Creating an Investment Policy Statement

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Creating an Investment Policy Statement (IPS) is an essential part of managing and protecting investments. A written document outlining objectives, strategies, and guidelines for a portfolio, it gives investors and financial advisors the clarity they need to make informed decisions about their investments. It serves as a reference point for both parties, helping ensure that the portfolio is managed in a consistent manner so that it stays in line with the investor’s goals.

However, creating an IPS can be complex and time consuming; requiring an understanding of investments, asset allocation, and portfolio management not easily acquired by those who don’t specialise in this field. As such, experienced legal professionals are often called upon to help craft these documents according to the individual investor’s needs.

This is where Genie AI comes into play - providing access to millions of datapoints on the market-standard investment policy statement look like via its open source legal template library - enabling anyone to draft and customize high quality legal documents without paying a lawyer. In fact, you don’t need an Genie AI account at any time - all we want to do is help bring clarity on the topic of investment policy statements.

An IPS provides investors with structure they need to make informed decisions about their investments while keeping them protected from any risks associated with them - something that can only be achieved when created carefully by experienced professionals or utilising market-leading resources like Genie AI’s community template library. And so if you’re looking for step-by-step guidance on how best to go about creating your own or learning more about accessing our library today then please read on below…

Definitions

Long-term goals - Goals that will take a length of time to achieve, usually over a period of several years.
Short-term goals - Goals that will be achieved more quickly, typically within a year.
Risk tolerance - The amount of risk an individual is comfortable taking with their investments.
Asset classes - Different types of investments such as stocks, bonds, cash, and real estate.
Limitations and constraints - Rules or restrictions that determine the types of investments an individual can make.
Diversification - Spreading investments out among different asset classes, sectors, and countries to reduce risk.
Target allocations - The percentage of an individual’s portfolio that should be allocated to each asset class.
Acceptable investments - Investments that meet an individual’s risk tolerance and goals.
Tax implications - Potential tax liabilities or savings that may arise from certain investments.
Liquidity requirements - Rules for how much of an individual’s portfolio should be available for immediate use.
Investment managers - Professionals who manage investments on behalf of investors.
Rebalancing thresholds - Parameters that determine when an individual’s portfolio should be rebalanced.
Rebalancing strategies - Strategies for when and how often an individual’s portfolio should be rebalanced.
Performance metrics - Measures of an individual’s portfolio performance such as return, risk, and volatility.
Benchmark selection - The standards or metrics used to measure performance.
Cash flow needs - The amount of money that an individual needs to cover regular expenses and emergencies.
Cash reserve strategies - Strategies for managing an individual’s cash reserves.
Guidelines review process - The process of regularly evaluating and updating an Investment Policy Statement.

Contents

1. Setting Investment Goals and Objectives
2. Define long-term and short-term goals
3. Establish timeframes
4. Identify risk tolerance
5. Defining the Investment Universe
6. Decide on eligible asset classes
7. Establish limitations and constraints
8. Determining Asset Allocation
9. Consider diversification
10. Establish target allocations
11. Setting Investment Guidelines
12. Identify acceptable investments
13. Consider any tax implications
14. Establish liquidity requirements
15. Selecting Investment Managers
16. Research potential investment managers
17. Determine manager objectives
18. Identify manager selection criteria
19. Defining Rebalancing Strategies
20. Establish rebalancing thresholds
21. Identify rebalancing strategies
22. Setting Performance Measurement Criteria
23. Define performance metrics
24. Determine benchmark selection
25. Determining Cash Reserve Requirements
26. Estimate cash flow needs
27. Identify cash reserve strategies
28. Establishing a Guidelines Review Process
29. Set review frequency
30. Establish review parameters
31. Implementing the Investment Policy Statement
32. Draft Investment Policy Statement
33. Obtain approval
34. Finalize the Statement
35. Distribute the Statement
36. Monitor compliance

Get started

Setting Investment Goals and Objectives

• Identify the specific goals for your investments
• Consider both short-term and long-term goals
• Make sure your goals are realistic and achievable
• Make sure you understand the risks associated with each of your goals
• Establish an appropriate timeline for achieving each goal
• Record your investment goals and objectives in writing
• Once you have established and recorded your investment goals and objectives, you can move on to the next step.

