Investment Due Diligence for Employer 401(k) Plans

Market volatility makes it critical for retirement plan sponsors and fiduciaries to develop and maintain investment due diligence procedures and supporting documentation. Flautt Hare Davis will work with the Retirement Plan Committee to help develop and maintain the plan's investment strategy, which is summarized in an investment policy statement. This investment policy statement is used as a guide to evaluate your current investment offerings, and measure 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 address the stated objectives in your investment policy statement.

Flautt Hare Davis provides this comprehensive analysis by utilizing multiple tools, including Zephyr's Style Advisor, which is one of the most robust investment analysis tools available. Each investment is evaluated by more than a dozen different and objective analytical measurements, including:

  • Upside and downside capture
  • Style: Correlation and style drift
  • Performance: Excess return and tracking error
  • Risk-Return: Standard deviation, r-squared, alpha, beta and Sharpe ratio

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

Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA/SIPC. Other advisory services offered through Independent Financial Partners (IFP), a Registered Investment Advisor. Flautt Hare Davis LLC and IFP are separate entities from LPL Financial.

330 Mallory Station Rd. Suite A-2  Franklin, TN 37067 Phone: (615) 661-8828 Fax: (866) 661-6252 Email: jim.davis@fhdfinancial.com

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