Investment Policy Statement (Example)
Investment Policy Statement—the Reynolds Family
The investment policy statement (IPS) is a strategic guide to the planning and implementation of the family’s investment program. It provides a framework for managing your investment assets and will prescribe the structure, content, and administration of your portfolio.
Specifically, the IPS is intended to:
- Establish a clear understanding of the investment goals and objectives of the family.
- Determine the relevant time horizons in which the funds will be managed an evaluated.
- Set out the structure and process for managing the investment assets, including asset allocations, asset classes, and the composition of the portfolios.
- Describe the criteria by which investments and managers will be selected and any restrictions that must be followed.
- Outline the process by which the investment program will be implemented and administered.
- Define the decision-making process and the responsibilities of all parties involved in the management of the assets.
- Ensure effective communication between the investor and the various parties involved in the investment management process.
- Ensure that the governance and the management funds comply with all applicable fiduciary standards and regulatory requirements.
- Establish a clear basis for reporting on and evaluating the investment results.
This investment policy is designed for the Reynolds family and its related entities. James (71) and ...