Investment Governance Blog
A Business Manager's Duty to Monitor the Risk and Return of their Clients' Investment Portfolios
The Problem: You are a business manager and it is either explicitly or implicitly the case that you are responsible for monitoring the activities of the investment managers that have...
Trust But Verify: Do Private Equity and Hedge Funds Deliver Superior Risk-adjusted Returns?
For several decades, the investment industry has promoted the virtues of hedge funds and private equity funds for large instructional investors and ultra high net worth individuals. But over the...
ERISA 1104(a)(1)(B) re Duty to Prudently Delegate
A trustee has a duty to prudently invest the plan assets on behalf of the beneficiaries. However, few trustees actually take on this complex responsibility alone. In most cases the...
UPIA §2(b) – Duty to Monitor Risk and Return
The Duty The preamble to the Uniform Prudent Investor Act notes, “The tradeoff in all investing between risk and return is identified as the fiduciary's central consideration.” For most trustees...
ERISA §1104(a)(1)(c): Duty to balance risk and return with Alternative Investments
Prudence not Prescience Trustees are required to make hard investment decisions. They are to take into consideration the risk of loss and the opportunity for gain associated with each particular...
Prudent Delegation Standard of Care: Registered Investment Advisor v. Registered Representative
In the same way a trustee owes duties of care and loyalty to the beneficiaries of a trust, the investment managers also owe a particular standard of care to the...
ERISA §1104(a)(1)(C) re Diversification
US Code §1104(a)(1)(C) states, “A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries… by diversifying the investments of the...
