Investment Policy and Governance Training Course

Participants can design decision rights, committee structures and escalation routes for investment oversight.

• Board, committee and executive roles defined through delegated authority matrices
• Terms of reference covering quorum, voting, records and meeting frequency
• RACI mapping for policy approval, trading, custody and performance review
• Escalation thresholds for limit breaches, liquidity stress and manager failures
• Committee calendars linked to rebalancing, valuations and annual policy reviews
• Decision registers documenting rationale, dissenting views and follow-up actions

Participants can identify legal duties and translate applicable requirements into policy controls.

• Fiduciary duty, duty of care and loyalty obligations
• Prudent investor principles applied to delegation and portfolio diversification
• Legal hierarchy from statute and regulation to policy procedures
• Jurisdictional advice requirements for tax, pension and charitable assets
• Contractual duties within management agreements, custody agreements and mandates
• Evidence trails supporting board decisions, approvals and policy exceptions

Participants can establish conduct controls for conflicts, inducements and personal dealing.

• Conflict-of-interest registers covering trustees, staff, advisers and managers
• Related-party transactions assessed through independent review and documented approvals
• Gifts, hospitality and inducements controlled through monetary thresholds
• Personal account dealing rules for investment decision-makers and analysts
• Chinese walls and information barriers protecting confidential market information
• Whistleblowing channels and investigation protocols for suspected misconduct

Participants can structure an investment policy statement with complete, usable core provisions.

• Investment policy statement sections sequenced from purpose through review requirements
• Definitions drafted for assets, benchmarks, managers and authorised instruments
• Permitted investments specified by asset class, issuer and instrument
• Prohibited transactions covering speculation, concentration and unauthorised borrowing
• Policy hierarchies distinguishing board policy, procedures and manager guidelines
• Version control, approval dates and policy-owner responsibilities established

Participants can define measurable objectives and constraints that direct portfolio construction.

• Real return targets calculated after inflation, fees, tax and spending
• Spending rules based on market value, income or rolling averages
• Liquidity ladders matching forecast cash needs and committed outflows
• Capital preservation thresholds expressed through drawdown and loss tolerances
• Investment horizons separated for operating reserves and long-term capital
• Constraint schedules covering currency, concentration, duration and credit quality

Participants can set strategic asset allocation ranges consistent with policy objectives and constraints.

• Capital market assumptions for returns, volatility, correlation and inflation
• Mean-variance optimisation interpreted alongside institutional constraints and judgement
• Strategic asset allocation ranges defined by asset-class risk contribution
• Rebalancing bands triggered by allocations, cash flows and market movements
• Scenario analysis comparing downturn, inflation shock and rate-rise outcomes
• Asset allocation decisions documented through assumptions and approval records

Participants can connect investment strategy to liabilities, cash forecasts and liquidity reserves.

• Asset-liability management maps portfolio cash flows against expected obligations
• 13-week rolling cash forecasts built from receipts, payroll and supplier data
• Liquidity tiers classify same-day, short-term and strategic investment assets
• Stress cash requirements estimated under redemption, collateral and funding scenarios
• Duration matching techniques reduce interest-rate sensitivity against known liabilities
• Contingency funding plans define liquid assets, approvals and activation triggers

Participants can establish measurable risk limits, monitoring indicators and risk ownership.

• ISO 31000 principles applied to investment risk identification and treatment
• Risk registers classify market, credit, liquidity, operational and legal exposures
• Risk appetite statements connect board tolerance with measurable portfolio limits
• Value at Risk limitations compared with stress testing and drawdown measures
• Risk budgets allocated across asset classes, managers and active decisions
• Key risk indicators assigned thresholds, owners, reporting frequency and actions

Participants can draft responsible investment provisions that match institutional objectives and evidence requirements.

• ESG policy objectives distinguished from financial risk and mission requirements
• Exclusions, screening and stewardship approaches compared against mandate objectives
• Materiality assessments identify environmental, social and governance investment risks
• Proxy voting responsibilities assigned between asset owner and investment manager
• Stewardship reporting requirements specify engagement objectives, actions and outcomes
• Greenwashing controls test manager claims, data sources and methodology

Participants can run a documented manager selection process and set enforceable mandates.

