Investment Policy Statement
The Investment Policy Statement (IPS) outlines a client’s investment objectives and constraints. As portfolio advisors, we use the IPS as a guide when managing the portfolio. Specifically, the IPS addresses the following:
- Portfolio purpose and goals
- Liquidity needs / spending policy
- Time horizon
- Risk tolerance and asset allocation ranges
- Portfolio design and securities preference
- Broad restrictions
- Custom benchmarks
The IPS is generally reviewed at annual review meetings or as a client’s situation evolves and is updated as necessary.