9/24/2026 1:54 AM (PST)

An investment policy statement is a written document that establishes the framework for managing an investment portfolio. It helps investors clearly define their objectives, risk considerations, liquidity needs, investment horizon, and guidelines for selecting and monitoring investments. For an individual investor, family office, or institutional investor, an investment policy statement can provide consistency when financial circumstances or market conditions change. It can also help establish how different asset classes should fit within the broader portfolio. For alternative investments, the document can be especially useful because different assets may have unique liquidity requirements, holding periods, and risk factors. For example, a life settlement allocation may require consideration of policy characteristics, premium obligations, longevity assumptions, and expected holding periods. An investment policy statement can also outline portfolio review procedures, reporting expectations, rebalancing guidelines, and circumstances that may require changes to the investment strategy. Rather than being a prediction of investment performance, it serves as a documented framework for making and evaluating investment decisions over time.