An investment policy statement should include which of the following?

An investment policy statement (IPS) is a critical document that outlines the guidelines for the management of an investment portfolio. It typically includes several key components to ensure that all parties involved understand their responsibilities and the framework within which decisions must be made.

Including policies regarding ethics and conflicts of interest is essential in an IPS to ensure transparency and integrity in the management of investments. This helps in maintaining trust among stakeholders and ensures that all actions taken by investment managers are aligned with ethical standards and free from conflicts that could compromise the portfolio's objectives.

A statement of the standard of care is another crucial aspect of an IPS. This establishes the level of diligence and prudence that the investment manager is expected to uphold when managing the investments. It helps protect both the investors and the managers by setting clear expectations for the level of care in investment decision-making.

Additionally, the delegation of investment authority outlines how and to whom investment responsibilities have been assigned. This is important for clarity in decision-making processes and ensuring that appropriate individuals or committees carry out the investment strategy as defined in the IPS.

Inclusion of all these elements contributes to a comprehensive investment policy statement that acts as a roadmap for managing the investment portfolio effectively and responsibly. Therefore, the correct answer encompasses all these vital components, making