A good investment approach is based on spreading your risk, diversifying your pOrtfolio. That is why mutual funds have blossome. Obviously, the government will be a lender of last resort, so there is that security. Additionally, what figures do we have to show that the portfolio was not diversified? The NIS did not go bankrupt when Clico collapsed so there was some diversification. The NIS was not the only institutional investor that suffered losses. Was it reckless? We need more info to address this question.