The final part of Winthrop Partners initial investment in you is the first draft of your investment policy statement. This statement provides a personalized guide to how we will work with you doing forward. The statement sections include:
- Purpose – The purpose is to provide written and formal financial goals and objectives.
- Roles and Responsibilities – This section defines who is responsible and for what functions.
- Client Objectives – This section introduces the process of identifying desired and required returns, that take place concurrently with the discussion of risk tolerances. In the end, the IPS must present a return objective that is attainable within the risk constraints of the portfolio.
- Asset Allocation – All economic and operational constraints are initially outlined in this section in order to properly tailor the portfolio without violating any client-‐imposed restrictions. These constraints include a time horizon, liquidity requirements, taxes, legal and regulatory issues and unique circumstances and preferences.
- Portfolio Monitoring and Reporting – This part sets forth the process and timing of investment monitoring as well as the schedule for performance review.
In an effort to build a trusting relationship with you, the client, Winthrop is willing to make a considerable investment in time and effort. Through this process you will be able to gauge our trustworthiness, financial acumen and processes as well as to determine if our personalized relationship guide meets your objectives.