Investment Policy
Setting Investment Policy
Once you’ve decided on your investment strategy you have to set your investment policy and draft your governance documents.
Your Investment Policy Statement (IPS) is the overarching document that defines both the investment goals and the rules of the road for your investment managers.
This document ranges from the general to the specific, outlining investment target return objectives and defining the assets and strategies that a manager can access to deliver on the return objective.
The IPS sets asset allocation bands, and may require asset mix rebalancing within given ranges. It is likely to set overall diversification objectives that aim to maximize the diversification benefit.
The IPS defines investment risk tolerance for the whole portfolio, and is also likely to contain individual asset and investment strategy limits to ensure that the manager does not get out over her skis.
The IPS sets boundaries for what the manager may do and may not do as investment mandates are executed.
The IPS defines the necessary reporting documents, processes, and reporting frequency. Investment reporting needs to show all of the exposures by asset class, investment strategy, risk usage, recent results and overall compliance with the IPS.
The IPS should ensure that the investment committee remains focused on strategic rather than tactical issues.
We work with you to develop other investment governance documents if you manage assets internally. We review, draft and execute on portfolio guidelines, risk budgeting and risk management policy.
We work with you to determine what goes into the IPS to ensure that the investment strategy contributes to organizational success.
We also deliver bespoke solutions to unique problems and all of our services embrace the following:
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