Labor Dept looking into JPMorgan stable value fundSubmitted by Bob-45 on Mon, 07/23/2012 - 13:57
By Jessica Toonkel
NEW YORK | Sat Jul 21, 2012 12:44am EDT
(Reuters) - The U.S. Department of Labor is looking into whether JPMorgan Chase & Co violated its fiduciary duty under the Employee Retirement Income Security Act in connection with one of its stable value funds.
Stable value funds are used in 80 percent of 401(k) self-directed retirement plans and are meant to be the most conservative choice for employees - liquid and backed by insurance.
But, the $1.8 billion JPMorgan Stable Asset Income Fund has had as much as 13 percent of its assets invested in private mortgage debt underwritten and rated by the bank itself. It has reduced that to just under 4 percent, as of June 30, according to a spokesperson.