Endowments & Foundations

The Investment Policy Statement

What is an Investment Policy Statement?

The Investment Policy Statement (IPS) serves as a guide for evaluating and monitoring the overall investment portfolio and the individual investment options provided. It also provides documentation of the procedures and decisions made in selecting and monitoring a plan’s investment options. For endowments and foundations, the IPS provides reassurance that the investments are being deliberately managed in a plan that is in accord with their best interests.

Why Investment Policy Statements are important.

Drafted between the client and the portfolio manager, the IPS outlines the specific parameters for the manager such as asset allocation, risk tolerance and liquidity requirements. By building on a sound IPS, we can guide investment assets and direct changes through various market cycles. This ensures the best chance of investment success for all. 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.