Sample Delegation of Investment Duties
The Uniform Prudent Investor Act, adopted by most states in the U.S., asserts the following:
“A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) selecting an agent; (2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the terms of the delegation” (UPIA §9(a)(1-3)).
A Delegation of Investment Duties serves to clearly communicate the terms of the delegation–return objective, expected risk, agreed upon fee, anticipated distributions, and any other parameters for the investment manager.
We do what trustees should do, but don't know how
Anodos develops and maintains an investment governance process for trustees so that their fiduciary duties are fulfilled.