Mathias Kronlund (UIUC)

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Mathias Kronlund

Finance

A seminar by Mathias Kronlund from the University of Illinois at Urbana–Champaign

Title: Out of Sight No More? The Eect of Fee Disclosures on 401(k) Investment Allocations

Abstract: We examine the effects of a 2012 regulatory reform that mandated fee and performance disclosures for the investment options in 401(k) plans. We show that participants became signicantly more attentive to expense ratios and short-term performance after the reform. The disclosure effects are stronger among plans with large average contributions per participant and weaker for plans with many investment options. Additionally, these results are not driven by secular changes in investor behavior or sponsor-initiated changes to the investment menus. Our findings suggest that providing salient fee and performance information can mitigate participants' inertia in retirement plans.

Start date:

11am Monday, 11 Nov 2019

End date:

12.30pm Monday, 11 Nov 2019

Venue:

CBE LT2

Presenter(s):

Mathias Kronlund

Updated:   4 November 2019 / Responsible Officer:  CBE Communications and Outreach / Page Contact:  College Web Team