Focused on Your Success (with DB Plan)

For Plan Sponsor Use Only - Not for Use with Participants or the General Public.
Securities offered through LPL Financial. Member FINRA/SIPC
Focused on Your Success
Retirement Plan Consultation
Overview of Services

2
FOCUSED ON YOUR SUCCESS
 Independent, full-service
institutional retirement
consulting and advisory firm,
founded in 1983
 Specializing in all areas of
retirement plan consulting,
participant education and
investment analysis
 20+ advisors and support
staff to meet client needs
Washington Financial Group

3
Our Team
 Team Lead: Joseph F. DeNoyior, CRPS®, AIF®, C(k)P
 Retirement Plan Specialist: Colin M. Clark, MBA, AIF®
 Retirement Plan Specialist: John Edelbrock, MBA, CRPC®, CRPS®
 Retirement Plan Specialist: Thomas Leverone, MBA
 Director of Client Services: Charlotte Kanka
 Director of Investment Strategy: Jay Sanford
 Director of Operations: Jeffrey Pincus
 Investment Specialist: Mark Jensen
 Operations Assistant: Traci Simons

4
Representative Client List
It is not known whether the listed clients approve or disapprove of the advisory/brokerage services provided.

5
Best Practices Approach
Fiduciary Investment Review
top-tier investment
opportunities
Provider Analysis
exceptional service provider
High-Touch Education
prepared participants
Fiduciary Plan Review
protected fiduciaries
Fiduciary Report Card
RFP Vendor
Analysis &
Benchmarking
Fiduciary
Fitness
Program
Employee
Engagement
Investment
Due Diligence
Best in Class
Retirement Plan

6
Maximizing Plan Efficiency
Plan Sponsor Use Only – Not for Public Distribution
Consulting AdministrationInvestments Communication
 Plan governance
 Provider search and
analysis
 Cost analysis and
benchmarking
 Contract review and
negotiation
 Compliance review
 DB plan termination
 DC plan redesign
 Deferred compensation
 Internal audits and
quality assessments
 Provider audits
 Liaison with service
providers
 Fiduciary guidance
 Operational oversight
 Data management
 Impact of legislative
changes
 Quality standards
 Outsourcing programs
 Trustee services
 Asset allocation
modeling
 QDIA funds review
 Investment
analytics/search
 Ongoing monitoring
 Investment behavioral
analysis
 Investment policy
statement audit
 Fiduciary review
 404(a), 404(c)
monitoring
 Communication
strategy development
 Replacement ratios gap
analysis
 Participant behavior
monitoring and
measurement
 Investment consulting
for executives
 Group meetings
 Employee education
services
 Guidance vs. advice
components
Plan Sponsor ParticipantOur Continuum of Services

7
Resources
RFP Analysis
Department
Operations
Department
Investment
Department
ERISA
Department
Financial
Consulting
Department
Investment
Department
Bi-Lingual
Department
Individual
Investment Advice
Department
Best in Class Retirement Plan
Plan Participants
Plan Fiduciaries
Plan Consultant
Communication Specialists

8
Service Plan: Your Road Map
 At the start of each relationship we set goals and objectives via a written
Service Plan. We then track the timing and frequency of each service
delivered and post all deliverables on our secure plan sponsor portal.

9
Plan Benchmarking & Vendor Searches
“Benchmarking plan provider services, investment opportunities and total plan fees can overwhelm even the most
diligent plan sponsor. We shoulder the responsibility of a thorough market analysis, offering guidance and support
throughout the process.”

10
Plan Design Optimization Report
 Retirement
Readiness
Calculations
 Retirement RISK
Calculations
 Investment
Behavior Analysis

