Diversification Articles
Why the “Passive vs. Active” Investment Debate is the Wrong Issue
The investment industry is embroiled in a "great debate" concerning which investment philosophy is best: active vs. passive management. The debate concerns how the building blocks (asset classes) that make...
The trustee’s duty to diversify or “Too much of a good thing?”
Statutory Consideration: Section 2(c)(5) of the Uniform Prudent Investor Act directs, “A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances,...
ERISA §1104(a)(1)(C) re Diversification
US Code §1104(a)(1)(C) states, “A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries… by diversifying the investments of the...
ERISA §1104(a)(1)(C) re Diversification
US Code §1104(a)(1)(C) states, “A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries… by diversifying the investments of the...
UPIA §2(b) re Duty to Balance Risk and Return
The preamble to the Uniform Prudent Investor Act notes, “The tradeoff in all investing between risk and return is identified as the fiduciary's central consideration.” For most trustees determining the...
Reconciling the Duty to Diversify
The Duty “In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is prudent not to do...
ERISA §1104(a)(1)(c): Duty to balance risk and return with Alternative Investments
Prudence not Prescience Trustees are required to make hard investment decisions. They are to take into consideration the risk of loss and the opportunity for gain associated with each particular...
A Trustee’s duty to monitor the risk within the trust portfolio
Duty to Establish Risk Expectations: Section 2(b) of the Uniform Prudent Investor Act directs that “A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in...
