Asset Allocation Policy Statement

An Asset Allocation Policy Statement is a document that guides how an investment portfolio is structured. It outlines the mix of different types of investments—like stocks, bonds, and cash—that align with an investor’s goals, risk tolerance, and time horizon. This policy helps ensure consistent investing and manages risks by setting clear guidelines for how assets should be allocated and rebalanced over time. Essentially, it's a strategic plan designed to help an investor stay on track to meet their financial objectives while balancing potential returns and risks.