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Investment and Fiduciary

Plan Evaluation

Blue Chip Advisors consultants have extensive experience in the review of plan investment menus, plan investment and administrative expenses, investment policy statements and investment review procedures to determine if changes are needed to comply with current regulatory requirements or procedures. We can help guide your employees responsible for ongoing plan management to develop policies and procedures that will meet their regulatory and fiduciary responsibilities.

Investment Policy Statement

Blue Chip Advisors will work to develop an investment policy statement intended to serve as a “roadmap” in the ongoing management of the plan. The investment policy statement delineates asset classes and investment styles to be included in the menu. It specifies the criteria for the evaluation and selection of investment options and identifies the criteria for ongoing monitoring and due diligence of investment options. The investment policy statement also provides for the design, construction and rebalancing of risk based model portfolios or target date funds as well as defines roles and responsibilities of the plan sponsor, committee, investment advisor, service providers, etc.

Investment Options & Review

Successful fund management begins with the performance, fees and diversification of your plan investments; investment options such as Equity style box coverage; International, Specialty and Fixed Income; and Self-directed brokerage accounts. Blue Chip Advisors’ consultants can help you determine the suitability risk and performance of investment options; peer ranking and benchmarks in 3 and 5 year annual returns. Our team of professionals will analyze investment share classes to peer benchmarks for expense ratio comparisons and determine actual fund returns or sub-account returns. A review the fund share classes that pay different fees and the effects on ratio and return will be performed and you will be provided with documentation of the Investment Policy Statement (IPS), analyze investment behavior of plan participants and diversification of styles in each category.

Investment Philosophy & Process

The key to effectively managing fiduciary liability is establishing and following a prudent process. Blue Chip Advisors starts by understanding the plan sponsor’s culture and the objectives of the plan. We will design and implement an investment policy statement while constructing an investment menu diversified by asset class and investment style. Designing and managing the portfolio’s target asset allocation is an important step in the investment process. Blue Chip Advisors philosophy includes evaluating and selecting investment managers based on quantitative and qualitative criteria, continuously monitoring each manager against the criteria specified in the IPS and removing and replacing investment managers as needed. The final step in a solid process is creating and delivering comprehensive reporting, analysis, commentary and review.

Fiduciary Responsibility

Who is a Fiduciary? Plan Fiduciaries include plan sponsors, committee members, boards of directors, officers responsible for investments, trustees and/or named or functional fiduciaries. Fiduciaries, as defined by ERISA, must exercise discretionary authority and management of plan benefits and investments and have discretionary responsibilities in the administration of a plan. Plan Fiduciaries may directly or indirectly render investment advice for compensation. ERISA’s high standard of conduct imposed on fiduciaries must be met with a well organized and documented process to select and monitor the investments of your plan. Blue Chip Advisors can answer your questions about your fiduciary responsibilities and direct your company to professional advisors who can help effectively manage your plan and meet your fiduciary responsibilities.

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