Investment Committee Governance Guide
Your Blueprint for Fiduciary Excellence
A comprehensive resource for nonprofit boards and investment committees to build robust governance frameworks, fulfill fiduciary responsibilities, and maximize investment impact through structured oversight and strategic planning.
📥 Download PDF GuideWhat's Inside This Guide
Navigate through essential governance topics designed to strengthen your investment oversight
Foundation of Investment Committee Governance
Building a strong governance structure begins with clarity on roles, responsibilities, and expectations
Committee
Excellence
Key Governance Principles
Annual Planning Framework
A structured approach to fulfilling your governance responsibilities throughout the year
Your Investment Committee Year at a Glance
• Economic outlook discussion
• Committee goals setting
• Charter reaffirmation
• Liquidity assessment
• Risk management update
• New member onboarding
• Compliance verification
• Document management
• Succession planning
• Portfolio rebalancing
• Next year planning
• Committee assessment
Annual Governance Checklist
Ensure all critical responsibilities are addressed each year
Policy & Documentation
Performance & Strategy
Meeting Excellence Framework
Transform your committee meetings into strategic sessions that drive results
Sample Quarterly Meeting Agenda
A structured approach to maximize meeting productivity
Opening & Governance (10 min)
Roll call, approve minutes, review meeting objectives
Market Update & Economic Outlook (15 min)
Review current market conditions and potential impacts on portfolio
Portfolio Performance Review (20 min)
Analyze returns, attribution, and comparison to benchmarks
Strategic Focus Topic (25 min)
Deep dive into quarterly theme (e.g., asset allocation, risk management)
Action Items & Next Steps (10 min)
Document decisions, assign responsibilities, confirm next meeting
Meeting Best Practices
Roles & Responsibilities Matrix
Clear delineation of duties ensures effective governance and accountability
| Responsibility | Committee Chair | Committee Members | Staff/CFO | Investment Advisor |
|---|---|---|---|---|
| Meeting Leadership | Primary | Support | Support | Support |
| Policy Development | Review | Primary | Support | Primary |
| Performance Monitoring | Review | Primary | Review | Primary |
| Risk Assessment | Review | Primary | Support | Primary |
| Documentation | Review | Support | Primary | Support |
Committee Member Expectations
• Attend meetings consistently
• Ask thoughtful questions
• Contribute expertise and perspectives
• Maintain confidentiality
• Disclose conflicts of interest
• Support committee decisions
Continuous Education & Development
Building expertise through ongoing learning and professional development
Annual Education Calendar
Committee Development Resources
Implementation Tools & Templates
Practical resources to help you implement best-in-class governance practices
Essential Documents Checklist
Core Governance Documents
Operational Documents
Key Performance Indicators (KPIs)
• Risk-adjusted performance metrics
• Performance vs. policy benchmarks
• Asset allocation compliance
• Manager fee benchmarking
• Transaction cost analysis
• Cost per basis point of return
• Downside capture ratio
• Maximum drawdown
• Liquidity coverage ratio
Annual Governance Calendar Template
A month-by-month guide to essential governance activities
Annual Planning & Review
Prior year performance review, goal setting, economic outlook briefing
Q1 Review & Policy Check
Quarterly performance, spending policy review, rebalancing decisions
Mid-Year Assessment
Semi-annual deep dive, manager reviews, fee analysis
Governance Review
IPS annual review, committee self-assessment, education planning
Year-End Planning
Annual rebalancing, tax strategies, next year's calendar
Risk Management Framework
Comprehensive approach to identifying, monitoring, and mitigating investment risks
Risk Categories & Mitigation Strategies
• Diversification across asset classes
• Regular rebalancing protocols
• Defined risk tolerance limits
• Stress testing scenarios
• Maintain adequate cash reserves
• Ladder illiquid investments
• Regular cash flow projections
• Emergency liquidity plan
• Regular policy reviews
• UPMIFA compliance checks
• Documentation protocols
• Annual compliance audit
• Position size limits
• Sector exposure caps
• Manager diversification
• Regular monitoring
• Clear roles & responsibilities
• Succession planning
• Cybersecurity protocols
• Regular training
• ESG screening criteria
• Mission alignment checks
• Transparent reporting
• Stakeholder communication
Risk Management Action Items
Essential steps for comprehensive risk oversight
Quarterly Reviews
Annual Assessments
Measuring Governance Success
Key indicators and benchmarks for evaluating committee effectiveness
| Success Metric | Target | Measurement Frequency | Responsible Party |
|---|---|---|---|
| Meeting Attendance | 90%+ attendance rate | Quarterly | Committee Chair |
| Policy Compliance | 100% adherence to IPS | Quarterly | Investment Advisor |
| Performance vs. Benchmark | Within policy ranges | Quarterly | Investment Advisor |
| Cost Effectiveness | Below peer median | Annual | CFO/Treasurer |
| Documentation Quality | Complete minutes within 2 weeks | Each Meeting | Secretary/Staff |
| Education Completion | 4+ hours annually per member | Annual | Committee Chair |
| Risk Management | No material breaches | Quarterly | Full Committee |
Committee Self-Assessment Framework
Annual Committee Effectiveness Review
Structured approach to continuous improvement
Governance Structure
Evaluate committee composition, skills matrix, succession planning, and meeting effectiveness
Fiduciary Oversight
Assess policy adherence, decision-making processes, and documentation practices
Performance Management
Review investment results, risk management effectiveness, and cost control
Strategic Alignment
Confirm mission alignment, stakeholder communication, and long-term planning
Improvement Planning
Identify gaps, set improvement goals, and establish accountability measures
Important Disclosures
Regulatory Information and Legal Notices
Regulatory Registration
Together Forward Capital operates as a DBA of R.F. Lafferty & Co., Inc., an investment adviser registered with the Securities and Exchange Commission with principal offices in Boca Raton, Florida. Together Forward Capital is authorized to conduct business solely in states where it maintains registration or meets exemption or exclusion criteria from registration obligations.
Educational Purpose
This governance guide serves educational and informational purposes exclusively. Investment decisions carry inherent risks and returns cannot be guaranteed. The content provided aims to educate a general audience and should not be construed as an offer or solicitation to buy or sell any securities, investment products, or investment strategies.
Content Accuracy
Together Forward Capital maintains reasonable confidence that this guide contains no false or materially misleading statements or fact omissions concerning our services, investment approaches, or client experiences. For comprehensive risk disclosures, please consult our Form ADV Part 2A.
Professional Advice
This guide does not provide tax, legal, or accounting guidance. We recommend consulting qualified tax or legal professionals for advice specific to your circumstances.
Forward-Looking Statements
The views and opinions presented represent those of Together Forward Capital as of the publication date and remain subject to revision without notice. Any opinions, projections, or forward-looking statements contained herein represent solely the author's views and may diverge from positions held by other divisions within our firm.
Questions About This Guide?
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Last Updated: August 2025Ready to Transform Your Investment Governance?
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