A Fiduciary Approach to Investment Selection and Oversight for 401(k) Core Menus and Pension Plans

When it comes to managing retirement plans, selecting the right investments is critical for helping employees achieve their long-term financial goals. At LoVasco Consulting Group, an independent fiduciary advisor, the focus is on providing unbiased, client-centric recommendations that prioritize the best interests of plan participants.

LoVasco’s approach to investment selection and oversight is rooted in a commitment to fiduciary responsibility, meaning we are legally and ethically bound to act in the best interest of our clients. As an independent advisor, LoVasco is not influenced by outside interests or product commissions, ensuring that investment recommendations made to our clients are truly aligned with the needs of the plan sponsor and participants.  

Investment Selection

LoVasco’s investment selection process is thorough and multifaceted, leveraging deep industry expertise and a rigorous evaluation framework. The team utilizes a combination of quantitative screens, in-house financial modeling, and qualitative or fundamental research to assess a wide range of investment options. Quantitative screens allow LoVasco to filter investments based on performance metrics, risk characteristics, and cost efficiency. This data-driven approach is complemented by proprietary financial models that help project future performance and identify potential opportunities or risks in the investment lineup.  

Additionally, qualitative research is conducted to evaluate the underlying strategies of fund managers, assess their expertise, and understand their investment philosophies. This combination of quantitative and qualitative methods ensures that each investment option included in the plan’s core menu is well-suited to meet the diverse needs of plan participants, offering a balanced mix of risk and return profiles that align with their long-term retirement goals.  

This comprehensive approach to investment selection ensures that LoVasco delivers high-quality investment offerings that are strategically aligned with the unique objectives of each retirement plan.

Ongoing Oversight and Monitoring

Once the core menu is established, LoVasco provides ongoing oversight to ensure the investment lineup remains competitive and continues to serve participants effectively. A key component of this oversight is the implementation of a formal Investment Policy Statement (IPS). The IPS outlines the plan's investment strategy, objectives, and the criteria used to evaluate and monitor investments. This document serves as a roadmap for decision-making and ensures that the plan’s investments remain aligned with the overall goals and fiduciary standards.  

LoVasco conducts regular performance reviews, re-evaluates asset managers, and monitors fees and expenses as part of this structured oversight process. The IPS provides a clear framework for these activities, making sure that any changes to the investment lineup are made with careful consideration and in the best interest of the plan participants. This proactive and disciplined approach helps ensure the plan sponsor is meeting its fiduciary responsibilities and that the plan consistently offers high-quality investment options.

A Client-Centered, Fiduciary-Driven Approach

By prioritizing independence and fiduciary responsibility, LoVasco Consulting Group helps employers create retirement plans that offer strong investment offerings while also ensuring compliance with regulatory standards. Our commitment to acting in our clients’ best interests allows employers to have financial clarity knowing their retirement plans are managed with integrity, center around maintain strong fiduciary standards, and maintain a dedication to participant outcomes.

For employers looking to optimize their retirement plans, LoVasco’s consultative approach ensures the investment selection process and ongoing oversight are centered around achieving strong outcomes for plan participants.