Bringing sound investment ideas to businesses large and small, AFS can help design and implement proper retirement plans and other investment portfolios, using over three decades of knowledge in the field to best serve clients. We are proud to advise plan sponsors on:
Quarterly economic and market developments
Ongoing monitoring of existing funds and fund searches
Fee analysis and open book accounting implementation
Construction and monitoring of pension portfolios
Recordkeeping vendor searches
Development of model portfolios
We specialize in the following service areas:
401(k) Plan Administration
Defined Contribution
Defined Benefit
Total disclosure of all vendor and investment fees is one of many important services we offer. When combined with ongoing investment monitoring, we hope to assuage any client’s concerns about today’s fiduciary liability.
In light of recent inquires by regulatory agencies concerning conflicts of interest within the investment consulting industry we disclose the following to our current and prospective clients:
AFS is not a broker dealer and can not execute trades placed by money managers
AFS does not accept compensation of any kind for including service providers in the searches we perform
AFS does not accept commissions or revenue of any kind from third parties
AFS does not accept compensation (either direct or indirect) for
arranging meetings between service providers or money managers and
clients
AFS does not accept gifts or gratuities valued at more than $100
AFS uses Charles Schwab as a custodial agent for our high-net worth
clients but does not receive any preferential treatment (greater than
other like RIAs) for placing retirement assets with one of Schwab’s
related companies
Investment Analysis
Using a proprietary grading system that incorporates up to 15 different fund metrics, AFS continually monitors your investments, providing definitive guidance to help your firm stay ahead of the curve. We investigate every angle, from raw performance to batting average. Our reporting function produces a Passing Percentage and Overall Score, allowing your Plan Committee to make quantifiable decisions on each fund’s status.
Fund Name
Ticker
Category
Tot Ret Annlzd 3 Yr
% Rank Cat 3 Yr
5 Yr Batting Average
3 Yr Std Dev
Ovrl Score
ABC Value Fund A
ABS FX
Lrg Value
10.26
20
58.33
7.76
10.00
Lrg Cap Value Index
9.32
58.33
8.17
Lrg Value Category
Lrg Value
8.29
58.33
8.32
AFS continually evaluates investment performance, providing definitive guidance to help keep your firm ahead of the curve.
Revenue Analysis
AFS recognizes that your fiduciary obligation is to control expenses by closely monitoring compensation paid to the vendors who support your Plan. One of our most valuable services is the calculation of vendor revenue, including: 12b-1 fees, sub-transfer agent fees, finder’s fees and billed items.
Acknowledging our firm’s traditional CPA roots, AFS goes a step further than just tallying invoiced items and revenue sharing dollars; we also compare this revenue to the costs associated with your Plan.
Get a more complete picture —
Expressed not only in revenue, but also vendor profit margins. Our insight provides the leverage your business needs to maintain a cost-competitive Plan year-over-year ... without having to spend time bidding the Plan after each contract cycle. In addition, AFS supports your negotiations with fee /cost data, vendor service standards and benchmarking.
Vendor Revenue Summary
Total Vendor Revenue
$426,357
Total Vendor Expense
$398,254
Profit
$28,103
Profit per Participant
$5.91
Vendor's Profit Margin
4.98%
AFS offers the complete picture, expressed in both revenue and vendor profit margins. This insight ensures your business maintains a cost-competitive Plan year-over-year.
Recordkeeping Vendor Search
AFS believes a vendor search is usually a last resort measure, but may be necessary in certain situations. We can help you perform a thorough, systematic search that includes:
Benchmarking the current Plan
Establishing vendor grading criteria
Writing a short list of RFP / RFI candidates based on suitability
Preparing and delivering the RFP / RFI
Recommending vendor finalists and organizing on-site visits
AFS provides comprehensive documentation of the vendor search process, ensuring that your fiduciary duties are satisfied through due diligence.
Defined Benefit and Model Portfolio Management
Combining broad institutional investment knowledge with industry-leading analytical resources, AFS creates the infrastructure that can help you reach your financial objectives.
AFS designs Efficient Frontier portfolios – portfolios offering the best potential returns with the least amount of risk – for your Defined Benefit Plan, defined contribution lifestyle funds or corporate portfolio.
Within this framework, we apply the principles of Modern Portfolio Theory – examining the market from an economist’s global viewpoint – to fit your investing preferences. Then, based on targeted rate of return, AFS identifies a blend of asset classes to construct your portfolio.
AFS screens active managers, processing extensive raw data for style analysis. This sophisticated and continuous evaluation of qualitative and quantitative factors helps ensure the identified managers represent the targeted index. We believe this evaluation criteria should closely align with your Plan’s Investment Policy Statement (IPS).
What does this mean for your business?
AFS can design custom model portfolios tailored to meet your Investment Policy standards and better gauge performance, adding value through active management. Each quarter, AFS professionals meet to review strategic model portfolio allocations, examining weighting and individual fund managers. We never take our eyes off the market. Because we never want to miss an opportunity that could help your business succeed.
Return vs. Risk
Employing Efficient Frontier analysis and Modern Portfolio Theory, AFS constructs portfolios designed to offer the best potential returns with the least amount of risk.
