Deferred Compensation 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 corporate-owned life insruance (COLI) and/or mutual funds, Newport 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 nonqualified 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 among Newport's core competencies. Our tailored evaluation includes contract analysis, pricing and guaranteed issue negotiations, carrier credit research, and policy placement  As one of the nation’s largest administrator of institutional insurance, our clients enjoy some of the best products and pricing offered by the nation’s premier carriers. Newport'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’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 helping to minimize earnings impact to the plan sponsor.


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Newport Group, Inc. (“NGI”), an Ascensus Company, and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services.

Securities are offered through Ascensus Broker Dealer Services, LLC (“ABDS”), member FINRA/SIPC. Securities in California are offered under the d/b/a Ascensus Corporate Insurance Solutions. Other insurance products may be offered by NGI. For more information, please visit -

Investment Advisory and fiduciary consulting services are offered through Newport Group Consulting, LLC, an SEC registered investment adviser and subsidiary of NGI. For more information about Newport Group Consulting and its services, please visit or refer to our Form ADV Part 2, which is available by contacting us at 407-333-2905 or

Newport Trust Company is a New Hampshire state-chartered trust company and wholly owned subsidiary of NGI. Newport Trust Company provides independent fiduciary and trustee services for employee benefit plans.

The views expressed herein are those of NGI and are current only through the date indicated. These views are subject to change at any time based upon market or other conditions, and NGI disclaims any responsibility to revise these materials to reflect updated views. These views may not be relied upon as investment advice and, because investment decisions for NGI are based on many factors, may not be relied upon as an indication of trading intent.