Framing your investment strategy


Perpetual Impact

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In this video interview, Perpetual’s Scott Hawker explains why every not-for-profit should have an Investment Policy Statement (IPS) in place to help deliver on their mission.

An IPS provides a framework for the financial governance of your organisation, from assuring management of a reasonably predictable flow of funds to the organisation to providing a mandate for the investment adviser as to how the funds are going to be invested. It can also give comfort to donors that their money is being professionally managed.

Here’s a summary of the process involved in creating an IPS:
1. Talk to your board or investment committee about the organisation’s investment objectives.
2. Seek professional advice – whether you are developing your first IPS, or reviewing the relevance of an existing IPS.
3. Work with your investment specialist to determine your portfolio objectives including spending policies, investment objectives, risk tolerance and implementation considerations.
4. Clarify the mission and strategic objective of your organisation.
5. Align your portfolio to your needs.
6. Develop a framework for sound corporate governance around investments to reduce risk and provide confidence for stakeholders (including the process for reviewing the IPS).


Our not-for-profit investment specialists can help you get started.

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Perpetual’s Philanthropic Services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This publication has been prepared by PTCo and may contain  information contributed by third parties. It contains general information only and is not intended to provide you with advice or take into account your personal objectives, financial situation or needs. The information is believed to be accurate at the time of compilation and is provided by PTCo in good faith. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. PTCo does not warrant the accuracy or completeness of any wording in this document which was contributed by a third party. Past performance is not indicative of future performance.