Learning Objectives

Stewards – Three Functional Areas of Responsibility

Global Fiduciary Precepts for Prudent Investment Oversight

Precept # 1: Know Standards, Laws, and Trust Provisions

ERISA Plan Documents

Role of Governing Documents

Precept # 2: Diversify Assets

Goal of Diversification

Defining the Investment Profile

The Problem with Time Horizon in a DC Plan

Participant “User Error”

A Sequence for Adding Asset Classes

Precept #3: Prepare Investment Policy Statement (IPS)

The Role of the IPS

IPS Outline

Benefits of an IPS

Precept #4: Prudently select fiduciary and non-fiduciary service providers and document due diligence

Choosing Investment Managers: Suggested Minimum Criteria

Service Provider Due Diligence

Precept #5: Control and account for investment expenses and other costs

Learning Objectives

The Fiduciary Quality Management System (FQMS)

Step 1 – Organize

Fiduciary File

Service Provider Agreements

Conflicts of Interests / Prohibited Transactions

Theft and Embezzlement Safeguards

Step 2 – Formalize

The Hierarchy of Decisions

Risk & Return

Asset Allocation Lessons Learned

The Investment Policy Statement

Step 3 – Implement

Due Diligence for the Custodian

Due Diligence for Security Selection

Due Diligence Philosophy

About Safe Harbors

Summary of ERISA Related Safe Harbors

405(c) or General Safe Harbor Provisions

404(c) Safe Harbor Provisions