Which document details the strategy for managing a client's investment portfolio?

The Investment Policy Statement (IPS) is the document that articulates the strategy for managing a client's investment portfolio. It outlines the client's investment goals, risk tolerance, and investment preferences. The IPS serves as a foundational guideline that not only defines how investment decisions will be made but also provides a framework for measuring portfolio performance over time.

By clearly laying out the client's objectives, constraints, and the overall investment philosophy, the IPS helps ensure that both the client and the advisor are aligned on how to approach the investment strategy. This alignment is crucial for maintaining a disciplined investment process and for adjusting the portfolio in accordance with changing market conditions or shifts in the client’s goals.

Other documents, while important, serve different purposes. For instance, a Trade Confirmation Document provides details about individual transactions but does not outline a broader strategy. A Client Agreement Form establishes the working relationship between the advisor and the client, and a Risk Assessment Report helps in understanding the client’s risk profile but does not detail the investment strategy itself. Thus, the IPS is the central document for guiding investment management decisions.