Investment Policies and Objectives are integral to establishing an investment program, whether for defined benefit plans, defined contribution plans, foundations or individual families. An investment policy includes descriptions of governance, or who is responsible for decisions relative to the plan, time horizon, liquidity needs, which asset classes are considered appropriate, allocations among the asset classes and sub-asset classes (i.e., large cap versus small cap stocks), and implementation guidelines. A written policy takes several forms, depending on the complexity and structure of the client. At a minimum, investment objectives, asset allocation guidelines and permitted implementation structures are included.
