The combination of Premier’s investment philosophy and real world strategy delivers a wide range of significant benefits to plan trustees and participants.
The typical Wall Street approach to retirement plan investment selection and model portfolio design is inconsistent and haphazard. This results in portfolios that do not have well-defined risk and return characteristics, making it almost impossible for participants to make an accurate and workable decision on which model portfolio to use. These portfolios generally are under diversified, can be concentrated in too few stocks and do not incorporate the broadest range of asset classes. They also have higher costs and turnover resulting in a retirement plan investment program that prevent the trustees from making prudent decisions and selections. Most importantly, it does not enhance the likelihood of participants having a successful investment experience.
Premier Financial Group, as a Securities and Exchange Commission Registered Investment Advisor (SEC RIA) and co-fiduciary to the plan, has structured its investment program to allow the plan participants access to better portfolios.
The model portfolios designed by Premier are based on the same principles used in the portfolios that we create for our high net worth individual clients. This provides retirement plan participants with unique access to well-designed institutional class investment portfolios, which Premier offers regardless of the size of their account.
Premier Financial Group uses institutional, broadly diversified, structured asset-class funds that are blended together in model portfolios to allow trustees and participants to identify the risk level and return objectives that are appropriate for their own situation, and to access the capital markets in an efficient and consistent way. The funds are passive, but management techniques are employed to capture risks that generate expected returns, while reducing risks that do not. According to DFA this passive but managed approach sets their funds apart from pure index funds. DFA structures strategies based on scientific evidence rather than on commercial indexes.
While there is the option for participants to design their own portfolios, the use of one of the models, each with its unique risk and return characteristics, takes out the guess work and, we believe, much of the anxiety of this important investment decision. Incorporated in these models for the trustees’ and participants’ benefit is the following:
