Role of the Investment Consultant – Workshop Facilitation

Spread the love

Today’s complex, global investment markets are causing public pension fund Boards of Trustees to carefully re-consider the governance structures that are in place to manage the investment organizations they lead. Each investment organization has a unique culture and mission, and so there is no one-size-fits-all approach that will work for all funds.  Decisions that must be made by the Board of Trustees are how much investment discretion to delegate to the investment consultants, how much should be delegated to investment staff, and how much should be retained by the Board.

Once these decisions are made, a Consultant Roles and Responsibilities document lays the foundation for a properly functioning investment consulting relationship.  The document governs how the investment consultant functions in relationship to the investment organization and also specifies the duties to be performed.

The majority of our clients have multiple investment consultants.  We recommend that organizations update the Consultant Roles and Responsibilities document no less frequently than once every 5 years.  The document:

  • Describes the needs and expectations of the organization with respect to the investment consulting relationship
  • Describes exactly how the consultant is expected to interact with the organization’s governing fiduciaries, managing fiduciaries and operating fiduciaries
  • Provides guidance about the investment consulting relationship to all fiduciaries within the organization
  • Allows the organization to monitor compliance concerning the investment consultant relationship
  • Provides the basis of a sound consultant search process and/or consultant performance evaluation process

Diligence Review Corp. professionals facilitate on-site or off-site workshops for institutional Boards of Trustees. These workshops transmit the highest quality information, processes, and best practices that our founders have developed during their collective decades of experience analyzing and working on investment consultant issues.

For more information on this workshop, please see Board Workshop on Consultant Roles and Responsibilities.