Process is Everything
Investment fiduciaries have the most important, yet most misunderstood role in the investment process, "to manage the investment process", without which the other components of any investment strategy cannot be defined, implemented, or evaluated. The fiduciary is responsible for managing the overall investment strategy; deciding on the asset allocation, defining the details of the strategy, implementing the strategy with appropriate Investment Managers, and monitoring the strategy on an ongoing basis.
The key benefits of applying the Fiduciary Practices defined by the Foundation's Handbooks include:
- Avoiding omissions through practical checklists
- Providing evidence that the Steward is following a prudent investment process
- An excellent educational outline of duties and responsibilities
- Potentially increase long term performance
- Help uncover investment or procedural risks
- Encourage Stewards and Advisers to compare their practices and procedures with peers
- Assist establish benchmarks to measure progress
Excellence is a Realistic Goal
Fiduciary excellence is established by reference to the various handbooks produced by the Foundation that are intended to provide the framework of a disciplined investment process
The practices are organised under a four step fiduciary quality management system. The steps are consistent with the global ISO 9000 quality management system standard, which emphasises continual improvement to a decision making process.
Step 1: Organise
Step 2: Formalise
Step 3: Implement
Step 4: Monitor