Fulfill your fiduciary duty.

Fiduciary duties have been established by ERISA, Unified Prudent Investors Act (“UPIA”) and Uniform Management of Public Employee Retirement Systems Act (“MPERS”). To meet the expectations of these rules and the courts the trustee must:  

·         Know standards, laws and trust provisions

·         Diversify assets to a specific risk/return profile

·         Prepare an investment policy statement

·         Use “prudent experts” (investment managers) and document due diligence

·         Control and account for investment expenses

·         Monitor the activities of “prudent experts”

·         Avoid conflicts of interest and prohibited transactions

Screen investment managers.
A prudent trustee can provide evidence to shareholder, board members, and plan participants that the following items have been reviewed.

·         Are all assets held in the United States and protected by US laws?

·         Does the investment have a sufficient track record?

·         How stable is the organization?

·         Is the plan’s investment an appropriate size for the manager?

·         What is the ratio of the plan’s investment in the product or strategy?

·         Is each product or strategy large enough for your plan?

·         Are the plan holdings consistent with the investment manager’s style?

·         Performance factors:

o   Performance relative to style or peer group

o   Relative to assumed risk

o   Expense ratios and fees

 If you are unsure about any of these items, contact Bravo Zulu for an outside review and report on your investment managers. Bravo-Zulu@comcast.net