Funding Strategies

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.

Financial Impact

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.



Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and InterServ, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and InterServ, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment adviser. when offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer.

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Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and InterServ, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and InterServ, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment adviser. 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 Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.