Sample Investment Policy Statement For A Defined-Benefit Plan printable pdf download

Sample Investment Policy Statement for a Defined-Benefit Plan

Investment Policy Statement

Apex Sports Equipment Corporation (the “Company”) operates in the recreation industry. The Company

sponsors the Apex Sports Equipment Corporation Pension Plan (the “Plan”), the purpose of which is to

accumulate assets in order to fund the obligations of the Plan. The Plan fiduciary is the Apex Sports

Equipment Corporation Plan Investment Committee (the “Committee”). The Plan is an employer

contributory defined-benefit pension plan covering substantially all full-time Company employees.

1- Purpose

The purpose of the Investment Policy Statement (the “Policy”) is to provide clear guidelines for the

management of plan assets. This Policy establishes policies and guidelines for the investment practices

of the Plan. The Committee has reviewed and adopted this Policy. The Policy outlines objectives, goals,

restrictions, and responsibilities in order that:



The Committee, staff, investment managers, and custodians clearly understand the objectives

and policies of the Plan;



The investment managers are given guidance and limitations concerning the investment of the

Plan’s assets; and



The Committee has a meaningful basis for evaluating the investment performance of individual

investment managers, as well as evaluating overall success in meeting its investment objectives.



The Plan shall at all times be managed in accordance with all state and federal laws, rules, and

regulations including, but not limited to, the Employee Retirement Income Security Act of 1974

(ERISA).

2- Identification of Duties and Investment Responsibilities

The Committee relies on staff and outside service providers (including investment managers and bank

custodians) in executing its functions. Each entity’s role as fiduciary must be clearly identified to ensure

clear lines of communication, operational efficiency, and accountability in all aspects of operation.

Investment committee. The Committee is responsible for managing the investment process. The

Committee, with the assistance of staff, monitors the performance of investments; ensures funds are

invested in accordance with Company policies; studies, recommends, and implements policy and

operational procedures that will enhance the investment program of the Plan; and ensures that proper

internal controls are developed to safeguard the assets of the Plan.

Investment managers. Investment managers will construct and manage investment portfolios

consistent with the investment philosophy and disciplines for which they were retained. They will buy

and sell securities and modify the asset mix within their stated guidelines. The Committee believes that

investment decisions are best made when not restricted by excessive limitations. Therefore, full

discretion is delegated to investment managers to carry out investment policy within their stated

Sample Investment Policy Statement For A Defined-Benefit Plan