Investment Policy Development

A well-written investment policy ensures that an organization’s governing board, council or investment committee is protecting its assets, optimizing its investment returns and managing risk; in other words, fulfilling its fiduciary duty.

Tallsalt assists clients to develop customized written investment policies that consider their unique financial situation, investment goals, organizational structure and constraints.  Some clients have large pools of unrestricted funds to invest over a long time horizon, while others must adhere to restrictive guidelines while earning incremental income.

Tallsalt begins each relationship by developing a comprehensive understanding of our client’s investment objectives.  We interview leadership and management to build a full understanding of the underlying factors that will shape the client’s investment policy, including such factors as:

  • Investment time horizon – Short and long-term financial goals
  • Long-term investment objectives – Desired return on investment
  • Cash immediately available for investment & future income streams to be invested
  • Future known liabilities and needs – Scholarships, loan repayments
  • Future cash needs – Capital investment, expansion projects, community services
  • Constraints – Restricted cash, governmental investment regulations, reserve requirements, loan covenants, endowment plan requirements
  • Desired flexibility – Working capital, emergency needs, project funding
  • Tolerance for fluctuations in the value of investments