Investment Committees (IC) give their time and talent in support of a mission that's important to them and ultimately provides value to society. In most cases, they're volunteers. However, the role of an IC member is rarely easy and often carries significant challenges and responsibilities.
We asked: How is your Investment Committee constructed and what are some of the challenges you face?
Overall, nonprofits are evolving to improve the effectiveness of the investment portfolio to better achieve the mission. See how you stack up in some of the key areas uncovered.
1. Investment committee staffing and meetings
- ICs are typically between four and ten members and 83% said that is the ideal size
- 91% of investment committees meet quarterly and feel that is appropriate and well-attended
2. Focus of the Investment Committee
- Only 32% of time spent is on investment oversight and fulfilling fiduciary responsibilities
- 92% of committees spend most of their time on investment performance reviews or asset allocation strategies
- IC could improve on measuring success in achieving their mission goals
56% feel the area where the board could improve the most is measuring success in achieving mission goals.
3. Investment oversight and management
- Most committees use an investment consultant and some use an OCIO
- Nearly a third (30%) feel their IC could use more members with investment experience
- 46% feel they spend too much time reviewing money managers and should focus more time on asset allocation strategies
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Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.