Paddling Hard Beneath the Surface: The Investment Committee

Written by:
Ben Edwards
Director
Albion

A well-run Investment Committee (IC) is the engine room of a robust investment process. While clients may see little visible change from one period to the next, advisers know that effective oversight requires ongoing, disciplined effort beneath the surface.

To support a resilient, evidence-driven investment approach, the IC should:

  • Build and maintain well-diversified, long-term portfolios
  • Avoid chasing market fads or ‘hot’ funds – consistent process removes biases and subjectivity
  • Rebalance portfolios periodically, not react to short-term noise
  • Make changes only when they add genuine value, not for the sake of activity

Regular, structured meetings are essential. The IC should continually review and challenge the investment philosophy, asset allocation, and fund selection, drawing on the latest evidence and research. Independent, third-party input can provide valuable challenge and perspective.

It takes discipline and fortitude to stay the course, especially during market turbulence. The IC should resist the temptation to make changes simply to appear active, focusing instead on long-term outcomes.

Less is more in investing. Much of the work of the IC happens out of sight, ensuring portfolios remain robust and clients’ interests are always at the forefront.

If you’d like to have a chat about how we could support your IC and investment process, please get in touch.