3.8 Role
3.8.1 The Investment Committee is appointed by the Board of Trustees to assist the Board in respect of the selection, acquisition, disposition, management and monitoring of the Trust’s investments.
3.8.2 Main responsibilities and tasks:
- recommend to the Board of Trustees the Investment Policy Statement, incorporating an appropriate investment strategy and asset allocation model for the Trust’s investment portfolios (including the General Pool and Medium Term Fund)
- to review regularly and, if necessary, propose adjustments to the Investment Policy statement
- to implement the Investment Policy Statement
- monitor the performance of the Trust’s external investment managers against the agreed objectives
- subject to the approved Investment Strategy, appoint all fund managers and report any changes to the next Board of Trustees meeting
- recommend to the Board of Trustees, at quinquennial intervals, a General Pool income distribution methodology for the Trust’s Endowments based on the Committee’s model for long-term sustainable investment returns
- under delegated authority from the Board of Trustees, approve the General Pool distribution rate for the Trust’s Endowments annually between these five-yearly updates
- set the annual income distribution rate for the Short-term Restricted Funds
- take account, in its decisions and recommendations, of the Trust’s charitable objectives, belief statements and values
- make available to the Board of Trustees the minutes of meetings and an annual report covering all of the Committee’s activities and make any ad-hoc reports required under the Investment Policy Statement
3.9 Membership of the Investment Committee
3.9.1 The Committee should be large enough to represent a balance of views and experience yet small enough to operate efficiently. Members should have current knowledge of investment management Any conflicts of interest should be managed in accordance with the Trust’s Conflict of Interest policy set out in the Annex to Appendix A of the Governance Handbook.
3.9.2 The Committee will be made up of at least two members of the Board of Trustees, and at least two other members. The quorum necessary for the transaction of business is half of the membership, or three, whichever is the greater, including at least one member of the Board of Trustees.
3.9.3 The Board of Trustees is responsible for appointing the Trustee and non-Trustee members of the Committee.
3.9.4 The Board of Trustees will appoint as Chair of the Committee someone (who may or may not be a Trustee) with strong and effective leadership qualities, and the ability to promote effective working relationships among committee members and with others such as management, external auditors and investment managers.
3.9.5 The core qualities and experience required for membership of the Committee are listed in Appendix D to the Handbook, and may be modified in particular cases if the Board of Trustees considers that appropriate.
3.10 Meetings
3.10.1 The Committee will meet four times a year at appropriate times in the investment cycle, and otherwise as required.
3.10.2 Decisions will normally be taken on the basis of consensus, and otherwise on the basis of a simple majority of members voting at a duly convened meeting. The Chair may cast a second or casting vote only if there is a tied vote. Provisions for decision-making outside of meetings are otherwise detailed in Appendix B of the Governance Handbook.
3.10.3 Using its power under clause 43 the Board of Trustees has established a Code of Conduct and Procedures for Meetings which apply to itself and to the Council and other governance bodies. These are set out in Appendices A and B.
Other references in this document can be found in the Governance Handbook.