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Investment Policy

The starting point for any investment program is to establish objectives. IPEX assists clients in defining their objectives by preparing an Investment Policy Statement (“IPS”) that addresses a range of issues covering allocation, risk, return and spending. The IPS encourages clients to stay on track, sets forth a blueprint for evaluation and alerts us to those issues that require ongoing monitoring.


The purpose of an IPS is to formally document all relevant issues concerning an investment program. An IPS outlines the assumptions and expectations that will guide the management of the account, as well as the policies and procedures that will guide the investment process. An IPS also facilitates communication and understanding, and as a result can help to avoid potential problems.


Without a properly written IPS, it is extremely difficult, if not impossible, to determine whether an account is appropriately positioned, whether the performance of the individual managers is acceptable, or whether the overall account is on track to help the client reach their long-term goals. An IPS should establish a framework for investment and a blueprint for evaluation.


A comprehensive IPS covers a broad range of issues. Some issues relate to the overall investment program, while others pertain to specific managers. Oftentimes these issues may be addressed in different documents. In preparing the portions that pertain to the overall account, IPEX works closely with the client. In preparing the portions that pertain to a specific manager, we work primarily with the manager.


In overseeing an investment program it is easy to lose sight of the overall objectives. In particular, this problem can occur if the program consists of many different managers with different investment styles. In preparing an IPS, we help the client to understand the various components of the investment program and how they fit together. A well written IPS encourages the client to focus on the overall program, its expected risk and return, and how it dovetails with the client’s specific objectives.

Fiduciary Responsibilities

While organizations are concerned with reaching their investment goals, they cannot afford to overlook their fiduciary responsibilities. Frequently, when an investment program has not produced the desired results, the law focuses on the process that lead to those results. An IPS can help in two respects. First, the mere fact that the client has addressed the issues contained in the IPS can improve the investment process and may help to improve the outcome. Second, the existence of the IPS is strong evidence that the client has fulfilled its fiduciary responsibilities and is operating according to a systematic game plan.

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