Tag: stable value funds

Ticker Tocker and Tradier Integrate to Offer Unlimited Commission-Free Equity Trades; DWS Creates Additional Xtrackers ETFs;  Hueler Analytics Creates Due Diligence Feature Aimed at Fiduciaries; and more.

Transamerica Launches Stable Value Account for Retirement Plans; TD Ameritrade to Provide CLS Fund Models on Market Center Platform; Fidelity Offers Third ESG Investing Option; and more.

The airline company offered the AA Credit Union Fund as its capital preservation vehicle, which the plaintiffs in a lawsuit say yielded “tremendously” poor returns.

The plaintiffs' showing that the CVS retirement plan's stable value fund departed from a study of other stable value funds' investments did not support a plausible claim that such decision-making was imprudent, the appellate court ruled.

The court said the plaintiffs claim that Fidelity agreed to overly conservative investment guidelines in a failed effort to lock up all wrap coverage so that its competitors would not be able to obtain such coverage made little sense.

Even though there is no typical stable value fund, heading into 2018 there have been three typical types of lawsuits filed against fiduciaries offering stable value funds, according to ERISA attorneys with Mayer Brown.

The lawsuit alleged Great-West Life & Annuity Insurance Company breached its fiduciary duty of loyalty under ERISA Sections 502(a)(2) and (3)—namely by setting predetermined interest rates artificially low and charging excessive fees in order to increase its own profits from the sale and servicing of the Great-West Key Guaranteed Portfolio Fund.

The study also reveals a disconnect between the capital preservation recommendations advisers say they are providing and the actions plan sponsors are taking. 

Four of twelve class representatives say the $75 million J.P. Morgan agreed to pay is not enough.