Investment Menu Design

Because qualified defined contribution plans typically must serve the needs of investors with varying levels of investment expertise, we believe that it is essential to your plan’s success to offer a full range of investment choices.

When structuring a proposed investment menu, we first review participant characteristics to develop a menu of investment choices that reflects the needs of your plan participants. These needs often range from participants who would rather “do it yourself” to those who prefer someone to “do it for me” with asset allocation or target funds.

We also work with you to ensure that your investment policy statement operates in accordance with ERISA Section 404(c), which requires the flan to diversify investment choices so as to minimize risk of substantial losses. But we also strive to help you strike the right balance in your plan menu design.

While our objective is to provide a menu that offers a variety of choices, it’s equally important to avoid overwhelming participants with a lengthy list of duplicative investment options.

Key aspects of investment menu design include:

  • Investment Policy Statement (IPS)
    • Review and recommendations
    • Document preparation, if required
  • Quantitative and qualitative analysis of investment options
  • Investment management fee analysis
  • Review of fund managers and relative historical performance
  • Written executive summary of investment menu recommendations
  • Fund mapping strategy