Board Education and Orientation

The quality and relevance of effective Board education and orientation has recently been identified as one of the major challenges facing retirement systems and investment boards. A recent study pointed to cognitive and structural challenges that can only be overcome by consciously designed and implemented board education and orientation programs.

In light of this need, Cortex offers a unique tool called MAP (Measuring Trustee Asset Management Principles) to identify major areas to be targeted by a board's education program. Based on the MAP findings, Cortex assists clients to design a long-term education program (retreats, reading material, presentations, a list of conferences to attend, etc) based on the latest findings in adult learning and behavioral finance and economics.

The education program is generally delivered by a combination of staff and the fund's current vendors (such as investment consultants, investment managers, the actuary, legal counsel, and other experts). In addition, Cortex can deliver aspects of the education program relating to our areas of expertise.

In addition to the MAP service, Cortex also offers two special educational workshops that can be delivered separately:

Cortex's Board Governance Workshop

Cortex's interactive Board Governance Workshop focuses on governance and fiduciary management principles. We work closely with the Executive Director/Chief Executive Officer to customize the content of the workshop to each plan's unique needs.

Throughout the workshop, trustees are asked to participate in group discussions on topics such as their perception of fiduciary risks, their role as Board members, and delegation of authority to senior staff. Following the workshop, Cortex prepares a final report that summarizes the major issues raised during the workshop, and suggests an appropriate action plan.

Cortex's Investment Workshop

We have found it is important for trustees to acquire a shared understanding of pension finance and investments, the pension plan's risk exposure and the fundamental principles that will guide the management of pension assets. Cortex offers an investment workshop for the Board that is specifically designed to: (a) educate the Board on the major issues concerning the management of a pension fund; and (b) review the fundamental principles and beliefs underlying the current investment program.

The workshop may be customized to suit your Board's needs; however it generally covers the following key issues:

• Pension fund mission and goals
• Risk management
• Asset mix policy
• Active vs. passive management
• Investment management structure
• Performance measurement
  

For further information, please contact Tom Iannucci or Michael Long by e-mail or by phone at (416) 967-0252 ext. 223 and ext. 233 respectively.

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