Organizations today face an ever-more-complex, often turbulent, market environment. Understanding and applying industry best practices in the oversight of your organization’s resources increases the probability of your mission succeeding.
At the organizational level, this means clear definition of purpose for the investment portfolio and structure to provide for its guidance and oversight. For fiduciaries of the organization, it means applying personal knowledge and experience as well as awareness of regulatory requirements and fiduciary obligation.
Two critical examples of best practices:
Creating a written Investment Committee Charter Document that clearly defines roles and responsibilities of the committee. Upfront agreement to the principles detailed in this document encourages committee members to unite around your organization’s purpose and policies for achieving its goals.
Crafting a thoughtful Investment Policy Statement (IPS). This document defines investment purpose and strategy and provides guidelines for portfolio construction, risk management, manager selection and performance evaluation. A well-crafted IPS can also protect your organization from emotions hijacking a committee’s decision-making process.
There are many other important practices that help ensure your organization functions well and demonstrate the highest ethical standards to your constituents. If you feel like you’re in uncharted waters, we can help.