Don’t Go to the Caribbean

May 23, 2013

Don’t Go to the Caribbean on My Nickel – Are you leaving money on the table? We do not begrudge anyone making a reasonable profit. Yet, plan sponsors - as fiduciaries - should be concerned when their vendor’s profit is inconsistent with the cost and caliber of services provided. DOL fee transparency requirements have increased the activity in this area, but beyond the required notices, a closer look is prudent. Every two to three years you should analyze the relationship between fees and services performed on behalf of your defined contribution plan participants. One of the key areas to examine is the mutual fund asset class being used by your plan – it may be inappropriate. A benchmarking study, even on a blind basis, is a judicious exercise and typically yields dividends for you and your participants.

Categories: Investment Counsel, Participant Outcomes

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