Investment Due Diligence

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Investment Due Diligence

Our client's unique situation and goals drive how we implement our proprietary fiduciary process that is designed to deliver measurable improvements across their plan, is documented, compliant with ERISA and defendable. As a plan fiduciary, we provide independent and unbiased advice and are motivated to always act in our client's best interests based on the highest ethical standards.

Investment Due Diligence

Development, review and implementation of Investment Policy Statement consistent with ERISA's prudent man rule
Investment selection, continuous evaluation and reporting
Analyze all investment fees and performance measurements
Forward looking investment research and investment due diligence
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Did you know?

Unless plan fiduciaries possess the necessary expertise to evaluate plan matters, a fiduciary would need to obtain the advice of a qualified, independent expert [DOL IB 95-1]
ERISA requires that plan fiduciaries satisfy their duties to consider the facts and circumstances relevant to each plan investment, including; portfolio composition, liquidity and projected return of the portfolio [ERISA §404a-1]
Not all retirement plan vendors receive the same revenue sharing from investment management companies

Investment Due Diligence

Market volatility makes it critical for retirement plan sponsors and fiduciaries to develop and maintain investment due diligence procedures and supporting documentation. ClearPath Retirement Partners will work with the retirement plan committee to develop and maintain the plan's investment strategy, which is codified in an investment policy statement. This investment policy statement is used as a guide to evaluate your current investment offerings, measuring them against applicable indices, your existing provider's complete menu and the broader universe of investment options. The result is confidence that your plan's investments are diversified, well managed, and meet the stated objectives of your investment policy statement.

ClearPath Retirement Partners provides this comprehensive analysis by utilizing multiple tools, including Morningstar Direct, one of the most robust investment analytical tools available. Each investment is evaluated by more than a dozen different and objective analytical measurements, including:

Upside & Downside Capture
Style: Correlation & Style Drift
Performance: Excess Return & Tracking Error
Risk-Return: Standard Deviation, R-squared, Alpha, Beta & Sharpe Ratio

Performing this analysis on a regular basis is essential to documenting compliance with Department of Labor guidelines and minimizing exposure to fiduciary liability.

Fiduciary Audit Package

Because ClearPath Retirement Partners will serve as the investment advisor to the plan, the plan sponsor is relieved from the duty of being an expert on investments. Instead, the plan sponsor will be subject to the more modest burden of ensuring the advice ClearPath provides regarding the plan's investments is reasonable. By contrast, many other "retirement plan consultants" are unwilling to acknowledge their status as an investment advisor or a fiduciary to the plan, which means that all of the responsibility remains with the plan sponsor. In addition to the assistance ClearPath can provide with regard to investment advice, it can also provide training to the plan committee, assist with governance of the plan, monitor the effectiveness of other service and product providers, and provide electronic document storage.

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