{"product_id":"how-to-write-an-investment-policy-statement-isbn-9781118679531","title":"How to Write an Investment Policy Statement","description":"\u003cp\u003e\u003ci\u003eAn indispensable resource for every financial service professionals developing an IPS\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e The Investment Policy Statement (IPS) is one of the most critical documents fiduciaries must draft. For years, ERISA and other industry regulations have governed the guidelines all fiduciaries must comply with when drafting one. But the current climate of corporate scandal and the 2008 global banking crisis have led to increased scrutiny by regulators, prompting firms to take a closer look at the quality and integrity of their IPSs and to take steps to have a rigorous formal process in place for drafting them. Endorsed by the Foundation of Fiduciary Studies, this concise guide provides a rigorous framework and the expert insight, information and guidance you need to guarantee that your IPS is in complete compliance with all ERISA-directed requirements.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides a step-by-step plan for creating a uniform IPS that every advisor in the office can follow\u003c\/li\u003e \u003cli\u003eDefines the duties and responsibilities of all parties involved, while clarifying diversification guidelines and providing methods for keeping costs under control\u003c\/li\u003e \u003cli\u003ePacked with ready-to-use templates, sample forms, letters and other documents, diagrams and other valuable tools, including sample Policy Statement downloadable at the companion website\u003c\/li\u003e \u003cli\u003eDesigned to get you quickly up to speed on what you need to know to confidently serve your clients with the highest standards of care and protection\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eForeword by \u003ci\u003eDon Trone\u003c\/i\u003e 11\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection One: Why Plan Sponsors and All Fiduciaries Need a Formal Process for Writing Their Investment Policy Statement\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 \u003c\/b\u003e\u003cb\u003eErisa and the Challenge of Fiduciary Responsibility 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWriting an Investment Policy 17\u003c\/p\u003e \u003cp\u003eWhat is a Fiduciary? 18\u003c\/p\u003e \u003cp\u003eFiduciary Liability 19\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 \u003c\/b\u003e\u003cb\u003eYour Fiduciary Responsibilities and Liabilities Under Erisa 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFive Fiduciary Responsibilities 21\u003c\/p\u003e \u003cp\u003eFiduciary’s Personal Liability 22\u003c\/p\u003e \u003cp\u003eA Fiduciary’s Primary Role is to Manage the Process 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 \u003c\/b\u003e\u003cb\u003eWhat is an Investment Policy Statement and What are the Benefits? 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Management 25\u003c\/p\u003e \u003cp\u003eMonitor Investments 26\u003c\/p\u003e \u003cp\u003eSummary 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 \u003c\/b\u003e\u003cb\u003eUtilize the “Safe Harbor” Provisions Provided by Erisa 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrudent Experts 29\u003c\/p\u003e \u003cp\u003eFive Recognized “Safe Harbor” Rules 29\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 \u003c\/b\u003e\u003cb\u003eComplying with Erisa Section 404(c) 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Two: How to Get Started and Steps to Formalize the Process\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 \u003c\/b\u003e\u003cb\u003eAssembling the Documentation 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 \u003c\/b\u003e\u003cb\u003eSteps to Formalize The Process 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStep 1: Decide on Plan Goals, Objectives, and Strategies 37\u003c\/p\u003e \u003cp\u003eStep 2: Decide on Strategy for Managing Risk 37\u003c\/p\u003e \u003cp\u003eStep 3: Determine the Risk Tolerance of the PSTEPlan 38\u003c\/p\u003e \u003cp\u003eStep 4: Set Forth Guidelines for Asset Classes 39\u003c\/p\u003e \u003cp\u003eStep 5: Implement an Asset-Allocation Policy 39\u003c\/p\u003e \u003cp\u003eStep 6: Mutual Funds Recommendations 39\u003c\/p\u003e \u003cp\u003eStep 7: Delegate Investment Management Responsibility 40\u003c\/p\u003e \u003cp\u003eStep 8: Investment Monitoring and Reporting 40\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Three: The Template IPS\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 \u003c\/b\u003e\u003cb\u003eSample IPS Templates 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTwo Distinct IPS Samples 43\u003c\/p\u003e \u003cp\u003eOrganization of Templates 43\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 \u003c\/b\u003e\u003cb\u003eSample IPS Template #1: For Participant-Directed 401(k) That Intends to Comply with ERISA Section 404(c) 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStep 1 Executive Summary and Background 45\u003c\/p\u003e \u003cp\u003eStep 2 Purpose of the Investment Policy Statement 46\u003c\/p\u003e \u003cp\u003eStep 3 Duties and Responsibilities 48\u003c\/p\u003e \u003cp\u003eStep 4 Asset Class Guidelines 50\u003c\/p\u003e \u003cp\u003eStep 5 Investment Manager Selection 52\u003c\/p\u003e \u003cp\u003eStep 6 Monitoring the Investment Managers 53\u003c\/p\u003e \u003cp\u003eStep 7 Controlling and Accounting for Investment Expenses 55\u003c\/p\u003e \u003cp\u003eStep 8 Investment Policy Review and Monitoring 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 \u003c\/b\u003e\u003cb\u003eSample IPS Template #2: For High-Net-Worth Individual Setting Up a Family Trust 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExecutive Summary 58\u003c\/p\u003e \u003cp\u003ePart I—Purpose 59\u003c\/p\u003e \u003cp\u003ePart II—Investment Management Objectives 59\u003c\/p\u003e \u003cp\u003ePart III— Roles and Responsibilities 60\u003c\/p\u003e \u003cp\u003ePart IV— Investment Manager Selection 61\u003c\/p\u003e \u003cp\u003ePart V— Investment Monitoring and Review 63\u003c\/p\u003e \u003cp\u003ePart VI— Manager Termination 65\u003c\/p\u003e \u003cp\u003ePart VII— Additional Provisions (optional) 65\u003c\/p\u003e \u003cp\u003eConclusion Message to Plan Sponsors 67\u003c\/p\u003e \u003cp\u003eGlossary 69\u003c\/p\u003e \u003cp\u003eAppendix: The Firm Profile 77\u003c\/p\u003e \u003cp\u003eAbout the Author 79\u003c\/p\u003e  \u003cp\u003eRocco DiBruno is the author of How to Write an Investment Policy Statement, 2nd Edition, published by Wiley.   \u003c\/p\u003e\u003cp\u003e\"The preparation and maintenance of the Investment Policy Statement is the most critical function a fiduciary performs . . . this compact strategy guide provides advisors and their fiduciary clients with a useful tool that will help them comply with their ERISA-directed requirement.\"\u003cbr\u003e \u003cb\u003e—Donald B. Trone, CEO (Chief Ethos Officer), 3ethos\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eERISA and other guidelines have long required fiduciaries to implement a uni- form process for drafting an Investment Policy Statement (IPS). But historically, enforcement has been lax, leaving companies little motivation to develop a formal practice. \u003c\/p\u003e\u003cp\u003eNow, times have changed. Corporate scandals, coupled with volatility in the markets, have generated an increase in complaints, lawsuits and even the possi- bility of government legislation requiring an official IPS. This compact guide will help financial advisors, plan sponsors, money managers and all professional fiduciaries protect themselves, stay in compliance—and stay one step ahead of the government mandate—by putting a simple IPS process in place. \u003c\/p\u003e\u003cp\u003eThornburg Investment Management provides an easy-to-follow framework for producing a well-written IPS based on practices recognized by the Foundation for Fiduciary Studies. In clear terms, he outlines how to . . . \u003c\/p\u003e\u003cul\u003e \u003cli\u003eDefine the duties and responsibilities of all parties involved\u003c\/li\u003e \u003cli\u003eClarify diversification guidelines and keep costs in check\u003c\/li\u003e \u003cli\u003eIdentify due diligence criteria for selecting investment options\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003ePLUS: Two Sample Policy Statements are included which can be downloaded directly from the website at: www.thornburg.com\/IPS. Both templates make implementing a proper IPS easier and more accurate. \u003c\/p\u003e\u003cp\u003eWith this thorough guidebook, you can prepare documents that meet all industry standards of compliance and federal regulations with relative ease—every time—while protecting yourself and your firm from liability.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989385920741,"sku":"NP9781118679531","price":19.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118679531.jpg?v=1761783906","url":"https:\/\/k12savings.com\/products\/how-to-write-an-investment-policy-statement-isbn-9781118679531","provider":"K12savings","version":"1.0","type":"link"}