Each client has distinct return and risk expectations as they relate to their invested assets and the underlying managers or mutual funds that 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 sets the standards against which 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 you. Together, we precisely define your specific investment objectives and formulate policies to ensure that 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 can survey committee members, trustees, board members in advance to familiarize ourselves firsthand with their perspective and expectations of key investment issues.