Funding and Hedging Strategies
Determining the appropriate funding vehicle for a deferred compensation plan
is complex and every client is unique. While the majority of our clients utilize a combination of COLI and/or mutual funds, Newport Group has expertise in all funding strategies: company stock, COLI, mutual funds, total return swaps, etc.
Your financing strategy must be designed and assets invested appropriately, because non-qualified plans impact your corporate financial reporting. We strive to minimize corporate earnings volatility by developing and proactively optimizing your ongoing financing and hedging strategy.
Insurance Carrier/Product Due Diligence
Understanding insurance carriers and product structures are core competencies of Newport Group. Our tailored evaluation includes contract analysis, pricing and guaranteed issue negotiations, carrier credit research, and policy placement As the nation’s largest administrator of institutional insurance, our clients enjoy the best products and pricing offered by the nation’s premier carriers. Newport Group’s years of practical experience and product/turnkey administrative services allow our clients to outsource all administrative activities related to their COLI assets.
Asset Rebalancing and Trading
Newport Group’s asset/liability management (ALM) team performs a daily review of the aggregate participant liability and allocation of plan assets. Assets are automatically rebalanced by the ALM team based on established guidelines ensuring that participant liabilities and plan assets are highly correlated, thus minimizing earnings impact to the plan sponsor.
Newport Group, Inc. and its affiliates provide recordkeeping, plan adminstration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc, and Newport Group Consulting, LLC, SEC-registered investment advisers and affiliates of Newport Group, Inc. Securities transactions are provided through Newport Group Securities, Inc. (member FINRA) in its role as broker-dealer. Fiduciary and advisory services are provided through the registered investment advisers. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Trust and custody services provided by Newport Trust Company, a New Hamphsire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.