Final answer:
The names of the investment advisors are generally not included in an Investment Policy Statement because, over time, detailed company performance data make personal acquaintance with managers less significant for investors relying on strategies instead.
Step-by-step explanation:
An Investment Policy Statement (IPS) serves as a strategic guide outlining the rules and procedures for the management of an investment portfolio. In an IPS, it is important to specify whether the investment funds will be actively or passively managed, as well as the benchmark indices that will be used for performance evaluation. This helps investors understand the management style and what measurements of success will be used to evaluate portfolio performance. Passive management often involves mimicking benchmark indices, thus achieving diversification and reducing risk.
While the details such as the management style and performance benchmarks are crucial, the names of the individual investors are not typically included in an IPS. This is because, as a firm becomes more established and its information is widely available, personal knowledge of the managers is less significant for outside investors like bondholders and shareholders. These investors rely on performance data and strategies rather than personal acquaintance. Consequently, it is the names of the investment advisors who manage the investments that are less relevant to include in an IPS.