Our Risk Management Investment Solution
The INOVE Plan Sponsor Benefits Group provides the following organizational risk management tools:
Asset Allocation Model Investment Portfolios for ERISA Plans & Plan Sponsors
IAM provides the INOVE Model Investment Portfolio Strategies (“iMIPS”) to plan sponsors of defined contribution retirement plans (“Plans”) subject to the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, which gives participants the ability to individually direct the investment of accounts under the Plan.
Through iMIPS, retirement plan sponsors can create and recommend a range of asset allocation model portfolio strategies, each consisting of a diversified mix of asset classes and investment styles for retirement plan participants. Plan sponsors will also receive educational guidance to assist in its review of these models. In addition, Plan sponsors receive guidance concerning investment portfolio options and model portfolio composition. Mutual funds and exchange-traded funds are used in the creation of your retirement plan investment options. For company stock, the investment category will be provided, but company stock is not included within the model portfolio.
The INOVE Model Investment Portfolio Strategies (“iMIPS”) are globally diversified asset allocation models. Investments are primarily in a diversified selection of mutual funds and ETFs that may invest in U.S. large cap, mid cap and small cap equities, foreign large cap equities, emerging market equities, U.S. Government long, intermediate and short-term bonds, high-yield bonds, foreign and emerging markets bonds.
OUR 6-STEP PROCESS
Step 1: Comprehensive Plan Analysis. Generally, INOVE holds an initial meeting with the Plan sponsor to explain the firm’s services and fees and to collect detailed financial data about the Plan. Emphasis is placed on identifying the Plan sponsor’s risk exposure, funding obligations, fiduciary practices, investment objectives and determining the comprehensive financial situation of the Plan.
Step 2: Asset Allocation Model Portfolio Development. Next, we consider the Plan’s investment objectives, financial situation, suitability and other relevant factors before making a recommendation. After the Plan sponsor reviews and approves our recommendations, the asset allocation model portfolio strategies are offered to the Plan sponsor for review.
Step 3: Investment Options Provided. Following Plan sponsor approval, iMIPS are offered to the Plan participants as comprehensive investment options. Following the completion of the individual investor profile and risk tolerance questionnaire, participants will select an Investment Option for their Plan accounts.
Step 4: Plan participant education. Employees receive general investor educational information, such as information regarding saving for retirement, asset allocation, model portfolios and the Investment Options available to the Plan’s participants.
Step 5: Partner with designated RecordKeeper and/or Third Party Administrator. On an ongoing basis, we work with the Plan sponsor’s Recordkeeper and/or Third Party Administrator (“TPA”) to ensure that the selected investment options are properly implemented.
Step 6: Invest and Monitor Fund Assets. With the Plan sponsor’s permission, we give instructions to the Recordkeeper and/or TPA to do the following:
- Invest the underlying assets of each Investment Option in a mix of investments in the Underlying Funds
- Periodically rebalance the mix of investments in the Underlying Funds for each Investment Option
- Strategically reallocate the mix of investments, and when necessary, modify the allocations for the Plan Investment Option