Page 163 - NovDefComp

Understanding Fiduciary Responsibilities

Recent filings

Wood Group (oil & gas)/NFP (consultant)

•Plaintiffs allege that NFP caused the plan the plan to invest in NFP’s collective investment trusts (CITs)
managed by its affiliate flexPATH Strategies, which benefitted the NFP defendants at the expense of
plan participants.
•Failed to use their plan’s bargaining power to obtain reasonable investment management fees, which
caused unreasonable expenses to be charged to the plan.

Juniper Networks

•Plaintiffs allege unreasonable investment and fee disclosures.
•Managed account fees unreasonable because the advice was not materially different than TDFs.
•The recordkeeper used its own subsidiary as the managed account provider and charged the plan
higher fees than other similarly-sized plans.

TriHealth

•Retail mutual fund share classes offered when lower-gross institutional share classes were available.
•Assert the mean cost was 86bps when an alleged mean of 41bps was available.
•“[e]ven if a prudent investor might make available a wide range of valid investment decisions in a
given year, only an imprudent financier would offer a more expensive share when he could offer a
functionally identical share for less.”

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