Employers are aware that the retirement plan offered to your workforce is critical to your ability to attract and retain employees. You want employees to use your benefit plans to regularly save for retirement.
You also want your employees to know you are acting in their best interest by giving them retirement plan options that fit their needs.
The two biggest issues facing retirement benefit plan sponsors today are:
- Making defined benefits and defined contribution plan investment choices
- Understanding benefit plan fees
An investment consultant and/or outsourced CIO/OCIO can help you face those retirement plan decisions. Whether you decide to maintain a traditional 3(21) arrangement or to adopt an OCIO 3(38) role depends on several factors like risk tolerance; the knowledge and experience of internal resources; and your ability to find a suitable investment consulting firm.
Investment Consultant and OCIO Evaluations
Many corporations retain the same investment consultant for years. In discussions with clients, we are often asked the following questions:
- Should we be shifting to an OCIO 3(38) model? Is it worth the cost? What would we be giving up? What are the risks and benefits?
- How do we objectively evaluate our investment manager options? Which criteria should we use?
- Which metrics should we be using to determine the quality of our investment consultant? Are their fees competitive in the marketplace?
- How do we monitor the ongoing performance of our investment consultant?
We provide unbiased guidance throughout the search and evaluation process by looking at key differentiators such as the stability of the firm, the strength of the proposed project team, and the investment policies to help you predict the risk and returns.
Working with Curcio Webb
Curcio Webb assists our client in several ways:
- Weighing the advantages and disadvantages of a 3(21) vs. a 3(38) or incorporating a hybrid model based on a client’s culture and objectives.
- Renewing investment consulting service agreements, while ensuring clients receive competitive contract and financial terms, meaningful performance standards, and appropriate service scope.
- Conducting a search for an investment advisor – either 3(21) or 3(38).
- Benchmarking the current service agreement to help employers determine the value of conducting a search vs. renewing with their existing consultant.