks that show potential in the current micro and macro context (Stulz, 1982).