Investment Committee Charter Template (Australia)

An investment committee charter sets out how a committee is established, who sits on it, how it meets and how its recommendations reach the board. This template is drafted for Australian funds, investment managers and corporate groups that want a documented committee framework rather than an informal one. The committee it establishes is advisory only unless a separate written delegation is approved and attached.

Use this template if you:

• are establishing an investment committee for a fund, trust or managed investment scheme
• want the committee to advise rather than exercise delegated investment authority
• are replacing an informal committee arrangement with a documented charter
• need quorum, voting and escalation rules that will stand up to scrutiny
• report investment recommendations to a board or trustee board

It is suited to:

• fund managers, wholesale investment managers and private capital businesses
• trustees and responsible entities of funds and managed investment schemes
• corporate groups establishing an advisory investment committee
• AFS licensees aligning committee practice with their licence conditions
• boards running one committee per fund or a shared committee across several funds

What this template covers:

• advisory status, the limits on committee authority and the matters that must be escalated to the board
• committee responsibilities across strategy, asset allocation, acquisitions, disposals, due diligence and external manager appointments
• the information and factors a recommendation must consider, including valuation, liquidity, ESG, sanctions and conflicts
• membership, eligibility, appointment, removal, alternates and the roles of chairperson, chief investment officer, secretary and members
• meeting mechanics: frequency, notice periods, papers, quorum, attendance by technology, voting and written resolutions
• conflicts of interest, chairperson conflicts and related party matters
• reporting to the board, minutes, record ownership, induction, annual effectiveness review and two-yearly charter review
• four schedules: charter configuration, an indicative annual work plan, an investment recommendation record, and a meeting agenda and minutes checklist

You receive an editable Word document with a seven-step implementation guide, a populated definitions table and four schedules, including a quarterly work plan and an agenda and minutes checklist that can be adopted largely as drafted. Highlighted fields such as [INSERT LEGAL ENTITY NAME], [INSERT ACN], [INSERT AFSL NUMBER] and the Schedule 1 settings for quorum, voting threshold and meeting frequency are marked for completion. Reconcile the charter against your trust deed, constitution, investment mandate and board delegations, and obtain legal advice on your own circumstances before adoption.