Define long-term and short-term goals

• Identify the long-term and short-term goals of your investment portfolio.
• Determine the time frame associated with each goal.
• Consider the amount of risk associated with each goal.
• Consider the required rate of return for each goal.
• Estimate the amount of money needed to reach each goal.

Once you have identified your long-term and short-term goals, estimated the amount of money needed to reach each goal, and determined the time frame associated with each goal, you will have completed this step and can move on to the next step.

Establish timeframes

• Determine the timeline for achieving your long-term and short-term goals
• Establish a monitoring period for your investment strategy
• Identify when to review and revise your investment strategy
• Set a timeline for updating your Investment Policy Statement

You can check this off your list when you have determined the timeline for achieving your goals, established a monitoring period, identified when to review and revise your investment strategy and set a timeline for updating your Investment Policy Statement.

Identify risk tolerance

• Identify your desired level of risk.
• Determine how much money you can afford to lose, if any.
• Consider whether you are comfortable with taking risks with your portfolio.
• Make a decision regarding the level of risk you are willing to accept in your investments.
• Once you have identified your risk tolerance, you can move onto the next step in the process.

Defining the Investment Universe

• Determine the asset classes you’re willing to invest in, such as stocks, bonds, or cash
• Consider the types of investments within each eligible asset class, such as specific stocks, bonds, or funds
• Establish the range of investments you are willing to consider, such as large-cap, mid-cap, or small-cap stocks
• Set limits based on geography, industry, or sector
• Decide whether you are willing to invest in alternative investments, such as real estate, derivatives, or commodities

When you can check this off your list and move on to the next step:

• When you have determined the eligible asset classes and set limits on the types and range of investments you are willing to consider.

Decide on eligible asset classes

• Research and decide which asset classes are eligible for investment
• Consider a range of criteria such as risk, liquidity, fees, and tax considerations
• Decide which asset classes should be excluded from the investment universe
• Determine the asset allocation you want (e.g. 60% stocks and 40% bonds)
• When you have finalized your eligible asset classes, you can move on to the next step.

Establish limitations and constraints

• Determine the level of risk you can realistically take on and are comfortable with
• Decide on the minimum and maximum investment amounts for each asset class
• Set the time horizons for each asset class
• Specify the level of liquidity you are comfortable with
• Establish a rebalancing policy

Once you have established the limitations and constraints for your investments, you can move on to the next step.

Determining Asset Allocation

• Assess your current financial situation and identify your objectives
• Analyze your current investments and determine what kind of asset allocation is right for you
• Calculate the percentage of each asset class you need to reach your goals
• Consider the tax implications of each asset class
• Establish a timeline for when you need to hit your goals

When you are able to identify the percentage of each asset class you need to reach your goals, you can move on to the next step in creating an Investment Policy Statement.

Consider diversification

• Research different asset classes and determine the ones that you would like to include in your portfolio, such as stocks, bonds, and cash.
• Determine how much of your portfolio should be allocated to each asset class and decide if it is appropriate for your risk tolerance.
• Consider different types of investments within each asset class, such as different types of stocks or bonds.
• Identify any special risks associated with certain investments and decide if it is appropriate to include them in your portfolio.
• When you are satisfied with your portfolio asset allocation and individual investments, you can check this step off your list and move on to the next step.

Establish target allocations

• Determine the asset classes you want to include in your portfolio (e.g. stocks, bonds, cash)
• Set your target allocations for each asset class (e.g. 60% stocks, 40% bonds, 0% cash)
• Adjust your target allocations based on your risk tolerance and investment goals
• Rebalance your portfolio periodically to maintain your target allocations

When you can check this off your list:
When you have determined your target allocations and adjusted them based on your risk tolerance and investment goals, you can check this off your list and move on to the next step.

Setting Investment Guidelines

• Define your risk tolerance, time horizon, and liquidity needs
• Establish a target asset allocation with a mix of stocks, bonds, and cash
• Set a target percentage of domestic and international investments
• Determine the maximum and minimum amounts allowed for each asset class
• Establish a maximum and minimum percentage of investments allowed in each sector
• Establish a maximum and minimum percentage of investments allowed in each industry
• Define any restrictions on investments in certain countries
• Define any restrictions on investments in certain companies

You can check this off your list when you have a clear and comprehensive set of investment guidelines that reflect your risk tolerance, time horizon, and liquidity needs.

