Run The Fiduciary Test Before The Asset Class

The first question is not "will it outperform?" The first question is "can trustees defend why this serves members?" The fiduciary screen A pension fund exists to pay benefits, not to collect impressive ideas. Fiduciary duty turns that purpose into a repeatable decision process. Before the committee weighs a manager, asset class, contribution policy, or consultant recommendation, the trustees should be able to show that they acted for participants and beneficiaries, used a prudent process, considered diversification, followed plan documents, and checked conflicts. This works because pension mistakes often happen through drift. A return target becomes a reason to add…

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