Investment Policy Statement
When you begin a client relationship with KAM, we work with you to develop a unique, personalized Investment Policy Statement (IPS). Your IPS is a written statement that helps us manage your portfolio to achieve your financial goals. Your IPS will include a statement of
- Your investment objectives
- What is your primary financial goal for this portfolio?
- How much do you expect your portfolio to return each year on average?
- How long will you be investing to reach this goal?
- How much do you plan to invest each month or year?
- How much wealth do you expect to pass on to your heirs?
- Your Investment Philosophy Concerning
- Portfolio diversity?
- Active investment strategies?
- Tax efficiency?
- Trading frequency and rebalancing?
- Your Risk Profile
- How willing are you to accept investment risk?
- How much decline in portfolio value can you accept without mental anguish over a three-month period, a one-year period, and a five-year period?
- Do you see risk as opportunity to take advantage of or threat to be avoided?
- While invested in financial securities, have you experienced a full business cycle from peak to trough to peak?
- How well do you understand concepts of risk (probability and statistics)?
- How able are you to accept investment risk?
- What is your investment horizon?
- What are your needs for current income?
- How old are you?
- What is your current net worth?
- What is your current income?
- What are your prospects for earning income in the future?
- Special Circumstances
- What types of assets, if any, do you not want in your portfolio
- Do you have social objectives that limit your asset choices?
- How important is tax efficiency for you?
- Do you have multiple financial goals that may require separate investment portfolios?
- How will you monitor and evaluate your investment results?
- How frequently do you want to meet with KAM to evaluate your portfolio?
- What benchmarks are relevant for your portfolio?
About KAM
The KAM Team