If you are a trustee or decision maker for a company retirement plan then you are a fiduciary, you have responsibility and you have liability. The document below is an interpretation of what that means in the real world. It describes the standard you will be measured against if there is litigation.
Reprinted in this document is the section titled “Introduction to Portfolio Theory and Other Investment Concepts” taken from the Restatement of the Law Third/Prudent Investor Rules. The American Law Institute in Washington, DC, who is responsible for this restatement, is a recognized authority in providing research and interpretations of laws and regulations. These six pages represent a very important view on how anyone who is responsible for investing other people’s money should be looking at investment risk and return. This information summarizes the legal thinking on prudent investment strategies for trustees and fiduciaries. This legal interpretation, of what makes up prudent investor behavior, comes primarily from the extensive academic research that is available on investment strategies.
We, at Premier Financial Group, concur wholeheartedly with this interpretation. More importantly, our Efficient Index Strategy (EIS) utilizes the same academic research presented in this reprint. We are very enthusiastic that our program so closely aligns itself with this legal interpretation. We look forward to sharing this with anyone who has responsibility for investing other people’s money.
The comments in the margin represent our opinion on how we see our Efficient Index Strategy working relative to these legal interpretations.
We’re confident that the better informed you are as an investor, the better Premier looks as your advisor.
Restatement of the Law Third/Prudent Investor Rules
— Introduction to Portfolio Theory and Other Investment Concepts (PDF File)
