Every cash balance plan has a unique design. We are experts at custom portfolio management and build portfolios to match the distinct characteristics of each plan.
Prudent investment approach
Cash Balance Plan assets are tasked with meeting the annual expected interest crediting rate (ICR) determined by each plan’s design. Our investment approach is built around producing targeted returns and preserving principal over an annual investment horizon, focused on achieving the crediting rate. We institute a prudent, more stable tailored strategy to that of a typical total return approach which often incurs heightened funding risk.
Implementing our strategy allows plan sponsors to extend to participants an important tax deferral retirement option while at the same time, the flexibility to configure the invested assets into the appropriate risk posture at differing times throughout the year. ACG’s custom approach offers plan sponsors maximum versatility.
Tailored investment strategy
A customized portfolio is the most efficient way to effectively meet your plan’s funding objectives. You can count on our team’s perspective, market intelligence and collaboration to seize market opportunities. You’ll gain:
- Tenured portfolio managers and analysts with expertise in a variety of sectors, who have navigated numerous market cycles
- Proprietary internal credit analysis methodology, rating assessment and value determination to obtain the correct assets for your plan
- Competitive procurement of securities with no internal inventory eliminating any unnecessary transaction costs
Dynamic asset allocation
Market information and insightful perspectives are crucial to deliver strong risk-adjusted returns. We aim to optimize the use of investment funds while holding safety of principal as paramount. Additionally, our processes have been developed to incorporate each sponsor’s distinct tolerance for risk.
- We implement a dynamic glidepath to adjust risks as the strategy nears the annual required funded status
- Strategic portfolio allocations with dedicated monitoring of investment risks
- Fluid process to accommodate differing market environments and risk tolerances helping to maintain a suitable, stable level of funding