As the U.S. retirement plan industry prepares for new cost disclosures in 2012, here's a simple fact to remember: The surest and quickest way to reduce participants' all-in cost of retirement plan ownership is to add index funds to the menu.

You can help plan sponsors hit just about any cost-target by adjusting the mix of index funds, and then educating participants on their cost advantages. 

To help you advocate for index funds, a valuable piece of ammunition is an updated version of the study False Discoveries in Mutual Fund Performance: Measuring Luck in Estimated Alphas by Laurent Barras, O. Scaillet, and Russ Wermers. 

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.