Institutional Process

Bridging the gap between planning and execution, we build accountability into each step of the investment and retirement planning process. Whether you are seeking cost‐effective ways to offer attractive retirement plans to your employees and executives, or wish to optimize the management and performance of your non‐profit organization’s portfolio, Longbridge Wealth Advisors and Longbridge Retirement Plan Services provide a disciplined approach and employ unique analytical tools to give you an accurate and transparent scorecard of exactly where you stand…connecting your progress toward goals at any given point in time.

The Longbridge Eight‐Step Process

To ensure that your implemented investment or retirement program reflects your organization’s goals, Longbridge Retirement Plan Services places great emphasis on our professional process for defining your objectives, reviewing your existing plans, and then designing, funding, implementing and managing your plan with meticulous care.

Plan Design

Step 1: We help to define your organization’s investment / benefit plan objectives
Step 2: We review your existing program using our Five‐Point Diagnostic™
Step 3: We design the plan based on our findings in Steps 1 and 2
Step 4: We develop the plan’s Investment Policy Statement

Plan Implementation

Step 5: We analyze asset management strategies based on plan design, investment policy, benefit structure and financial impact. These strategies may include traditional asset management as well as active management strategies such as the Longbridge ActiveView™ process.
Step 6: We compare and help you select the appropriate strategies and service providers such as custodians and third party administrators.

Plan Administration and Management

Step 7: We implement and communicate the plan
Step 8: We monitor the plan and provide on-going management and communication. We establish regular Five-Point Diagnostics for our existing clients to continually gauge your program’s performance in light of changing laws, regulations and market conditions. The review also takes into account your organization’s changing needs and circumstances.

The Longbridge Balanced Approach to Investing

History shows that while interest‐generating investments, such as cash and bonds, have the advantage of relative stability of principal value, they provide little opportunity for real long‐term growth due to their susceptibility to the risk of inflation. On the other hand, equity investments clearly have significantly higher expected returns but are vulnerable to the risk of severe swings in the market.

To balance the need for safety and performance, our investment process bridges the gap between traditional passive asset allocation strategies and more active investment strategies by providing a combination of both investment process solutions, customized to your precise needs and objectives. How this combination is structured depends on a number of variables, including your plan design, investment policy, benefit structure and financial impact. In this way, we are able to manage your money with an equal emphasis on risk management and investment performance.

Carving Out Opportunities with Active Management

There are specific situations in which a tactical active management process can provide special opportunities for growth while seeking to protect against market volatility. In cases like these, we are engaged as a Sub Advisor to manage a portion of a retirement plan portfolio using its proprietary ActiveView active management process as an alternative or core investment strategy.

The NonProfit Carve-Out

For example, a nonprofit organization may carve out a portion of its portfolio to be placed in a separately-managed account using the ActiveView asset management process. The objective is to boost the portfolio’s overall performance while providing oversight against severe downturns in the market.

The Profit Sharing Carve-Out

For corporate benefit plans, the ActiveView asset management process can serve as a tool for carving‐out a separately‐managed profit sharing element that has been added to a traditional 401(k) plan in order to enhance diversification and provide a tactical investment process.

How Does ActiveView Work?

Longbridge’s tactical investment process, ActiveView, uses a research‐intensive evaluation of markets to enable our team to provide portfolios designed to place portfolio assets in those market sectors showing positive pricing characteristics or price strength. In moving to strength, our objective is to outperform traditional buy and hold asset allocation strategies with similar risk characteristics. By combining a research‐based process with active management techniques, we are better able to help you mitigate risk while participating in growth opportunities that exist in the ever‐changing environment of today’s financial markets.

The Science Behind ActiveView

ActiveView is regimented and disciplined in a manner that adds an unemotional approach to the purchase and sale of each investment. Our research process screens potential investments and looks for advantageous entry points, while at the same time calculating exit strategies for each investment. Each portfolio consists of 11 independent models. Each model uses independent industry research to rank the assets in the model, choosing only those investments showing positive pricing characteristics.

The Longbridge Five Point Diagnostic™

Our Five‐Point Diagnostic is utilized at the outset of our relationship with Plan Sponsors to determine if there are opportunities for cost savings or program enhancements. This allows us to identify strategies and elements that may have been overlooked or not kept current. Our subsequent recommendations can result in enhancements to earnings or cash savings. Some of the areas we evaluate include:

  • Investment structure, performance and fund ratings
  • Is your plan optimally designed?
  • Do you know how much you are paying in expenses and fees? And for what?
  • Are you meeting all of your fiduciary responsibilities?
  • Administration and record‐keeping in conjunction with a qualified third party administrator
  • Plan communication

Longbridge Retirement Plan Services