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This example statement provides high-level information on return objectives, risk tolerances, and accepted investor responsibilities that could impact how returns are expected to be earned.

FCLTGlobal has developed the following example statement to communicate externally about an investor’s responsibilities. Among other uses, it can be posted on organizations’ websites or shared with investment partners. We have provided illustrative answers, but these are not intended to be exhaustive or comprehensive.


INSTITUTION NAME  is a PUBLIC/PRIVATE asset owner organization with a GLOBAL/NATIONAL investable universe based in JURISDICTION. We invest the assets of SAVER(S) valued at $ / € / £ / ¥ as of DATE. Our purpose is to PURPOSE. This purpose is the point of reference that we use for evaluating all our work, including the work that we do together with you.

Our organization is governed by NUMBER OF fiduciary directors with backgrounds as INVESTMENT PROFESSIONALS/FUND SPONSORS/BENEFICIARY REPRESENTATIVES. This body approves our investment beliefs, sets our asset allocation, monitors our risk management, and oversees fulfillment of our organization’s responsibilities. It DOES/DOES NOT approve portfolio allocations or individual manager selections.

We need to earn a NUMBER% rate of return over NUMBER years to fulfill our purpose. We monitor risks in this effort primarily using STRESS TESTS, SCENARIO EXERCISES, LIQUIDITY MONITORING, STATISTICAL PROBABILITIES, MULTI-HORIZON CONSTRAINTS, BENCHMARK TRACKING ERROR.

We must earn this return and manage these risks consistent with the responsibilities established by our sponsors, savers, and other stakeholders. These responsibilities currently include the following:

Fulfilling these responsibilities may require making trade-offs. Our role in this relationship is governance and oversight. We have delegated management discretion to you. We need your decisions about responsibility to be transparent so we can calibrate our own trade-offs related to responsibility and monitor the continued fitness of our relationship. Accordingly, we expect you, as our managers, to surface new or evolving areas of responsibility for our consideration as they come to your attention.

Our reputation rests on yours, and yours rests on ours. Thank you for partnering with us to work well together, in a way that lives up to the standards we have set for ourselves.




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