Investment Committee Charter Sample

Please note that these are samples and should not be used without careful review.  This is not intended to be legal, financial or accounting guidance - but as a guide for your organization to write its own material according to your local needs, requirements and restrictions.  Please consult with your own professional advisors.


PURPOSE

The investment committee is a standing committee charged by the (governing board) with the responsibility of advising the (governing board) on investment policy and implementing such policy.   


Committee Responsibilities

The Investment Committee:

·        Formulates and proposes to the (governing board) investment policies, objectives and strategies for the (fund’s) investment assets, which may include asset allocation and manager selection.

·        Implements and oversees the implementation of investment policies and practices, and monitors performance of the investment portfolio.

·        Selects and releases investment managers.

·        Reviews investment policy at least annually to determine whether they should be amended or remain unchanged,

·        Reports investment performance at (each or) the annual (governing board) meeting, together with any recommended changes.


Committee Membership


The Investment Committee shall consist of (not less than 4; no more than 8) members.  At least (_) committee member shall be a member of the (governing board).  Each committee member is appointed by (the governing board) and shall serve a term of (__) years.  Terms shall be staggered to the extent practicable.  The Chair is selected either by the (governing board) or the Investment Committee members shall designate one member to serve as Chair.  The (governing board chair/president) is an ex officio member of the Committee.

  

Committee Meetings


The Investment Committee shall hold (quarterly) meetings.  The Investment Committee Chair may call additional meetings as needed.  The Investment Committee shall keep record of its actions, and report such actions to the (parallel committee, i.e. finance/audit committee), the (governing board), and the (governing board chair/president).

 A quorum shall consist of the majority of the Investment Committee.  The affirmative vote of a majority shall be necessary to carry any motion or resolution.

Investment Policy Framework

Investment Policy shall take into consideration:

·        Long-term budget/revenue objectives, and anticipated annual cash requirements of each investment fund.

·        Investment goals to include liquidity requirements, rates of return, and budgetable transfer to operations, if any.

·        Prudent levels of risk.

·        Allocation across asset classes, including: stocks, bonds, other fixed income assets, alternative investments.

·        Acceptable costs of asset management.

·        Clarity about arms-length relationships and conflicts of interest, (consistent with the organization’s Code of Ethics where applicable).