Please read the following investor profile and background information and provide a draft of an investor policy statement for this investor:

Susan Lomax is the president of Trustview Incorporated, a U.S.-based company whose sales are entirely domestic and whose shares are listed on the NYSE. Susan is currently 58 years old and has no immediate family or debts. She does not own a residence. She is in excellent health and is currently covered by the Trustview health insurance. Trustview will continue to provide this insurance benefit after Susan's required retirement at age 65.

Currently, Susan earns $500,000 per year and has saved $2M. The salary is sufficient to cover her current lifestyle but not generate any additional savings. Trustview has also provided a generous stock-incentive plan which has allowed Susan to accumulate $10M worth of Trustview stock. Susan will realize a 30% tax on the proceeds of any sale from this stock-incentive account. Susan has no plan to liquidate this holding prior to her retirement. She anticipates maintaining her currently level of spending. Inflation is currently estimated to be 4%.

Salary, investment income, and realized capital gains are taxed at 35%. This tax rate is projected to persist for the foreseeable future.'

Susan is patient, deliberate, careful, and cautious investor. After discussion with Susan, you feel that a 3% return would be acceptable to her as long as her investment portfolio did not decline by over 10% in nominal terms in any given 12-month period.

Your policy statement should include:

An overview and characterization of your client

A risk objective

A return objective

Discussion of relevant constraints that you believe are applicable

A brief discussion of possible investments that would be appropriate given your analysis