Investment Policy Design/Review

A Statement of Investment Policy ("SIP") is developed and adopted by each client reflecting the risk parameters, investment objectives, and performance benchmarks appropriate to the client's circumstances. The SIP further defines the asset allocation parameters of appropriate investment strategies, i.e., target, minimum and maximum exposures for various asset classes. The SIP then drives NWCM's investment research efforts to identify investment alternatives by dictating minimum performance criteria and establishing measurable benchmarks that each option must meet for it to be considered, and to remain, as an investment alternative. These criteria and benchmarks (both quantitative and qualitative) comprise the filters NWCM employs to narrow the universe of potential investment options.

A SIP must clearly express the investment objectives of the portfolio. What amount of return is the portfolio expected to yield? Over what period of time? How much investment risk will be tolerated? Are some types of investments not acceptable for purchase? Are there minimum and maximum exposures to various assets classes? What are the benchmarks against which investment performance will be measured?