FIR Considerations

Matthew (Matt) Giovinazzo, Director, Investment Management, discusses how to optimize your investment strategies using RPAG's Fiduciary Investment Review (FIR). Matt takes you through the different mapping strategies within the consideration step, which is crucial for refining your investment lineup.

Step 1: Review Plan Assets

Examining the assets in your plan is the first stage in the FIR process. This involves assessing your present investment lineup and making any required adjustments. It's essential to have a Plan Assets List (PAL) set up for your plans, which simplifies the process.

Step 2: Choose Your Mapping Strategy

Before making recommendations, it's crucial to choose a mapping strategy or destination source. Here are some options:

One effective approach is using the RPAG CIT Focus List (map all funds), which entails mapping all funds (including those that are currently performing well). Through extensive research and price negotiations, we created this list, which reduces thousands of funds to a small number determined by performance, quality, and qualitative aspects.

Another effective strategy is using the RPAG CIT Focus List for mapping funds up for elimination, which involves targeting funds that are low-scoring or that have been on the watchlist. This approach is suitable for addressing underperforming funds and ensuring continuous improvement in fund quality by removing and replacing underperforming funds in that particular asset class.

You can also use a customized selection of funds from your own focus list that you have created, which you can set up in the system, by using the My Fund Menu option. This is a great approach if you want to stick to your preferred investments and use a prepared focus list. It offers a customized method of choosing funds, allowing you to easily select funds you’ve pre-vetted.

The provider product strategy involves pulling the highest-scoring funds from the selected record keeper’s offerings. This option functions as a system-generated placeholder and is a helpful place to start when you are customizing further. However, it is essential that you double-check these generated suggestions and swap them out for funds you know and trust.

Tips for Successful Mapping

Double-checking the suggestions made by the system is crucial to success. Make sure the placeholder funds always fit your requirements for availability, affordability, and performance. Make use of the knowledge provided by the RPAG CIT Focus List and professional suggestions to improve fund quality and cut costs. Use your own focus list to make your strategy unique so that you can invest with great conviction and consistency. Review and update your lineup often to take advantage of the most recent performance data and market trends. You could significantly improve the level of quality and effectiveness of your investment lineup by deliberately implementing these mapping tactics, which may help your clients achieve their financial objectives. 

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