Are electronic signatures legally valid?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and record retention are documented.

Do I need notarization or witnesses?

Most investment policy documents do not require notarization or witnesses. Check institutional governance rules and any applicable state-specific requirements before adding notary steps.

How often should the policy be reviewed?

Standard practice is at least annual review, with immediate review after material changes in objectives, funding, or regulatory environment to maintain fiduciary defensibility.

What happens if the signer name differs from ID?

Mismatched signer names can raise authenticity questions; use exact legal names, require supporting documentation, and consider stronger signer authentication for high-assurance needs.

Can I update the policy after adoption?

Yes. Amendments should follow the governance process, record the amendment date, obtain the same level of approval, and preserve prior versions for audit purposes.

Which records should be retained?

Keep the signed policy and audit trail for at least three years post-termination; retain longer per IRS, SEC, or HIPAA requirements as applicable and document your retention schedule.

Electronic Signature
Templates
Finance
Investment Policy Document

Investment Policy Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

INVESTMENT POLICY DOCUMENT

Client Name: Policy Number:

Effective Date: Review Frequency:

PURPOSE AND SCOPE

This Investment Policy Document (the "Policy") sets forth the objectives, responsibilities, permitted investments, risk constraints, monitoring procedures, and governance standards that will govern the management of assets under the control of the Client. This Policy applies to all accounts identified below and any accounts subsequently designated in writing by authorized representatives.

Accounts Covered

INVESTMENT OBJECTIVES

The primary investment objectives are prioritized as indicated below. The fiduciaries shall manage assets in accordance with the prudent person standard and seek to achieve these objectives consistent with the risk tolerance and time horizon.

Primary Objectives (rank in order of priority) Target Long-Term Nominal Return Time Horizon Risk Tolerance (check applicable)

Conservative — principal preservation emphasis
Moderate — balance of income and growth
Aggressive — long-term growth emphasis

ASSET ALLOCATION POLICY

Asset allocation is the primary determinant of long-term risk and return. The following strategic targets and permissible ranges define the long-term allocation framework. Deviations beyond rebalancing thresholds require written approval by the Investment Committee.

Asset Class	Target %	Range Min %	Range Max %	Rebalance Threshold +/-
Equities (Domestic & International)
Fixed Income
Alternatives
Real Assets
Cash & Short Term

REBALANCING POLICY

The portfolio shall be reviewed at least quarterly to determine whether allocations have deviated beyond stated rebalancing thresholds. Rebalancing shall be executed in a tax-efficient manner, considering transaction costs and market conditions. For deviations exceeding the maximum or minimum ranges, rebalancing transactions shall be documented and approved by the Chief Investment Officer or Investment Committee as required.

Rebalancing Authority

MANAGER SELECTION, MONITORING, AND DUE DILIGENCE

Managers will be selected through a documented due diligence process that evaluates investment philosophy, organization stability, risk management, compliance record, and fee structure. Selected managers must execute a written investment management agreement that incorporates this Policy and the Client's fiduciary requirements.

External Manager Names and Contact

PERFORMANCE MEASUREMENT AND BENCHMARKS

Performance shall be measured against appropriate policy-weighted benchmarks and peer universes on a rolling time basis. Performance reports will be prepared and reviewed at minimum quarterly by the Investment Committee.

Primary Benchmarks and Measurement Frequency

LIQUIDITY AND DISTRIBUTIONS

The portfolio must maintain sufficient liquidity to meet near-term obligations and approved distributions. Liquidity requirements should be reviewed annually and adjusted to reflect projected cash needs.

Projected Near-Term Cash Requirement

INVESTMENT RESTRICTIONS AND ESG CONSIDERATIONS

The Client may impose restrictions on particular securities, sectors, or strategies. Environmental, social, and governance (ESG) considerations may be incorporated into the manager selection and security selection processes where expressly directed by the Client.

Restrictions or ESG Directives

COMPLIANCE, CONFLICTS OF INTEREST, AND CUSTODY

Fiduciaries and investment managers shall disclose any actual or potential conflicts of interest. Custody of assets shall be maintained with a qualified custodian and reconciled at least monthly. Any waivers to this Policy must be recorded in writing and retained with the investment records.

