Prudence
We believe in the following principles of prudence that comply with the fiduciary and trustee requirements:
- Diversification is fundamental to risk management.
- We have a duty to analyse and make conscious decisions concerning the level of risk appropriate to the circumstances.
- We are required to avoid fees, transaction costs and other expenses, where possible.
- We must be impartial and balance the production of current income and the protection of purchasing power.
- We need the authority to delegate, where appropriate.
- We apply prudence to the overall portfolio rather than the individual components.
- We cannot accept the account where the expectations of beneficiaries are unrealistic.
The test of prudence is one of conduct, not one of performance.
Risk management rather than risk avoidance is the standard.