11
Vendor Analysis
 Fee Benchmarking and full Vendor Searches:
 Meets fiduciary obligation to ensure
competitiveness within the marketplace
 Improves decision-making for choosing a new
plan provider
VENDOR 1
Value Blend Growth
9 10 10 Large
10 10 9 Mid
10 8 10 Small
Int’l Global
Fixed
Income
9 10 10
Vendor
Score
9.58
VENDOR 2
Value Blend Growth
9 9 10 Large
7 7 7 Mid
9 9 9 Small
Int’l Global
Fixed
Income
10 10 10
Vendor
Score
8.83
VENDOR 3
Value Blend Growth
9 10 10 Large
7 9 10 Mid
7 9 10 Small
Int’l Global
Fixed
Income
8 10 10
Vendor
Score
9.08
VENDOR 4
Value Blend Growth
10 9 10 Large
9 9 10 Mid
9 8 9 Small
Int’l Global
Fixed
Income
10 10 10
Vendor
Score
9.42
Asset Class Assets
Assets
(%)
Fund
Exp.
Ratio
(%)
WAC (%) Cost
Large Blend 507,132$ 4.71 Calvert Social Equity A 1.29 0.06 6,542$
Large Growth 1,266,939$ 11.76 American Fds Gr Fund 1.09 0.13 13,810$
Large Value 1,313,137$ 12.19 Van Kampen Comstock A 0.90 0.11 11,818$
Mid Growth 1,033,520$ 9.59 One Group Mid Cap Gr A 1.24 0.12 12,816$
Mid Value 631,291$ 5.86 Lord Abbett Mid Cap Val P 1.00 0.06 6,313$
Small Blend 1,297,389$ 12.04 Small Cap Value A 1.27 0.15 16,477$
Int'l Stock 1,258,127$ 11.68 Templeton Foreign Fund 1.22 0.14 15,349$
Fixed Income 949,201$ 8.81 US Gov't Mortgage Fund 0.95 0.08 9,017$
Fixed Income 283,724$ 2.63 PIMCO Total Return 0.90 0.02 2,554$
Cash 2,235,154$ 20.74 Ready Asset Trust 0.63 0.13 14,081$
Total Assets 10,775,616$ 100
Total Mgmt. Exp 1.01 108,777$
Asset Fee 0.00 -$
Admin. Fees 0.45 48,500$
TOTALS 1.46 157,277$
Existing Plan Allocation/Assets ABC Client
Sample Cost Analysis excerpt
Sample Investment Ranking
Sample Vendor Comparison excerpts

12
Report Components
 Comprehensive Report
includes 350+ Data Points
balancing services,
investments and fees
 Side by Side comparison for
a thorough perspective
 Employs Quantitative and
Qualitative metrics
Costs
Investment
Management
Recordkeeping
Technology
Services
Employee
Communications
Compliance
Retirement
Plan

13
Sample Vendor Investment Scorecards
Sample Report Excerpts
Total Cost Analysis
 Integrated Investment Platform
Rankings for clearer analysis

14
Investment Analysis
“Choosing and monitoring the appropriate investments offered in your plan is a serious fiduciary task, as it can impact
a participant’s retirement experience. Washington Financial Group provides independent investment analysis to assist
you with this important responsibility.”

15
Prudent Process
Written Process
Regular Monitoring
Documentation
Proper Action

16
An institutional approach which is
comprehensive and independent, utilizing a
well-documented process and methodology. Quantitative
Metrics
Investment
Menu
Qualitative
Metrics
Investment
Universe
(20,000+ investments)
Investment
Policy
Statement
Investment Selection
 Our Scorecard system provides a proven process to monitor and
evaluate fund managers and investment strategies.

17
Investment Review
Clients Rely on Our Investment Review Process to:
Features of our Services Include:
 Scorecard System for Fund Ranking
 Asset Allocation Fund Monitoring
 Investment Analysis Reports
ENHANCE
Investment
Opportunities
MANAGE &
CONTROL
Risk
REDUCE
Exposure to
Fiduciary
Liability
 Investment Policy Statement
 Quarterly Market Summary

18
 The Fiduciary Investment
Review includes
recommendations for fund
additions, deletions and
replacements
Sample Scorecard Report Excerpts
Good 9-10 Points
Acceptable 7-8 Points
Watch List 5-6 Points
Poor 0-4 Points
Scorecard Point System
Investment Due Diligence

19
Defined Benefit Investment Services
“Defined Benefit and Cash Balance Plans provide an effective additional solution to help drive outcomes and
retirement success — the ultimate goal of our business philosophy. Our unique investment process coupled with
strong fiduciary oversight further helps Plan Sponsors and their participants toward the goal of achieving a successful
retirement outcome.”

20
Risk is Difficult to Quantify

21
How Investors Perceive Risk

22
Post-Modern Portfolio Theory
 Minimum Acceptable Return (MAR): the minimum return a portfolio is able
to accept, or the minimum return required to achieve the client’s goals
 Downside Risk Optimization (DRO): the optimization of a portfolio based on
an ideal combination of downside risk and return
 DRO beats Mean Variance Optimization (MVO): financial asset returns are
non-normally distributed, at times MVO yields nonsensical results, investors
care about downside risk
 Managing Funding Risk: returns below MAR create “actuarial losses” that
must be balanced against gains. DRO seeks to better define the downside
investment risk of the portfolio and diminish the funding risk to the Plan
Sponsor

23
Defined Benefit Asset Allocation Policy
 When Funding is Low: risk is justifiable, extent dependent upon client risk capacity, to
capture upside potential. As funding improves, upside marginally decreases while
downside remains constant
 When Funding is High: objective shifts from appreciation to preservation by reducing
funding volatility, which is reflected in the pension investment portfolio
 Addresses “Omission Bias”: human nature is such that risks associated with acts of
commission are perceived as more dangerous than the risks resulting from acts of
omission. Dynamic DB policy makes action the standard expectation, committee
members rely on the professional trustee to manage asset allocation proactively, on a
discretionary basis
 De-Risking the Pension Plan: a Dynamic Investment Policy Statement establishes the
investment objective and funding ratio as impetuses for portfolio design, and manages
the decision timeline by adjusting the portfolio as certain funding levels are attained

