Fiduciary Service


Published on

Presents services we offer to retirement plan fiduciaries

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Fiduciary Service

  1. 1. Fiduciary Service Why Are Fiduciaries Turning to Independent Investment Advisors?
  2. 2. Why Are Fiduciaries Turning to Independent Investment Advisors? Fiduciaries must be prudent experts if they are to act in a capacity that meets the standards outlined in ERISA §404(a). Most good people placed in positions to oversee their company’s retirement plan are not trained in investment matters and yet ERISA holds them to the same process standards as a professional money manager.
  3. 3. Rising fiduciary concerns are catching the attention of regulators. DOL Working Hard in the Atlanta Area to Ferret Fiduciary Breaches, Ilene H. Ferenczy, LLC, April 24, 2008. Court Says Section 401(k) Plan Participants Can Assert ERISA Section 502(a)(2) Claim, Meredith Maresca, April 3, 2008 First fallout from the LaRue case from February, 2008. DOL reported the following statistics for the one year period ending 9/20/07: $1.5 billion in total monetary results (fines, penalties, etc.) 74.23% of civil investigations closed with monetary results (this is a 30% increase since 9/30/2001 which means they are getting more aggressive in handing out penalties) 37.23% of criminal investigations closed with guilty pleas or convictions 161,000 worker complaints led to $96 million in monetary results and 687 new investigations
  4. 4. Why Sentinel Benefits & Financial Group? We are licensed investment advisors. Our fees are fully disclosed in writing and we are not permitted to accept compensation from investment managers. We are independent and work exclusively on behalf of our clients. We bring investment expertise to your due diligence team and we shoulder an equal share of the responsibility for our actions. We will acknowledge our role as “investment manager” as defined in section 3(38) of ERISA and thus a fiduciary, with respect to the plan through written agreement. We are a plan co-fiduciary. We carry $15-million in E&O insurance coverage.
  5. 5. Investment Research Process Our tools and resources… Identify investment managers that have demonstrated more consistent long-term performance in their areas of expertise. 1. Quantitative. We review an investment manager’s rate of return, relative risk measurements, and management expenses as compared to its peer group. 2. Qualitative. We also evaluate a manager’s reputation for ethical practices, style consistency, and administrative infrastructure. The foundation of our 3. Bottom Up Selection Process. long-term investment We concentrate first building diversified management approach is our expertise in research portfolios using low correlating asset classes and disciplined and then we seek the best money methodology. managers that specialize there. Matthew H. McPhail, CFA Chief Investment Officer
  6. 6. Investment Advisory Services Diagnostic Plan Appraisal Manager Investment Selection Process We will evaluate your plan’s current investment offering by benchmarking Our investment manager research and the investment return, risk, and selection process is designed to select expenses to its peers and relative the appropriate asset managers for indices, by providing an assessment of each asset class to be represented asset class overlap or gaps, and by within the plan. Our quantitative evaluating the overall investment screening ensures that each manager offering to the plan’s current meets superior standards for style investment policy statement. consistency, risk adjusted performance, consistency of performance and low Develop Investment Policy expenses. Our experienced analysts further assess the philosophy behind the Statement numbers, the process by which it is implemented and most importantly the We develop an Investment Policy people who manage the portfolios. Statement that is consistent with ERISA 404(c).
  7. 7. Investment Advisory Services Lifestyle Portfolio Management We create three Lifestyle Portfolios from the funds offered in your Plan. Each portfolio will be designed to meet a specific risk-return profile. Lifestyle Portfolios allow investors the opportunity to choose one fully diversified investment solution that is designed to match their individual goals, risk tolerances and time horizons. Each portfolio invests in a diversified mix of funds carefully chosen by Sentinel Pension Advisors. As an all-in- one solution, Lifestyle Portfolios are designed based targeted asset mixes of cash, fixed income and equity funds.
  8. 8. Investment Advisory Services Monitor and Measure Trustee & Investment Committee Meetings Once the plan’s investment policy has been established and the investments When appropriate, we will have been chosen, we will continue to arrange a meeting with the Plan subject the funds to a comprehensive Trustees to document the performance attribution analysis to ensure performance of the plan’s that each investment continues to investments and to make any demonstrate the performance and asset recommendations that may be class characteristics that it was selected to appropriate for changes. These provide. meetings are documented and become part of the Plan’s Due Diligence file. Participant Counseling Provide employee group communication services to plan participants. Meetings will be done onsite at the client’s work facility. Individual meetings are also available.
  9. 9. Participant Counseling 4 different group presentations 401(k) Education (cover Plan specifics) Investment Basics Financial Planning Retirement Income Planning
  10. 10. Participant Counseling One-to-one meetings with plan participants 30 minute sessions scheduled in advance to “The foibles of plan participants have become common allow advisor time to prepare knowledge. Intimidated by the prospect of having to make Discuss Your 401(k) investment decisions, some employees avoid enrolling in the Personal Risk Assessment plan at all. Those who enroll often Retirement Income Planning feel overwhelmed by the number Asset Allocation Analysis of investment options, and simply select one or two funds instead of Discuss Other Accounts to coordinate Financial a diversified allocation. Of the Plan participants who do diversify properly, few follow up later to review and rebalance. Small minorities of participants make hyperactive investment changes, but the vast majority make almost no changes at all.” John Nelson, PLANSPONSOR Magazine September, 2006
  11. 11. Wealth Management Services Retirement Income Planning Accumulation Phase – contribution targets, asset allocation Distribution Phase – distribution targets, cash flow analysis, asset allocation Annual Review Asset Protection Review strategic uses of insurance Complete needs analysis including life, health and long-term care Tax Planning Proactive tax minimization strategies Attorney Work with existing accountant or establish new relationship Tax & Accountant Estate Estate Planning Expert Review strategic estate planning strategies to Financial preserve wealth and save taxes Advisor Regular reviews to insure documents are current Family involvement Healthcare Work with existing attorney or Other Expert establish new relationship Insurance Agent
  12. 12. Employers partner with us to be their single, expert resource for all of their employee benefits. For more information, call 800.436.6689 or email