Investment policy has the greatest impact on results. Policy issues for pensions and other sponsor-directed programs include a projection of liabilities, return and risk objectives, asset allocation strategy, risk control guidelines, manager selection procedures, and performance review benchmarks. For participant-directed plans, employee education strategy takes the place of asset allocation. Prudent sponsors create and maintain sound policy when things are running well, in preparation for unforeseen performance problems.

Key Benefits

• Saves time and money by focusing key decision-makers on the most important issues.
• Establishes sound process and principals that do not have to be revisited every time a decision is required.
• Provides a means of managing risk and other portfolio characteristics, not just return.
• Builds solid documentation for review by regulators and for staff training.

Typical Services
Investment Policy Review
A complete investment policy statement customized to your unique needs and circumstances, or provide a professional review and update for your existing statement. The statement will be based on a thorough analysis of your current investment strategy and governance practices, not a boilerplate document.

Asset Allocation Study
An analysis of the risk and return potential of your current investment program, with specific recommendations on changes to your asset allocation strategy. We assess how closely the plan’s strategy matches actuarial liability projections and other similar plans, and consider the potential impact on pension cost and income for the sponsor.

Asset-Liability Study
A more thorough project including projection of liabilities under various economic scenarios, projection of the level and volatility of plan funding, and a full asset allocation study.

Fiduciary Review
A study of the governance practices of the investment program, where we cite specific areas of compliance concerns and recommend action steps to improve investment decision-making. Typically includes high-level analysis of current investment managers, review of committee structure and documentation, critique of investment policy, and assessment of employee communication and 404(c) compliance as applicable.