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Framework for Making Investment DecisionsFramework for Making Investment Decisions

Structuring a portfolio

14 Min Read
Framework for Making Investment Decisions

 

The Uniform Prudent Investor Act (UPIA) codified the key process requirements of trustees for the management of trust assets. Unlike the previous prudent man requirements, UPIA looks to modern portfolio theory (MPT) to provide a theoretical framework for making investment decisions. However, MPT is an abstract mathematical model that doesn’t incorporate the practical and operational issues faced by fiduciaries. Understanding this framework is the core concept from which future implementation of the provisions of UPIA will evolve.

 

MPT: The UPIA Challenge

MPT is a mathematical model of risk, return and diversification. Its key insight is that a collection of risky assets can have an overall level of risk lower than that of each individual ...

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About the Authors

Paul L.Comstock

 

Mr. Comstock is Chairman of Paul Comstock Partners, a fee only Registered Investment Advisory firm providing services to high net worth families, individuals, and fiduciaries.  2011 marks his 40th year as a financial service professional.

Mr. Comstock has participated in the professional community through leadership roles with the Planned Giving Council of Houston where he served as a founder, Board Member, and Past President.  The organization bestowed their first lifetime achievement award upon him.  He has served as a past Board Member of the Partners in Philanthropic Planning (National Committee on Planned Giving) where he also served as its President in 1996.  Mr. Comstock served as a Board member on the Center of Philanthropy at Indiana University for 10 years and was the Chairman of its Board of Visitors.  He now serves on an advisory panel to the Executive Director of the Center.  He also served on the Board of Directors of the Houston Independent School District Foundation. Paul is on the program planning committee and President elect for the National Planned Giving Council sponsored by the LDS Philanthropies Planned Giving Office of the Church of Jesus Christ of Latter-day Saints.

Paul has been asked to participate in two peer invitation only organizations: The Committee for Family’s Flourishing and L3, a private organization of family wealth leaders having focus on Leadership, Legacy and Learning.  He is a member of the L3 Board of Directors and Chairman of the Family Council.

Paul is a frequent lecturer on the issues of family wealth and fiduciary investment oversight.  He has written numerous professional journal articles on both subjects.  He received a Bachelor of Science in Business and a Masters of Science in Financial Services.

Stephen C. Browne

Chief Investment Officer, Paul Comstock Partners

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