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. 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. Securities are offered through Newport Group Securities, Inc., a dually-registered investment advisor and broker dealer, member FINRA. Securities in California are offered through Newport Securities Insurance Services. For more information about Newport Group Consulting and its services, Newport Group Securities, Inc. or Newport Securities Insurance Services and services offered, please refer to our Form ADV Part 2, which is available by contacting us at 407-333-2905, visit our website at www.newportgroup.com, or advisorinfo.sec.gov.  

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

Newport Group Consulting, LLC, Newport Group Securities, Inc., and Newport Trust Company are subsidiaries of Newport Group, Inc., an Ascensus Company.