📑 Investment Policy Statement (IPS)
1. Purpose
This Investment Policy Statement (IPS) establishes the framework for managing the company’s investment portfolios. It defines objectives, risk tolerance, asset allocation, and ethical guidelines to ensure that all investment decisions align with both financial prudence and the company’s values.
2. Guiding Principles
- Stewardship: All assets are managed responsibly, recognizing that resources are entrusted for growth and impact.
- Integrity: Investment decisions must be transparent, ethical, and compliant with applicable laws.
- Long-Term Focus: Portfolios are designed to achieve sustainable growth rather than short-term speculation.
- Values Alignment: Investments should avoid industries or practices inconsistent with the company’s faith-based mission (e.g., gambling, pornography, exploitative labor).
3. Investment Objectives
- Capital Preservation: Safeguard principal while generating reasonable returns.
- Growth: Achieve long-term appreciation through diversified investments.
- Income: Provide consistent cash flow to support operations and charitable initiatives.
- Impact: Direct a portion of investments toward projects that promote social good and community development.
4. Risk Tolerance
- Low Risk: Conservative portfolios emphasizing bonds, cash equivalents, and stable equities.
- Moderate Risk: Balanced portfolios with diversified equities, fixed income, and alternative assets.
- High Risk: Growth-oriented portfolios with higher equity exposure, suitable for long-term investors.
5. Asset Allocation
- Equities: 40–60% depending on risk profile.
- Fixed Income: 20–40% for stability and income.
- Alternatives: 5–15% (real estate, private equity, impact funds).
- Cash & Equivalents: 5–10% for liquidity.
6. Ethical Screening
Investments will be screened to exclude:
- Companies engaged in activities contrary to Christian values (e.g., adult entertainment, gambling, predatory lending).
- Firms with poor records on human rights, environmental stewardship, or corporate governance.
Preference will be given to: - Companies promoting sustainability, fair labor, healthcare, education, and community development.
7. Monitoring & Review
- Portfolios will be reviewed quarterly to ensure compliance with objectives and ethical standards.
- Annual performance reports will be presented to stakeholders.
- Adjustments will be made as market conditions, risk tolerance, or company priorities evolve.
8. Accountability
- All investment decisions must be documented and approved by the Investment Committee.
- External advisors may be engaged for specialized expertise, but ultimate responsibility rests with the company’s leadership.