Home About Us How We Serve Clients Services Areas of Expertise Manager Research Topical Research News and Events Our Team Contact Us Investment Policy Home Services Investment Policy Policy development for endowments, foundations, hospitals, high net worth, and defined benefit investment programs The policy development process is an important first step in developing an understanding of your specific needs and circumstances. Ellwood is driven to develop a clear understanding of every organization’s situation. We build consensus across committee members and provide additional analysis and discussion when needed. Our process for policy development The policy development process has a natural chronology. It is important to address each step. Step 1: Research We focus on the following to form a policy statement: Delegation of responsibilities: Investment committee Management and staff Investment consultant Investment portfolio objectives and constraints, including: Return objectives Investment timeframe Liquidity needs Risk tolerance Legal structure Other unique structural constraints The asset allocation policy: Capital appreciation vs. capital preservation Asset allocation: Targets Ranges Rebalancing procedures Investment manager guidelines and evaluation criteria Parameters for returns including market indexes to be used as performance benchmarks Ongoing monitoring and controls Step 2: Draft a Statement of Investment Policy Following this research, we develop a first draft of a Statement of Investment Policy. This combines your specific investment objectives and constraints with our insights. The final Statement of Investment Policy records: Results of the asset allocation review Investment manager structure discussion Manager research process Performance evaluation or scorecard Step 3: Implement and maintain The final policy becomes the governing document for the investment program. The investment policy should be reviewed at least annually and revised if necessary. All of the analysis that we conduct (asset allocation, investment manager structure, manager selection, portfolio reporting, and benchmarking) is driven by the investment policies outlined for the portfolio. Goals aligned with needs and constraints Our goal is to develop a portfolio that meets the investment objective while complying with your constraints. We specifically identify measures to assist investment committee members in evaluating the portfolio’s probability for goal achievement. Need an investment policy developed for your organization? Contact Ellwood today. Services Investment Policy Asset Allocation Portfolio Construction Investment Manager Search Performance Reporting Fee Review and Benchmarking Client Education Vendor Review and Searches 2021 Investment Outlook Careers Privacy Terms of Use Greenwich Disclosures 33 West Monroe / Suite 1000/ Chicago, Illinois / 60603 / (312) 782-5432 Copyright 2021 Ellwood Associates.