Trusts

  • One of the best things that Trustees can do is to create a measurable Investment Policy Statement. In the past, Trustees may have given non-specific mandates to investment managers - for example: "manage the assets of the trust in a prudent manner." Given the market volatility today, this type of vague mandate cannot be measured and does not help Trustees to hold investment managers accountable.
    In order to meet their standard of care, Trustees should insist on a measurable investment policy statement.
    Areas where measureable standards can be added include:
    • The asset allocation of the account
    • The maximum position sizes of investments
    • The minimum credit rating on bonds
    • The rating of mutual funds
    • The deviation of performance from benchmarks
    • The maximum loss allowed by a manager or position
  • Pepper International can assist trustees in crafting a measurable statement that is tailored to their specific concerns and requirements. 
    (PDF) To download a sample of an Investment Policy Statement for a trust with multiple managers, click here.
    (PDF) To download a sample of an Investment Policy Statement for a trust with a single manager, click here.