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Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order by Tom McCullough, Mark Haynes Daniell

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Chapter 19

Investment Policy Statement (Example)

Investment Policy Statement—the Reynolds Family

Purpose

The investment policy statement (IPS) is a strategic guide to the planning and implementation of the family’s investment program. It provides a framework for managing your investment assets and will prescribe the structure, content, and administration of your portfolio.

Specifically, the IPS is intended to:

  • Establish a clear understanding of the investment goals and objectives of the family.
  • Determine the relevant time horizons in which the funds will be managed an evaluated.
  • Set out the structure and process for managing the investment assets, including asset allocations, asset classes, and the composition of the portfolios.
  • Describe the criteria by which investments and managers will be selected and any restrictions that must be followed.
  • Outline the process by which the investment program will be implemented and administered.
  • Define the decision-making process and the responsibilities of all parties involved in the management of the assets.
  • Ensure effective communication between the investor and the various parties involved in the investment management process.
  • Ensure that the governance and the management funds comply with all applicable fiduciary standards and regulatory requirements.
  • Establish a clear basis for reporting on and evaluating the investment results.

Scope

This investment policy is designed for the Reynolds family and its related entities. James (71) and ...

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