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Investment Policy Design

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Investment Policy Design

Family Heritage Trust believes each client has unique preferences and needs from their investment portfolio. This is why the cornerstone of our wealth management approach is to define with our clients their specific investment goals and to document them in an Investment Policy Statement. We cannot underestimate the importance of a well thought-out investment policy for it will detail exactly how their portfolio will be managed, and the methods used to achieve their rate of return at the level of risk the client expects and understands. An Investment policy is a dynamic document and should be reviewed at least annually and revised as significant objectives and circumstances change. It must also be flexible enough to implement short-term investment strategies consistent with one's objectives in light of changing capital market conditions.

Our investment policy statements will incorporate the following:

Investment Objective
The investment objective includes an overall mission statement describing the long-term goals and purpose of the portfolio.

Asset Allocation
Perhaps the most important decision to make in the investment equation is the optimal mix of investments that is consistent with the overall investment objective. The proper allocation of assets in the portfolio will determine investment risk and influence the long term return for the portfolio.

Time Horizon
The length of time that one has to invest will influence the rate of return and the risk level to be assumed. Investors that have a longer time frame in which to invest are usually able to assume a higher degree of investment risk and will typically have a higher allocation to growth oriented securities. Conversely, those with shorter time frames will have a lower risk portfolio profile and will emphasize more secure, income oriented investments.

Liquidity
Maintenance of liquid investments is always defined in order to have funds available for unexpected needs that may arise. These expenses can be medical, college tuition, or other unexpected life events that occur.