When 401(k) portfolios were shooting up by double digits every year, neither plan sponsors nor participants were expending much energy asking questions about investment and administrative fees. Sure, it was a nagging concern, but it wasn't worth the time to read the fine print.
After the market took a header, the concern became apprehension. And now, with the mutual fund industry embroiled in scandals that suggest that some fund companies might not be dealing off the top of the deck on portfolio management practices, that tiny little worry has blossomed into full-fledged alarm.
It was none too soon. Investment consultants assert that both sponsors and participants remain unacceptably uninformed about how much in fees is being paid on the $1.5 trillion in 401(k) plans. "There's a problem with transparency in the entire market," says Fred Barstein, CEO of 401kExchange.com, which consults with plan sponsors and investment brokers. "Most plan sponsors don't really understand what they're paying."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
