Fiduciary Duties and Diligence in Investments
On April 2, 2025, Michelle Mellon-Werch and Emily Smith presented “Fiduciary Duties and Diligence in Investments” during the Texas Association of Public Employee Retirement Systems (TEXPERS) 2025 Annual Conference. Their presentation highlighted how trustees have key fiduciary duties, focusing on loyalty and care for plan members and the investment diligence process and the related responsibilities of trustees.
They discussed how trustees must follow the “prudent person rule” and continuously monitor investment performance. They also emphasized the importance of verifying the integrity of investment consultants and ensuring expert advice is reliable. When delegating tasks, trustees need to conduct thorough due diligence on advisors and tailor oversight based on the type of investment involved.
The Texas Association of Public Employee Retirement Systems (TEXPERS) is a voluntary nonprofit association that provides education and legislative advisory services to the trustees, administrators, professional service providers and employee groups that manage the retirement money of police officers, firefighters, and municipal and district employees in cities across Texas.
