Examining the Use of Investment Policy Statements

Abstract

Using a sample of Investment Policy Statements [IPSs] from college and university endowments, we examine the form and use of these important documents. Direct examination of the IPS reveals subtleties that surveys may obscure. In addition to providing statistical insights into endowment management, we extract what we view as best practices from the Investment Policy Statements themselves. Our study provides valuable insights for both individual and institutional investors and their advisors.