fiduciary responsibilities: the long & winding road
TRANSCRIPT
Fiduciary Responsibilities:
The Long & Winding Road Presented by:
Tara Mashack-Behney
Bridget Q. Casher
About us
Bridget Casher, AIF®
Investment Consultant
This presentation is provided for informational and educational purposes only and is intended to be used as a general guide in planning. It should not be viewed as personalized
investment, tax, legal, or financial advice. Please review our detailed disclosure, which will appear at the end of our presentation.
Tara Mashack-Behney,
CFP®, ChFC®
Partner & President of
Investment Advisory Services
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Fiduciary Responsibility
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Fiduciary responsibility
Who is a Fiduciary?
Not who, but WHAT
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Discretionary control
Who is a Fiduciary?
Typically include:
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Plan’s trustee(s)
Note: Accountants, TPAs, and attorneys, are not commonly in a fiduciary role
Investment Advisor
Plan’s Administrative & Investment
Committee
Named Fiduciary
Fiduciary responsibilities
Best interest of participants
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Prudent manner Follow documents
Diversify investments Reasonable expenses
Did you know?
Personally liable
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DOL penalty taxes Civil action
We can work it out (No text insert song)
Fiduciary Responsibility
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Process, best practices & IPS
Prudent ProcessWhat that looks Like?
Committees meet regularly
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IPS that provides clarity
Engaged members
Robust meetings
Documenting with minutes
Investment Committee Best Practices
Structure•Reasonable Size
•Diversity
•Terms
•Charter
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Meetings•At least annually
•Agenda
•Minutes
•Plan ahead
Chair•Stay on track
•Clarity on decisions
•Establish next steps
Members•Show up
•Review materials
•Be prepared
•Ask questions
•Enthusiastic
•Seek understanding
Investment Policy Statement
Investment and Plan Objectives• Be realistic
• Within the committee’s control
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If not meeting criteria• Replace, don’t just add
• Don’t ignore
Responsible Parties• Reminders• Training
Investment criteria
• Be specific, but not too specific
Monitoring procedures• Clarity
• Long term performance
We can work it out (No text insert song)
Fiduciary Responsibility
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Fund menu
Different types of participants
Do-it-for-me Do-it-myself
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Fund Menu
Different Types of Funds Different types of easy options
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Non-Index
• Less diversified
• More expensive
• Volatility over benchmark
Index
• Low cost
• Broadly Diversified
Risk Based Target date
• Pros of one is cons of the other
Beyond fees and performance
Glide path
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Domestic/international splitType of fixed income
We can work it out (No text insert song)
Fiduciary Responsibility
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Know the TRUE cost of your plan
Fees
Annual review
• Total fee
• Benchmarking
• RFP/RFI
• Document including trend
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Revenue Sharing• Return of excess revenue
• Share class my present higher costs
• Inequitable to participants (if used to pay plan fees)
• Return to participants (best practice)
Assessment• Per Participant
• Basis Point
Questions
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Disclosures
All investment advisory services and fiduciary services are provided through Conrad Siegel Investment Advisors, Inc. (“CSIA”), a fee-for-service investment adviser registered with the U.S. Securities and Exchange Commission with its principal place of business in the Commonwealth of Pennsylvania. Registration of an Investment Advisor does not imply any level of skill or training. CSIA operates in a fiduciary capacity for its clients. Investing in securities involves the potential for gains and the risk of loss and past performance may not be indicative of future results. Any testimonials do not refer, directly or indirectly, to CSIA or its investment advice, analysis or other advisory services. CSIA and its representatives are in compliance with the current notice filing registration requirements imposed upon registered investment advisors by those states in which CSIA maintains clients. CSIA may only transact business in those states in which it is noticed filed, or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by CSIA with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of CSIA, please contact CSIA or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov) For additional information about CSIA, please refer to the Firm’s disclosure documents, the current versions of which are available on the SEC’s Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and may also be made available upon request.
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