Could hyper-vigilance over investment fees inadvertently expose some plan sponsors to fiduciary risk?
Jason Bortz fears as much. An in-house Employee Retirement Income Security Income Act attorney with The Capital Group—which runs American Funds—Bortz says a decade’s worth of 401(k) litigation has made plan fiduciaries “very nervous.”
Many are rushing to passive investments, and passively managed target-date funds, to hedge against fiduciary risk.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
