Investment Policy Statement
A plan sponsor is not required by law to have a written investment
policy statement (IPS) for its plan. However, the Employee Retirement
Income Security Act of 1974 (ERISA) is clear that plans must "provide a
procedure for establishing and carrying out a funding ...
✓ should be invested in a variety of asset classes that buffer losses in a
down market and rise in an up market to drive consistent performance
over time
Core Asset Classes Stocks
✓ Historically, equity investments - stocks - have produced greater returns,
and correlate positively, albeit with greater risk than bonds. Debt
investments - bonds - traditionally negatively correlate with a down
market. Generally, a larger equity percentage in a portfolio is
considered more aggressive whereas a larger percentage invested in
bonds, is generally considered a more conservative, less risky
approach, where risk is considered to be the loss of investment
principle. A general rule in evaluating portfolio risk is the ratio of equity
to debt investments. That said, there are different types of stocks and
bonds, which provide more opportunity to balance the portfolio
between non- or low-correlated asset classes
A Special Category of Stocks - Employer Securities
Master01 | October, 2024/2025 | Latest update
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamArsenal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.09. You're not tied to anything after your purchase.
