Practices

The following is a brief overview of the information necessary to form the twenty-seven practice standards for fiduciary reviews and audits as developed by the Center for Fiduciary Studies.

There are two axis which make up a matrix of practice standards. One is called the Uniform Fiduciary Standards of Care and the other is the Steps in the Investment Management Process. The objective in developing this matrix of practices is to promulgate practices that define a prudent investment process from start to finish, provide a “layman’s understanding” through education, provide a thorough and comprehensive list of the basic fiduciary duties and provide a mechanism that is easy to apply to any fiduciary portfolio.

Fiduciary Resources, Inc. prides itself in its ability to fully implement a training session that will get most boards and trusts off to a running start in understanding their fiduciary responsibilities in an easy to understand method.

Uniform Fiduciary Standards of Care

1. Know standards, laws and trust provisions
2. Diversify assets to specific risk/return profile of client
3. Prepare investment policy statement
4. Use “prudent experts” –money managers- and document due diligence
5. Control and account for investment expenses
6. Monitor money managers and service vendors
7. Avoid conflicts of interest and prohibited transactions

Steps in the Investment Management Process

1. Analyze current positions
2. Design Optimal Portfolio through diversification
3. Formalize design with an Investment Policy Statement
4. Implement the policy
5. Monitor and Supervise and rebalance when necessary to keep in line with investment policy