What prevents an Investment Named Fiduciary from implementing either too much or too little risk in the portfolio?
The Investment Named Fiduciary must make all of its decisions in its capacity as a prudent expert. All investment decisions related to the risk profile of the portfolio will be judged against this standard. Once the investment return assumptions are established, then the portfolio’s risk profile should be consistent with these return objectives. Too much or too little risk may be viewed as not prudent and therefore could invite allegations of breach of fiduciary duty.
Related Questions
- Does the Investment Named Fiduciary have the discretion to either increase or decrease the investment risk in the portfolio?
- How can a corporation minimize fiduciary risk and liability in appointing HGF as a plan’s Investment Named Fiduciary?
- What does HFG actually do as an Investment Named Fiduciary?