• Request-for-proposal criteria cover philosophy, people, process, performance and price
• Due diligence reviews ownership, governance, controls, capacity and business continuity
• Track-record analysis separates market beta, manager skill and survivorship effects
• Fee schedules assessed for management fees, performance fees and hidden costs
• Investment management agreements define objectives, limits, benchmarks and reporting
• Manager appointment recommendations supported by scoring, references and approval records

Participants can assess portfolio construction choices against diversification and concentration requirements.

• Diversification assessed across issuers, sectors, geographies, factors and asset classes
• Concentration limits set for issuers, counterparties, funds and related entities
• Core-satellite structures distinguish strategic holdings from active risk allocations
• Factor exposures identify unintended equity, duration, currency and credit bets
• Look-through analysis reveals underlying exposures within pooled investment vehicles
• Portfolio constraints reconciled with available instruments, liquidity and transaction costs

Participants can set policy limits for cash, fixed-income and credit investments.

• Credit quality limits use ratings, internal assessments and downgrade actions
• Duration ranges manage interest-rate exposure against cash-flow requirements
• Money market instrument criteria address maturity, liquidity and counterparty exposure
• Issuer limits prevent excessive exposure to banks, sovereigns and corporates
• Bond benchmarks selected by duration, credit profile and investment universe
• Default procedures define watchlists, disposal authority and impairment review

Participants can establish governance provisions for public equities, alternatives and illiquid assets.

• Equity mandates specify benchmark, active risk, concentration and turnover limits
• Private market commitments assessed for pacing, capital calls and valuation lags
• Alternative investment due diligence examines liquidity, transparency and fee structures
• Side letters and limited partnership agreements reviewed for governance rights
• Illiquidity budgets cap commitments against forecast cash flows and reserves
• Valuation policies address stale prices, independent sources and fair-value adjustments

Participants can define controls for derivative use and other specialist portfolio activities.

• Derivatives permitted only for hedging, efficient management or defined exposures
• ISDA documentation establishes close-out, collateral and counterparty protections
• Hedge objectives specify underlying exposure, instrument, tenor and effectiveness measures
• Collateral management controls margin calls, eligible assets and valuation disputes
• Securities lending policies address indemnities, collateral and revenue-sharing arrangements
• Derivative exposure reported through notional amounts, sensitivities and stress tests

Participants can specify operational controls that protect assets, records and transaction integrity.

• Custodian due diligence reviews asset segregation, reporting and operational resilience
• Segregation of duties separates approval, dealing, settlement and reconciliation activities
• Trade lifecycle controls cover confirmation, settlement, exceptions and failed trades
• Bank account authorities align payment controls with approved investment operations
• Reconciliations compare manager, custodian, bank and general-ledger records
• Business continuity plans address market disruption, systems failure and staff absence

Participants can identify accounting, tax and valuation provisions affecting investment policy decisions.

• IFRS 9 classification considers business model and contractual cash flows
• IFRS 13 fair-value hierarchy informs valuation governance and disclosure
• Realised and unrealised gains reconciled with financial statement presentation
• Tax-exempt, taxable and withholding-tax treatment assessed by investment structure
• Investment income reporting separates interest, dividends, gains and fee expenses
• Valuation exceptions escalated through finance, investment and audit responsibilities

Participants can create reporting requirements that support informed oversight and corrective action.

• Time-weighted returns distinguish manager performance from external cash-flow timing
• Money-weighted returns assess investor experience and funding decision outcomes
• Benchmark selection matches mandate objectives, investable universe and risk profile
• Brinson attribution separates allocation, selection and interaction performance effects
• Board dashboards combine returns, risks, liquidity, compliance and manager actions
• Performance reports explain material variances using evidence, not market commentary

Participants can operate a compliance-monitoring process and refresh policies when circumstances change.

• Pre-trade and post-trade compliance checks test policy and mandate limits
• Breach classifications distinguish administrative errors, market movements and serious violations
• Exception reports record cause, impact, remediation and responsible owners
• Annual policy reviews reassess objectives, constraints, law and market conditions
• Independent assurance tests governance design, control operation and evidence quality
• Audit findings converted into tracked actions, deadlines and closure evidence

Participants can build, review and present a complete investment policy and governance pack for board approval.

• Institutional case facts translated into objectives, constraints and governance requirements
• Investment policy statement assembled with mandate, limits and review provisions
• Strategic allocation, liquidity tiers and risk budget justified through documented assumptions
• Committee authority matrix, conflicts register and escalation routes incorporated
• Manager oversight, performance reporting and compliance schedules finalised for approval
• Board presentation defends recommendations against challenge, stress scenarios and audit scrutiny