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The term "fiduciary" characterizes a variety of relationships in which one party acts for the benefit of another. Members of the State Investment Board are fiduciaries whose mission is to manage investments for retirement and public trust funds "with the highest standard of professional conduct for the exclusive benefit of fund beneficiaries." The primary investment objective and basic fiduciary responsibilities, as listed below, are the foundation of WSIB's financial integrity and performance.
 
Investment Objective
"The Board shall establish investment policies and procedures designed exclusively to maximize return at a prudent level of risk." (RCW 43.33A.110)
 
Prudence
The Board "shall invest and manage the assets entrusted to it with reasonable care, skill, prudence, and diligence under circumstances then prevailing which a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an activity of like character and purpose." (RCW 43.33A.140)

"The Board shall consider investments not in isolation, but in the context of the investment of the particular fund as a whole and as part of an overall investment strategy, which should incorporate risk and return objectives reasonably suited for that fund."(RCW 43.33A.140 (1))
 
Loyalty
Members owe an absolute duty of loyalty to the Board and beneficiaries of the funds. A 'conflict of interest' and breach of the duty to loyalty exists whenever a member takes any action that is, or reasonably appears to be, influenced by considerations that are not in the best interest of the beneficiaries. Subject to the Ethics in Public Service Act, voting and non-voting members may not use their position for personal gain, self-dealing, or to receive financial benefit. (Paraphrasing from WSIB Code of Conduct Policy 2.00.100, Pg. 16, and RCW 42.52)
 
Diversification
The Board shall diversify investments, unless, members reasonably determine the purposes of a particular fund "are better served without diversifying." (RCW 43.33A.140 (2))
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