Plan Menu Design

Selecting which investment options to use for the plan is a critical stage in successful plan design.  As a plan sponsor, the level of participant involvement can depend on the investments available to them.  Whether you are starting a new plan or have an existing plan, we will partner with you to ensure that the menu is competitive and easy for the participants to understand.

Establishing a New Plan

When establishing an investment menu for your new plan, we will guide you through the project by taking into account the following factors:

  • Review eligible population and design a menu based on plan membership – this may include multi-currency funds as well as regional funds (Europe, Latin America, Asia),socially responsible or religious funds
  • Establish Investment Policy Statement for the plan
  • Determine Share Class of funds: Institutional, ‘A’ share or equivalent etc.
  • How many funds should be used – determine optimal asset class and investment style mix
  • Should we have a Core and Non-Core menu
  • Establish default fund strategy
  • Should we offer Target Date and/or Risk based Strategy models

Existing Plan

When looking at your existing plan menu, we will start off by conduct an Investment Expense Analysis. This analysis will review existing investment options, share class and fees to determine ways to enhance the quality of the plan. Investment expenses affect the total return of each fund. Documenting this thorough analysis shows that your investment committee is performing adequate due diligence to ensure the investments are in the best interest of your employees. We will also look at the following:

  • Does the plan currently have an Investment Policy Statement
  • Does the menu have Core and/or Non-Core investments
  • Are Risk Based Strategy models currently offered
  • Are Target Date models currently offered
  • Review eligible population and design a menu based on plan membership – this may include regional funds (Europe, Latin America, Asia) as well as socially responsible or religious funds
  • Review any plan education and demographic information
  • Do the members have access to Investment Specialists
  • How do they receive investment assistance
  • Are members allocated according to their individual risk levels

The end result of the analysis will be a fit for purpose, competitive plan that meets the diverse needs of your global workforce.

We can provide investment consulting services on a stand alone basis. Please Contact Us for further information.

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