The following summary (based on the Foundation for Fiduciary Studies guidelines) provides a brief description of prudent investment practices.

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• Investments are managed in accordance with applicable laws, trust documents, and written investment policy statements.
• Fiduciaries are aware of their duties and responsibilities.
• Fiduciaries and parties in interest are not involved in self dealing.
• Service agreements and contracts are in writing and do not contain provisions that conflict with fiduciary standards of care.
• There is documentation to show timing and distribution of cash flows and the payment of liabilities.
• Assets are within the jurisdiction of U.S. courts and are protected from theft and embezzlement.

• A risk level has been identified.
• An expected, modeled return to meet investment objectives has been identified.
• An investment time horizon has been identified.
• Selected asset classes are consistent with the identified risk, return, and time horizon.
• The number of asset classes is consistent with the portfolio size.

• There is detail to implement a specific investment strategy.
• The Investment Policy Statement (IPS) defines the duties and responsibilities of all parties involved.
• The IPS defines diversification and rebalancing guidelines.
• The IPS defines due-diligence criteria for selecting investment options.
• The IPS defines the monitoring criteria for investment options and service vendors.
• The IPS defines the procedures for controlling and accounting for investment expenses.
• The IPS defines appropriately structured, socially responsible investment strategies (when applicable).

• The investment strategy is implemented in compliance with the required level of prudence.
• The fiduciary is following applicable “safe harbor” provisions (when elected).
• Investment vehicles are appropriate for the portfolio size.
• A due-diligence process is followed in selecting service providers, including the custodian.

• Periodic reports compare investment performance against appropriate index, peer group, and IPS objectives.
• Periodic reviews are made of qualitative and/or organizational changes of investment decision makers.
• Control procedures are in place to periodically review policies for best execution, soft dollars, and proxy voting.
• Fees for investment management are consistent with agreements and the law.
• “Finders’ fees,” 12b-1 fees, or other forms of compensation that may have been paid for asset placement are appropriately applied, utilized, and documented.