标题: the term "caution" in ethics [打印本页] 作者: FVPV 时间: 2013-3-31 12:31 标题: the term "caution" in ethics
I’m really not clear with the term “caution” used in ethics? Does it mean basically mean that the trustee should be taking less risk?作者: OmarAdnan 时间: 2013-3-31 12:31
if you are referring to caution in prudence in perspective, then this means to guard the current need for income/cashflow against other factors (ie inflation). under old rule this just meant don’t lose money. however, if inflation outgrows the actual returns then you did not generated any returns in “real” sense. under this standard, you must use the total return approach (inclusive of other factors not just the nominal return on your principal).
