Manager Audit Articles

Verify

A Trustee’s Duty to Independently Monitor Delegates UPIA §9(a)(3)

The Uniform Prudent Investor Act at Section 9(a)(3) directs, "A trustee shall exercise reasonable care, skill and caution by periodically reviewing the agent’s actions in order to monitor the agent’s performance...
How is a targeted return like UBER?

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.”...
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...
Above Average

Bank v RIA as Investment Advisor: A Cost-Benefit Analysis

Many investors ask, "Is it better to have a big bank (Goldman Sachs, for example) as my investment advisor or a Registered Investment Advisor (Bel Air, for example) to manage...
Above Average

Why the “Passive vs. Active” Investment Debate is the Wrong Issue

The investment industry is embroiled in a "great debate" concerning which investment philosophy is best: active vs. passive management. The debate concerns how the building blocks (asset classes) that make...
Employee Review

Investment Governance Best Practices for Business Managers (How to Watch the Hen House)

The Problem:  You are a business manager(1), and it is either explicitly or implicitly the case that you are responsible for monitoring the activities of the investment managers that have...