Investment Background & Administrative Policies

The Murdock Trust was born of the will of the late M. J. (Jack) Murdock. It is a private foundation serving primarily the five Pacific Northwest states of Alaska, Idaho, Montana, Oregon, and Washington. As a private foundation, the Trust is exempt from federal income tax. It is, however, subject to federal excise tax on defined net investment income and unrelated business income tax on income generated from certain investments.

Internal Investment Management

The Trust divides the investment world into three “risk buckets” – low, medium, and high – considering all types of investment products for any of the “risk buckets.” We hold no preconceived ideas or built-in biases that prevent consideration of all possibilities. Overriding consideration is given to the people who manage the product. The critical question is, “Are these people we trust, and are we comfortable entertaining the possibility of a long-term relationship?”

The Trust is governed by a board of three Trustees who are Trustees for life. They make all major investment decisions based upon recommendations from, and discussions with, the Chief Investment Officer (CIO). Recommendations and decisions are recorded in the minutes of meetings of the Board of Trustees. All investment assets of the Trust are managed by outside investment managers or professionals.

Outside Investment Management

The Murdock Trust is fortunate to have many long-term relationships with “best in class” investment managers, and we strive to be our managers’ best client. Our commitment to a long-term plan and to long-term relationships with managers has served us well in the past and will continue to do so in the future.

Custodian

The Trust uses Mellon Financial as custodian of marketable securities and mutual funds. Non-marketable investments are generally held in custody as directed by the general or managing partner of the related limited partnership or limited liability company.