The Investment Policy is the cornerstone of your investment planning. Essentially, it is a job description for your money. A well-drafted Investment Policy will not only address the tax implications for your portfolio, but will also identify any constraints caused by planned contributions, withdrawals, legacy assets, concentrated positions or other unique characteristics.
However, the most important reason for crafting a customized Investment Policy is to explore and articulate the various dimensions of investment risk as they apply to your specific situation and establish appropriate portfolio parameters to address these risks. All investors, even the ultra-conservative, will be forced to assume some degree of one or more types of investment risk.
We believe that any exposure to investment risk should be a deliberate, well-informed decision based upon your need to assume the risk, your capacity to withstand the risk, and your desire to experience the risk. We also strongly believe that investors should never assume risks that do not provide commensurate expected returns.