The Investment Policy Statement

What is an Investment Policy Statement?

The Investment Policy Statement (IPS) serves as a guide for selecting, evaluating and monitoring the overall investment portfolio and the individual investment options provided. For a retirement plan or non-profit institution, it also provides documentation of the procedures and decisions made in selecting and monitoring the investment options. The IPS provides accountability that the investments are being  in accordance with the needs of the organization.

Why Investment Policy Statements are important.

By building on a sound IPS, we can guide investments and direct changes through various market cycles. A great deal of thought must go into creating an IPS and it should clearly reflect all the issues and criteria governed by a prudent investment philosophy.