Investment Policy Development and Strategic Asset Allocation for Recovered Asset Funds

Course overview

A recovered asset fund without a written investment policy leaves every decision open to dispute and every loss open to blame. A sound investment policy statement sets out what the fund is for, how much risk it may take, what it may invest in and who decides. This investment policy statement course shows boards and investment staff how to write one and turn it into a strategic asset allocation.

Participants study the purpose and components of an investment policy statement and how they apply to funds that must protect capital, provide liquidity for payments and satisfy public scrutiny. They practise defining objectives and constraints, writing permitted and prohibited investments, setting limits for credit quality, concentration and duration, and allocating responsibilities. They then develop a strategic asset allocation using instruments available in regional markets, test it under scenarios and set rebalancing ranges. Ethical and responsible investment restrictions, conflicts of interest and review procedures complete the policy.

Participants leave with a draft investment policy statement and strategic asset allocation for a recovered asset fund.

What you will be able to do

• Explain the purpose and components of an investment policy statement
• Define objectives, risk tolerance and constraints for a recovered fund
• Specify permitted investments and risk limits
• Develop and test a strategic asset allocation
• Set rebalancing ranges and review procedures
• Allocate investment responsibilities clearly

Who should attend

For board members, investment committee members and investment staff responsible for the policies of recovered asset funds and similar public funds.

• Board and trustee members
• Investment committee members
• Fund managers
• Investment and treasury officers
• Legal advisers
• Ministry of finance oversight staff

Course outline

Fees are per participant in US dollars and cover tuition, course materials and your certificate. Travel and accommodation are not included.