Creating an Effective Investment Policy Statement

Creating an Effective Investment Policy Statement

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Retirement plan sponsors aren’t required to have an Investment Policy Statement (IPS) for their plan. However, having a written statement in place can facilitate your organization’s plan meeting federal and state regulations and fulfilling the fiduciary duties of a plan sponsor and/or their committee. However, not all policy statements are created equal, and there are a few topics every IPS should cover. Learn about what should be included in an effective Investment Policy Statement and how a well-crafted IPS can lighten the load of a committee that’s tasked with difficult plan decisions.

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Why Add ESG Funds to Your Investment Menu?

Why Add ESG Funds to Your Investment Menu?

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An increasing number of investors want impact-driven investment vehicles. They want to avoid investing in companies that avoid diversity and inclusion, abuse labor, produce products or provide services that cause health or safety problems, or pollute the environment. However, trying to bypass such companies can make investing in many mutual and index funds a challenge. Because of this, environmental, social, and governance (ESG) funds are increasing in popularity, especially among younger investors. According to a survey conducted by Callan Institute, incorporation of ESG factors into the investment decision-making process increased to 42% in 2019 compared to 22% in 2013. But is it cost-effective and a good fit to include ESG funds in your plan’s investment menu? Learn more about ESG and how you should proceed if you’re interested in adding ESG funds to your investment line up.

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Active vs Passive Investing: A Hotly Contested Debate

Active vs Passive Investing: A Hotly Contested Debate

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There is no single, preset approach to designing an investment menu for defined contribution retirement plans. Accordingly, there are a plethora of highly contested ideas and theories around menu construction and how to maximize the value to participants through the plan’s investment offerings. One of the most prominent, and often most polarizing, menu design considerations is the superiority of active or passive management for plan investments. With a fundamental understanding of how active vs passive investing approaches work, as well as the pros and cons of each, plan sponsors can make more informed decisions in their menu construction.

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Maximizing Plan Design to Drive Better Outcomes

Maximizing Plan Design to Drive Better Outcomes

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A successful retirement plan program encourages and enables its participants to build sufficient retirement savings, choose the appropriate investments, manage investment risk, and generate a lifetime of income. Although there exist nearly as many retirement plan structures as individuals who participate in them, not all plans are created equal—and plan design can significantly influence savings and retirement decisions. However, due to the number of options available, plan design can be a complex undertaking. Learn more about the plan design features that will boost your plan participants’ readiness for retirement.

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Building an Ideal Investment Fund Lineup

Building an Ideal Investment Fund Lineup

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Plan sponsors know that offering a retirement plan is important not only to attract and retain loyal employees, but to ensure they are retirement ready. There are many moving parts to the retirement plan, including enrollment, plan education efforts, building the investment fund lineup, staying compliant with the DOL and ERISA, and making distributions. Particularly, building an ideal investment fund lineup is a multi-stage process, and for many sponsors, the prospect of selecting the investments to be offered in a plan can seem overwhelming. With thousands of investment funds available to choose from, creating the right mix for your employees can be difficult.

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