Posts Tagged ‘Duty to Balance Risk and Return’
UPIA §2(b) – Duty to Monitor 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 return that was produced by the assets held in trust is a fairly straightforward exercise.
Read MoreERISA §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 investment or investment course of action. ERISA trustees are required to balance the risk and return of each investment decision under conditions of uncertainty. Because…
Read MoreERISA §404(a)(1)(B) re Duty to Balance Risk and Return
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 investment or investment course of action. ERISA trustees are required to balance the risk and return of each investment decision under conditions of uncertainty. Because ERISA trustees do…
Read MoreUPIA §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 return that was produced by the assets held in trust is a fairly straightforward exercise. But measuring risk can be more problematic. What’s the Risk?…
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