Groom principal David Kaleda was quoted in the National Association of Plan Advisors (“NAPA”) article, “Considerations for Plan Fiduciaries Amid Ongoing Market Volatility,” where he emphasized the importance of fiduciaries remaining vigilant and proactive in fulfilling their duties during periods of market instability.
NAPA reported that Kaleda said that “whenever there is heightened uncertainty, ‘that is a good time for plan sponsors to refocus on their fiduciary duties under ERISA and related policies and procedures.’”
The platform further reported that Kaleda added that “specifically, fiduciaries ‘should consider reviewing plan investment options more closely and more frequently’ when they find themselves in volatile conditions.”
According to NAPA, Kaleda added that “various investments underperform in different market conditions, and many have performed poorly in recent weeks in absolute terms. However, this doesn’t automatically mean an investment should be removed from the plan.”
“Plan fiduciaries should look to see if one or more of their investments are performing worse, determine why, and make a reasoned determination as to whether a change should be made,” he said.
NAPA also reported that Kaleda said, “Volatility often results in participants having a lot of questions and concerns. These can be mitigated with a good communication and investment education strategy.”
To read the article, click here.
