IFin Seminar, Clemens Sialm, University of Texas at Austin - "Out of Sight No More? The Effect of Fee Disclosures on 401(k) Investment Allocations"
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Tema del Seminario: Out of Sight No More? The Effect of Fee Disclosures on 401(k) Investment Allocations
Clemens Sialm, University of Texas at Austin
12:25 - 13:40
Aula A-22 (palazzo rosso)
Campus di Lugano
We examine the effects of a 2012 regulatory reform of investment option disclosures on participants' allocations across 401(k) plans funds. We show that participants became significantly more attentive to expense ratios and short-term performance after the reform. The results are stronger for plans with larger account balances and those that are non-unionized. Additionally, they are not driven by secular changes in investor attention or sponsor-initiated changes to the investment menu before the reform.