401(a) Retirement Plan

Transcription

1 a CITY OF MIAMI G.E.S.E. 401(a) Retirement Plan SEPTEMBER 30, 2016

2 PRESENTERS DON DOW Vice President, Institutional Sales RFP Response FERNANDO LLOP Retirement Plans Specialist Onsite Services HORTENSIA PEREZ, CFP CERTIFIED FINANCIAL PLANNER Professional Financial Planning & Education 2

3 DISCUSSION TOPICS CITY OF MIAMI GESE LOCAL ON-SITE EDUCATION STABLE VALUE INVESTMENT OPTION CITY S FIDUCIARY RESPONSIBILITIES 3

4 FOCUSED MISSION UNIQUE PERSPECTIVE LOCAL PRESENCE 4

5 RealizeRetirement Building Better Outcomes for Our Clients ENGAGE BUILD REALIZE 5

6 CITY OF MIAMI GESE LOCAL ON-SITE EDUCATION 6

7 FERNANDO LLOP RETIREMENT PLANS SPECIALIST SALARIED, FULL-TIME employee of ICMA-RC Helps participants ESTABLISH GOALS and ACTION PLAN Focuses on APPROPRIATE ASSET ALLOCATION for desired goals Helps participants determine FUTURE INCOME REPLACEMENT needs and GAP ANALYSIS REVIEWS, EVALUATES, ADJUSTS as necessary 7

8 BUILDING BETTER OUTCOMES + Outreach Technology 8

9 CONTINUED IMPORTANCE OF HIGH TOUCH APPROACH What are the best methods you ve found to communicate with participants? Source: NAGDCA 2015 Survey of DC Plans. Showing 11 of 16 total methods of outreach. 9

10 INTERACTIVE TOOLS: UNDERSTANDING THE AUDIENCE Online, all the time Mobile App with Enrollment, Transactions & Texting FERNANDO LLOP RETIREMENT PLANS SPECIALIST (866) Inspirational Videos Push Technology 10

11 ENHANCED LEARNING TOOLS 11

12 HORTENSIA PEREZ, CFP CERTIFIED FINANCIAL PLANNER Professional Financial Planning FINANCIAL PLANS delivered on-site or telephonically by a headquarters financial planner Group SEMINARS/WORKSHOPS Retirement Planning Managing Cash Flow Long-Term Care Insurance Credit and Debt Management Social Security/Medicare Planning Individual CONSULTATIONS Incorporate outside assets for comprehensive household analysis Three types of written financial plans 12

13 CFP SEMINAR LINEUP SERIES 13

14 TOOLS TO REALIZE CFP EDUCATION RMD CALCULATOR SOCIAL SECURITY OPTIMIZER MANAGED ACCOUNTS FOR RETIREES 1 14

15 NOW LIVE! RETIREE MEDICAL EXPENSES 15

16 STABLE VALUE INVESTMENT OPTION 16

17 WHAT TO LOOK FOR IN A STABLE VALUE FUND What are key items to look for in a Stable Value Fund? 1. CREDIT QUALITY 2. DIVERSIFICATION 3. DURATION 4. LIQUIDITY What about RISK? 17

18 VT PLUS FUND 1 TIER ALLOCATION PERCENT OF PORTFOLIO BOOK VALUE As of March 31, 2016 Percent Allocation Duration Tier 1 Cash Buffer 10.62% 0.08 Tier 2 Shorter Duration 7.94% 2.15 Tier 3 Laddered Maturity 23.70% 2.52 Tier 4 Total Return 57.74% 3.89 Total/Wtd Avg % 3.03 Market-to-Book Ratio % Wtd Avg Credit Quality 4,5,* Aa3/AA- Competitive level of income consistent with providing capital preservation & meeting liquidity needs Portfolio diversified by sector, industry, issuer and issues (e.g., over 3,000 securities) * Weighted Average Credit Rating is calculated by ICMA-RC and is only one factor that may be considered in assessing the risks of a fixed income portfolio, and it does not provide a complete picture of the credit risks or the dispersion of those risks within a portfolio. ICMA-RC calculates the average based on the Moody s, S&P s, Fitch s or a combination of the three credit ratings of the underlying securities or wrap providers. Moody s, S&P, and Fitch are Nationally Recognized Statistical Rating Organizations and are not affiliated with ICMA-RC. 18

