IPS Constraints
Liquidity Requirements Time Horizon Tax Concerns Legal and Regulatory Factors
The Investment Policy Statement
Portfolio planning can be defined as a program developed in advance of constructing a portfolio that is expected to define the client’s investment objectives. The written document governing this process is the investment policy statement (IPS). The IPS is sometimes complemented by a document outlining policy on responsible investing—the broadest (umbrella) term used to describe principles…
Pooled Interest – Other Investment Products
A fund management service for institutions or individual investors with substantial assets is the separately managed account(SMA), which is also commonly referred to as a “managed account,” “wrap account,” or “individually managed account.” Exchange-Traded Funds Hedge Funds Hedge funds are private investment vehicles that typically use leverage, derivatives, and long and short investment strategies. Private Equity and…
Pooled Interest – Type of Mutual Funds
Money Market Funds Bond Mutual Funds Stock Mutual Funds Hybrid/Balanced Funds
Pooled Interest – Mutual Funds
Mutual Funds Rather than assemble a portfolio on their own, individual investors and institutions can turn over the selection and management of their investment portfolio to a third party. One way of doing this is through a mutual fund. This type of fund is a comingled investment pool in which investors in the fund each have…