Formalize


The third step involves governance issues, such as development or enhancement of the clients Investment Policy Statement.

  1. Prepare governance procedures, including Investment Policy Statements
  2. If applicable, address Socially Responsible Investment (SRI) guidelines and vendor selection
  3. If applicable, address Environmental, Social and Governance (ESG) Guidelines

Investment Policy Statements

We have developed extensive experience in working with clients in the development of customized Investment Policy Statements.

The full expertise of our firm, and the years of experience of our consultants and analytical staff, allows us to deliver seasoned and proven capabilities to this critical area of investment portfolio governance.

Today, investment policy statements are detailed documents that articulate an institution’s broad objectives.  They include asset allocation and risk/return expectations, and, for each manager, specific objectives and guidelines for managing portfolio or plan assets.  They also include criteria about how to hire, monitor and, most importantly, when and why to put a manager on a “watch list” and when to replace a manager.

The IPS should detail the desired investment mix and management structure, provide for clear and enforceable performance standards for money managers, and define the duties and responsibilities for all parties involved in the management of the investment portfolio or plan assets.

The IPS should be viewed as the business plan and the essential management tool for directing and communicating the activities of the portfolio or plan.  Significantly, its purpose is to explicitly state the Institution’s realistic goals.

chart-investment-policy-statements

SRI Guidelines

For our faith-based clients that want to insure their investment portfolio or plans reflect their moral and religious beliefs, we provide assistance in developing and implementing a SRI program.

ESG Guidelines

A set of standards for a company’s operations that socially conscious investors use to screen investments.  Social criteria examines how a company manages relationships with its employees, suppliers, customers and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits and internal controls, and shareholder rights.

As what constitutes an acceptable set of ESG investment guidelines varies between institutional investors and non-profit organizations, we provide a customized service to assist clients in the development of an ESG program.