Investment managers often have a fiduciary duty to their clients, which means their investment actions must consider the portfolio’s appropriateness in terms of:
- the needs and circumstances of the client
- the basic characteristics of an investment
- the basic characteristics of the overall portfolio
Since each of these factors can change over time, fiduciary duty requires actively monitoring each using a systematic process.
Posted on 4th June 2008
Under: Active Management, Asset Allocation, Ethics, FInancial Planning, Governance, Institutional Investing, Investment Returns, Portfolio Management | No Comments »
Meir Statman published a perspectives piece in the May/June 2007 Financial Analyst’s Journal called Local Ethics in a Global World. In it he notes, among other things, the high correlation between Income per Capita and Freedom from Corruption by country. Less corrupt countries have higher per-capita income levels.
Posted on 5th July 2007
Under: Corporate Governance, Ethics, Research | No Comments »