Critical Component of Investment Policy Statement

A financial advisor is crafting an Investment Policy Statement (IPS) for a client who has a moderate risk tolerance, a long-term investment horizon of 10 years, and a specific objective to accumulate wealth while minimizing short-term volatility. The IPS should clearly define the client's investment goals, including return objectives and risk tolerance, as well as outline the investment strategy, asset allocation, and any constraints.

In reviewing key components that must be included in the IPS, which of the following items is the most critical to ensure the investment strategy aligns with the client's objectives?