19 VT PLUS FUND 1 PERFORMANCE 2 RANKING 4.5% Universe: Hueler Stable Value 3 Gross Returns Universe Percentiles as of March 31, % 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 3.58% 2.64% 2.28% 2.36% 1 Year 3 Year 5 Year 10 Year VT PLUS Gross* Return** 2.28% 2.36% 2.64% 3.58% VT PLUS R5* Return** 1.71% 1.79% 2.06% 3.04% # Funds in Peer Group th Percentile th Percentile th Percentile th Percentile * The VT PLUS Fund Gross Return is net of fees of 0.27% of assets, which consists of: (i) third-party subadvisers fees of 0.10% of assets; (ii) third-party wrap provider fees of 0.14% of assets; (iii) thirdparty custody fees of 0.01% of assets; and (iv) third-party acquired fund fees of 0.02% of assets. The gross return is reported in a manner consistent with stable value industry reporting practices. The VT PLUS Fund R5 total fee is net of fees of 0.83% of assets, as disclosed in the VantageTrust Funds Fees and Expenses document accompanying the most recently published Retirement Investment Guide. The fees in the net return consists of: (i) Fees listed under the gross return; (ii) ICMA-RC Advisor fees of 0.30% of assets; (iii) ICMA-RC Operating Expenses of 0.01% of assets; and (iv) ICMA- RC plan & participant services fees of 0.25% of assets. Fees are subject to change due to fixed income manager, wrap, allocation, or other changes. ** Periods greater than one year represent annualized performance and past performance, as shown, is no guarantee of future results. 19

20 CITY S FIDUCIARY RESPONSIBILITIES 20

21 HIGH TECH FIDUCIARY SUPPORT ONGOING COMMITTEE PLAN REVIEWS FLEXIBLE REPORTING FOR YOUR PLAN 21

22 NAGDCA S FIDUCIARY PUBLICATION 22

23 HOW DOES IT WORK? FIDUCIARY EDUCATION SERIES 23

24 HELPING PUBLIC SECTOR EMPLOYEES Engage, Build, and RealizeRetirement 24

25 APPENDIX 25

26 TEAM BIOGRAPHIES DON DOW Vice President Institutional Sales Mr. Dow works with ICMA-RC s Regional Vice Presidents to develop and implement territory-specific marketing strategies for new business acquisition throughout the Eastern U.S. In this capacity, he fosters relationships with prospects, clients, field sales, and headquarters personnel. Prior to joining ICMA-RC in 1997, Mr. Dow was Vice President for Conning Asset Management in Hartford, CT. His responsibilities included overseeing sales of investment advisory, asset management, investment accounting, and reporting services to insurance companies. He has more than 30 years' experience in the financial services industry. Prior to his relationship with Conning Asset Management, Mr. Dow served as Director of Sales for Mass Mutual Life Insurance Company and, before that, as a Regional Vice President for Travelers Asset Management & Pension Services. In both positions he was responsible for the sales and servicing of investment products and plan services to the private sector retirement market. Mr. Dow received a Bachelor s degree in Economics from Denison University. He is a FINRA Series 7, 26, 63, and 65 Registered Representative as well as a Certified Employee Benefit Specialist (CEBS). 26

