How often should the Treasurer review investment performance with investment managers?

• A. Annually only
• B. At least quarterly, with annual performance reviews and rebalancing as needed per IPS
• C. Every two years with informal checks
• D. Monthly reviews and reports to governance

Answer: (B)

Regular, policy-driven oversight of investment performance ensures the portfolio stays aligned with risk tolerance and objectives. The Investment Policy Statement defines how the portfolio should be managed, including targets, risk limits, and rebalancing triggers. Monitoring at least quarterly provides timely and actionable information to detect drift, evaluate manager performance, and address issues before they escalate. An annual, formal performance review offers a thorough, documented assessment of each manager, outcomes, and fees, while rebalancing as needed per the IPS keeps the asset mix within approved ranges. Monthly reviews can create unnecessary burden and overreaction to short-term moves, while waiting two years or relying on informal checks risks drift and poor governance. This cadence balances proactive oversight with disciplined adherence to policy.