Should Trustees Only Invest in Index Funds ?
Should trustees of Florida trusts invest only in index funds or should you have trust money run by active money managers?
- Stock pickers or passive investing?
- Individual securities or a basket of all of them?
- Focussed on specific shares and companies or do you take the index?
Trustees Have a Duty Under the Florida Prudent Investor Act
- To comply with your fiduciary duties under the Florida Prudent Investor Act, take the above questions into consideration.
- You should also take into account a recent S&P Dow Jones Indices study about active money management and simply investing in the overall markets (such as buying index funds)
- Consider reading New York Times writer Jeff Sommer‘s two recent pieces on this topic, one of which appears in this past Sunday’s New York Times Business Section.
- You can also learn more about Jeff Sommer here: http://jeffsommer.wordpress.com/about/
- Our downtown West Palm Beach trust law firm has been advising trustees, and estate executors who manage money in Palm Beach probates that index funds not only can make sense for your beneficiaries, but they may be as close as you can get to bulletproofing yourself from trustee liability for breach of trust or investment losses.