Wilson Fiduciary Services
Managing Transitions
(805) 451-7775
INVESTMENT MANAGEMENT
When portfolio management is required, Wilson Fiduciary Services employs fee-only investment advisors who agree to be held to a legal fiduciary standard.
According to the Texas Property Code Section 117.011, "A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) Selecting an agent.
(2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust.
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation."
Although Wilson Fiduciary Services (WFS) does not directly invest assets, as Trustee, WFS continually monitors the performance of the investment agent. The trustee has important investment duties which include:
- Review the investment powers stated in the trust for directions or restrictions.
- Adopt an investment policy for the trust that complies with the directions given and the needs of the beneficiaries.
- Maintain complete, accurate and detailed records of all income, expenses, all purchases, sales and other transactions.
- Maintain investment balance that meets the income beneficiary's needs but produces as much growth as possible for the remaining beneficiaries.
- Avoid any act of self-dealing or conflict of interest.
- Exercise a high degree of diligence in carrying out the terms of the trust and keeping funds skillfully invested.
The delegation of the investment function allows individuals to benefit from the professional expertise and proven track record of a trained investment advisor who will, together with the trustee, review the client's risk tolerance and cash flow needs to determine an appropriate asset allocation for the client's portfolio. This arrangement particularly suits those clients who have enjoyed a long-term, rewarding relationship with an investment advisor but may now need to relinquish their supervisory role.