My daughter works at my son’s favorite pizzeria. She can’t bring in outside food or drink? Why? Appearances matter even if David Portnoy only gave them a 7.2.
Mutual fund companies are going to have their own proprietary in their employee’s 401(k) plan. They have to because appearances matter. However, it makes them a target, and any financial settlement is the cost of doing business.
A former Federated Hermes employee this week sued the company because it included its own funds in the company’s 401(k) plan. The plaintiff in the proposed class-action case, Nicholas Koroly, claims Federated Hermes breached its fiduciary duty by filling its 401(k) menu exclusively with its own U.S. mutual funds.
