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FIDUCIARY INVESTMENT SERVICES

3(38) FIDUCIARY INVESTMENT MANAGEMENT

The majority of retirement plan sponsors or trustees prefer to work with Shaffer Capital in a 3(38) fiduciary capacity. Under this arrangement, Shaffer Capital is appointed by the plan sponsor/trustee and accepts discretion over plan assets and assumes full responsibility and liability for the management of plan assets. As a 3(38) Investment Manager, we have the responsibility and the authority to select the investment options for the plan and to decide if and when to make changes to the plan investments.

If selected as a 3(38) Investment Manager, Shaffer Capital’s fiduciary investment services are as follows:

  • If the plan does not provide for participant investment direction, Shaffer Capital will be responsible for the selection of the plan’s investments.
  • If the plan provides for participant investment direction, Shaffer Capital will have discretionary authority to determine the core investment options and qualified default investment alternatives under the plan.
  • Shaffer Capital will provide model portfolios reflecting a range of risk and potential return characteristics appropriate as investment alternatives under an ERISA-covered retirement plan. These portfolios are updated by Shaffer Capital on a discretionary basis. The available portfolios include:
    • Aggressive - Active or Passive
    • Moderate Aggressive - Active or Passive
    • Moderate - Active or Passive
    • Moderate Conservative - Active or Passive
    • Conservative - Active or Passive
    • Ultra Conservative - Active or Passive

3(21) FIDUCIARY INVESTMENT ADVICE

Shaffer Capital can serve as a 3(21) Investment Adviser at the plan or participant level. If selected as a 3(21) Investment Adviser at the plan level, Shaffer Capital is appointed by the plan sponsor or trustee to act in a “co-fiduciary” capacity. Under this arrangement, the plan sponsor/trustee and Shaffer Capital share responsibility and accountability for any investment decisions made. Shaffer Capital is liable and accountable for its investment advice to the plan sponsor. The plan sponsor is ultimately responsible for selecting the investment options for the plan and remains liable for its decision of whether or not to implement Shaffer Capital’s advice.

If selected as a 3(21) Investment Adviser, Shaffer Capital’s fiduciary investment services are as follows:

  • Assist in the development and/or review of an Investment Policy Statement.
  • Assist in the evaluation, selection, and monitoring of plan investments, core options, and qualified default investment alternatives, if applicable.
  • When requested, Shaffer Capital will make custom investment recommendations to plan participants for their plan account.