Investment Policy Statements
Professional Investment Policy Statements
A clearly defined Investment Policy Statement is the first step towards achieving your investment objectives. A professionally prepared Investment Policy Statement identifies a client’s Return Objectives, Risk Tolerance, and Portfolio Constraints (Liquidity, Legal Requirements, Unique Circumstances, Time Horizon, and Tax Situation). Next, a Strategic Asset Mix is created that will enable the portfolio to achieve these objectives while assuming the lowest risk possible. Then asset mix policy weights and ranges are established to ensure the client’s Risk Tolerances are not exceeded. Finally, the method for measuring portfolio success is developed while establishing an appropriate benchmark portfolio.