Custodian Name and Contact

AMENDMENT, REVIEW, AND APPROVAL

This Policy may be amended by formal action of the Investment Committee or Board of Directors. A full policy review shall occur at least annually. All amendments shall be recorded and distributed to applicable parties.

Prepared By Reviewed By Next Scheduled Review Date

DOCUMENTATION AND RECORDS

Documentation supporting investment decisions, manager searches, performance reports, and compliance actions shall be retained in accordance with the Client's records retention policy and applicable law. Investment Committee minutes shall record approvals required under this Policy.

Record Location / Custodian of Records

CERTIFICATION OF ADOPTION

By signing below, the undersigned certify that they have reviewed and approved this Investment Policy Document on behalf of the Client, and that they will oversee implementation and compliance in accordance with their fiduciary duties.

Board / Committee Chair:

By:

Date:

Chief Investment Officer:

By:

Date:

What the Investment Policy Document Is and When It Applies

An Investment Policy Document is a written charter that sets an organization’s investment objectives, risk tolerance, asset allocation framework, liquidity needs, allowable instruments, and governance processes. It guides fiduciaries, investment committees, and portfolio managers on decision-making, outlines monitoring and reporting expectations, and records limits on concentration, leverage, and counterparty exposure. Typical users include foundations, endowments, pension plans, family offices, corporate treasuries, and registered investment advisors. The document supports consistent implementation of strategy, helps demonstrate compliance with fiduciary duties, and provides an auditable record for internal and external review.

Why a Clear Investment Policy Document Matters

A clear Investment Policy Document reduces decision ambiguity, documents fiduciary responsibilities, and creates objective criteria for measuring performance and risk. It helps boards and committees align strategy, accelerate approvals, and demonstrate compliance with regulatory or donor requirements.

Who Typically Prepares and Relies on an Investment Policy Document

Common preparers and primary stakeholders range across institutional and private settings.

Board members and trustees overseeing pension plans or endowments, responsible for governance and fiduciary oversight.
Chief investment officers, portfolio managers, and investment committees that implement strategy and manage day-to-day allocations.
External investment advisors and custodial partners who act under a discretionary mandate or provide reporting and compliance support.

Multiple internal and external parties use the document for governance, audits, and investment review.

Step-by-Step: Drafting and Adopting the Investment Policy Document

Follow a structured sequence to ensure completeness, stakeholder buy-in, and defensible governance.

01

Gather objectives: Document return goals, time horizon, and specific constraints.
02

Set risk tolerance: Define acceptable volatility, drawdown limits, and downside protections.
03

Define allocation: Specify strategic targets, rebalancing bands, and allowable asset classes.
04

Approve and publish: Obtain trustee or committee sign-off and distribute final version.

Essential Compliance and Security Elements to Include

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.

Audit Trail: Timestamps, IP addresses, action history.

Access Controls: Role-based permissions and multi-factor access.

Regulatory Coverage: ESIGN, UETA, and applicable industry rules.

HIPAA Consideration: Include BAA when PHI involved.

Record Retention: Policy for secure archival and retrieval.

Core Sections Every Professional Investment Policy Document Should Include

A complete document balances strategic direction, operational controls, and measurement practices so stakeholders can apply consistent rules and evaluate outcomes.

Investment Objectives

Clear, measurable return and income goals tied to spending needs or liabilities; include time horizon and benchmark selection guidance for evaluative comparisons and manager mandates.

Governance and Roles

Define the board, committee, staff, and advisor responsibilities, delegation limits, approval thresholds, conflict-of-interest procedures, and reporting cadence for transparency and accountability.

Risk Management

Set quantitative risk limits (concentration, counterparty exposure), permissible derivatives use, liquidity thresholds, and escalation procedures for breaches or material events.

Asset Allocation

Provide strategic target ranges by asset class, rebalancing rules, permissible sub-allocations, and guidelines for tactical deviations with approval workflows.

Monitoring and Reporting

Specify performance measurement methodology, benchmarking standards, reporting frequency, and required contents of periodic investment reports and dashboards.

Compliance and Review

Document review intervals, amendment processes, recordkeeping obligations, and procedures for documenting exceptions or emergency reallocations.

