Federated Hermes is latest proprietary fund target

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.

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