An investment policy statement defines the investment principles of an institutional investor (pension fund, insurer, non-profit organisation, charitable foundation, relief organisation). As a rule, they are issued by the highest body of the organisation and essentially cover the following topics:

Who is responsible for investment decisions?
Which investment strategy (strategic asset allocation), i.e. allocation of assets to different asset classes, is being pursued?
Which investments are admissible in detail (e.g. rating regulations, sustainability criteria)?
Which benchmarks are used?
How are shareholder voting rights exercised, if applicable?
How are potential conflicts of interest managed (governance)?
For whom, how often and with what content is the reporting published?

Swiss pension funds must have an investment policy statement (Art. 49a BVV 2). For non-profit organisations certified by ZEWO that have financial investments of more than CHF 2m, an investment policy statement is also mandatory (www.zewo.ch). The investment policy statements of foundations under Swiss law must usually be submitted annually to the supervisory authority.