Investment policy, which should be agreed at the outset between investor and manager, determines (1) which asset classes to include and (2) their long term weightings.

A statement of investment policy should set out the following key points:

Aims & Objectives
Is the requirement is to match a liability, maximise returns, or preserve the real value of capital? We will discuss the returns that you seek to ensure that they are achievable within your tolerance for risk.

Investment Horizon & Future Cash Flows
We will identify now any planned future shifts in objective together with the timing and currency of future contributions, investments and withdrawls.

Performance and Targets
We should determine at the outset how you will judge our performance - be it against an indices, a specific rate of growth, or a specific level of income yield.

Special Preferences & Constraints
What special preferences and constraints do you wish impose for ethical, legal or taxation reasons? Define the liquidity requirement.

Risk Profile
What is the greatest acceptable capital loss at any moment in time or in any one year? What is the acceptable variation around the mean return?

Asset Allocation
We will propose an allocation between the major asset classes and any alternative investments.

Reviews & Reporting
We will suggest a benchmark for portfolio performance measurement, and confirm with you the frequency of reporting and investment policy reviews.

Investment Strategy>