Investment Policy Statement

The Investment Policy Statement is the blueprint for the myriad of investment decisions required of a client’s fiduciaries. This document lays the foundation and establishes the parameters for how the client’s portfolio will be operated, including:

  • Determining the purpose of the Fund
  • Determining the responsibilities of the parties
    • Investment Committee or Board
    • Investment Managers
    • Investment Consultant
    • Other Service Providers
  • Setting the Fund’s goals and objectives
  • Establishing the Fund’s time horizon
  • Identifying key constraints
  • Outlining risk-return expectations
  • Establishing the benchmarks to be used for evaluation
  • Validating the Fund’s asset allocation policy and ranges

Equitas has extensive experience developing, reviewing, and revising investment policy statements. We have done a great deal of work with a wide variety of organizations to clarify and enhance their investment policy guidelines.

Our philosophy in regard to investment policy is to be a collaborative extension of your staff. We work closely with our clients to make sure we understand the history behind prior decisions and incorporate the current legal and investment environments into this document. We work together to build a living document that effectively works as a guide to meet each client’s objectives, while at the same time provides prudent risk management oversight.

A well-crafted Investment Policy Statement is evidence of the procedural prudence exhibited by the client’s fiduciaries. At the same time it becomes a flexible tool which may be modified as circumstances warrant.