Discretionary Investment Management for Participant-Directed Portfolios

Discretionary investment management services offered by Fiduciary Advisors, Inc. ("FAI") for participant-directed portfolios of defined contribution 401(k), profit sharing or 403(b) plans include, but are not limited to, the following:

Preparation of the Investment Policy Statement (“IPS”) to include:

  • Identification of investment objectives and guidelines

  • Recommendation of appropriate asset classes, based on the profile of plan participants

  • Development of procedures for selecting & monitoring investments

  • Development of guidelines for replacing specific investments or asset classes

Investment Management

  • Selection and management of plan assets based on the guidelines and restrictions as outlined in the IPS

  • Performance of continual investment monitoring and identification of any changes in investments necessary to maintain conformity with the IPS

  • Recommendation of changes to the IPS as market conditions or participant profiles change

  • Quarterly meetings with plan sponsor, management and trustees to review investment performance as documented below

Due Diligence Documentation

  • Written acknowledgment of FAI’s role as a Section 3(38) Investment Manager under ERISA

  • Quarterly portfolio performance and due diligence reports, containing
    • Market return information for various asset classes
    • Comparison of investment performance against appropriate third-party indices and peer group results
    • Peer rankings for all ETF and mutual fund investments
    • Individual fund analysis looking at various fund statistics including return, risk, style drift, manager tenure, etc.
    • Minutes of the quarterly meetings with references to the above

Education

  • Provide employees with information needed to make appropriate investment decisions

  • Hold periodic meetings with participants to provide ongoing investment education and advice

 See more about FAI’s Investment Services.