An investment policy statement (IPS) functions as a blueprint for the management of a portfolio; it spells out the roles of the various parties and the process by which the account is to be managed and monitored. A well-crafted IPS helps foster communication between advisor and client and helps all parties to understand their duties and responsibilities. It can also help board members fulfill their investment obligations and thus protect themselves from personal liability.
One of the initial steps we take as your investment advisor is to work with your investment committee to help expand the investment policy statement to, among other things, address the following items:
- Define separate asset allocations and time horizons for the operating fund versus the long-term and endowment funds.
- Specify whether donated securities should be held or liquidated.
- Specify how dividends, capital gains and interest should be reinvested.
- Further refine asset allocation targets and guidelines.
Assistance with the development, implementation and monitoring of investment policies is one of the many complimentary services Towneley offers its clients. On an ongoing basis, we manage your accounts in accordance with your stated investment policies. As an organization's needs and goals change and evolve, however, we may from time to time recommend further revisions to the investment policies during our periodic meetings with the investment committee and/or board of directors.