Investment Policy Statement

An investment policy is intended to maintain a long-term view when short-term market movements may be distressing and the policy is in doubt.  It is important that you and Wesban Financial Consultants agree on basic investment policy matters as your financial situation is analyzed in the evaluation conference and a plan tailored specifically for your interests is designed.

The Wesban design for your circumstances is drawn from a comprehensive, fee-only financial planning process including: assessing financial condition, setting goals, developing a strategy to meet the goals, implementing the strategy, regularly reviewing the results and adjusting the strategy or the implementation as circumstances dictate.

The purpose of your Investment Policy Statement is to provide guidelines for monitoring the investment assets you place under supervision of Wesban Financial Consultants, P.C. by this Client Service Agreement.  The Investment Policy Statement will apply only to those assets placed directly under Wesban supervision although the unsupervised assets will be viewed with the context of your comprehensive plan. 

An Investment Policy Statement and the process by which it comes into being under your service agreement does not guarantee continuous positive performance of those assets. The Wesban process of selecting assets for your portfolio and the ongoing monitoring of them is intended to modify the inevitable fluctuations in the value of invested assets.  In order to protect the principal of those assets optimally, diversification among types of mutual funds will be required.  Some of these selections will perform better than others during any given time period.  Wesban makes no claim in the selection process to identify only those assets, which outperform all others.  Inclusion of individual securities in the portfolio will be at your request or the result of those securities owned by you prior to the inception of this agreement. Changes in the portfolio will be guided by market conditions, tax considerations and judgments based upon this policy statement.  The investment policy looks for the long-term result (typically 5-10 years) together with diversification among assets as the best protection for your resources.

An illustration of an asset allocation specifically for your assets among various mutual funds and individual securities is attached to this agreement and becomes part of your acceptance of the Client Service Agreement. From time to time, market conditions or your personal needs may cause the assets in the portfolio to vary from the illustrated allocation.  The portfolio will be rebalanced in the judgment of Wesban only when the conditions mentioned above make that necessary.  Mutual funds inherently exchange securities throughout the year which tends to keep their stated investment objectives on target.  “Rebalancing” for the sake only of maintaining the original illustrated asset allocation reduces your total performance due to transaction costs, tax costs and accounting costs. With careful initial selection of the funds in the illustrated allocation sheet, changes in your portfolio will be few and far between.  The monitoring process calls for daily reviews of individual fund performance and appropriateness as an asset in your specific portfolio.  The published Investment Policy Statement of each mutual fund selected for your portfolio is the basis of this Investment Policy Statement.  The combined statements of the various funds selected forms the foundation of your original illustrated portfolio.

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© 2008 WESBAN Financial Consultants, P.C.