SOLUTION FOR MANAGED ACCOUNT SERVICES

Plan sponsors have long been concerned about the liability of offering investment advice and managed accounts to their plan participants. The Pension Protection Act of 2006 (PPA) has alleviated many of their concerns by allowing sponsors to offer managed accounts using a fiduciary adviser. This option brings the responsibility of finding the appropriate
Investment Manager to advise on employees’ assets. A plan sponsor must perform due diligence and ongoing monitoring of the fiduciary adviser that it selects, and holds fiduciary liability for these activities.

Additionally, providers who offer plan sponsors a single managed account option may not always meet the specific needs of each plan sponsor, but the cost of integrating, operating and maintaining multiple managed account providers has historically been cost prohibitive.

OVERVIEW

ProNvest, an independent Registered Investment Adviser firm, helps solve the fiduciary and cost challenges for plan providers and sponsors.

ProNvest provides managed accounts, Qualified Default Investment Alternatives, gap analysis, retirement planning, participant servicing technology, and data integration services through plan providers who want to offer managed account services to their customers. These services can be delivered to plan sponsors via a choice of service models.

OPEN PLATFORM OF INVESTMENT MANAGERS

ProNvest selects and integrates multiple Investment Managers/RIAs into its platform and conducts ongoing due diligence in accordance with PPA guidelines. By offering an open platform of investment managers, ProNvest helps alleviate the liability of plan providers offering a single managed account solution, helps plan sponsors fulfill their fiduciary responsibility, and reduces the cost challenges for providers by offering sponsors multiple managed account programs as follows:

• ProNvest’s due diligence and monitoring services support the plan sponsor’s efforts to fulfill its fiduciary responsibility in the selection and monitoring of investment managers.
• ProNvest helps enable the plan sponsor to select the investment manager that best meets the needs of its plan as opposed to using a single managed account offering that is supported by the provider.
• ProNvest helps reduce provider fiduciary liability by shifting much of the due diligence
  effort required and liability of that decision from the provider to the sponsor.
• ProNvest standardizes the integration and operation of each investment manager into the program so that a single integration with the provider is required, even if the plan decides to switch investment managers voluntarily or involuntarily at a later date. Single integration helps eliminate additional integration costs, minimizes ongoing support of data connections and use of IT resources, and helps eliminate potential service disruption to participants when changing independent managers.

INTEGRATION AND TECHNICAL SERVICES

ProNvest’s experience with defined contribution plan recordkeeping systems and technical integration activities helps to implement these services more quickly while using fewer provider resources.

FLEXIBLE BUSINESS MODELS

ProNvest offers a choice of service options: a full service delivery that includes a retirement planning application, a dedicated call center, and field-based education and enrollment specialists. We also offer a private label option where providers can use their own servicing infrastructure to deploy ProNvest’s technology and network of independent managers.