18 Nov 2014

Principal CEO Says Investors Cannot Understand Benefits of ETFs and Alternative Investments

CEOs set the tone for their companies in every respect–behavior, motivation, intellectual curiosity, innovation and ethics—so it was not surprising to hear that the Larry Zimpleman, CEO of Principal Financial Group ($114 billion in assets under management), my former employer, criticized some of the most innovative products in modern financial

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19 Apr 2012

Revenue sharing lawsuit costs plan sponsor $35 million

In what is being called the first suit involving revenue sharing and fee disclosure and heightened transparency, a Missouri company has been ordered to pay $35 million to current and former plan participants. The lawsuit  (Ronald Tussey et al v. ABB Inc. et al, Case No. 2:06-CV-04305-NKL, United States District

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02 Dec 2011

Low Fund Costs Predict Better Future Returns

The debate over the benefits of active investment management versus passive investing remains a favorite topic of investors.   Whenever new data emerges to buttress the long-established argument that index funds, which use passive investing, outperform on all measures compared to active-funds, the strategy gains more attention. 

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01 Nov 2011

Why Mutual Fund Companies Want You To Be Confused

Most of the discussions about the need for greater transparency in financial transactions has centered on the need to adopt greater fiduciary responsibilities. But there is also another reason: economic. Mutual funds benefit financially from the lack of transparency.  When fund companies make it difficult for investors to choose between

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29 Oct 2011

Can Mutual Fund Wholesaler’s Salaries Be Justified?

One of the biggest problems facing the mutual fund industry’s relationships with its millions of shareholders is justifying fund wholesalers’ salaries. This is a contentious and sticky issue for a few reasons: First, mutual fund wholesalers really don’t add anything which directly benefits shareholders. In theory, they should be reducing

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