Discretionary Investment Management for Trustee-Directed Portfolios

Discretionary investment management services offered by Fiduciary Advisors, Inc. ("FAI") for Trustee-directed portfolios of defined benefit pension or some defined contribution profit sharing plans include, but are not limited to, the following: 

Preparation of the Investment Policy Statement (“IPS”) to include:

  • Identification of investment objectives and guidelines

  • Recommendation of appropriate asset allocation targets, based on the projected cash flow needs

  • Development of procedures for selecting & monitoring investments

  • Development of guidelines for replacing specific investments or asset classes

Investment Management

  • Selection and management of plan assets based on the guidelines and restrictions as outlined in the IPS

  • Performance of continual investment monitoring and identification of any changes in investments necessary to maintain conformity with the IPS

  • Recommendation of changes to the IPS as market conditions or cash flow projections change

  • Quarterly meetings with plan sponsor, management and trustees to review investment performance as documented below

Due Diligence Documentation

  • Written acknowledgment of FAI’s role as a Section 3(38) Investment Manager under ERISA

  • Quarterly portfolio performance and due diligence reports, containing:
    • Comparisons of actual asset allocations to target allocations
    • Market return information for various asset classes
    • Comparison of investment performance against appropriate third-party indices and peer group results
    • Peer rankings for all ETF and mutual fund investments
    • Individual fund analysis looking at various fund statistics including return, risk, style drift, manager tenure, etc.
    • Minutes of the quarterly meetings with references to the above

Employee Education

  • Provide trustees with information needed to make appropriate investment decisions

  • Hold periodic meetings with participants to provide ongoing investment education and advice

 See more about FAI’s Investment Services.