âThis lack of active involvement could lead to inefficiencies, reduced liquidity, and potential market instability, as prices may not accurately reflect the underlying value of securities.â
Basic Members
For all the rose-colored eyes that have a created a legend flawless certitude concerning memories of a time that never existed, pension plans simply canât measure up to 401k plans.
ERISA, it turns out, was only the first in the one-two punch that made it difficult for private companies to justify offering pensions.
Herein lies the potential for a direct conflict of interest. This applies generally to all proxy voting in commingled portfolios.
Since actively managed funds have lagged index funds, does this case put their continued use in ERISA plans at risk?
On the face of it, American Airlines seemed to follow its documented process. So, what did the company do wrong?
All kidding aside, Valentineâs Day is more than cards, candy, and Cupid. Itâs about renewing a vow to treat each other with the highest fiduciary standard.
Worse, if the âalternativesâ alluded to by the paper entail government backed programs like Social Security, this could have a debilitating impact on encouraging people to be responsible for funding their own retirement.
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
These Classic Movies (Unknowingly?) Promote The Fiduciary Standard
It seems like each decade produces a major box office hit that exudes fiduciary. This whole âbest interestâ thing seems to have caught on in Tinseltown. More recent movies have added a good dose of the âhonestyâ part of fiduciary.