Investment Policy Statements

clientexperience-b

Institutions have long used Investment Policy Statements as a systematic way to organize and evaluate their assets, risk exposures and goals. Having an Investment Policy Statement is considered a best practice among institutional clients. We believe it should be standard practice for individuals and families as well. For this reason we create an Investment Policy Statement for each new client, and review it regularly. The Investment Policy Statement serves as a client’s road map, offering an objective course of action to be followed during periods of market euphoria and disruption. Its role is to establish guidelines regarding the overall management, investment strategies and discipline for assets. The Investment Policy Statement is intended to permit sufficient flexibility to capture investment opportunities, yet provide parameters that ensure prudence and care in the execution of a client’s investment program.

The document is, in effect, each client’s blueprint for investing. An effective Investment Policy Statement contains:

  • Investment Objectives (return and risk)
  • Asset Allocation (asset class targets & ranges)
  • Investment Guidelines (diversification, vehicles, liquidity, constraints, rebalancing)
  • Governance (roles and responsibilities of managers, custodians and other advisors)
  • Performance Benchmarks and Monitoring Guidelines
  • Other Considerations (tax and legal factors)

Having an Investment Policy Statement which looks holistically at all clients’ assets is one more way we help our clients invest with the sophistication of an institution. We will work with you to create one, and review it with you regularly.