Stewards, as fiduciaries, are rightly concerned about the investment performance of their portfolios. Until recently however, few fiduciaries have considered the return on fiduciary governance as an equally important measure.
In our experience, strong governance can lead to a significant net increase in total return while at the same time, reducing the legal liability of the organization’s Board and staff.
As the Madoff debacle fades from current memory, fiduciaries have started to return to the “what worked in the past will work in the future” approach that Madoff and others have and continue to exploit to their advantage. Investment luminaries like Jack Bogle (Vanguard Group founder) and Maria Lagomaisino (CEO, GenSring Family Offices) are urging investors and their providers to strive for higher levels of fiduciary governance based on best practices such as those we espouse in the Global Fiduciary Standard of Excellence.