Was the trust appropriately compensated for the risk that was taken?
Balancing risk and return is a trustee's central responsibility. Establishing a process of measuring the actual risk and return versus a series of key performance indicators (benchmarks) is a discipline every prudent trustee will follow. In this video, we will outline a process which helps the trustee measure whether excessive risk was taken or insufficient return was realized.
In this 2o-minute video, we will teach you:
- How to measure the risks of the trust assets
- How to establish appropriate benchmarks
- How to evaluate the investment manager's efficacy