Investment Policy Statement White Papers

White Paper: Return on Technology Investment (ROTI), by David Drucker (Virtual Office News LLC)

March 8, 2013

David Drucker of Virtual Office News LLC published a  White Paper titled Return on Technology Investment (ROTI), December 2009.  In the event you missed it, we have posted it here.  Please click here to download and read it.

Investment Policy Statements: The Technology Return on Investment (ROI) for Financial Advisors

July 31, 2009

Download a PDF version of this white paper here.

Executive Summary

The financial services industry is undergoing rapid change due to recent financial crises on Wall Street and the impacts of a prolonged recession.  Market volatility has increased, creating uncertainty and angst in investors’ minds.  The demand for transparency has increased, as have the expectations for better “prudent practices.”  As a result, there has been a renewed focus for investment planning by financial advisors and the use of the time-tested approach of Investment Policy Statements (IPS).

Considered a “best practice” in modern wealth management, documenting advisor-client agreements in an IPS provides a systematic discipline for decision-making, bringing transparency, clarity and shared understanding to the advisor-investor relationship, helping to build an increased level of trust.

Many financial advisors are using word processing software solutions combined with manual processes to perform the related tasks of creating, updating and maintaining IPSs and the resulting inefficiencies cause higher costs and lack of controls, which result in declining profitability.

Industry experts all agree that the best solution is to adopt technology to increase efficiency, streamline operations and enable rapid response to market changes.  New advances and innovations in technology specifically designed for financial advisors to provide web-based investment planning tools for creating Investment Policy Statements that allow advisors to meet these challenges head on and provide a substantial return on investment (ROI) is now available.

“If we tried to create our own Word document, the problem we see is that it would be extremely difficult to maintain consistency, what with re-entering and re-casting the allocations for hundreds of clients.  By using the templates in IPS AdvisorPro® we know that we are achieving a big time savings and ROI.”

David Strege, CFP®, CFA®, Co-Founder and Senior Wealth Coach, Syverson Strege & Company

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A Review of Difficult Investment Policy Issues

April 15, 2009

By Norman M. Boone, CFP®, and Linda S. Lubitz, CFP®.  Published in FPA Journal, May 2003.

This article looks at the many challenging issues the advisor needs to address in developing an investment policy statement for a client. There is no one right way to look at any of these issues, so the authors seek to raise questions rather than provide the “right answer.” The issues discussed that the authors believe should be included in an IPS are investor goals, client cash flow needs, what to do when a client needs or desires inappropriate rates of return, identifying the investors’ time horizon and risk tolerance, handling concentrated or low-basis positions, tax considerations, portfolio optimization, outside investment accounts, and rebalancing and monitoring activities. Read more

Investment Policy Statements – A White Paper from the Profit Sharing/401k Council of America

April 6, 2009



ERISA states that plans must “provide a procedure for establishing and carrying out a funding policy in a method consistent with the objectives of the plan.” This has been interpreted to mean that qualified retirement plans, including defined contribution plans, should have established procedures for plan investment-related decision making.

Approximately half of defined contribution plan sponsors have described their investment decision making procedures in a written form called an investment policy statement, according to studies by PSCA, Hewitt Associates and BARRA Rogers Casey. This contrasts with the situation for defined benefit plans where such investment policy statements are practically universal. PSCA believes that adoption of a formal investment policy process, and documenting that process, will assist sponsors in the prudent management of their defined contribution plan assets and will help them avoid fiduciary liability.

It is the purpose of this paper to provide plan sponsors with the advantages and disadvantages of adopting a written description of the investment process for their defined contribution plans. It also provides a discussion of what might be included should they choose to implement an investment policy statement. An example of an investment policy statement is attached. Read more

Professional Investment Policy Statements

Stop using those outdated word documents or other applications that don't reflect how YOU manage money and move up to IPS AdvisorPro® created by Advisors For Advisors.
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Take A Guided Tour

Our online video shows how to easily create an investment policy statement in five simple steps: create a new client, view the questionnaire, choose an asset allocation model, generate and edit the final wording.
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