What is an Investment Policy Statement (IPS)
An Investment Policy Statement (IPS) is a formal document that outlines an investor’s financial objectives, risk tolerance, and specific guidelines for managing their investment portfolio. It serves as a strategic roadmap for family offices to ensure that investment decisions align with the family’s long-term goals and values.
Components of an Investment Policy Statement
An IPS typically includes components such as investment objectives, asset allocation strategy, risk management guidelines, performance evaluation metrics, and any specific constraints or preferences. These elements help family offices maintain a disciplined approach to portfolio management and adapt to changing financial circumstances.
