A PlanSponsor article interviews Steve Fagerquist, VP of Human Resources at Teradyne, about the company’s 401(k) plan investment management and how they made a change to deliver a better product to participants. Steve explains the prior investment management approach, an internal fiduciary committee, and the challenges brought on by that structure. Here’s what lead to a change:
*Goom Law Group, "401(k) Fee Litigation" 10/6/15
- Increased 401(k) complexity, litigation and fiduciary regulation
- Awareness of the trend and rise of the outsourced model
- Internal resources tasked with managing a complex fund lineup while doing their fulltime jobs
Teradyne hired SEI to act as a 3(38) discretionary manager (OCIO) overseeing investments and 3(21) advisor for setting the fund menu.
Together, we built a custom investment menu for the company’s demographics.
The article also describes our multi-manager investment program and how it uses institutional money managers to bring more diversification and help reduce risk -- all while allowing the plan sponsor more time to address the overall investment objectives.
Read the article: Fiduciary Management Model (PDF)
Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.