Identify acceptable investments

• Research different types of investments and determine which are appropriate given the investment objectives, risk tolerance, and time horizon
• Consider a mix of investments, such as stocks, bonds, and cash equivalents
• Determine the percentage of the portfolio allocated to each type of investment
• Decide which specific investments to include in the portfolio, such as exchange-traded funds (ETFs), mutual funds, and individual stocks
• You can check this step off your list once you have identified acceptable investments and determined the percentage of the portfolio allocated to each.

Consider any tax implications

• Consult a tax advisor to determine what types of investments may be held in a tax-advantaged account
• Understand the tax implications of each type of investment, such as capital gains and dividends
• Take into account any state or federal tax laws that will impact the investments you make in the portfolio
• When finished, make sure to record these considerations in the Investment Policy Statement
• This step is complete when all applicable tax implications have been addressed and written into the Investment Policy Statement

Establish liquidity requirements

• Identify the amount of liquid assets you need to have on standby (cash, money market accounts, etc.)
• Determine the purpose of these assets and the timeline for their use
• Decide how to manage the cash flow of your liquid assets to meet your needs
• Make sure your liquidity requirements will be met by your IPS
• Once you have established your liquidity requirements, you can move on to selecting investment managers.

Selecting Investment Managers

• Make a list of potential investment managers and research them thoroughly
• Check references, look at investment performance, review fees, read any available literature
• Ask questions to make sure the potential manager has the right approach and style for your investments
• Narrow down your list of potential investment managers to two or three
• Contact potential managers to confirm they are willing and able to meet your liquidity requirements
• Once you have narrowed down to two or three potential managers that meet your liquidity requirements, consult with your financial advisor and/or investment committee to decide on the best manager for your organization
• Once you have selected your investment manager, you can check this off your list and move on to the next step.

Research potential investment managers

• Review the credentials, experience, and track record of a variety of potential investment managers.
• Review the investment style and strategy of potential managers.
• Compare the fees and expenses associated with potential managers.
• Consider the investment manager’s reputation in the industry.
• Check to see if the potential manager has any disciplinary actions or conflicts of interest.

When you can check this off your list and move on to the next step:

• When you have researched and compared the credentials, experience, track record, investment style and strategy, fees and expenses, reputation, and disciplinary actions of potential managers.

Determine manager objectives

• Define the goal of the investments (capital preservation, current income, long-term growth, etc.)
• List the desired return from the investments
• Set a timeline for when the investments should reach their goals
• Determine the acceptable level of short-term risk for the investments
• Establish the acceptable level of long-term risk for the investments

When you have completed these tasks, you can move on to the next step of identifying manager selection criteria.

Identify manager selection criteria

• Establish criteria for selecting investment managers
• Establish criteria for evaluating prospective and existing managers
• Establish criteria for evaluating manager shortlists
• Establish criteria for evaluating manager performance
• Establish criteria for evaluating manager fees
• Establish criteria for evaluating manager risk
• Establish criteria for evaluating manager liquidity
• Establish criteria for evaluating manager tax considerations
• Establish criteria for evaluating manager ESG considerations

When you have established criteria for all of these items, you can check this step off your list and move on to the next step.

Defining Rebalancing Strategies

• Establish rules for when to execute trades to maintain the desired asset allocation
• Examine the costs associated with rebalancing, such as taxes, transaction costs, and opportunity costs
• Establish the frequency of rebalancing (annual, quarterly, monthly, etc.)
• Determine the amount of the portfolio that needs to be rebalanced (e.g., all or only a portion)
• Decide which asset classes will be rebalanced (all or only a portion)
• Consider the use of tax-loss harvesting as part of the rebalancing process

When you can check this off your list and move on to the next step:

• When you have established rules for when to execute trades to maintain the desired asset allocation
• When you have examined the costs associated with rebalancing
• When you have established the frequency of rebalancing
• When you have determined the amount of the portfolio that needs to be rebalanced
• When you have decided which asset classes will be rebalanced
• When you have considered the use of tax-loss harvesting as part of the rebalancing process

Establish rebalancing thresholds

• Determine the acceptable range of deviation for each asset class within the portfolio
• Specify the rebalancing triggers that indicate when the portfolio needs to be adjusted
• Decide whether to rebalance the portfolio when the thresholds are met or when the thresholds plus a tolerance level are exceeded
• Establish the frequency of portfolio reviews
• Set limits on how much you will adjust the portfolio upon rebalancing

Once you have set the rebalancing thresholds, you can move on to the next step of identifying rebalancing strategies.

