Personalized advice provides retirement plan participants with a number of benefits, particularly during periods of uncertainty. However, offering this kind of guidance can be challenging—for both you and your qualified plan clients.
Newport’s Managed Account service makes it easy for you to offer your defined contribution plan clients a cost-effective, scalable solution for personalized advice to their employees—critically important in times of market volatility. Participants who subscribe pay a small monthly fee, giving them access to professional management at a cost that makes sense.
And best of all, our service was designed with our advisor partners in mind. We offer different options to best meet your business needs.
Good For Your Business
Newport’s Managed Account service can be added to your clients’ plans easily, without changing a plan’s investment menu or impacting your fiduciary or consulting relationship. The service is provided at no cost to your plan sponsor clients. And, it is powered by new technology and is fully integrated with our recordkeeping system.
It provides new avenues for you to interact with your clients’ employees. You can have the opportunity to focus on participants with larger balances, outside assets, financial planning needs, etc., while offering all participants advice at scale.
It’s also flexible, with multiple options to fit your business and preferences, and you can choose whether you wish to be compensated as part of the service. And we have more options if your firm chooses to become the service’s 3(38) fiduciary, taking over some or all of the functions Newport performs.
|Option 1 - Newport Turnkey Service
||Option 2 - Advisor Compensated Participant Support
- Newport performs all services as the 3(38) fiduciary for the service.
- Newport serves as the 3(38) fiduciary for the service with you as the plan's advisor being compensated for participant enrollment and education support services.
|Option 3 - Semi-Custom Service
- Your firm serves as the 3(38) fiduciary for the service with Newport fulfilling some fiduciary functions as your sub-advisor. Newport also supports the managed account platform, and performs certain participant support services.
Help Your Clients Make the Most of Managed Accounts
As a plan’s advisor, you help your clients choose how best to use the service:
- Have employees subscribe on a voluntary basis.
- Use the Managed Account service as the plan’s QDIA for employees not making an election or being automatically enrolled. The service qualifies as a QDIA under DOL safe-harbor guidelines.
- Introduce the service with a “re-enrollment event” where all employee balances and investment elections are automatically placed in a managed account unless they opt out of the service as the plan converts to Newport. This re-enrollment event can also qualify under a DOL safe-harbor provision.
Want to learn more?
Contact your Newport representative for more information on our Managed Account service.
Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Investment Advisory and fiduciary consulting services are offered through Newport Group Consulting, LLC, a registered investment adviser and wholly owned subsidiary of Newport Group, Inc. For more information about Newport Group Consulting and its services, please visit newportgroup.com or refer to our Form ADV Part 2, which is available by contacting us at 407-333-2905, or visiting our website.
The Managed Account service is a web-enabled financial advisory service for retirement plan participants that uses technology supported by NextCapital Group, Inc. (“NextCapital”) and integrated with the retirement plan recordkeeping system. The service may be offered to participant accounts including employer-sponsored defined contribution accounts (401(k), 457, 403(b), and other participant directed plans). The service allows plan participants to develop a strategy to help them reach investing and retirement goals by offering a personalized plan for saving and investing, forecasts for retirement income and wealth, and the creation and management of model portfolios using the designated investment alternatives offered in the employer-sponsored defined contribution plan. Please refer to the Newport Group Consulting, LLC Managed Account ADV Part 2 for detailed information regarding the Managed Account service and associated fees. The ADV Part 2 is available at www.newportgroup.com and www.iard.com.
NextCapital licenses its technology to Newport Group, but does not serve as an investment adviser to Newport Group or its clients.
Newport Group and NextCapital are not affiliated companies.