The complaint seeks to state a claim—without relying on hindsight—by arguing the underperformance of a large cap fund was “virtually guaranteed because it contained a serious design flaw from inception.”
Today, only 69% of assets in retirement plans are in actively managed funds, down significantly from 84% in 1996.
The suit alleges that defendants “breached their fiduciary duties by causing the plan to invest in funds offered and managed by Franklin Templeton, when better-performing and lower-cost funds were available.”
Neither Xerox nor Financial Engines were acting in a fiduciary capacity relating to their fee arrangement, a court found.
The court basically decided Fidelity was not the fiduciary responsible for choosing to provide the advice and SDBA offerings to participants.
Recordkeepers widely identify “reducing plan administration costs” and “maximizing participant savings” as the top two priorities for defined contribution plan sponsors; CITs are also a big focal point.
The tool leverages a 401(k) database to hone in on the often complex fee structure associated with retirement plans.
Participants allege the company should have allowed a single recordkeeper to service its traditional DC plan and its 403(b) plan—and that it permitted excessive fees by paying for distinct administrative services for each.
According to plaintiffs, Ruane’s flagship fund, the Sequoia Fund, contained more than $25 billion in assets until the firm “engaged in a misguided and reckless investment strategy.”
There are potential compliance problems in the works if regulators don't grasp the key differences involved in sub-TA fees and other kinds of revenue sharing.
Strategic beta ETFs are an important asset class to consider, but new research also warns many of the products “aren't as distinctive as they may first appear.”
A court certified a class in the consolidated lawsuit after first rejecting BB&T’s arguments that the class did not meet commonality and typicality requirements.
A federal court judge found most claims were not plausibly alleged by the plaintiffs.
A new ruling has emerged in the long-running case, applying instructions from the Supreme Court and the 9th Circuit to reach a verdict favorable to plaintiffs.
For the most part, the investment management expenses plans pay are significantly greater than additional billed expenses, and are generally between 85% and 90% of the total cost of the plan.
The median equity exposure of equally weighted TDF vintages is 60%; equity exposure ranges from as high as 68% to as low as 51%, according to an analysis by Callan.