Investment Policy Development

Palisade has broad based experience at assisting clients to develop, update, and/or maintain Investment Policy Statements. Our objective is to assist our clients to utilize manageable and effective Investment Policy Statements.

What is the Role of an Investment Policy Statement (IPS)?

  1. Setting clear and definable investment growth and risk tolerance objectives
  2. Creating an investment asset allocation policy
  3. Establish investment performance and investment management oversight processes
  4. Determining communication protocol

As emotional or behavioral factors can lead to improper decision-making, an IPS is a tool to provide investors with the appropriate information and a systematic approach to assist them in making appropriate decisions. With an effective IPS, advisor and client can make prudent, rational decisions about investments with confidence. Additionally, an IPS creates a record of why and how things were done and may provide fiduciaries and investment decision makers important historic information.

Who Needs an Investment Policy Statement?

Nearly all investors need some form of an investment policy. In certain fiduciary circumstances, it is mandated by law. An investment policy is required any time a person or group is making investment decisions for the benefit of others, regardless of whether the decision makers also have a direct personal interest in the assets.

More information? Contact us.