Investment Policy Formulation or Review


Investment policy statements provide clients and their investment managers(s) with a blueprint for structuring the investment program. The following elements should be included in a comprehensive investment policy statement:

  • All investment goals of the Fund clearly and simply stated
  • The Fund’s risk tolerance level carefully described
  • All relevant investment restrictions or limitations identified
  • A strategic asset allocation policy, including rebalancing methodology
  • Detailed investment guidelines and expectations for each investment manager
  • Performance benchmarks and evaluation time frames for each asset class/manager
  • Performance review and communication policies for all investment managers

Each investment manager’s compliance with the investment policy statement is monitored every quarter, and reviewed annually.