How Digital Completion and Distribution Typically Work

A streamlined digital workflow reduces turnaround time and preserves an auditable record of approvals.

Upload document: Save final PDF or DOCX and upload to the signing platform.
Place fields: Add signature, date, and initial fields plus conditional items where required.
Send to signers: Deliver via secure email or link with specified signing order.
Archive record: Store signed file with audit trail and version metadata.

Recommended Digital Workflow Settings for Online Completion

Configure these settings to balance usability, auditability, and required identity assurance.

Field	Configuration
Authentication	Email link plus optional SMS code or KBA for higher assurance
Templates	Save final IPD as a reusable template for version control
Conditional Fields	Enable conditional logic for role-specific disclosures or appendices
Audit Trail	Enable full audit capture with timestamps and IP addresses

Typical Timelines and Deadlines Associated with an Investment Policy Document

Identify recurring milestones and one-time deadlines to ensure the policy remains current and actionable.

Initial adoption date:

Effective Date determines applicability and triggers first reporting period.

Annual review:

Schedule a full policy review at least once every 12 months.

Quarterly reporting:

Require portfolio performance and compliance reports every quarter.

Material changes:

Require immediate committee review when objectives or constraints materially change.

Amendment notice:

Document and circulate amendments within specified governance timelines.

Common Risks and Potential Consequences of an Incomplete or Incorrect Policy

Fiduciary breach: Potential trustee liability and litigation exposure.

Regulatory fines: Administrative penalties from oversight agencies.

Tax implications: Incorrect treatment can trigger tax reporting issues.

Investment losses: Unclear limits can cause unintended concentration risk.

Contract disputes: Ambiguous authorization clauses lead to vendor disputes.

Reputation damage: Stakeholder trust loss and donor concerns.

Real-World Examples of Investment Policy Document Use

Practical examples show how organizations apply policies to governance and execution.

Optica Ventures LLC — Operational Clarity

Optica used a concise policy to align management and limited partners on objectives and reporting cadence.

The policy defined benchmarks and liquidity rules for quarterly reviews.
Brian Fitzgibbons, COO, noted the interface and workflow made it simple for stakeholders to access and sign final versions while preserving an auditable history.

Martin Properties — Remote Execution

A property investor formalized allocation and rebalancing rules to support rapid acquisitions.

The policy enabled delegated approval thresholds for acquisitions under set limits.
Tim Martin, Founder, said online execution allowed his team to complete compliant signings remotely and maintain full security and version control across mobile and desktop.

Pricing and Feature Snapshot for eSignature Providers

Compare starting price and core features across major providers. signNow is listed first to align with the comparison format; verify plan details directly with each vendor when selecting a plan.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Varies by plan	Varies by plan	Yes (higher tiers)	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes (BAA available)	Yes (BAA available)	No	No

Platform and Integration Considerations for eSubmission

Evaluate integration, file format, and authentication needs before selecting an eSignature workflow.

Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace available
File formats: Supports PDF, DOCX, and Excel for templates
Authentication: Email, SMS code, KBA, and advanced options available

Frequently Asked Questions About Investment Policy Documents

Answers to common legal, procedural, and digital-signing questions for Investment Policy Documents.

Need help? Contact support

Are electronic signatures legally valid?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and record retention are documented.
Do I need notarization or witnesses?
Most investment policy documents do not require notarization or witnesses. Check institutional governance rules and any applicable state-specific requirements before adding notary steps.
How often should the policy be reviewed?
Standard practice is at least annual review, with immediate review after material changes in objectives, funding, or regulatory environment to maintain fiduciary defensibility.
What happens if the signer name differs from ID?
Mismatched signer names can raise authenticity questions; use exact legal names, require supporting documentation, and consider stronger signer authentication for high-assurance needs.
Can I update the policy after adoption?
Yes. Amendments should follow the governance process, record the amendment date, obtain the same level of approval, and preserve prior versions for audit purposes.
Which records should be retained?
Keep the signed policy and audit trail for at least three years post-termination; retain longer per IRS, SEC, or HIPAA requirements as applicable and document your retention schedule.

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