Six Questions to Help You Develop a Set of Sound Investment Beliefs
Healthcare entities are typically governed by members of a volunteer investment committee who are charged with fiduciary oversight of multiple, complex portfolios of varying horizons that are closely tied to the organization’s mission. Yet it is difficult to maintain the discipline of managing a long-term portfolio as markets ebb and flow, investment fashions change, and investment committees turn over. The paradox of a long-term time horizon, while investment environments and organizations evolve, suggests the need for a critical tool in the governance toolbox in order to keep a clear focus and ensure successful outcomes.
Crafted wisely, a set of agreed-upon investment beliefs can serve as a tool to enable investment decisions that help healthcare entities ensure capital is available to cover debt requirements, float operations, and/or fund capital spending needs now and in the future.