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> > Benefits of Using an IPS
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Using a properly composed Investment Policy Statement should bring
the following benefits:
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An IPS compels the investor and the investor’s advisor to be more disciplined
and systematic in their decision making, which in itself should improve the
odds of meeting the investment goals.
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Objectives and expectations are clear for all concerned parties and thus,
misunderstandings are more likely to be avoided.
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Approved procedures are specified so everyone concerned will know what to
expect.
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Decisions can be made as to how things will be done under a variety of
circumstances in a deliberate fashion, rather than in reaction to emotions.
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The Investment Policy Statement establishes a record of decisions and an
objective means to test whether those serving the investor are complying with
the investor’s requirements.
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The IPS provides a ready means to communicate to advisors, beneficiaries, and
current and future fiduciaries how the investor proposes to go about acting
upon his/her/their duties.
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