An investment policy statement(IPS) is a foundational document that outlines the philosophy, guidelines and procedures for managing an investment portfolio. As portfolios grow in size and complexity, having a well-crafted IPS becomes increasingly important for investors and advisors alike. Thankfully, modern software solutions are making it easier than ever to create, manage and update investment policy statements.
Automate compliance with fiduciary standards
An investment policy statement helps demonstrate prudence and due diligence in managing assets, which is essential for meeting fiduciary obligations as an advisor or trustee. By using IPS software, advisors can systematize compliance procedures rather than relying on manual review processes. Features like automatic monitoring of portfolio holdings against IPS criteria and alert notifications if violations occur greatly reduce compliance risk.
Improve organization with centralized access
Maintaining IPS records for multiple clients can quickly become an organizational nightmare with papers scattered across file cabinets and desktops. IPS software enables advisors to store all IPS documents in a secure, centralized database accessible from anywhere. Role-based permissions allow seamless collaboration while restricting sensitive data access. The software also includes powerful search tools to quickly find any IPS or extract data across IPS.
Increase efficiency with automated updates
An IPS is a living document that needs to be updated periodically as client circumstances and market conditions change. Manual updates are time-consuming and prone to human error. IPS software automates the revision process by allowing bulk editing of IPS sections across client accounts. Sections can be locked to prevent accidental changes. New IPS templates can be easily generated for new clients. Automatic version tracking maintains a complete audit trail.
Strengthen client relationships with customization
Every investor has unique needs that require a personalized IPS. IPS software enables thorough customization to address specialized client requirements in areas like asset allocation, risk tolerance, distribution policies, and investment constraints. Custom fields and client questionnaires allow further individualization. Clients can securely access their own IPS documents online at any time. Such personalization and transparency helps instill trust and confidence.
The best investment policy statement software solutions help advisors and investors create, manage and update investment policy statements more efficiently while ensuring consistency, accuracy and compliance. Streamlining the IPS process with purpose-built software saves time, reduces risks and ultimately leads to better investment outcomes.