Economic Indicators
The fiduciary duty that applies to qualified retirement plan investment selection and ongoing oversight is one of the most challenging — and misunderstood — responsibilities for plan sponsors.
A new white paper by Groom Law Group (commissioned by Capital Group and available below) may provide some guidance on how to act in the best interest of the plan’s participants, given the backdrop of recent regulatory guidance and court decisions.
Specifically, the paper concludes there is more flexibility for fiduciaries among investment options than some high-visibility lawsuits suggest, provided that the fiduciaries act prudently in selecting and monitoring investment funds. When ERISA principles, U.S. Department of Labor authorities and court decisions are considered, the paper concludes, active as well as passive strategies can serve an important role in a 401(k) plan.
Highlights include:
The active vs. passive debate
Investment selection
Investment results
Plan fees
Recent court decisions
Economic Indicators
Portfolio Construction
Practice Management
related insights
Active Management
The Capital Ideas newsletter delivers weekly investment insights straight to your inbox.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
American Funds Distributors, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.