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Investment Guidelines

Managing Murdock Trust investments prudently and professionally is critical. We established these guidelines to keep our standards and expectations clear and consistent for both our inside advisors and outside investment managers.

The Murdock Trust requires that outside investment managers abide by all applicable laws, rules and regulations. Compliance with the Investment Advisory Agreement, Mutual Fund Prospectus, Limited Partnership Agreement, Limited Liability Company Agreement (or other governing instruments) and this Investment Policy is essential. 

Investment philosophy, style and strategy shall remain consistent. Any changes will require immediate written notification to the Trust. 

Performance Evaluation
Performance will be evaluated over meaningful long-term periods against return expectations used in the strategic asset allocation process. Individual manager or product performance will be compared against risk/return expectations, other managers of a similar style, and various market indices as a frame of reference. Overall, Trust performance shall be compared against institutions with similar objectives and of a similar nature.

Performance comparisons on a short-term basis will be made for purposes of gaining a better understanding of outside managers, controlling and understanding risk, and refining expectations. Please note that all performance will be evaluated net of related investment management fees, custody costs, unrelated business income tax and other such applicable costs, if any. 

Controlling Expenses – Transaction Costs
Investment management fees shall be reasonable for the services provided. Transactions shall be executed at competitive rates on a “best execution basis” and will be monitored periodically by the Trust. 

Commission Recapture
The Trust will attempt to recapture those commissions managers feel can be directed on a “best execution basis.” 

Securities Lending
The Trust shall not engage in any securities lending activities. 

Periodic Meetings/Monitoring
Whenever the Trust deems it necessary, investment managers will make a formal report to the Trust of their performance, in light of their risk/return expectations, and their outlook for the future in their style of investing. Trustees and/or staff will also periodically visit managers in their offices.

To learn more about how we invest, please review our administration, objectives and managers pages.