The CFA Institute has published “A Primer for Investment Trustees”, a free publication to educate trustees on governance, investment policy, investment objectives and risk tolerance using simple laymen’s terms.
Thomas Richards, one of the authors and chairman of the Research Foundation Board of Trustees, said it was important for trustees to have a solid grasp of basic investment principles to exercise good judgment in their investment decisions.
“A lack of investment understanding can seriously harm an investment program and limit the likelihood of achieving the fund’s mission. There are few resources to which trustees can turn for help, therefore the Primer is an ideal resource for helping trustees to successfully carry out their role. Furthermore, the book is an ‘easy read,’ avoiding the use of complex investment terminology, which is particularly helpful to trustees who have other full-time jobs,” he said.
Also authored by Jeffery Bailey, director, financial benefits and analysis at Target Corporation, and Jesse Phillips, member of the Treasurer’s office of the University of California system, the publication also covers fund mission, investment assets, performance evaluation and ethics.
Bailey said although the publication’s main audience is investment trustees, service providers and internal staff could also benefit from understanding the investment trustee’s perspective, circumstances, and responsibilities.
“Such an understanding will facilitate better communications and allow all parties to work together more effectively.”
The publication can be downloaded here