An investment committee governs and oversees an investment plan or strategy. Sponsored retirement plans may need an investment committee. However, their influence stretches beyond retirement plans. For example, a corporation may appoint a committee to oversee company investments.
The members of an investment committee can be drawn from the company’s board of directors. The committee may work with the company’s Chief Investment Officer to shape investment policy.
However, with qualified retirement plan or pension plan, the plan sponsor may draft a charter detailing committee selection. Meanwhile, it may address the number of people who can serve on the committee at any given time.
Members of an investment committee may not require financial or investment expertise. The size of the committee can vary greatly.
For example, some require just a handful of members. Others have dozens. However, investment committees must choose members dedicated to investment oversight.