Tag: Stable Value Funds
Among those who did trade, the majority put assets into fixed income vehicles.
Vanguard expands commission-free ETF transactions; MassMutual and T. Rowe Price create TDF collaboration; Johnson Investment Counsel adds Charles River as wealth management business; and more.
Transamerica launches Stable Value account for retirement plans; Fidelity offers third ESG investing option; Vanguard ESG ETFs to commence trading in September; and more.
The complaint says that instead of offering a stable value fund in its 401(k) plan, American Airlines offered the AA Credit Union Fund, which yielded “tremendously” poor returns throughout the relevant time period.
The appellate court found no evidence that the CVS retirement plan’s stable value fund departed radically from the investment standards and logic of stable value funds.
The 1st U.S. Circuit Court of Appeals found that Fidelity’s decision to obtain more secure wrap coverage for the stable value fund was reasonable.
An analysis from Mayer Brown LLP attorneys offers helpful guidance for retirement plan fiduciaries thinking about making changes to their stable value or money market funds in 2018.
Fifty-two percent of defined contribution retirement plan sponsors offer money market funds as capital preservation options, down from 62% in 2015.
Last month, J.P. Morgan agreed to pay $75 million to settle litigation accusing it of investing stable value funds in risky investments.
The association argues that plaintiffs’ claims rely on hindsight, ask Fidelity to “follow the herd” and imply Fidelity should not align its interest with those of 401(k) plan participants.
The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.
The majority of outflows from retirement plan participant accounts came from U.S. equities and company stock, despite powerful stock market returns for the year thus far.
The lawsuit unsuccessfully alleged Voya does not disclose to its retirement plan clients and their respective participants the amount of stable value fund spread it collects.
PIMCO indicates an active fixed-income strategy could pose some opportunities in the current and future market.
The plaintiffs seek to represent participants in more than 300 retirement plans which were invested in 78 stable value funds, according to the court’s order.