TCW Allowed to Give Retirement Fund Advice

Los Angeles-based TCW Group, parent of Trust Co. of the West, became the first money manager allowed by the U.S. Department of Labor to advise investors on their 401(k) plans, a ruling that could help it expand in the fastest-growing part of the pension business. The Labor ruling allows TCW, whose $50 billion in assets is primarily from traditional pension funds, to advise participants in 401(k) plans on how much and where to invest, and how much risk to take, along with information on specific TCW funds. No other fund firms are allowed to provide such specific advice, giving TCW an advantage in distinguishing itself from other 401(k) providers, analysts said. Until now, Labor--which regulates corporate pension funds--hasn’t let fund companies provide specific advice on investment choices for fear that the firms would steer investors toward funds with the highest fees.