Investment Policy Statement

The investment policy statement is the foundation upon which the entire investment program is built. It needs to accurately reflect the investment goals and objectives of the portfolio, and allowable levels of risk.

Developing an effective investment policy statement requires an informed perspective on the capital markets, including a thorough understanding of the relationship between risk and return.

These factors, combined with an understanding of each client's unique risk tolerances, results in meaningful investment guidelines.

We believe an effective client investment policy statement should include:

• Meaningful risk & return objectives for the fund
• Asset allocation, including allowable asset classes, target allocations and rebalancing policy
• Clearly defined performance objectives and investment guidelines for each investment manager
• Prohibitions of and/or restrictions on inappropriate investments
• Clearly defined roles and responsibilities for fiduciaries and investment professionals
• Identification of applicable fiduciary requirement.

In addition to the initial development or revision of a client's investment policy statement, it is also extremely important that the document be reviewed periodically to make sure it continues to address the goals and objectives of the plan, and that it is kept up to date with regards to new developments in the investment environment.