BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An investment policy statement (IPS) is a document drafted between a portfolio manager and a client that outlines general rules for the manager. This statement provides the general investment goals and objectives of a client and describes the strategies that the manager should employ to meet these objectives.

Detailed explanation-2: -The IPS. The IPS is the communication between a client and their advisor that outlines the plan for achieving investment success. Prior to formulating the IPS, the advisor will work with the client to articulate the client’s risk tolerance and specific circumstances.

Detailed explanation-3: -The components of an investment policy statement are scope and purpose, governance, investment, return and risk objectives, and risk management. An IPS provides guidance to portfolio managers when making portfolio decisions and helps keep clients from making emotional decisions related to their portfolio.

Detailed explanation-4: -Which of the following best describes the underlying rationale for a written investment policy statement (IPS)? A written IPS communicates a plan for trying to achieve investment success.