While discretionary investment choices remain with each plan participant under ERISA, the PPP designs and makes available certain investing options to participants. So while each participant retains discretionary authority over his or her investment decisions, those decisions are constrained by the investing options the PPP offers.
The investing options we offer are categorized in different risk profiles. Importantly, each investing option is designed with our principal thesis in mind: to minimize the risk of large losses. So the investing option we label as “moderately aggressive” will almost certainly be less risky than options offered by other plans with the same label.
Additionally, for participants who want unlimited discretion to trade in their own account, unconstrained by our investing options, we offer access to our broker account trading platform. So, this is an additional investing option available to participants through our PEP.
While there are other PEPs to choose from, our differentiating factor is our singular focus to protect and grow plan assets, pursuant to a diversified investment strategy that protects against large losses, while also capturing the greatest possible upside performance, consistent with our diversification objectives. The investing options made available to participants are designed with this requirement in mind. So:
→ While many investment managers cleverly hide assets behind collective investment trust “black box” structures, we strive for full transparency.
→ While many (if not most) investment managers do everything possible to skirt around the DOL Fiduciary Rule, we embrace that rule, realizing its importance in protecting plan participants.
→ While many (if not most) investment managers place plan assets in speculative alternative investments and complex products (hedge funds, PE funds, derivatives, high-leverage trades), we emphasize plan liquidity.
In volatile economic conditions currently prevailing, maintaining a focus on liquidity, transparency and flexibility is the order of the day in participant protection.