The StrategicPoint Retirement Plan Advisor Service
The Problem
Many defined contribution plan sponsors, participants and fiduciaries may have lost meaningful amounts of capital and peace of mind and are concerned if they have done everything possible to minimize losses and increase the odds of success going forward. This market turmoil comes on top of increased scrutiny of plan fiduciaries by government regulators and trial lawyers.
The Solution
The StrategicPoint Retirement Plan Advisor Service is an impartial, rigorous and thorough review and analysis of the investments of participant-driven Defined Contribution plans: 401(k), 403(b) and other similar retirement plans.
The Benefits
The Service provides customized investment analysis and recommendations to better help Plan fiduciaries understand how volatile markets and poor portfolio performance may have impacted the mission of the Plan’s investments. As a Fiduciary, you will receive a working, written investment analysis which provides specific action steps you can take now to help reduce your liability as Fiduciary and potentially increase the odds of participants achieving their investment goals. StrategicPoint periodically reviews the Plan and monitors performance, provides analysis and recommends which Plan sub-accounts and Investment models to keep modify and/or eliminate.
The StrategicPoint Retirement Plan Advisor Service includes the following:
Market & Economic Overview
You will receive a one-page executive summary and 4-6 additional pages of relevant insight, including key information related to:
Capital Market Returns Major US/Global Equity, US/Global Fixed Income and REIT indices over QTD, YTD, 1/3/5/10 year time periods
Macro Economic Indicators Inflation, LIBOR/interest rate movements, Global growth rates
Hot Button Topics Oil, Housing, Sub-prime, Election, etc.
Government Action/Reaction Legislative, Monetary, Fiscal policy and impact
Historical Parallels drawing lessons from previous experience.
Other Fixed income spreads; Growth investing vs. Value investing; domestic investing vs. international investing; developed markets vs. emerging markets; rebalancing methodologies; default rates, etc.
Plan & Portfolio Overview
-Analysis of Mission Statement, Investment Policy Statement, Plan Investments to determine that these align in an appropriate and fiduciary manner
-Sub-account level summary comparing investment returns as of latest quarter end versus benchmarks across a variety of timeframes
Sub-account & Investment Model Analysis & Recommendation
-Analysis of Plan’s sub-account lineup regarding investment choice
-Suggested sub-account changes (additions, trims, eliminations) with rationale
-Suggested Investment Model changes, including sub-account line-up and allocations
Sub-account Portfolio Manager Analysis & Review
-For each sub-account, a detailed overview, including a recommendation (increase/maintain/ sell/eliminate), detailed analysis, performance summary, manager changes and other notes of interest
Weekly investment and market commentary*
-Co-branded e-newsletter helps educate participants on important market & economic events
Periodic model portfolio recommendations delivered to employees*
· can potentially help improve 401(k) plan performance
· will address current model allocation and changes (if any) economic outlook and analysis and one financial planning tip
The Cost
To provide maximum flexibility for the Plan, Retirement Plan Advisor Service clients pay annually up to 1.50% of Plan assets under management payable quarterly in arrears, with a minimum annual fee as determined by the number of updated reports created per year:
· Annual Report/meeting: $3,995
· Semi-annual Report/meeting: $7,500
· Quarterly Report/meeting: $9,995
*Weekly e-newsletters and monthly model portfolio recommendation updates are available at an additional cost of $25 per Plan participant per month.
Please note that unless the Plan document provides otherwise, Plan fiduciaries may decide to pay for these investment consulting services by deducting such fees from the participant accounts.
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