Fiduciary Duties in Selecting Designated Investment Alternatives (Part 2)

In this episode, Eric discusses:Reinforcing process over predictionFormalizing the six-factor evaluation frameworkStrengthening benchmarking practicesEnsuring governance through documentation and monitoringKey Takeaways:The proposed guidance emphasizes that prudence under ERISA is about having a sound, defensible process, not choosing perfect investments. The focus remains on consistency and documentation to reduce litigation risk.Performance, fees, liquidity, valuation, benchmarking, and complexity are now structured into a clearer framework. These factors guide decisions but still require judgment, not checklist thinking.Poor benchmarking, especially over-relying on custom or self-referential indexes, can hide weak decisions. Fiduciaries should use independent benchmarks that allow for meaningful comparison.Prudence extends beyond selection into ongoing oversight. A clear Investment Policy Statement, regular monitoring, and the use of qualified advisors help demonstrate a strong fiduciary process.“If you don't have the expertise to accomplish what you'd like, you should hire it... best practice is for just about all plans to hire an advisor.” - Eric DysonConnect with Eric Dyson: Website: https://90northllc.com/Phone: 940-248-4800Email: [email protected] LinkedIn: https://www.linkedin.com/in/401kguy/ The information and content of this podcast are general in nature and are provided solely for educational and informational purposes. It is believed to be accurate and reliable as of the posting date, but may be subject to change.It is not intended to provide a specific recommendation for any type of product or service discussed in this presentation or to provide any warranties, investment advice, financial advice, tax, plan design, or legal advice (unless otherwise specifically indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.The specific facts and circumstances of all qualified plans can vary, and the information contained in this podcast may or may not apply to your individual circumstances or to your plan or client plan-specific circumstances.The opinions expressed by guests on the Be More Than a Fiduciary podcast are not necessarily the same as the opinions held by 90 North Consulting, or of Executive Director Eric Dyson.