Fiduciary Services

Fiduciary Plan Level Services under ERISA Section 404(a) 

Clients sign an ERISA 408(b)(2) compliant services agreement with our firm, and check the box on whether they want a collaborative approach  in managing investment and other fiduciary decisions under ERISA 3(21)A or whether to give us full discretion under ERISA 3(38). 

Selecting and Monitoring Investments for Plan Sponsors 

Unlike most 401(k) plan investment menus, our investment process seeks out alternative managers in every liquid asset class in addition to traditional long only domestic and foreign equity managers. These additional asset classes tend to have low correlation to stocks and in some cases, negative correlation, in order to dampen volatility, especially on the downside. These asset classes include real estate, emerging market equity and debt, international small cap growth and value, managed futures, natural resource funds, hedge fund of funds, mortgage backed debt, TIPS and gold funds.

Our plans also tend to include a passive suite of low cost index funds, ranging from US large and small cap, to intermediate bond, as well as foreign large cap and emerging market equity. 

For “do-it-yourself-investors,” our process results in a menu similar to the experience of high net worth investors but captured inside an institutionally priced 401(k). The goal is better risk adjusted performance by using non-traditional investments to tame volatility. 

For “delegators” or those wanting some assistance, we provide a computer advice tool sanctioned under the Pension Protection Act of 2006 as an “eligible investment advice arrangement” which enables participants to create a custom risk based investment asset allocation and solve basic retirement and financial planning goals through our on-line web portal.

For “do-it-for-me” investors, our plans include a default alternative suite of investments which complies with ERISA 404(c)5 to protect plan sponsors from any liability. These investments normally take the form of a suite of target date funds whereby the asset allocation glide path for participants changes over time from heavy equity exposure when younger, to much less equity exposure as a participant nears retirement. 

Our quarterly monitoring report process (“QMR”) gives plan sponsors and participants both a quantitative and qualitative summary by which to measure and hold accountable all active managers (starters) with full knowledge that many capable peers in each in each asset class are waiting on the bench for an opportunity to start. All managers are measured against their peers and best fit index on a rolling basis over 1, 3, 5 and 10 years, and current qualitative comments are provided by our staff on each investment plan menu manager.