Sentences with phrase «generating excessive risk»

At all ages you should avoid the asset classes where market conditions are generating excessive risk.

Of course, if in addition investors don't have complete control over managers - because of weaknesses in corporate governance, for example - and managers have personal incentives to generate returns in the short term (to preserve their jobs or for the public adulation that success brings), the private equilibrium may again generate excessive risk taking.

Not exact matches

We work collaboratively with pension plans to think about the big questions: how to deliver reliable, consistent income options; how to close a personal funding gap or protect against excessive investment risk; how to generate greater certainty for members around the type of retirement they can expect.

Second, when a hedge fund charges excessive management fees, which are based on size of assets under management, rather than performance fees which are based on how much money they make for you, a hedge fund manager tends to focus more on growing AUM rather than generating the highest possible risk adjusted returns.

In short, while I believe the private equilibrium is generally quite responsible, regulators can not afford to be Panglossian about it - after all it was this private equilibrium that recently generated the illegal practice of late trading in some mutual funds, where preferred customers got to trade after the markets had closed, and it was this private equilibrium that caused a number of ostensibly safe money market funds in the early 1990s to take on excessive hidden risk that caused them to «break the buck» - in effect declare losses on what is supposed to be a risk free asset.