An investment policy statement (IPS) is a document drafted between a portfolio manager and a client that outlines general rules for the manager. The IPS provides the general investment goals & objectives of a client and describes the strategies that the manager should employ to meet these objectives.
In this CLE Mark Schumacher will show you why the IPS is such an important part of the estate planning process for your clients. Mark will mainly cover: the regulatory framework, IPS elements, drafting & distributing the IPS, pragmatic considerations and special situations. Additional topics: the Uniform Prudent Investor Act (UPIA), the Uniform Trust Code (UTC), Harry Markowitz & Mean Variance Analysis, Modern Portfolio Theory (MPT), the Prudent Professional vs. Amateur standard, the Duty of Impartiality, the Duty of Loyalty, the Duty to Inform & Report, Inputs & Outputs, beneficiary considerations, co-mingled trusts, the closely held business, concentrated positions and real estate & mineral rights. Mark will also walk you through the key clauses and points of a sample investment policy statement (IPS).
Mark Schumacher, CPA, has a diverse professional background, with emphasis in investment management, securities research, business management and transition planning, and family legacy and philanthropic planning.