Broker Check

Applying our experience to help select the fund lineup 

Our investment lineups are designed to help provide exposure to a full breadth of investment choices. The lineup seeks to provide enough options to create a well-diversified portfolio for each profile of participant in the plan. Townsend Financial Life Management believes it is important to provide options for participants to diversify across asset classes, investment categories, and style. 

At Townsend Financial Life Management, menu design is only the first step in building a well-diversified portfolio. Just as important is selecting the right investment fund options to fill those asset categories. Our knowledgeable investment team has years of experience in evaluating mutual funds, understanding the nuances of different styles, and comparing managerial track records. The factors that Townsend Financial Life Management uses to screen mutual funds are:

  • Net Expense Ratio
  • Management Tenure
  • Alpha
  • Sortino Ratio
  • Batting Average
  • Style Consistency
  • Return Consistency
  • Process Pillar
  • Parent Pillar
  • Concentration

Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment loss. As with any investment strategy, there is the possibility of profitability as well as loss.

3 (21) Fiduciary Service

Townsend Financial Life Management offers investment advice to Plan Sponsors as defined under Section 3(21) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Townsend Financial Life Management completes a workforce profile for the company and then provides a list of recommended funds to include in the plan lineup. The provided list is designed to cover the major asset classes and sub asset classes to allow participants to put together a well-diversified portfolio. Additional investments are included in the selected list to provide a single fund which offers a diversified portfolio. The sponsor is responsible for reviewing the suggested investment lineup and making any changes necessary prior to implementing the choice. Townsend Financial Life Management monitors the approved investments and will make a recommendation if an individual fund should be placed on a watch list or removed from the fund lineup. The Plan Sponsor makes the final decision on whether to include or remove a particular fund from the fund lineup.

3 (38) Fiduciary Service

For Plan Sponsors who would like to transfer their fiduciary liability for the investment selection and monitoring within their 401(k) plan, Townsend Financial Life Management offers discretionary investment advice as defined under Section 3(38) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan Sponsor retains the liability of monitoring the designated 3(38) Advisor but is not responsible for monitoring the individual investment choices chosen by the advisor or the implementation of changes within the plan. Townsend Financial Life Management will complete the Workforce Profile, from which an investment lineup will be put together. The Plan Sponsor is responsible for letting Townsend Financial Life Management know of any changes to the Workforce Profile. As a 3(38) Advisor, Townsend Financial Life Management will implement the fund lineup, allowing the participants to choose their own individual investments. Townsend Financial Life Management will monitor the investments within the plan and will implement any changes.

Ensuring that your plan and investments remains on track 

Ongoing Monitoring

Townsend Financial Life Management, in an ongoing process, will monitor and evaluate the investment options based on the same process used in the review and selection stage.

The monitoring process focuses on the following issues:

  • Regulatory issues
  • Organizational developments
  • Management team updates
  • Style and process consistency
  • Portfolio characteristics
  • Risk-adjusted performance
  • Asset growth