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From an Operational View Point and as part of the Investment
Process and Fiduciary Responsibilities of Trustees
Fran AspAsp Management Consulting867.336.1198
Wendy Shanks B.Sc.,CIM 867.332.6763
Trustees Roles and Responsibilities
Fiduciary Duty
Trust creates a fiduciary relationship between the trustee and the beneficiary
Purpose is to administer trust property on behalf of beneficiary in accordance with terms of the deed.
Trustees must put interests of beneficiaries first at all timesTrustees must act with the honesty, skill and prudence
which would be expected of “ a reasonable man administering his own affairs”
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Need to use Best Practices for Financial and Investment Administration and Community
Accountability
Trust Agreement Selection of Trustees
Lays out Trustee responsibilities
Should provide rules for disbursing Trust property
Outline powers to use property, to borrow and to employ advisors and others
Chosen by a selection committee or elected depending on the Trust Deed
Must be transparentStandards for
qualification and training
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• Setting of investment policy and process for review• Performance monitoring and reporting• Setting long term growth criteria within the risk
tolerances of beneficiaries• Setting appropriate risk mitigation procedures• Strategic Planning – Asset Mix and long term planning• Oversight is an ongoing process, not a static one
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The even harder part is that all the above should be done while taking into account the desires and risk comfort zone of the community.
Ensure the following are in place and happening at your Trust.
Overall Trust Investment Policy for governance of the Wealth of the Trust(s) for the total compensation dollars
Investment Policy will outline the asset allocation strategy to meet return expectations and address the acceptable level of risk exposure and appropriate “best practices” to mitigate risk for the level of return expectations and asset classes included.
Main Object of the Process is to have:
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First Nation Vision
Set Performance and Risk
Guidelines
First Nation Wealth Strategy
Asset Allocation Strategy to meet
Goals Wealth Strategy
ImplementationUse Asset Allocation Strategy to review current and new
investment mandates
Reporting and Measurement
-Input
Stakeholder input
Community
Input from other First Nation wealth creation entities
Avoid overlap integrate where possible
Develop thought out investment Policies that reflect risk tolerances, investment objectives and community non financial goals if possible.
Reporting Format to Community
Communicate Strategic Plan of Trust
Community risk/return comfort zone
Process for making this all happen
Things that need to happen on an ongoing basis for this process to work.
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• Keep informed of current institutional investment tends, review trust goals & objectives, risk measures
• Meet with the community, stakeholders, other FN wealth entities
• Balance community goals with trust objectives outlined in guiding documents with the overall goal of wealth generation and protection for perpetuity.
• Review investment policy, strategic plan and communicate to community.
Identify and Use Best Practices
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An open discussion forum with all participants.
1.What has worked for your trust?
2.What has not worked trust?
3.Identification of needed new tools and processes.
Session Wind-up
Identify Best Practices to use going forward.
Further Questions
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Please feel free to contact
Wendy [email protected]
Or Fran AspAsp Management Consulting867.336.1198