Identify rebalancing strategies

• Determine how often the portfolio should be rebalanced
• Decide on the rebalancing method (time, target, or threshold)
• Set up a strategy for trading, such as back-end load or no-load
• Establish a list of securities to be traded to maintain desired asset allocation
• Identify any tax implications for rebalancing
• Determine whether any trading fees will be incurred

Once you have established the rebalancing strategy, you can move on to setting performance measurement criteria.

Setting Performance Measurement Criteria

• Establish a benchmark against which to measure investment performance. This may be a market index, or a custom benchmark specific to your portfolio goals.
• Define the time periods over which you will measure performance. These periods could be monthly, quarterly, or annually.
• Establish thresholds for underperformance or outperformance of your benchmark. For example, you may decide that you will only take action if your portfolio underperforms the benchmark by more than 2%.
• Decide how you will measure portfolio performance. This could be in terms of returns or risk-adjusted returns such as Sharpe ratio or Sortino ratio.
• When you have set all of your performance measurement criteria, check it off your list and move on to the next step.

Define performance metrics

• Create a list of performance metrics that will be used to measure the portfolio’s performance.
• Consider metrics such as return on investment, total return, alpha, beta, Sharpe ratio, and tracking error.
• Decide which metrics will be used and how they will be measured and reported.
• Once the performance metrics are determined, move on to the next step: determining benchmark selection.

Determine benchmark selection

• Identify and select the benchmarks that will be used to measure the funds performance
• Select benchmarks that best reflect the portfolio’s objectives
• Consider using a combination of market indexes, and custom benchmarks
• Consider using benchmarks that are relevant to the portfolio’s time horizon and risk profile
• When selecting benchmarks, consider their liquidity, fees and tax treatment
• Document the benchmark selection in the Investment Policy Statement
• When benchmark selection is complete, the next step is to determine cash reserve requirements

Determining Cash Reserve Requirements

• Identify the types of cash reserves you will need, such as an emergency fund, a reserve for long-term capital expenditures, or a reserve for investments
• Estimate the amount of funds that should be kept in cash reserves by evaluating any potential cash flow needs
• Research the options for cash reserves and decide which type(s) of account(s) you will use
• Allocate funds to the appropriate accounts, taking into consideration any restrictions, such as minimum deposits or maximum balances, that may apply
• Monitor cash reserve levels on a regular basis and adjust as needed

When you can check this off your list and move on to the next step:

• When you have identified the types of cash reserves needed, estimated the amount of funds that should be kept in reserves, chosen the account(s) to use, allocated funds, and monitored cash reserve levels.

Estimate cash flow needs

• Identify the cash flows that need to be funded, such as household necessities, debt payments, and retirement savings
• Research potential investments that meet the cash needs and risk tolerance
• Calculate the amount of cash needed to fund the identified cash flows
• Identify potential investment vehicles that can meet the cash flow needs and risk tolerance
• You’ll know when you can check this off your list when you have identified the cash flows to be funded and calculated the amount of cash needed.

Identify cash reserve strategies

• Identify and evaluate the cash reserve strategies that will be necessary to meet short-term liquidity needs
• Estimate the amount of cash that should be set aside for contingencies
• Research and assess the various investment options for cash reserves, such as money market funds, short-term bonds, certificates of deposit, and Treasury bills
• Take into account the risks, expenses, and liquidity associated with each option
• Estimate the expected returns for each option
• Decide which options will be used for cash reserves
• Document the cash reserve strategies you have chosen in the Investment Policy Statement

You can check this off your list and move on to the next step once you have identified, evaluated, and documented the cash reserve strategies in the Investment Policy Statement.

Establishing a Guidelines Review Process

• Establish how often you will review your investment policy statement.
• Decide who should be involved in the review process.
• Outline any procedures that need to be followed for the review process.
• Schedule a date for the review process and document it in the policy statement.
• Make sure to document any changes made to the policy statement during the review process.

You can check this off your list when you have established a review process, including who will be involved, how often it will take place, and any procedures that need to be followed.

