Make The IPS A Boundary, Not A Binder
Use an investment policy statement as a decision boundary for one committee choice.
A useful IPS does not merely say what the fund believes. It says who acts when the belief is tested. The boundary idea The Three Lines Model separates ownership, challenge, and assurance. Pension governance needs the same separation. Investment staff should not need a full committee vote to execute routine rebalancing inside policy. Trustees should not discover after the fact that staff changed the plan's risk posture. A boundary-based IPS defines the middle ground. The mechanism is explicit escalation. For each important policy area, name the limit, the monitoring owner, the action owner, the challenge role, and the approval threshold.…
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