Governments, unions or sovereign nations (i.e. governance entities) have a responsibility to oversee the mission, strategic direction, finances and operations for their respective constituents. They have an especially high commitment to fulfill these responsibilities honestly and with integrity. With respect to the treasury function, they must establish clear and understandable policies and ensure that they are followed.
We have entered an era in which public sector employees, taxpayers, unionized workers or governmental fund beneficiaries demand greater transparency regarding investment management and their retirement plans. Managers of governmental or public funds administer, direct, control, account for, report on, and monitor hundreds of billions of public dollars through governmental investment programs. This institutional environment is markedly different than for-profit sectors in that they must invest as well as borrow; maintaining long-term funds for social purposes such as housing programs, or maintaining short-term funds for governmental daily expenditures. An understanding of the dynamics of cash flow is vital for successful investments, as well as recognition of their fiduciary duties and responsibilities to the public.
Fiduciary duties and responsibilities for these types of Stewards include: setting investment objectives, developing and implementing an investment policy and investment committee, documenting cash flows, performing broker/dealer and custodian due diligence, implementing internal controls, selecting, diversifying, and purchasing investment securities, recording and properly accounting for investments, monitoring the portfolio and evaluating and reporting the results.
The CEFEX Certification Mark is a demonstration that the governance entity has undertaken a detailed fiduciary assessment, thereby ensuring that the organization is adhering to the best fiduciary practices.
If you represent a governance entity, the CEFEX Mark can:
Excellent investment stewardship helps fulfill the organizations objectives to maximize the return on accumulated financial assets. It demonstrates the organizations sensitivity to fiduciary issues, including asset allocation, service provider selection and conflicts of interest.
Sources of Funds: Why should you care if the organization is CEFEX-certified?
The CEFEX Mark is a sign that the organization receiving your money adheres to the industry's best practice in investment management. This means that the fund is in good hands. The investment committee is committed to managing according to the industry's standard of excellence.