The Need to Diversify
Happy new year everyone!
I’m sure that we’re all a bit sluggish coming back from the holidays, but hopefully we’ll find the transition not too bad. By the way, did you know that Disney had a $67M life insurance policy on the life of Carrie Fisher?
I was reading through a bunch of recent cases on the weekend to catch up with recent developments, with the usual types of issues being raised (good news: nothing too major happened in the last couple of weeks). I enjoyed reading the Hon. Mr. Justice Bale’s short judgment in Mowry v Groome, 2016 ONSC 7850 (Ont. S.C.J). This was a contested passing of accounts but one in which the beneficiaries succeeded against the trustee for partial compensation for investment losses of about $165,000. Here there was a failure to diversify the estate’s portfolio in favour of retaining and renovating the deceased’s residence. It is a well-reasoned judgment that points out the need for a sensible investment plan – “[t]he whole purpose of diversification is to avoid the losses which can occur in the event of such unanticipated market events” as Justice Bale explained – rather than something more speculative.
Have a nice day!