Investment Due Diligence

Did you know, as a plan sponsor of your company you are considered an investment expert? Did you know that plan sponsors may be held personally liable for poor investment performance? We want to help.

A solid investment process is critical for plan sponsors, trustees and fiduciaries. 

401(k) Professionals helps navigate fiduciary responsibility through a methodical and qualitative investment analysis. Our due diligence focuses on a recurrent approach of fund selection, monitoring and ongoing review. 

Our team works with you to develop and adhere to your customized Investment Policy Statement (IPS). The IPS is an important document that elaborates on the management of the 401(k) plan, where trust documents left off. Your offerings will be measured against applicable indices, your existing administrator’s complete lineup and the broader market of possible investment options. In fact, upon an audit by the Department of Labor (DOL), one of the first requested documents is the Investment Policy Statement. Therefore, the IPS provides a definitive outline of steps that will be taken and is your continual evidence of fiduciary stewardship to participants.

An IPS also assists by providing a paper trail of policies, procedures and practices for investment decisions. During periods of market decline, the IPS can have a calming effect by reminding both plan sponsors and participants of the purpose of the chosen investment strategies, and watches out for any inherent risk in the plan. The result is confidence that your plan’s investments are diversified, well managed and meet the stated objectives of your investment policy statement.