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How the IPS Informs Portfolio Management and Decision-Making at Optimize

Learn how Optimize uses your Investment Policy Statement (IPS) as the foundation for managing your portfolio, guiding every decision and ensuring your investments stay aligned with your plan, not the headlines.

At Optimize, we do not manage your portfolio based on market predictions or short-term trends. We manage it based on your Investment Policy Statement (IPS)—your personalized roadmap that outlines how your investments should be structured, managed, and adjusted over time.

The IPS is more than a document—it is a decision-making framework that keeps your investments focused on your goals, your risk comfort, and your financial life. It ensures that every decision we make on your behalf is rooted in your plan, not market noise.

How the IPS Guides Day-to-Day Portfolio Management

Your IPS acts as a reference point for all aspects of your portfolio management, including:

  • Asset Allocation Management.
    Your IPS outlines your target asset allocation—the mix of equities, fixed income, and other investments that reflect your goals and risk comfort. We use this allocation as the baseline for how your portfolio is built, monitored, and adjusted.

  • Rebalancing Discipline.
    When markets cause your portfolio to drift from its target allocation, we use the IPS to guide disciplined rebalancing. This ensures your portfolio remains within the agreed boundaries of your risk profile, not drifting into unintended exposures.

  • Investment Selection.
    The IPS outlines your preferences, constraints, and liquidity needs. This informs which investments we select within your portfolio, ensuring they match both your goals and your values.

  • Cash Flow and Liquidity Planning.
    For clients drawing income from their portfolios, the IPS guides how we manage liquidity and income distributions, ensuring that cash flow is supported without compromising your long-term investment strategy.

Supporting Discipline During Market Uncertainty

During volatile markets, emotions often run high. The IPS serves as an anchor that keeps both you and Optimize grounded in your plan. When fear or uncertainty tempts reactive decisions, we refer to your IPS to ensure we stay focused on the long-term strategy you have committed to, rather than making short-term moves that could undermine your success.

Enabling Clear Conversations and Reviews

Your IPS also supports ongoing conversations between you and Optimize, ensuring we both have a shared understanding of your portfolio’s purpose, structure, and expectations. When we review your portfolio, the IPS provides a reference point for assessing whether any adjustments are needed—whether driven by market movements or changes in your life.

A Living Document That Evolves with You

While the IPS provides structure and discipline, it is never static. As your life evolves, your IPS should evolve too. When your goals, risk comfort, or financial circumstances change, we revisit your IPS together, ensuring your portfolio continues to reflect your current situation and supports your future plans.