Of course, mutual fund managers are not the only ones to blame for the mutual fund scandals. Late trading, which illegally diluted the returns of long-term investors in mutual funds, was accomplished primarily with the help of brokers and intermediaries. So we must keep in mind that the problems and their solutions involve more than just the firms that operate mutual funds.
But what is it that makes a system of private pensions function well, or not? As I see it, a key to answering this question is understanding how pension plans deal with risk, in all of its many forms.