Set review frequency

• Decide on the frequency of review for your Investment Policy Statement.
• Consider factors such as the volatility of the markets, changes in your financial goals, or changes in regulations.
• Establish a timeline for reviewing your IPS, such as annually or bi-annually.
• You will know you can move on to the next step when you have decided on the frequency of review for your Investment Policy Statement.

Establish review parameters

• Establish parameters for monitoring and evaluating the performance of investments, including the specific guidelines and benchmarks that will be used to measure success or failure
• Identify the criteria for evaluating performance, such as risk tolerance, return objectives, liquidity needs, and tax considerations
• Establish a process for determining when a change in the portfolio is warranted
• When you have established the review parameters, you have completed this step and can now move on to the next step of implementing the Investment Policy Statement.

Implementing the Investment Policy Statement

• Develop a timeline for implementing the IPS
• Determine how to communicate the IPS to all stakeholders
• Put in place the necessary operational and administrative procedures to ensure the IPS is followed
• Put together a team responsible for monitoring and measuring the IPS
• Put in place a system for reporting investment performance to the stakeholders that adheres to the IPS
• Make sure the IPS is updated when necessary

Once all of the above steps have been completed, you can move on to the next step of drafting the Investment Policy Statement.

Draft Investment Policy Statement

• Outline your investment goals and objectives.
• Describe the desired risk and return profile of your portfolio.
• Establish the time horizon for investing.
• Define the types of assets to be invested in, such as stocks, bonds, and alternative investments.
• Set limits on the amount of portfolio assets to be invested in each asset class.
• Establish guidelines for diversification across different asset classes and sectors.
• Decide how often the portfolio will be rebalanced and what triggers will be used.
• Include guidelines on liquidity and cash management.
• Outline the roles and responsibilities of the portfolio manager.
• Describe the method of monitoring and evaluating the performance of the portfolio.

You’ll know when you can check this off your list and move on to the next step when you have a fully drafted Investment Policy Statement that meets all of the above criteria.

Obtain approval

• Secure approval from all required stakeholders
• Obtain signatures from all authorized signatories
• File the approved Investment Policy Statement with the necessary documents
• Ensure all involved parties have a copy of the finalized document
• When all necessary approvals and signatures have been secured, the Investment Policy Statement is ready for implementation.

Finalize the Statement

• Review and make any changes to the IPS document to ensure it’s accurate and complete
• Check the document for accuracy, consistency, and completeness of the sections and subsections
• Review the document with your team to ensure it meets all the requirements
• Once all changes have been made, sign and date the IPS
• Once the IPS is signed and dated, you can check off this step and move on to the next step of distributing the statement.

Distribute the Statement

• Gather the team that worked on creating the Investment Policy Statement
• Distribute the document to each person involved in the creation of the document
• Provide the document to all necessary parties who need to review and approve the document
• Allow for the appropriate amount of time for each party to review the document
• Schedule a meeting with the parties involved to discuss and finalize the document
• Once the document has been reviewed by all necessary parties and any changes have been applied, the document is considered distributed
• Ensure that everyone involved in the creation, review, and approval of the document has a copy of the finalized Investment Policy Statement
• When all parties have reviewed and approved the document, and have a copy of the document, you can move on to the next step in the process.

Monitor compliance

• Regularly review your portfolio to make sure it is in compliance with the IPS
• Set a timeline for review, such as annually or quarterly
• Make sure contributions are consistent with the IPS
• Make sure portfolio allocations are in compliance with the IPS
• Make sure to document any changes made to the IPS
• Make sure to re-evaluate the IPS regularly to make sure it meets your current financial goals
• When all of these steps are complete, you can move on to the next step in the process.

FAQ

Q: What is the importance of an Investment Policy Statement (IPS)?

Asked by Victoria on July 15th, 2022.
A: An Investment Policy Statement (IPS) is an important document that outlines an individual or business’s investment objectives, risk tolerance, and asset allocation. It is an essential tool for managing investments and ensuring that your portfolio is well diversified and aligned with your goals. The IPS also serves as a guide for monitoring your investments and making adjustments when necessary. By having an IPS in place, investors can ensure that their investment decisions are based on a disciplined and consistent approach.

Q: How does an IPS differ from other investment documents?

Asked by John on May 19th, 2022.
A: An Investment Policy Statement (IPS) is different from other investment documents because it is tailored to individual or business needs and circumstances. It considers a variety of factors such as risk tolerance, time horizon, goals, and cash flow needs. Other investment documents focus more on the technical aspects of investing such as asset allocation, portfolio construction, and security selection. The IPS provides an overall framework for managing investments while other documents provide more specific details on how to execute that framework.

