How to Write an Investment Policy Statement, 2nd Edition

"The preparation and maintenance of the Investment Policy Statement is the most critical function a fiduciary performs . . . this compact strategy guide provides advisors and their fiduciary clients with a useful tool that will help them comply with their ERISA-directed requirement."
—Donald B. Trone, CEO (Chief Ethos Officer), 3ethos

ERISA and other guidelines have long required fiduciaries to implement a uniform process for drafting an Investment Policy Statement (IPS). But historically, enforcement has been lax, leaving companies little motivation to develop a formal practice.

Now, times have changed. Corporate scandals, coupled with volatility in the markets, have generated an increase in complaints, lawsuits and even the possibility of government legislation requiring an official IPS. This compact guide will help financial advisors, plan sponsors, money managers and all professional fiduciaries protect themselves, stay in compliance—and stay one step ahead of the government mandate—by putting a simple IPS process in place.

Industry pro Rocco DiBruno provides an easy-to-follow framework for producing a well-written IPS based on practices recognized by the Foundation for Fiduciary Studies. In clear terms, he outlines how to . . .

• Define the duties and responsibilities of all parties involved
• Clarify diversification guidelines and keep costs in check
• Identify due diligence criteria for selecting investment options

PLUS: Two Sample Policy Statements are included which can be downloaded directly from the website at: www.thornburg.com/IPS. Both templates make implementing a proper IPS easier and more accurate.

With this thorough guidebook, you can prepare documents that meet all industry standards of compliance and federal regulations with relative ease—every time—while protecting yourself and your firm from liability.