The investment strategy should be both meaningful and measurable. The investment strategy must consider the following:

  • Risk and return – what is the risk profile of the members and the expected rate of return
  • Timeframe – when the performance will be assessed
  • Diversification – what type of assets will you invest in
  • Liquidity and the ability to meet debts as they fall due – can the fund pay expenses and member benefits when required
  • Insurance needs – have the trustees considered life and other personal insurance of the members

The above must be documented and reviewed regularly by all trustees of the fund.