R. Michael McAleer, Vice President of 401(k) Development at Clark Capital says the firm manages six risk-based asset allocation models specifically designed for use inside of retirement plans. Two of these portfolios incorporate an institutional hedging strategy utilizing put options on the S& P 500 to help participants avoid dramatic declines in their 401(k) accounts.
Three of the models meet Qualified Default Investment Alternative requirements.
In addition, according to an announcement, plan sponsors can elect to have Clark Capital act as an Employee Retirement Income Security Act 3(38) manager or co-fiduciary regarding the investment selection and monitoring of the plan. Clark Capital will oversee the selection of fund managers, ETFs, and investments, and monitor each continually to assure the adherence to portfolio objectives and risk levels.
Clark Capital provides this service at no additional cost when its collective funds are used by the plan.