Why do you write an Investment Policy statement and what does it cover?

We write our recommendations into an Investment Policy Statement (IPS) which covers all the details of your investment plan and serves as the controlling document for all of our actions. The Investment policy Statement:

  • Establishes the investor’s expectations, objectives and guidelines in the investment of the Portfolio’s assets
  • Creates the framework for a well-diversified asset mix that can be expected to generate acceptable long-term returns at a level of risk suitable to the Investor, including:
    • Describing an appropriate risk posture for the investment of the Investor’s Portfolio specifying the target asset allocation policy
    • Establishing investment guidelines regarding the selection of investment managers, permissible securities and diversification of assets
    • Specifying the criteria for evaluating the performance of the Portfolio’s assets
    • Defines the responsibilities of the investor and the advisor
    • Encourages effective communication between the investment manager and the investor