Investment Policy Statement

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Investment Policy Statement

In a discretionary account, an agreement between a portfolio manager and a client stating the client's needs and desires with regard to the portfolio. That is, the IPS states how the client expects the portfolio to perform and what the portfolio manager may and may not do in order to achieve this goal. The IPS prevents misunderstandings, such as when the manager takes on too much or too little risk for the clients investment goals. See also: Asset management.
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Much as investment policy statements (IPSs) gained traction over the past 20 years, fee policy statements will likely see an uptick in use over the next five or so.
Provide the Committees with an assessment of, and recommendations for, any changes needed to the Investment Policy Statements including recommendations on changes to benchmarks or universes used to measure and monitor Investment Manager performance.
Fifty-six percent of respondents said investment policy statements were important, using them to define the family's investment and financial goals.
Finally, committees should make certain they comply with any governance documents, including investment policy statements, by applying investment criteria, revenue sharing guidelines, and plan document provisions.
The seminar covered issues of interest to trustees of defined contribution retirement plans, such as compliance, administration, trustee responsibilities and risk, and investment policy statements.
Since the adoption of Investment Policy Statements in December 2012, the past two years have shown positive results through active management of the UELAC accounts and funds.
IPS AdvisorPro is used by financial advisors develop customised investment policy statements, which are used to document client investment goals and the subsequent procedures to achieve those goals.
They also did not keep investment policy statements for certain clients.
This recent case has made it clear that they must follow their investment policy statements and must have appropriate expertise on the committee to make [prudent judgments].
Complex derivatives, glide-paths, and altered investment policy statements are another.
67% of asset owners and 83% of investment managers have adopted a formal policy on responsible investment - typically this is integrated within core investment policy statements.
Investors have the right to know how their money is going to be managed, said Boone, "and the IPS AdvisorPro(R) software enables advisors to create detailed, customized Investment Policy Statements in under 15 minutes.
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