This week we learn to ask the question: “If the regulators don’t care, why should the investors?” Which is like saying “If the police don’t care, why should the victims?” On a brighter note, John Bogle isn’t happy he’s been proven wrong.
Commentary
How many different ways can you mention “passive investing” in an article relating to 401k plans? It seems like reporters had a theme last week – and it showed up in the strangest of places.
Just as a major brokerage firm begins to yield on its opposition to the fiduciary standard, the co-author of the bill compelling the SEC to look into it tells the regulator to lay off brokers. And that’s only the beginning. We’ve also see cracks in the cult of ETF (or is it indexing?).
It was a bad week for fans of pensions, ETFs and annuities. At least we had Babe Ruth to save us.
This week features more bad news from Washington for fiduciary fans, the surprising return of the investment debate, the overly simplistic matter of fees and continued dour forebodings regarding pension plans.
What popular investment products appears poised to be the next one to self-destruct? A strange occurrence in Washington bodes ill for the Fiduciary Standard – but does it really matter? Meanwhile, we learn the costs of two generations of lost public pension policy – from a third world country!
The SEC finally admits 12b-1 is a priority, The Wall Street Journal finally explains why ETFs might not be ready for prime-time and InvestmentNews finally reveals why many financial advisers won’t be impacted at all by a uniform and stronger fiduciary standard. Still, there’s one article that sets all we’ve learned the past forty years so far back you won’t believe it.
It’s been a week of reversals as popular conceptions regarding index funds and ETFs are challenged by a flurry of writers. At the same time, SEC officials try to backtrack Chairman Shapiro’s backtrack on 12b-1 fees.
Trending topics this week explores whether a popular investment product is a ticking time bomb or the Holy Grail of investing and connects the dots to lament over the apparent loss of a true fiduciary standard.
Fiduciary News Trending Topics for ERISA Plan Sponsors: Week Ending 6/24/11
Do you get the feeling a this fee talk is just sleight-of-hand? There are so many fees, no wonder why investors are confused between the fees that matter and the fees that don’t matter.