Investment Structure Review

Changes in the legal and regulatory environment have provided the impetus for many plan sponsors to review their plan’s current investment structure. We understand plan governance requirements and, as a result, have been able to structure our client’s plans to fit with their governance resources. We see it as our responsibility to advise the Committee on ways to provide participants with the appropriate tools, resources and investment structure to make appropriate retirement choices.

In many cases we have found the current investment structure is an outgrowth of a number of investment changes over the course of many years which have resulted in:

• Too many investment choices that make it difficult for participants to differentiate and develop risk    appropriate fund selections
• A large number of equity oriented options and one or two fixed income options
• Investment options that have overlapping styles

Our approach to developing a customized investment structure starts with a solid foundation of understanding the current state which includes analysis of participant’s investment behavior, age, demographics, and a committee survey to discover risk and investment beliefs. Based on our findings we develop an investment structure that has distinguishable options and provides investment choices for participants that, in general, fall into three distinct types: delegators, decision makers, and investment sophisticates.

Investment Structure Review


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