A Higher Standard of Care.
Board of Trustees & Corporate Board of Directors have a fiduciary duty to ensure a process exists to invest prudently & mitigate risk. In the Institutional world, prudence is process, not performance.
Governing Boards may be under scrutiny from:
- their beneficiaries
- their donors (e.g. Endowments and Foundations)
- their shareholders (e.g. Corporations)
- their regulators
- the general public
- the Government (Municipal, Provincial or Federal)
Absence of process may lead to breach of duty & potential liability.Organizations may be subject to legislation and scrutiny by regulators.Foundations are governed by the Trustees Act in their respective Province.
How We Work with Fiduciaries.
- IPS Development
- Asset Allocation Decision
- Strategy Development
- Manager Analysis
- Performance Measurement
- Ongoing Monitoring & Review
- Understand the Organization & its Governance Structure
- Understand Funding & Endowment Arrangements
- Understand the role of the Committee, their functions & accountability
- Understand Spending Policy
- Investment Objectives & Risk Tolerance
- Results & Implications of Asset mix
- Recommend Appropriate Investment Structure
- Manager Search & Due Diligence
- Custodial Functions
- Transition Strategy Planning
- Reporting
- Reviews Managers, IPS, Spending Policy, Strategy, Rebalancing
- Formal Meetings
- Fee Analysis
- Education & Communication
- Ongoing Maintenance