As a financial advisor, it's essential to tailor your clients' portfolios to their goals and comfort level with risk. One crucial tool in achieving this is the creation of an Investment Policy Statement (IPS). An IPS is a written document that outlines a client's investment goals, risk tolerance, time horizon, and any other relevant information that will guide investment decisions. It serves as a roadmap for managing investments and helps ensure that decisions are made in line with the client's objectives.
When markets are as volatile as they were in 2023, it's easy to get swept up in the day-to-day price action and lose your focus. That's why the new year is the perfect time to revisit and update your clients' IPS. By doing so, you can ensure that their investment strategy remains aligned with their current financial situation and goals.
The most common way of structuring a family office is through a limited liability entity that combines characteristics of a corporation with those of a partnership. This structure provides flexibility and protection for the family's assets while allowing for efficient management and decision-making.
By a unanimous vote Thursday, members approved the investment policy prioritizing four investment principles—low-cost investment options, open communication with clients, regular portfolio reviews, and adherence to the client's risk tolerance. These principles form the foundation of a sound investment strategy and help ensure that the client's best interests are always the top priority.
Once created, an investment policy statement can help contextualize the client's spending outlook. Ultimately, the document enables OCIOs to provide a full picture of the client's financial situation and make informed decisions about asset allocation and investment strategies.
On 28 November 2023, the UK's Financial Conduct Authority (FCA) unveiled its Policy Statement PS 23/16 (Policy Statement), which sets out new regulations and guidelines for investment firms. The Policy Statement aims to enhance consumer protection, promote market integrity, and ensure fair and transparent markets.
Divesting from Israel has been the rallying cry during pro-Palestinian rallies on college campuses. But experts say it's not that easy, as divestment can have complex legal and financial implications. It's crucial for institutions to carefully consider the potential consequences of divestment before making any decisions.
S.F. State announced on May 15 a plan supported by pro-Palestinian students to rethink its investment policies in light of human-rights concerns. The university's decision reflects a growing trend among institutions to align their investment strategies with ethical considerations and social responsibility.
