Glossary · concept

Investment Policy Statement

Also known as: IPS

Definition: An Investment Policy Statement is the formal document agreed between a client (or family office) and an investment manager specifying the asset allocation, benchmarks, currency exposure, restrictions, and risk parameters of the mandate.

IPS is the operating contract for discretionary mandates and family-office investment programmes. A typical IPS specifies target asset allocation by class (equities, fixed income, alternatives, real assets), benchmark indices, allowed deviations, currency exposure rules, ESG / sustainability restrictions, individual-security concentration limits, and review cadence. For SG family offices, the IPS is part of the regulatory documentation for 13O / 13U substance.

Discretionary mandate

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Investment Policy Statement

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