Investment Advisor Responsibilities

 

The St. Louis Community Foundation regards its stewardship seriously as a manager of charitable donor funds.  We require all investment advisors to manage funds in a prudent manner consistent with the purpose and goals of each particular fund they are managing.

Investment advisors must comply with the following:

  •  Investment advisors, and all employees of such advisors, shall at all times operate in compliance with all applicable laws and regulations.
  • Investment advisors shall notify STLCF when there occurs any material change in investment style, or any change in either the individual or firm advising the account.
  • Investment advisors shall seek the best price and execution for security trades they execute and shall comply with all regulations concerning “soft dollars”.
  • Investment advisors shall not, at any time, charge highter fees or commissions to the donor’s fund than charged to the donor’s personal accounts.
  • Investment advisors shall disclose all perceived or actual conflicts of interest, and all economic ties, commitments or familial relationships between and amongst the donor and the financial advisor.  Family members are prohibited from serving as investment advisors.
  • In addition to monthly or quarterly statements, investment advisors should also statements net-of-fees.
  • Investment advisors are prohibited from engaging in the following transactions on behalf of St. Louis Community Foundation unless such transaction is disclosed in writing to STLCF prior to the transaction:
    • Investments that generate Unrelated Business Income Tax payable by STLCF.
    • Any transaction that results in leveraging our assets.
    • Excluding mutual funds, any transaction investing in private placements, lettered stock, futures contracts, swaps, synthetic securities, derivatives, options, short sales, margin transactions or other specialized investment activities.
  • Investment advisors are encouraged to develop an Investment Policy Statement outlining the objectives, time horizon and expected distribution rates of the fund as the basis for their asset allocation decision.

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Christine G. Burghoff

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Donna Frederick

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