3(38) Investment Manager
As a sponsor of a retirement plan, you are a fiduciary to the plan and its participants. We can help you with that responsibility by offering a number of fiduciary services options in collaboration with your advisor to address the goals of the plan and level of risk you would like mitigated.
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- Provides for asset class and individual investment selection, monitoring, and ongoing management
- Development of the plan's investment policy statement
- Quarterly reporting provided through the Fiduciary Monitoring Report, using the American Trust Fiduciary Monitoring Index.
- Up to four meetings with the plan's investment committee (based on plan size and revenue)
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- At least once per year, and more frequently if needed, American Trust forecasts the expected returns and risk for more than 20 unique asset classes
- Asset allocation models can be managed to have a strategic target (i.e., 60% equity and 40% fixed income) or constructed as a series of risk-based portfolios that range from conservative to aggressive risk
- American Trust uses proprietary analytics to construct and manage each model portfolio and regularly monitors portfolio metrics and risk
- American Trust uses proprietary analytics to construct and manage each model portfolio and regular monitors portfolio metrics
- Models are customized using the plan's investment options
- Plans can offer models in addition to managed accounts
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- American Trust's investment process assigns the participants to the portfolio with the least amount of risk at the normal retirement age, with the required savings rate needed to achieve their desired income goal.
- To improve the likelihood that a participant will achieve their goal, the process leverages one of the three glidepaths (conservative, moderate, or aggressive) and can recommend delaying retirement for up to three years.
- The service allows the participant to add information about their spouse, and any additional assets earmarked for retirement, to improve the recommendations received from American Trust.
American Trust Fiduciary Services
Reduce Plan Sponsor Fiduciary Responsibility
Plan sponsors can reduce their fiduciary liability regarding the investments of the plan by delegating those responsibilities to a 3(38) Investment Manager. That 3(38) Investment Manager, under ERISA 403(a)(2), retains the authority to select, manage and remove the assets of the plan on behalf of the plan sponsor, participants, and their beneficiaries.
American Trust serves as a 3(38) Investment Manager to certain clients on the American Trust recordkeeping and custodial platforms.
As a 3(38) Investment Manager, American Trust:
- Acknowledges fiduciary status in writing
- Prepares or reviews the Investment Policy Statement (“IPS”)
- Retains authority to select, monitor and manage the plan investments
- Constructs and manages risk-based models (as applicable)
- Selects the Qualified Default Investment Alternative (“QDIA”) (as applicable)
- Proactively makes investment changes for the plan
- Produces quarterly investment reports to assist in the ongoing monitoring of the plan
Want to learn more?
Plan sponsors can reduce their fiduciary liability regarding the investments of the plan by delegating those responsibilities to a 3(38) Investment Manager.