Q: What are the benefits of having an IPS?

Asked by Madison on June 7th, 2022.
A: Having an Investment Policy Statement (IPS) in place has several benefits. First and foremost, it helps you stay disciplined when making investments by providing a clear set of guidelines to follow. It also helps ensure that your portfolio remains well diversified as you make adjustments over time. Finally, having an IPS enables you to monitor your investments more effectively so that you can make adjustments when necessary in order to stay on track with reaching your goals.

Q: What should be included in an IPS?

Asked by Austin on August 16th, 2022.
A: An Investment Policy Statement (IPS) should include information about the investor’s goals, risk tolerance, time horizon, cash flow needs, asset allocation strategy, portfolio construction strategy, security selection strategy and any other relevant information related to the investor’s circumstances and objectives. The IPS should also provide guidance on how to monitor the investments over time and make adjustments when necessary in order to remain consistent with the investor’s goals and objectives.

Q: What are some common mistakes when creating an IPS?

Asked by Emma on April 10th, 2022.
A: Common mistakes when creating an Investment Policy Statement (IPS) include not taking into account individual or business circumstances when setting investment goals; not incorporating a risk tolerance into the IPS; not considering cash flow needs; not setting a timeline for achieving investment goals; not adequately diversifying investments; and not considering taxes or other fees that may apply to certain investments. Additionally, not regularly monitoring investments or failing to make adjustments to the IPS when circumstances change can lead to poor performance over time.

Q: Who should create an IPS?

Asked by Joshua on October 22nd, 2022.
A: An Investment Policy Statement (IPS) can be created by individuals or businesses who are looking to effectively manage their investments over time in order to reach their financial goals. Anyone who is interested in creating a comprehensive plan for investing should consider creating an IPS in order to ensure that their investments remain aligned with their objectives and risk tolerance over time.

Q: Does my business need an IPS?

Asked by Abigail on January 9th, 2022.
A: Whether or not your business needs an Investment Policy Statement (IPS) depends on the size and complexity of your business’s investments and how involved you are in managing them. For smaller businesses with simple portfolios or those who are not actively involved in investing decisions, an IPS may not be necessary. However, for larger businesses with more complex portfolios or those who want to actively manage their investments over time should consider creating an IPS as it will provide a comprehensive framework for managing their investments effectively over time.

Q: What legal considerations should I keep in mind when creating an IPS?

Asked by Daniel on March 28th, 2022.
A: When creating an Investment Policy Statement (IPS), it is important to keep in mind legal considerations such as applicable laws in your jurisdiction as well as any industry-specific regulations that may apply to certain types of investments or activities related to investing. Additionally, it is important to ensure that any strategies outlined in the IPS comply with relevant laws and regulations so that investors are protected from any potential risks associated with their investments.

Q: How often should I update my IPS?

Asked by Noah on December 5th, 2022.
A: An Investment Policy Statement (IPS) should be reviewed periodically – typically at least once per year – in order to ensure that it remains aligned with the investor’s current circumstances and objectives. Additionally, any changes in laws or regulations related to investing should be taken into consideration when updating the IPS so that it remains compliant with relevant legal requirements at all times.

Example dispute

Suing a Financial Institution for Losses Caused by Mismanagement of an Investment Portfolio

• Reference to Investment Policy Statement (IPS) - The plaintiff may raise a lawsuit against a financial institution, such as a bank or stockbroker, for losses resulting from mismanagement of an investment portfolio. The plaintiff must demonstrate that the financial institution failed to meet the standards of care set out in the IPS.
• Information or Actions Resulting in Suit - The plaintiff must show that the financial institution failed to follow the agreed-upon investment strategies, made inappropriate investments, or failed to diversify the portfolio.
• Settlement - Settlement in a case involving an IPS should include reimbursement for any losses suffered due to the mismanagement, as well as any damages for other losses incurred.
• Damages - Damages in a case involving an IPS may include both compensatory damages, which are designed to make up for losses suffered, and punitive damages, which are designed to punish the wrongdoer and deter future similar conduct.

Templates available (free to use)

Investment Policy Statement For Defined Contribution Plan

‍