Saturday, August 3, 2013

Sample Investment Policy Statement (IPS)

An Investment Policy Statement ("IPS") is a document, generally between an investor and his/her advisor , recording the agreements the two parties come to with regards to issues relating to how the investor's money is to be managed.The presence of an IPS helps to clearly communicate to all relevant parties the procedures,investment philosophy , guidelines and constraints to be adhered to by the parties. It can be seen as a directive from the client to the advisor  about how the money is to be managed, but at the same time the IPS should provide the guidelines for all investment decisions and responsibilities of each party. As a policy document rather than an implementation directive, the IPS should provide guidance for how investment decisions will be made; it should not be a list of the specific securities to be used; sometimes it includes prohibited securities though. A good sample IPS provided by Weighhouse can be found here  

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.