We implement a program that recognizes the reality of participant investing. Creating a well diversified lineup of top performing funds is no guarantee participants will invest properly. Thus, at EFA we create custom asset allocation models to assist participants in their allocation decisions.
EFA has concluded that we cannot accept the liability associated with serving as a plan fiduciary and administer a program that ignores the participant’s desire for assistance. Thus, our 5-Step approach for selecting funds is just the first step in the process. Actual utilization by participants requires much more than simply selecting and monitoring the investment alternatives. However, having said that, it is important to understand how EFA will select & monitor your investment options.
Our 5-Step approach to the selecting & monitoring the investment alternatives includes the following:
- Analyze your current position,
- Diversify & allocate the portfolio,
- Formalize your written investment policy statement,
- Implement your investment policy, and
- Monitor & supervise your investment alternatives.
EFA will work with your investment committee to create a written investment policy statement that identifies the asset classes to be offered to participants. We bring experience in constructing fund lineups for the diverse populations which are typically present within qualified retirement plans. Once the asset classes are set we will establish criteria such as performance, correlation, holdings & cost relative to both peer groups & benchmarks for the selection of investment options to be offered to participants.