Diligence

When you engage 401(k) advisors - AZ to serve as your advocate, your plan undergoes four critical litmus tests:

1. Investment Due Diligence Review and Analysis
2. Fees and Services Benchmarking
3. Request for Proposal Management
4. Fiduciary Compliance Review

Investment Analysis

Investment decisions are challenging for small to mid-size companies without a trusted, ongoing relationship with an accomplished investment advisor.

401(k) Advisors - AZ is that advisor.

In our capacity as a Registered Investment Advisor™ we follow a highly disciplined and prudent methodology to ensure the investment portfolio empowers your plan and the retirement outcomes of your participants. The share class decision alone could potentially impact performance by more than 20 percent.

In general, we review the asset allocation mix and investment quality of current offerings; strive to improve or expand the investment menu with your current provider; and, determine how mutual fund share classes can affect overall pricing.

As your advocate, we provide you with a thorough process to analyze, select, monitor the on-going quality of investments. When necessary, we recommend replacement. Our analytical tools are viewed as best-in-class. In-house development of our Scorecard^SM ranking system differentiates us from all other advisory firms. Consider these specifics:

• Perform Investment Due Diligence on Fees, Managers and Effectiveness
• Conduct Due Diligence on Performance, Risk, Classes and Styles
• Deliver Independent Analysis and Advice on Investment Options
• Create an Easy-to-Understand and Easy-to-Administer Investment Policy Statement
• Conduct the Investment Analysis and Review
• Apply the Proprietary ScorecardTM Fund Ranking
• Present a Quarterly Plan Review

Nowhere else can you so amply benefit from the level of interpretative skills, robust technology, quantitative and qualitative analysis than with 401(k) Advisors. Armed with a 100-page precision detail report, you are fully informed. That means your exposure to fiduciary liability can be reduced.

Fees

Many plan sponsors are unaware of plan fees and unfamiliar with fee structures. If fees are excessive, the impact on plan effectiveness is significant.

401(k) Advisors - AZ has developed a proprietary process that results in a complete Fee Benchmarking Analysis Report, which compares total current fees, both administrative and investment-related on as many as ten other providers of plans with similar demographics.

Further, this fee report includes a cross-section of types of providers-from independent third party administrators to bundled and semi-bundled providers. During our analysis, we work to:

1. Educate plan sponsors on provider fees charged, both disclosed and undisclosed
2. Disclose the amount of fees actually paid by the plan sponsor and participants
3. Discuss and recommend alternative fee-reduction and containment arrangements
4. Benchmark your current provider to other providers that service similar size plans

RFPs

401(k) Advisors is the largest provider of Requests for Proposals in the United States. 401(k) Advisors - AZ leverages that power to deliver a complete RFP management service for clients which includes:

• Selection of vendors whose clients match your profile
• Comparison of proposals based on 350 different components
• Comparison of pricing based on both administrative costs and investment expense
• Management of the conversion process, if a new vendor is selected

Additionally, we provide documentation to support the decision to do formal request for proposal (RFP).

Compliance

There is a tidal wave of change occurring in the benefits sector. And it could affect you. Do you know what to do?

Without a clear and concrete compliance process, plan fiduciaries can be held personally liable for failure to meet best practices, poor employee investment returns, adhere to new laws, or for any other number of potentially hidden pitfalls.

In our compliance work, we guide plan sponsors to make sure they meet the ebb and flow of legislative requirements under ERISA, the DOL, IRS and other regulatory agencies.

By using a defined process (an ERISA requirement) and an independent advisor (a DOL suggestion), plan sponsors move ahead with confidence in the knowledge that a sound decision has been reached through independent, unbiased guidance.