Corporate Advisory Services
CCG INVESTMENTS IS focused on providing specialized investment advisory services to companies who have qualified retirement plans. Our understanding of the regulatory issues surrounding qualified plans is extraordinarily broad and complete. For nearly two decades we have worked with CCG Pensions, developing and providing investment management services that satisfy the complex qualified plan regulatory requirements as well as satisfying the expectations of demanding plan sponsors and participants.
CCG Investments provides clients with a full range of services:
Free Auditing Services:
- Free ERISA Due Diligence Audit
CCG Advisory Services:
- Key Issues Facing Qualified Plan Sponsors
- The Use of Mutual Funds
- Mutual Fund Due Diligence and Selection
- 401(k) Services
- Individually Managed Accounts
- Defined Benefit Plans
- Profit Sharing Plans
- High Net Worth Individuals
- Performance Reporting
- CCG Co-Fiduciary Services
Key Issues Facing Qualified Plan Sponsors
A plethora of regulatory issues have emerged which demand a higher and broader level of expertise. Plan trustees have a personal fiduciary responsibility to see that the many dictates of ERISA are satisfied. Sec. 402(a)1, 402(b)1, 404(c), 404(d) and 405(a) each require ongoing adherence to managing the investment process of qualified plans prudently. This five (5) step process includes:
(1) Establishing Objectives
(2) Formulating Investment Policies & Guidelines
(3) Asset Allocation
(4) Selecting funds and/or Managers
(5) Monitoring Performance and Style
Under ERISA, investments in qualified plans must be diversified.
The Department of Labor has announced that Modern Portfolio Theory will be used as the primary tool by which the government evaluates “prudent management”. CCG Investments works with clients to determine the proper portfolio allocation. As Registered Investment Advisor (RIA), CCG Investments has the technical capability and expertise to determine the appropriate allocation for a qualified plan.
The portfolio allocation will be effected by liquidity needs, economic factors and level of risk appropriate with plan objectives. The process of asset allocation is one of optimizing the mix of different asset classes to produce optimum investment returns at various levels of risk, while operating within the objectives and guidelines of the plan. This is accomplished using the “Efficient Frontier” method of asset allocation. After asset class determination is made, the “Efficient Frontier” will choose an asset allocation model that will divide the allocation to have the risk taken by the portfolio to be the most efficient for the desired return.
CCG Investments consulting services keeps clients’ qualified plans in compliance with the current ERISA “prudent man” rules and insures that fiduciary obligations are fulfilled.
CCG Investments does not trade individual stocks in client portfolios but rather utilizes mutual funds. Through the use of Modern Portfolio Theory, CCG Investments uses a systematic approach to customize a portfolio of mutual funds to suit a client’s investment goals/objectives, as well as their risk tolerance profile.
The Process
- Define goals and objectives
- Establish risk tolerance
- Classify/identify asset classes
- Select mutual funds
- Monitor funds
- Report regularly to the clients
Summary
- We will use our proven, methodical process to reach our conclusions.
- We will track the performance of our investments and monitor specific funds.
- We will diversify assets by methodical asset allocation procedures across many investment classes to minimize risk and maximize returns.
Mutual Fund Manager Due Diligence and Selection
CCG Investments uses only mutual funds with no-loads and no transaction fees. These funds encompass all asset classes. We have a proprietary database for all fund research, screening and monitoring. We screen over 530 fund families (which represents over 5,100 mutual funds), over 1,200 institutional money managers, 1,800 insurance companies and over 500 banks. The screening process narrows the list to a few funds in each asset class. Then all of these funds are continually monitored to ensure their fundamentals are intact. We also constantly search the marketplace for new funds that pass our strict guidelines.
CCG Investments uses the following quantitative and qualitative guidelines to prune the list to create our selection of approved managers and funds in each asset class.
Quantitative Factors
- Absolute and risk adjusted historical returns
- Performance and correlation against selected benchmarks
- Performance Measurement
- Peer group performance
- Tax Efficiency
Qualitative Factors
- Investment philosophy
- Portfolio construction
- Buy and sell discipline
- Depth of investment research
- Tenure of portfolio management team
- Firm History
- Firm Ownership
- Background checks of key management personnel
- Onsite meetings
- Ongoing monitoring and review
To help ensure clients with 401(k) Qualified Plans remain in compliance with their ERISA fiduciary requirements, CCG Investments recommends only those mutual fund or money managers that are selected after passing the rigorous screening process described above.
If a client’s portfolio is lagging in performance or their objectives change, they are free to move or change investment alternatives without any cost. The client can select from our recommended list or any publicly traded mutual fund or money manager.
There are three services provided in this regard.
(1) Appropriate asset classes are selected to satisfy the plan objectives. Once the asset classes are determined, the money managers and/or mutual funds for each asset class would be selected.
(2) The number of managers employed for each asset class will be commensurate with the funding and level of risk in each asset class. Up to three managers would be used in each asset class.
(3) The managers are then monitored on a quarterly basis to measure their performance and value. As an independent advisor, CCG Investments is unbiased in its evaluations and therefore, only makes recommendations that are in the client’s interest. We will, along with the client, select the appropriate managers.
An Individually Managed Account is an account that is individually managed by a professional CCG Investments manager who decides when to buy and sell securities based on a stated investment strategy or goal.
Whether the account being managed by CCG Investments is for a Defined Benefit Plan, a Profit Sharing Plan, or for a High Net Worth Individual, CCG Investments utilizes Modern Portfolio Theory, a systematic approach to customize a portfolio of funds to suit client investment goals/objectives, as well as risk tolerance profile.
Our Process
- Define goals and objectives
- Establish risk tolerance
- Classify/identify asset classes
- Design optimal portfolio
- Select securities
- Monitor portfolios
- Report regularly to the client
Summary
- Customized portfolios
- We will use our proven, methodical process to reach our conclusions.
- We will track the performance of our investments and monitor specific securities.
- Tax-efficiency portfolios
- Consolidated reporting
- Superior client services
CCG Investments provides state of the art performance reporting for all clients. We send out an in depth quarterly report that shows:
- Comprehensive AND precise reporting without the “fluff”
- Classification of assets in the portfolio
- Appropriate Benchmarking
- We deliver reliability and objectivity, bolstering client confidence
- We have the ability to identify strong performers and pinpoint targets for improvements.
ERISA § 405(d) can shield fiduciaries from their personal liability if an investment manager is used. Section 405(d) specifically states that “no trustee shall be liable for the acts or omissions of such investment manager or managers, or be under an obligation to invest or otherwise manage any asset of the plan which is subject to the management of such investment manager.” However, “investment manager” is a specifically defined term under ERISA § 3(38).
In order to qualify as an investment manager, such manager (1) must be managing plan assets for a fee, (2) must be a Registered Investment Advisor (RIA) under the Investment Advisors Act of 1940, and (3) must acknowledge in writing that it is a fiduciary with respect to the plan.
CCG Investments meets the requirements of ERISA § 3(38) and acknowledges in writing that it is taking on this fiduciary role for the fiduciaries.