A More Effective Way to Fulfill Your Fiduciary Responsibilities
Newport Group is a leading provider of fiduciary consulting services to participant and sponsor-directed defined contribution and defined benefit plans, as well as foundations, endowments, and corporate operating portfolios.
As co-fiduciary consultants, we believe that following a consistent, rigorous, and disciplined process is the key to fulfilling your fiduciary obligations as a plan sponsor. We work with you to establish and maintain the tools necessary for you to demonstrate an ongoing process of prudent plan management as required under ERISA.
Help with Managing Your Fiduciary Oversight
We assist you in implementing a prudent process to manage both the investment and non-investment-related responsibilities of the plan. While it is common for sponsors to hire third parties to perform the administration and management of a retirement plan, many service providers do not assume fiduciary responsibility under the terms of their agreements.
Once you engage Newport Group, we assist with your non-investment responsibilities. Annually we provide written reports to the retirement plan committee on each of the following non-investment related obligations:
- fiduciary practices statement
- fiduciary governance charter
- fiduciary governance review
- comprehensive service provider review
- total plan expense analysis
- communication and education assessment
- board recap of plan and committee activity
- 404(c), 404a-5, and 408(b)(2) compliance review
- fiduciary education and onboarding
A Prudent Investment Process
The key to effectively managing fiduciary liability is establishing and following a prudent investment process. Newport Group1
helps put such a process in place, by becoming a fiduciary for the investment-related aspects of your plan. This includes:
- taking time to understand the plan sponsor’s culture and the objectives of the plan
- designing and implementing an Investment Policy Statement
- constructing an investment menu/portfolio diversified by asset class and investment style
- evaluating and selecting investment managers based on rigorous criteria
- designing and managing asset allocation tools for participant-directed plans
- making recommendations regarding target asset allocation for corporate- or trustee-directed plans
- continuously monitoring each manager against the criteria specified in the IPS
- recommending replacements of investment managers as warranted
- creating and delivering comprehensive reporting and review
Newport Group’s prudent investment process includes:
- Investment review
- Development of investment policy statement
- Asset allocation and menu construction
- Manager evaluation and selection
- Manager monitoring and replacement
Objective. Transparent. Unbiased.
We are an independent firm with no affiliations with any investment management or mutual fund companies. As such, we provide unbiased, direct advice free from potential conflicts of interest. In addition, our compensation is exclusively fee based, fully disclosed and paid by our clients, either directly or from plan assets.
1Consulting services on investment process are provided through Newport Group Securities, Inc. an SEC-registered Investment Advisor and affiliate of Newport Group, Inc. No guarantees are made as to investment results. All investments in securities involve risks including possible loss of principal.
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