Client:
Global Manufacturing Company

 

Background:  

• A cash balance plan managed by a Wall Street brokerage firm

• A 401(k) plan with a large recordkeeper, but no independent consultant

 

Concern: 
Cash Balance Plan - The Company had:

 

• Outgrown the brokerage “manager of manager” model

• Wanted to take a more institutional approach to asset allocation and manager selection to achieve better investment results

 

401(k) Plan - The Company was very satisfied with their recordkeeper from an administration stand point.  However, they wanted a firm that could:

 

• Take fiduciary status on the plan 

• Make investment recommendations to the in-house committee comprised of the top executives of the corporation

• Address their concern with participant level fees

 

Resolution:    
FIA was hired to provide a retainer suite of services which included overseeing the cash balance plan and the 401(k) plan.

The Company:

• Implemented a custom low volatility asset allocation for their cash balance plan that tied into the CFO’s volatility risk budget

 

• Hired institutional managers, including alternative managers and index funds 

    o FIA now meets with the committee to monitor progress versus objectives

FIA:

• Benchmarked all plan investments and recommended replacing certain funds and adding certain asset categories

 

• Streamlined the investment fund lineup with best in class institutional funds with low expenses

 

• Significantly lowered plan fees

    o Monitors the funds and fees on an ongoing basis

 

• Worked with The Company and the recordkeeper to develop a customized communication plan

    o Rolled out the positive changes to participants