Moondog
Term

Investment Policy Statement

Also: IPS

The document that records a portfolio's objectives, constraints and governance.

An Investment Policy Statement captures return objectives, risk limits, liquidity needs, time horizon and any exclusions. Moondog keeps the approved policy as a versioned record, and the engine's scenarios are built on it.

The policy statement is where good intentions become enforceable constraints. Without it, advice drifts with markets and moods. With it, every recommendation can be checked against what the family actually agreed. It is also the document a future trustee or regulator will most want to see.

Related terms

Family governance The structures and agreements by which a family makes decisions about shared wealth. Family office An organisation that manages the wealth and affairs of one or more wealthy families. Fiduciary duty The legal obligation to act in another party's best interest. Hedge fund A pooled fund that uses a wide range of strategies to seek returns across varied markets. Hedging Reducing a specific risk by taking an offsetting position. Leverage The use of borrowed money to increase investment exposure.

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