Core Belief #1
We believe that if left to their own devices, participants will not reach retirement successfully.

Is it reasonable to assume that your participants have the financial expertise, time, interest, and confidence necessary to manage their retirement investments?

  • Can they distinguish between active and passive; large cap, mid cap, and small cap; equity and fixed income?
  • Can they properly allocate among those asset classes to make them work together congruently with their risk tolerance?
  • Are they able to overcome their innate fears to consistently make good decisions in times of market stress?
  • Workers spend more time researching options for a new car or going on a vacation than in researching 401(k) investment choices.2
  • Over the 20-year period ending in 2014, a 60/40 portfolio yielded an average annual return of 8.7%. The average individual investor? A mere 2.5%.1 (See example on Figure 1.)

Core Belief #2
We believe that the best solution for your participants is one designed with their best interests and needs at the forefront.

A solution that truly prioritizes the participant is one built upon four attributes:

1. Addressing participants’ particular risk tolerance, time frame, goals, and lifestyle.

Not all people at the same age have the same risk tolerance, and not all people entering retirement have the same lifestyle.

2. Eliminating any and all proprietary bias.

Is it prudent to place 100% of your participants’ retirement savings with one investment company? Is it likely that one company has all of the best funds? A non-proprietary investment process opens the door to lower cost, better-performing investments.

3. Providing education and simple methods for participants to identify the appropriate allocation.

An appropriate do-it-for-me strategy should be accompanied by educational tools, such as a straightforward risk assessment.

4. Accountability from your fiduciary partner to participants and plan sponsors.

A fiduciary investment manager is subject to ERISA’s duty of loyalty – to make decisions in the best interests of your participants and beneficiaries. Without a fiduciary manager, a plan’s trustees, committee members, or other fiduciaries retain the responsibility for choices made.

1 Dalbar, Inc., data as of 12/31/14
2 ”401(k) Participant Survey,” Charles Schwab, August 2014
3 “Help in Defined Contribution Plans,” Financial Engines/Aon Hewitt, May 2014
4 “The Impact of Advice and Managed Accounts on Retirement Savings and Investment Behaviors,” Morningstar, August 2014

Fiduciary Investment Trusts, LLC markets and distributes Fiduciary Investment Trust (including Core Series) Funds. Said Funds are organized as collective investment trusts and Comerica Bank & Trust, National Association (“Comerica”) serves as the Funds’ trustee and administrator. Fiduciary Investment Trusts, LLC may also provide retirement plan information and retirement plan education, including general financial, investment, and retirement information. Fiduciary Investment Trusts, LLC will not provide personal investment advice, act as a fiduciary, or reference the appropriateness of any individual investment alternative. Fiduciary Investment Trusts, LLC and Comerica are not affiliated. Fiduciary Investment Trusts, LLC and Fiduciary Investment Trust (including Core Series) Funds are separate entities and are not affiliated.