Investment committee

An investment committee recommends or sets the investment policy, appoints and monitors managers, and reviews performance and compliance. In a charity or foundation it is usually a board committee; in a family office it may include family members and outside advisers. Its powers come from the board’s delegation.

Charity Commission guidance (CC14) says charities may, depending on the amount invested, have an investment sub-committee of trustees and staff to advise them. Published policies most often have the committee meet quarterly. Its minutes are the main record of what it decided.

For monitoring, the committee is where breaches are reported and waivers approved. Typical policy wording: “any breach is reported to the committee within three business days”. Its scope and authority belong in written terms of reference.