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Selecting Investment Managers

At the Murdock Trust, we place great importance on the people who manage our investments — even more than the individual products. We must trust them, and we must feel good about the possibility of a long-term relationship.

When the Trust seeks new outside investment managers, we generally consider those who:

  • Are well known to and have interacted with the Trust over a long period of time
  • Are a good strategic fit within the Trust’s overall asset allocation structure
  • We have visited with in their offices and perhaps in ours
  • Have an established institutional client base
  • Have future performance and risk expectations within acceptable limits
  • View our current investment managers here

Prior to hiring a new manager, we carefully consider the niche to be filled and the performance, quality and risk characteristics. At a minimum, managers should demonstrate that they’ve met those performance and risk criteria over an appropriate time period. Once the Trust enters into an investment relationship, the manager shall make investments with the care, skill, prudence and diligence we would expect of every other investment manager acting on our behalf. Investments shall be diversified, with the goals of minimizing the risk of loss and maximizing the rate of return, unless circumstances dictate a different approach.

Proxy Voting
The Trust shall direct all managers to vote proxies in order to maximize the total return from investments.

Managers will be terminated if their style, performance or risk is inconsistent with Trust expectations, regardless of the length of time involved. In every case, an investment manager shall be subject to termination at any time for any reason. Once the decision to terminate a manager is made, asset transfer and liquidation should be handled to the best advantage of the Trust. Such notice of termination shall be provided consistent with the underlying governing agreement.

Read more about how the Murdock Trust invests on our administration, objectives and guidelines pages.