More and more frequently when I see a news piece or industry article about 401(k) or workplace retirement plans, a key element is invariably fees. Going one step further they also tend to highlight the advantages of low cost index or passively managed investments. Based on my conversations with investment committees and retirement plan fiduciaries, there seems to be a few common reasons for the recent increased popularity in index funds: the industry focus on fees, investment performance of passively managed strategies and 401(k) litigation. To comment on my observations and provide a few of her own on the whole active and passive conversation I am excited to have Sue Walton, a Senior Defined Contribution Strategist with American Funds join me on the podcast. We also address a few other important elements in the active passive conversation that don’t tend to get a lot of press, but are vitally important to consider. Hopefully there are a few nuggets you can take back to your next 401(k) committee meeting!
Sue Walton is a senior defined contribution strategist at American Funds, part of Capital Group. She has 19 years of industry experience and has been with Capital Group for one year. Prior to joining Capital, Sue was a director at Towers Watson Investment Services. Before that, she was an investment consultant at Mercer Investment Consulting and Ellwood Associates. She holds an MBA from DePaul University with a concentration in finance and a bachelor’s degree in business administration, economics and international business from Marquette University.
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