Investment Policy Statement template

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Nov 17, 2007 2:22 pm
Hey All,
I have a prospect that is on the edge of becoming my client. He is VERY VERY HNW. This account can make my career. I have just returned from a VIP visit at the home office and have a map and allocation that has been agreed upon with the prospect. Regrettably the sample Investment Policy Statement I have available isn’t quite up to the level I would like. I’ll be presenting the IPS to this prospect the week after next and open the first account (fingers crossed).

Question: Anybody have a very high end IPS template or service/software they would recommend to be used for an individual account?

Thanks in advance.
Nov 17, 2007 4:53 pm
Gaddock:
Hey All,I have a prospect that is on the edge of becoming my client. He is VERY VERY HNW. This account can make my career. I have just returned from a VIP visit at the home office and have a map and allocation that has been agreed upon with the prospect. Regrettably the sample Investment Policy Statement I have available isn’t quite up to the level I would like. I’ll be presenting the IPS to this prospect the week after next and open the first account (fingers crossed).Question: Anybody have a very high end IPS template or service/software they would recommend to be used for an individual account?Thanks in advance.





No, but what about calling a higher-end wholesaler (i.e. Goldman Sachs) and asking them for guidance on an IPS. Better yet, what about contacting the internals from the firms you are using for your SMA's?



Who do you work for? You mentioned MAP, which I think is just a Jones term. Is that correct?

Nov 17, 2007 6:03 pm

I good thought on asking a wholesaler. No I'm not with Jones. The term 'map' was used loosely to describe the overall plan that spans the allocation to estate planning.


I've been doing a lot of searching and found two services that may work very well.
 
ANY FURTHER RESPONSES will be greatly appreciated. My reserach on the subject has brought me to the conclusion that I will do one for each new client.
Nov 18, 2007 10:36 am

I have set up IPS with several clients. The biggest thing you need to overcome and explain is that the investment policy statement is like having 'Bylaws' set in place. The real detail needs to be listed in the annual meeting minutes. If not.. you run the chances of changing the investment policy statement more frequentlly. American Funds has a nice IPS.. Also believe it or not Putnum has a good IPS.  I had my firms attorney prepare two different IPS and those are the ones I use most. 


Hope that helps..                  
 
Miss J


 
 
** Oh yea, Congrats on landing the plan.  Now the hard work begins..
Nov 19, 2007 4:20 pm

A couple suggestions would be to do a search of local endowments or google search them and review their IPS.  A bit overkill in terms of the substance with in them (maybe) but the outline of what's there may be beneficial.  Another suggestion, and it's where I built my own IPS to use is a book by Matt Oeschli "How to build a 21st century financial practice" - he details some strong practice management and service requirements in working with HNW clients.  He has some good outlines and information to include/exclude regarding IPS and other reports. 

The other comment to play captain obvious here, is to make the IPS with substance not a glossy report to present as if the colors will win the case.  Keep it to the point, specific and flexible (an oxymoron but flexible in terms of being able to adapt given various conditions)
My experience with HNW, not that I have hundreds of them, is they are way beyond the fluff, pretty pictures and graphs and a booklet for them to review.  They don't have time nor desire for that.  Trust and service will win the day over any of that other crap so your IPS has to play to that more than anything.
Nov 19, 2007 4:34 pm
Broker24:
Gaddock:
Hey All,I have a prospect that is on the edge of becoming my client. He is VERY VERY HNW. This account can make my career. I have just returned from a VIP visit at the home office and have a map and allocation that has been agreed upon with the prospect. Regrettably the sample Investment Policy Statement I have available isn’t quite up to the level I would like. I’ll be presenting the IPS to this prospect the week after next and open the first account (fingers crossed).Question: Anybody have a very high end IPS template or service/software they would recommend to be used for an individual account?Thanks in advance.



No, but what about calling a higher-end wholesaler (i.e. Goldman Sachs) and asking them for guidance on an IPS. Better yet, what about contacting the internals from the firms you are using for your SMA's?

Who do you work for? You mentioned MAP, which I think is just a Jones term. Is that correct?

 
No that isn't correct. I've heard a few different advisors refer to their cleints managed accounts as MAP accounts. It is not a Edward Jones term, however, that is the first place I heard it used as well.
 
As to your questions Gaddock....listen to the others who say don't get caught up in the fluff. I used microsoft word to create a templete that I use on all my accounts. I print it on my letter head. It may sound simple and boring, but its to the point.
Nov 19, 2007 7:37 pm

Thanks for all of your thoughts.

 
Here at AGE map also describes "monthly auto payment"
 
I'm beyond fluff on this big time. Point taken though.
 
I've never done one before and this is a rather complex case. I may just pay a service to do this first one and use it as a template.
 
An interesting thing a guy that does them for institutions for AGE said they always have two choices in the plan otherwise it could be argued that you were arguing in a discretionary manner when picking money managers. If that's the case it sure would confuse things.
Nov 20, 2007 9:28 am

Gaddock.. What do you mean by this

"An interesting thing a guy that does them for institutions for AGE said they always have two choices in the plan otherwise it could be argued that you were arguing in a discretionary manner when picking money managers. If that's the case it sure would confuse things."
 
Always have two choices.. What kind of choices are you referring too?  IPS.. or investment choices..
 
Miss J