Develop an Investment Policy Statement
Why should you have an Investment Policy Statement?
With so many investment opportunities out there, it can be difficult to determine which are best for you and your organization. It may be hard to pass over seemingly-golden opportunities, but it may mean the difference between supporting an organization that is contrary to your beliefs, mission, and values, or not.
Connect with the Foundation
We are here to talk to you and help you develop clear investment goals and objectives for your organization. Call the Foundation office at 1-866-340-8223, or fill the form out below.
What is an Investment Policy Statement?
An Investment Policy Statement (IPS) is a document that gives clear direction to your investment strategy. Inside, you will set clear objectives and criteria for investing which will inform your choices moving forward. Every United Church organization should develop its own policy statement to ensure that it is managing its long-term funds efficiently, effectively, and with the core values of the organization and denomination in mind.
An IPS doesn’t need to be very long to adequately convey the needs, requirements and desires of your organization. Sometimes one page is enough to describe how your congregation will manage its investment process.
Working with an investment manager
An investment manager (if you choose to use one) will do much of the day-to-day management of your assets for you. Hiring an investment manager is a great way for organizations who are new to investing to make informed management decisions. While you can create an IPS before finding an investment manager, you may want to revise your IPS based on their advice.
You should also look at your IPS every three to five years, to ensure that it is still aligned with the goals and beliefs of your organization.
What should go into my IPS?
When drafting an IPS, try to answer the following questions:
- What are you trying to accomplish through investments?
- How diverse should your investments be?
- What percentage of each investment vehicle (stocks, bonds, equities) should be in your portfolio?
- How will you measure the performance of your portfolio?
- How will you evaluate the performance of your investment manager?
Use the following resources to help better understand and develop your own IPS:
What to consider putting into your IPS