NU Online News Service, Jan. 20, 2004, 4:14 p.m. EST – Some employers are more loyal to 401(k) plan mutual fund providers than others.[@@]
When researchers with Financial Executives International, Florham Park, N.J., and Duke University surveyed 307 U.S. chief financial officers in mid-January, they found that only 50% of the CFOs’ companies have made or are considering making changes to their 401(k) plan mutual fund lineups.
Even at companies with fund lineups tainted by the recent mutual fund industry scandals, 25% of the CFOs say their 401(k) plans probably will be sticking with their current menus of investment options.
CFOs at 21% of the companies already have responded to the fund scandals by making menu changes. Only 33% of the CFOs at those companies blame the changes on poor fund performance, while 60% blame the changes on worries about legal or fiduciary concerns.
At the companies that are keeping their current fund menus, 62% of the CFOs say they have satisfactory relationships with their fund providers and 52% say their employees are satisfied with their investment options.