Investment Policy

Investment Policy

We have comprehensive experience in developing investment policies and objectives for our clients and believe that the development of an Investment Policy, Guidelines, and Objectives statement is one of the most important aspects of fiduciary responsibility.

The Investment Policy Statement describes the procedures that will be followed to manage investment funds. It is a process-driven document that protects the interests of the beneficiaries of the investment funds. Should any governing agency audit the affairs of our client, this would be the first document reviewed as it both indicates and prescribes how the funds are managed. We believe the document should link policy to objectives.

We believe the statement should not only document investment goals, but also set a process for implementation. Accordingly, we spend considerable time with all our clients ensuring that policy guidelines are up-to-date and are being followed.

Aegean’s first priority in designing investment policies is to work closely with the Board and staff to develop a statement that focuses on the steps necessary to ensure the goals of the plan are met. Typical components include:

Identify the responsible fiduciaries and articulate the sponsor’s role
Document the history, structure, and mission of the funds
Establish criteria for selection of investment managers
Set investment performance objectives and risk parameters
Detail risk tolerance and posture
Determine performance measurement standards (e.g., benchmarks) and establish an effective review procedure
Describe the review process

One of the unique services our firm offers is our investment policy review for monitoring investment manager compliance with the Investment Policy Statement. In this review, which we can produce quarterly as part of a client's Investment Performance Analysis, we monitor:

Whether investment managers are in or out of compliance with the plan’s investment guidelines
Whether the plan is accomplishing its objectives
Whether the plan is in compliance with asset allocation guidelines
Performance objectives vs. appropriate benchmarks
Expense containment

Regular review of the portfolio and the performance of its investment managers links the client’s performance analysis report to its Investment Policy Statement.

In the development of investment policy guidelines, our role is to keep our clients abreast of industry practices, reasonable guidelines, and completeness of policy. We believe the investment policy document should not be a static document, but rather an evolving one. Our task is to ensure that the document reflects the culture and objectives of your organization, not solely the philosophy of the consultant.