The DOL’s proposed regulation on selecting investments, including alternative assets, 2026-06178.pdf, identifies six factors that need to be considered in the process of selecting any investments for participant-directed plans, such as 401(k) plans and private sector 403(b) plans. The six factors are: Performance, Fees, Liquidity, Valuation, Performance Benchmark, and Complexity. The proposal describes each of those factors and provides 20 examples of their application. In my post Alternative Assets (9) I discussed the second factor, Fees. My last article, Alternative Assets (10), examined the first Fees example in the proposal. This article looks at the second DOL example of the application of the Fees factor. The example is: (2) Example. Fees; Share classes— (i) Facts. A plan sponsor decides to establish a participant-directed defined contribution plan. The plan document specifies that the director of human resources is the named fiduciary of the plan and responsible for the establishment of the plan investment menu and selection and monitoring of designated investment alternatives. The named fiduciary does not enlist the services of an investment advice fiduciary within the meaning of section 3(21)(A)(ii) of ERISA, an investment manager within the meaning of section 3(38) of ERISA, or any other type of professional consultant.