Online Learning: Developing an Investment Policy Statement

Course Description

The central document guiding the management of a nonprofit institution’s endowment—essentially, the strategic plan of the investment committee—is the investment policy statement (IPS). A well-constructed investment policy statement serves as the committee’s contract with itself and the organization it supports. The IPS should be specific, embodying in concrete terms the best thinking of the board of trustees about the investment pool, its goals and its purposes; but it also needs to be sufficiently flexible to guide the board through environments that may be very different from those prevailing at the time of its adoption. Each institution’s board must craft a statement that responds to the needs of the institution and the preferences and risk tolerances of the trustees.

This session will explore the fundamentals of crafting an IPS and illustrate the importance that the institution’s mission, capabilities and resources should play.

Identify the various reasons for updating the IPS
List the key roles of a fiduciary
Differentiate between the key determinants of returns for an investment portfolio
Differentiate between the different motivations for practicing responsible investing
List the key reasons why adding risk to the IPS is important
Define the various roles and responsibilities in your organization and the viable options for addressing these needs
Differentiate between the primary functions of the IPS