Investment Governance Blog

How is a targeted return like UBER?

A trustee would not get into an Uber until they defined the destination for their ride. A trustee would not hire an employee without describing at some level the work...
Roadrunner

A Transitive Property of Fiduciary Duties?

If A = B and B = C, then A = C. This is the “transitive property of equality” that we learned in our remedial algebra classes so long ago....
Verify

A Trustee’s Duty to Independently Monitor Investment Advisors

“A trustee shall exercise reasonable care, skill and caution by periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the terms of the delegation” -...
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Investment Governance Overview: Is my investment advisor doing a good job?

The Problem It’s difficult to answer the question, “Is my investment advisor doing a good job?”  Predictably, all investment advisors report that they are “doing great” and are “above average.”...
Crooked Wall

Is my investment advisor doing a good job?

The Problem It’s difficult to answer the question, “Is my investment advisor doing a good job?”  Predictably, all investment advisors report that they are “doing great” and are “above average.”...
Wading Pool

Is your client’s investment advisor better than average?

Vanguard vs. Client: The Vanguard LifeStrategy Moderate Growth Fund (VSMGX) is (1) well diversified (60% global stocks and 40% bonds), (2) inexpensive (0.15% per year), (3) has a long and...
Kings Clothes

The Emperor Has No Clothes

The investment industrial complex does not want you to know how to evaluate its members. If it did you would have easy access to the following data: Each investment advisor...
Speed Dating

Questions to Ask an Investment Advisor Before They are Hired aka ”The Interview”

At times it becomes necessary to end a relationship with one investment manager and begin a relationship with a new firm. When such a change has been decided upon, it...
Wholesale v Retail

Will ERISA Trustees ever learn? or “I guess they aren't that smart at Princeton”

The Duty: An ERISA trustee is obligated to know who is being paid what by whom and whether the fees being paid are fair and reasonable. This duty is implicit...