Sample Investment Policy Statement Free Download

Download a sample investment policy statement for free and use it as a guide to write yours easily. Such policy is a crucial document for portfolio management to ensure effective asset allocation and optimum investment returns.

What is a Sample Investment Policy Statement

This document typically contains a number of points of agreement between the investors and the investment manager. Most agreements points are generally related to investor funds and how they will be managed.

This IP document is a great resource to have in order to have good asset allocations and return on investments, and also to have income security. There are a few important topics and details people need to be aware of with this documentation. Most reliable investment managers will typically make this documentation available to all clients. This document helps all investors to track cash flows and their investment portfolios with ease.


What Should Be Included in the IPS?

A good Investment Policy Statement (IPS) needs to contain a few basic details about investments and portfolios. These details should be included in that IPS document, so that all investors know where their money is going. Here are a few essential components to include in this document, or in the Policy Statement.

a. Investor’s goals

This is the first critical item to be included in this paper. Most of the right IPS documents will typically contain a few financial goals of the investors. It is essential that all investors should have their own goals in mind while investing their money. These financial goals are extremely helpful to keep all investors on track over the long term.

When they have appropriate and clear goals, they are motivated to achieve these goals with ease. These goals are also helpful in helping all the investment managers make every decision accurately in order to get the desired investment returns. This is why the purpose and investment objectives of each asset class in the portfolio needs to be clearly stated. For that reason, this item becomes highly relevant to IPS documents.

b. Asset allocation

When people want to build a good Investment Policy Statement, or IPS, this is one clause that should be included as well. Asset allocation is another crucial element of how money is invested into better investments. All investors should do portfolio analysis and talk with their Investment Managers regarding their Asset Allocation Strategy. They may want to discuss about how their money could be allocated to appropriate investment vehicles.

There are potential assets which could be used in order to make sure that all assets are kept in as safe condition as possible. Diversifying all assets could increase security for all investors. They should carefully select the types of investments they make, so they will be safe from losses due to the financial calamities that might come their way in the future.

c. Return on Investment

This is one more investment strategy people need to take a look at. Different businesses can have different rates of return on investment (ROI). Most investors generally want to pick the best instruments which offer a higher ROI.

However, they must also take into account the risks in their investments. Most credible investment managers are capable of managing all risks in this IPS paper. They also provide the return on investment percentage of every asset or portfolio, be it for a long-term or a short-term investment, in this document.

d. Portfolio management

Some investment managers typically incorporate such portfolio management systems into their IPS documents. This point becomes really important to both investors and portfolio managers.

This system is really helpful in helping both parties to maintain overall performance of their investments with ease. This management system can incorporate certain crucial details on how any assets should be managed accurately. This system can also make sure all the investors money is invested properly into the correct investment instruments. Therefore, such system is required to be found in investment policy statements, or IP documents.

e. Monitoring system

Most investors generally want to be aware of their holdings at any time, and to keep an eye on them. Because of that, they generally want to utilize the right tracking systems for checking on investments. It is good to configure monitoring system on this documentation about IPS. It is important to include any details related to this monitoring and reporting system. Most investment managers will be providing periodic reports for all investors.

These regular reports are typically delivered at least once in every 1 or 2 months to all investors. These are a few essential items which must be found on a proper IPS document. This Policy Statement can also contain a few more points of view from an investor to an Investment Manager. It is quite flexible and easy to put together a good IPS document. The sample policy will guide you more on these topics.

When investors wish to easily increase wealth, they must know how they can properly manage their assets. They can hire a professional investment manager for taking care of their money. Creating an excellent IPS paper is considered to be the most crucial step of all investors, wishing to hire a trusted investment manager for themselves.

Learn more: A good way to read more on the subject is the book How to Write an Investment Policy Statement which is available at Amazon.com.

To learn more, you can download a free sample ips in a Word document.

Download sample investment policy statement free