This case involves the Northern Trust Focus Funds, a suite of target date co-mingled investment products (CITs) offered within the Takeda Pharmaceuticals USA Inc. Savings and Retirement Plan. The aforementioned funds replaced the Fidelity Freedom Funds in the Plan’s investment menu only one year after introduction to the marketplace. The lawsuit claims that the Trusts underperformed industry-accepted target-date benchmarks for ‘”through”’ target date products used by investment professionals year over year, and after a three-year performance history. The lawsuit notes that many changes were made to the underlying portfolios, which should have served as an impetus for a review and investigation. Fiduciaries allegedly failed to take prudent action to effectively monitor the trusts themselves, but also the underlying portfolios comprising the trusts, allowing the Focus Funds to remain in the Plan, causing substantial losses to participants invested in the products.
www.planadviser.com; January 21, 2021.