Investment Process

Investment Process

A study conducted by AON Hewitt and Financial Engines indicted that participants who received “help” experienced 2.92% greater return than their peers between 2006 and 2010.

Does your retirement plan fund lineup allow participants to easily create and use effective portfolios?

Does your committee’s work get effectively transferred and made usable by participants?

The structure of core fund lineups has evolved significantly since the introduction of Defined Contribution plans. In the beginning, simplicity with minimal choice was common. Today, lineups have expanded significantly and may even include investment options formerly reserved for Defined Benefit plans.

There are two key areas in which Advanced Capital Group works with its clients to provide investment choice without adding confusion.

Core Investment Lineup

The first step in the process is to determine the asset classes to be represented and then construct unique and well diversified core fund lineup for participants.

Actively Managed:  We recommend unique actively managed investment lineups that not only offer the potential for effective diversification but minimize confusion. We also discuss the potential benefits of non-traditional investment options and how their inclusion can affect a diversified portfolio.

Passive:  We encourage the use of low-cost index funds within our core fund lineups. At a minimum, we would encourage domestic fixed income, domestic equity and an international equity exposure. Apart from the investment opportunity, their inclusion may also help plan sponsors minimize fiduciary responsibility.

Custom Portfolios

Our preference is to work with administrators to offer easy to use “single click” custom balanced (risk-based) and/or target-date (age-based) portfolios that can be automatically rebalanced. By utilizing an existing core fund lineup, we design custom balanced portfolios that are tailored to a plan’s demographics or custom target-date portfolios than can go “to retirement” or “through retirement.”