If the DOL requires the 401k plan fiduciary to ignore a fund’s investment performance, but the SEC still requires funds to disclose that performance, which will 401k investors choose? More importantly, who’s left holding the liability bag?
Tag "Index Funds"
With the decline of Modern Portfolio Theory as the default operative model, sophisticated investors seek the Holy Grail – the theoretical basis for determining when active will beat passive and when passive will be active. Has it now been found?
Awful returns suggest investors should have shunned equities during the century’s first decade. Or do they? A closer examination reveals a surprising conclusion, one that might upset the fastest growing segment of the financial industry.
Want to know when Active Beats Passive? A Journal of Investing study may just have the answer.
The active investing vs. passive investing argument has become passé. Perhaps we may be nearing a new consensus where it’s no longer active OR passive, but active AND passive.
FiduciaryNews Trending Topics for ERISA Plan Sponsors: Week Ending 2/3/12
This was the week we were all waiting for from the DOL. What we didn’t expect was the surprise from the IRS and the bipartisan agreement from two former SEC chairmen.