Securities Guidelines

Securities guidelines need to be precise enough to define the limits of the strategic plan. We make sure and include:

		Conventional guidelines
		Detailed information on prohibited securities and activities

Selection of Managers

We set down well-defined boundaries on your asset allocation along with exact criteria for the selection of money managers:

Money Manager Selection
Registration:	Money managers must be registered investment advisers (Within the state where business is conducted, and with the SEC)
Long-term performance:	Money managers should show at least five years of information on quarterly performance
Stability:	Money managers should show stability of investment personnel
Well-informed:	Money managers should be able to discuss investment strategies and philosophy
Free of legal actions:	Money managers should assure that they are not subject to or have pending, litigation censures/regulatory investigations. Client must be notified if these occur
Fiduciary : status	Money managers should recognize fiduciary status in writing
Ownership:	Investment company owners who are the decision makers have a tendency to do better with investments than regular employees
Size of firm:	Smaller companies are characterized by stronger focus on one style of investing
Assets under management:	Companies should be able to invest the money being placed. (10% of the current asset base is a good measurement)
Trading capability:	Investing expenses impact your plan’s performance. Analyzing the company’s trading capability to ensure that costs are well managed is key
Research:	How much research is the company doing on its own as opposed to accessing it from Wall Street along with many other firms?
Conflicts of interest:	Are the company’s alliances in terms of money management free of other activities?

Control Procedures

When it comes to managing investments, there are a lot of parties involved. We explain the duties and obligations of each one:

		Monthly: Custodian should present appraisal report listing holdings, market value, and transactions in your portfolio
		Quarterly: Investment consultant/custodian should complete a performance measurement report
		Annually: Actuarial reports should be assessed
		As Needed: Investment committee should meet in the event of any changes