Investment Objectives
At SKY, we recognize that each client comes to us with a unique personal situation
and financial considerations that affect investment goals and decisions.
Accordingly, the first step we take with you is to thoroughly understand your
personal circumstances, financial situation, and aspirations. Equally important, we want to
understand the role your financial assets are expected to play in meeting your short and long term needs.
Your investment objectives are defined in an Investment Policy Statement (IPS).
SKY creates an IPS to document our discussions and formalize the guidelines for managing your accounts.
Key components of the Investment Policy Statement:
- an in-depth description of your circumstances and aspirations
- portfolio strategy and return expectations
- risk constraints you wish to impose
- income and liquidity needs of the portfolio
- other constraints on portfolio design
- unusual legal or tax issues you face
- asset allocation targets
- investment time horizon
Once written, the Investment Policy Statement becomes the roadmap for all portfolio
management activity and client meetings. It is a crucial tool for keeping focused on your
investment objectives and not getting sidetracked by the periodic fads so prevalent on Wall Street.
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