- Fiduciary Organization for Nonprofits
- How Much Diversification is Enough
- Investment Management Services for Nonprofit Institutions
- Investment Policy Matters
- Q&A for Fiduciaries from DOL Website
- The Fiduciary's Default Investment Choice
- Total Return Investing
Supporting your Mission
Prudent investment policies and procedures are a subset of organizational governance and a key driver of your organization’s ability to accomplish your mission.
Prudence in managing your investment accounts will over time result in better investment returns, attract and retain donors, enhance your organizational image, and reduce your fiduciary liability.
Our team of professionals can help through:
Fiduciary Self Assessment
1) Have all investment fiduciaries been identified? A
person may become a fiduciary by:
2) Have fiduciaries acknowledged their status, duties and responsibilities in
3) Have the frequency of meetings been formally defined?
Industry best practices and case law suggests a quarterly review, more
frequently if warranted by events.
4) Are minutes maintained when investment decisions are managed?
5) Are investments managed in accordance with applicable laws, trust
documents, and written investment policy statements?
6) Are fiduciaries aware of their duties and responsibilities?
7) Has there been an examination to confirm that fiduciaries and/or parties
in interest are not involved in self-dealing, prohibited transactions, and/or
conflicts of interest?
8) Are service agreements and contracts in writing, and free of any
provisions that conflict with fiduciary standards of care?
9) Is there documentation to show timing and distribution of cash flows,
and the payment of liabilities?
10) Are the assets protected from theft and embezzlement?
11) Has an appropriate level of investment risk been identified?
12) Has an expected, modeled return to meet investment objectives been
13) Has an investment time horizon been identified?
14) Are the selected asset classes consistent with the identified risk, return,
and time horizon?
15) Are the number of asset classes consistent with portfolio size?
16) Is there an Investment Policy Statement (IPS)?
17) Is there sufficient detail in the IPS to implement a specific investment
18) Does the IPS define the duties and responsibilities of all parties
19) Does the IPS define diversification and rebalancing guidelines?
20) Does the IPS define due diligence criteria for selecting investment
21) Does the IPS define monitoring criteria for investment options and
22) Does the IPS define procedures for controlling and accounting for
23) Does the IPS define appropriately structured, socially responsible
investment strategies (if applicable)?
24) Are investment decisions being made by prudent experts, and is there
a due diligence process being consistently applied in the selection of the
25) Is the fiduciary following applicable “Safe Harbor” provisions (when
26) Are the investment vehicles appropriate for the portfolio size?
27) Is a due diligence process being followed in selecting service providers,
including the custodian?
28) Are there periodic reports which compare investment performance
against an appropriate index, peer group, and IPS objectives?
29) Are there periodic reviews of qualitative and/or organizational changes
of investment decision makers?
30) Are control procedures in place to periodically review policies for trade
execution (best execution), use of soft dollars, and proxy voting (U.S.)?
31) Are fees for investment management consistent with agreements and
with the law?
32) Are “finder’s fees,” 12b-1 fees, or other forms of compensation that
have been paid for asset placement appropriately applied, utilized, and
Solutions for Not For Profits
Independence – No financial affiliation with any broker dealer, custodian or fund family.
This allows us to select the best choices for your organization without any reservations.
Transparency – All affiliations are disclosed and verifiable. Client assets are held with
leading custodians in whom Investor Solutions has NO direct financial interest.
Clarity – Carefully crafted and communicated investment strategy coordinated with low-
cost, well-diversified implementation.
Fiduciary Services – Investor Solutions is a co-fiduciary on every account and
acknowledges this obligation in writing. Fiduciaries are held to far higher standards of
prudence and loyalty than securities salesmen at broker-dealers.
Risk Assessment – Model the risk-return profile of the portfolio to match the needs and
objectives of the fund.
Investment Policy Statement – Prepare a detailed investment policy statement (IPS) to
guide the trustees and advisors in the management of the fund.
Investment Selection – Select appropriate index mutual funds and Exchange Traded
Funds to economically capture the performance of the targeted market segment with the
lowest possible risk.
Account Monitoring – Monitor funds on an ongoing basis to ensure that they remain
the most competitive available considering alternatives with like characteristics and
Continuous Advice – Advise the board of additional opportunities to further diversify the
portfolio as new products become available.
Account Rebalancing – Rebalance the portfolio at least annually to maintain the agreed
upon asset allocation. (Scheduled distributions or deposits will be used whenever
possible to minimize transaction costs.)
Monthly Performance Reporting -Provide meaningful detailed monthly performance
reports via internet and quarterly reports in written format.
Communication – Hold quarterly teleconferences and meet annually at a place of the
board’s choosing to assist them to understand the performance of the fund and the
component parts, answer questions, and discuss strategy.
Cash Management – Manage cash available to fund all known withdrawals in a timely
manner. Consideration will be given to providing sufficient liquid assets to maintain the
ability of the fund to continue disbursements during down markets.
Custodian Selection – Select an appropriate custodian to safe keep
the fund’s assets.