More on American Funds

Since I see that I am receiving visits from a server named [host020.lao.capgroup.com (The Capital Group Inc)] in Newport Beach, CA (A hearty Grouse welcome to you!), let me note that my 401k contribution was processed this month on the 8th, the 5th business day of the month, despite having been deducted from payroll on the last business day of the previous month.

Now, markets moved in my favor this month, and NAVs (unit prices) declined, so my money bought more units, but generally that seems like an unconscionably long lag. I'm not sure how 401k Service Level Agreements are typically written, but from project work I've done T+3 (clear and settle by three days after a transaction) is a generally accepted target for exchange-traded securities when they are purchased through a broker-dealer and settled and cleared by outside agencies . Our case should be a direct payroll transfer to a 401k administrator which is captive to the fund manager. There should be fewer handoffs, so T+3 should be plenty of time to get my money where it belongs, instead of sitting out there somewhere in a money-market account accruing.

Perhaps our friends out in Newport Beach would care to comment.