Typically, a Trust Investment Review will be requested by Trustees or Trust Protectors, who wish to have an independent and objective view of the investment performance and structure of an account which they are supervising.
In addition, a beneficiary of a trust is welcome to request an independent review of his or her trust account. Typically, a Level One review could be directly requested by the Beneficiary. A Level Two or higher review will usually be made with the knowledge of the Trustee.

  • Level One Trust Investment Review - Initial Findings
    Trustees can allay their own concerns and fulfill their duty of care by annual performing an independent review of the trusts which they supervise.  
    A Level one Account Review is based on a review of the following:
    •    The last four quarterly investment statements
    •    The existing investment policy that has been set up.
    •    The existing fee schedule being charged by the Investment Advisor
    This may be an anonymous review, where all materials provided to Pepper International have been stripped of identifying information. Upon submission of the information and payment of the fee per the fee schedule below, a review will be performed.
    A sample Level One Trust review can be seen here.
    This review would flag areas of concern for following up, either by the trustees, protector, beneficiaries or the settlor.  If initiated by the trustees, there is an option to edit the review before it is released to the settlor or beneficiaries. 

  • Level Two Trust Investment Review - In Depth Analysis
    If areas of concern have been identified by a Level One review, the Trustees may wish to go deeper.  Here a Level Two Review makes sense.  A level two review includes the following:
    •    Meetings with the portfolio manager, either live or on the telephone, to go through the account statements.
    •    Review of all underlying fund reports and other investment information with the portfolio manager.
    •    Provision of findings verbally or via written report as requested to the Trustees or the individual who has requested the report.  
    At the end of a Level Two review, the Trustees will be handed an action plan that helps them overcome any challenges in the trust and demonstrates they are performing their Duty of Care. 

  • Level Three Trust Investment Review - Restructuring the Account
    In some cases, the trustees may determine that given changes in circumstances, an account should be significantly restructured. PI Bahamas will provide the following :
    •    Rewrite the Investment Policy Statement to reflect the current situation
    •    Assist the Trustees to renegotiate the fee structure of the account if it is not appropriate
    •    Reanalyze the asset allocation and restructure it to reflect the Trustee's current plans
    •    Reorganize the account to include appropriate performance reporting so that the Trustees are able to better track the account.  This includes adding benchmarks for all investments
    •    Replace the existing investment manager if the Trustees are no longer comfortable with the investment arrangements. 

  • Quarterly Reviews
    Quarterly reviews can be obtained as well as annual reviews. 

  • Ongoing External Chief Investment Officer Service
    Depending on the size and complexity of trusts, the Trustees may decide that the Trust needs an External Chief Investment Officer, separate from the Investment Manager, to supervise the investment process.  Just as a Trust Protector oversees the work of Trustees, an External Chief Investment Office oversees all investment aspects of the trust.  This function is particularly required for larger trusts that have more than one investment manager- there needs to be a centralized control function to oversee all accounts and to supervise all Functions Performed by the External Chief Investment Officer are described in detail in the Investment section of the website.  

    Click here to visit this detailed description.
    In summary, the External CIO will:
    1) Meet with Settlor to discuss the goals of the trust.
    2) Set up asset allocation and investment policy statement for the trust.
    3) Interview and assign an investment manager for the trust.
    4) Perform a monthly review of investment statements against benchmarks.
    5)  Perform an Annual Review of the Investments against the investment policy statement and client meeting.
    6) Assist in the creation and oversight of consolidated reporting if needed.  Fees for a Consolidated Reporting Service are in addition to the External CIO fee. 
    Please review the Investment section for more details here.