Each client has distinct expectations for return and risk as they relate to their invested assets, and the underlying managers or commingled or mutual funds they employ. Surprisingly, many organizations never put their investment policy and guidelines in writing. The Investment Policy Statement is a formal document providing a sound basis for future investment decisions and a coherent investment strategy. The IPS also serves to set the standards against which the composite portfolio and underlying investment manager performance will be measured.
If your organization lacks a written policy or you need to revise an existing one, we would be pleased to assist in this process. Together, we precisely define your specific investment objectives and formulate policies that ensure the portfolio and investment managers can be properly monitored and evaluated. We also set investment ranges for every asset class under consideration to ensure appropriate diversification and risk controls. To facilitate this critical process, we often perform risk/return simulations, among other analysis. Finally, we survey trustees, board members and committee members in advance to familiarize ourselves firsthand with their perspectives and expectations of key investment issues.