24
Sample Dynamic DB Asset Allocation Risk Matrix
Investment Objective
Allowed Equity
Range
Allowed Fixed
Income Range
Less than
71%
71% to 85%
86% to
100%
101% to
115%
Greater
than 115%
Fixed Income 0% 100% 0% 0% 0% 0% 0%
Income 15% to 35% 85% to 65% 35% 30% 25% 20% 15%
Income Primary 30% to 50% 70% to 50% 50% 45% 40% 35% 30%
Income & Growth 40% to 60% 60% to 40% 60% 55% 50% 45% 40%
Balanced 50% to 70% 50% to 30% 70% 65% 60% 55% 50%
Equity Target for Funded Ratio

25
Defined Benefit Dynamic Asset Allocation Illustration

26
Implementing Your LDI Strategy
 Dynamic Asset Allocation to
support LDI
 Work with actuaries to
obtain funding status on
quarterly basis
 Adjust allocation based on funding
 Minimize downside risk as plan approaches termination sufficiency

27
Fiduciary Guidance
“CFOs, CEOs, Presidents and other fiduciaries have personal liability for assets in the company’s retirement plan.
It is crucial that plan sponsors partner with an independent firm specializing in services that reduce exposure to
fiduciary liability.”

28
Fiduciary Fitness
 Our Fiduciary Fitness program is an independent compliance tool to
measure the health of a retirement plan. The program provides resources
as a means to identifying potential weaknesses in your plan and remedy
through education, diligence and process.
Program Components:
Fiduciary Report Card
Demonstrates what plan
sponsors and fiduciaries
need to address and
documents plan
management
responsibilities.
Educates fiduciaries
regarding their
responsibilities, examines
plan design, and
documents prudent
processes.
Client Reference Guide
Graphs, charts and
checklists provide easy to
understand technical
guidance for the
completion of action
items contained on the
Report Card.

29
 Evaluates plan design and compliance issues
 Charts participation, deferral rates and plan performance
 Benchmarking of Total Plan Cost
 404(c) Notice and Statement
 Compliance Checklist
 Fiduciary File Checklist
 Investment Committee Charter
 Ongoing Best Practices

30
Meeting Summaries
 After meeting with your
Committee, we prepare a
customized Executive
Summary detailing results
and action-items, providing
valuable documentation
required during plan audits
and inquiries.

31
Education & Communication
“ Washington Financial Group delivers proactive consulting solutions that are comprehensive, compelling and
technically proficient. As a result, participants are better informed about asset allocation and risk tolerance, and
most importantly, better prepared for retirement.”

32
 Employee education and
communication
 Help create plan/policy
for employee retirement
education and enrollment
 Help participants stay the
course
 Help participants convert
retirement savings into
income at retirement
Participant Solutions

33
Service Solutions
Maximize benefits for
plan participants
Group and Individual Education Meetings
Employee Communication Strategies
Asset Allocation and Investment Guidance
Financial Planning
Bilingual Materials
Education Modules & Employee Memos

34
Education Meetings & Webinars
 Regularly scheduled
education meetings &
webinars to help plan
participants to be bettered
prepared and stay the course

35
Newsletters
 Quarterly Newsletters
keep Plan Sponsors
and Participants
abreast on the latest
retirement plan news,
participant education
topics, legislative
updates, and industry
trends

36
Innovative Ideas
Fly
(Save)
Fly Higher
(Save More)
Fly Smoother
(Save Smarter)
Auto-Takeoff
Auto-Grounded
Auto-Turbulent
Auto-Smooth
Auto-Hold
Auto-Climb
The Retirement Plan Journey

37
Why Hire Us?
 We act as a fiduciary
 We seek the best investments and consider cost in that determination
 We provide impartial advice, and act with skill, care and diligence
 We provide full and fair disclosure of important facts, including our
compensation from the providers of the products and services we offer
 We are our clients’ advocate with plan recordkeepers and will seek to
manage any conflicts in our clients’ favor
 We work side-by-side with plan actuaries to develop appropriate
investment strategies

38
Focused on Your Success
“Washington Financial Group helps to protect plan fiduciaries from liability, while enhancing investment
opportunities and helping participants achieve financial security. We are proud of our commitment to
excellence, and invite you to see for yourself how our services make retirement plans better.”

Focused on Your Success (with DB Plan)

More Related Content

What's hot

Viewers also liked

Similar to Focused on Your Success (with DB Plan)

Recently uploaded

Focused on Your Success (with DB Plan)