What's Your Policy
Most institutional investment portfolios have a governing document called an Investment Policy or Charter. Compass Advisors views the Investment Charter as a vital part of the investment process. Although it can be time consuming and difficult, the Charter drafting exercise provides those tasked with oversight responsibilities the opportunity to understand and evaluate many important aspects of portfolio management and lay out a consistent framework to maximize the probability of success. In addition, the Investment Charter serves as an invaluable means of communication between the various interested parties, ensuring a common understanding between advisers, service providers and investment committee members.
Good Idea, Bad Execution
While having an Investment Charter is a virtual necessity for portfolios overseen by a committee, the document itself tends to be complex and cumbersome. Because of this, many Investment Charters quickly become out-of-date or filled with inconsistencies relative to how the portfolio is actually managed day-to-day. Thus, a vital part of the investment process is effectively removed, often leading to ineffective delegation, confusion, and sub-optimal decisions.
Re-Thinking Charters
We’ve re-thought Investment Charter design from the ground up. As a result, our model Charter layout is logical, modular and easily
maintained. Policy mechanics necessary for day-to-day management are encapsulated in concise and easily updated appendices
allowing a single Charter document to effectively cover multiple asset pools. This design is an integral part of our
Investment Charter System.
