401k Plan Sponsors React to Mutual Fund Scandal by Making Changes

According to The CFO Outlook Survey, conducted by Financial Executives International and Duke University's Fuqua School of Business, a significant minority of companies (23%) have already made changes to the investment options available in their 401k plans, and another 29% are considering changes in response to the ongoing mutual fund scandal. The remaining companies, 48%, do not plan to make changes at this time.

"We're seeing some of the wide reaching ramifications of mutual fund wrongdoing," noted Colleen Sayther, President and CEO of FEI. "Companies have some hard decisions to make in terms of what's a reasonable response to an allegation about a 401k provider, but survey results indicate companies are voting with their feet. Defined contribution vendor relationships are typically very long term. The fact that half the firms in our survey may change their current investment vehicles represents a sea change."

About the Survey

The CFO Outlook Survey, conducted by Financial Executives International and Duke University's Fuqua School of Business, interviewed 236 CFOs of U.S. companies electronically the second week of December. CFOs from both public and private companies and from a broad range of industries, geographic areas and revenues are represented.

Rick Meigs, Publisher, 401khelpcenter.com, LLC