27 TEAM BIOGRAPHIES FERNANDO LLOP Retirement Plans Specialist (Southern Florida) Mr. Llop is responsible for providing on-site services including participant enrollment, investment education, retirement readiness education, and individual educational meetings to public employer retirement plans in Florida. He also provides personalized assistance in the development of individuals' retirement savings plans, using a laptop computer to provide benefit illustrations. Before joining ICMA-RC in August 2015, Mr. Llop was employed as an Account Executive with Fidelity Investments, where he was responsible for providing comprehensive financial planning, guidance, and strategies to meet customers investment objectives. Prior to then, Mr. Llop was an Account Representative with Mercantil Commercebank. Mr. Llop holds a Master of Business Administration degree from Nova Southeastern University and a bachelor s degree in international business from Florida Atlantic University. He is a FINRA Series 7, 63, and 65 Registered Representative. He also holds an insurance license for the state of Florida. Mr. Llop is fluent in Spanish. 27

28 TEAM BIOGRAPHIES HORTENSIA PEREZ CERTIFIED FINANCIAL PLANNER Professional Ms. Perez is responsible for on-site financial planning services for public employee retirement plans in Southern Florida. These services include financial planning seminars and one-on-one meetings that help individuals with their retirement and financial goals as well as assisting with customized financial plans. Ms. Perez has worked in the financial planning field since Before joining ICMA-RC in 2003, Ms. Perez was Vice President of Investments at a major brokerage firm, where she managed assets and prepared financial plans for individual investors. She also served as Vice President and Private Bank Relationship Manager at a major bank where she provided wealth management for high-net-worth individuals. Ms. Perez is a CERTIFIED FINANCIAL PLANNER professional, a FINRA Series 7 and 63 Registered Representative, a FINRA Series 65 Registered Investment Adviser Representative, and has a FINRA Series 26 license. She earned her Master of Science with a major in Personal Financial Planning from the College for Financial Planning and her Business Administration in Finance from Florida International University. She is a member of the Financial Planning Association (FPA). 28

29 DISCLOSURES 1. Please read Making Sound Investment Decisions: A Retirement Investment Guide and the accompanying VantageTrust Fund Fees and Expenses document ("Guide") carefully for a complete summary of all fees, expenses, investment objectives and strategies, and risks. Investors should carefully consider this information before investing. For a current Guide, contact ICMA-RC by calling or log into your account at 2. Past performance is no guarantee of future results. Please read Making Sound Investment Decisions: A Retirement Investment Guide and the accompanying VantageTrust Fund Fees and Expenses document ("Guide") carefully for a complete summary of all fees, expenses, investment objectives and strategies, and risks. Investors should carefully consider this information before investing. For a current Guide, contact ICMA-RC by calling or log into your account at 3. The Hueler Analytics Stable Value Pooled Fund Comparative Universe represents the performance returns of actual stable value pooled funds, and its Index is the stable value industry benchmark used by many institutional investors, consultants, advisors and plan sponsors for monitoring stable value pooled funds. Rankings are derived by ICMA-RC from data provided by Hueler Analytics, Inc., which is a technology and research firm covering stable value products and is not affiliated with ICMA-RC. ICMA-RC does not independently verify Hueler Analytics, Inc. data. Gross returns used in the Universe and in the Rankings do not include plan administration fees, adviser expenses, or other stable value fund costs - actual performance experienced by participants would be commensurately lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. As of March 31, 2016, the universe contained 15 funds with 1-year returns, 15 funds with 3-year returns, 15 funds with 5-year returns, and 14 funds with 10-year returns. Past performance is no guarantee of future results. 4. Standard & Poor s ( S&P ) is a Nationally Recognized Statistical Rating Organizations (NRSROs), which publishes credit opinions, research, and ratings on issuers of securities, fixed-income securities, and other credit obligations. S&P is not affiliated with ICMA-RC. 5. Moody's Investors Service ( Moody s ) is a Nationally Recognized Statistical Rating Organizations (NRSROs), which publishes credit opinions, research, and ratings on issuers of securities, fixed-income securities, and other credit obligations. Moody s is not affiliated with ICMA-RC. 29