Do you think plan sponsors
understand what it means
to have their adviser serve
as a fiduciary?
l Yes, most do 2.5%
l Yes, some do 52.5%
l No 42.5%
l Not sure 2.5%
FROM LEF T: Larry Schmidt, director, HR, Searles Valley Minerals; Tobias Junker, vice president, HR total
rewards and labor relations, LSG Group; Rebecca Moore, managing editor, PLANSPONSOR.com.
by $450 billion a year, which will boost
Kelly noted that the Fed has
announced it will raise the federal
funds rate one more time this year,
and he believes it will do so another
three times in 2018 and 2019 each.
“The market hasn’t priced this in yet
because the cash market has been
depressed by the actions of central
banks,” he said.
Examining returns and valuations
by sector for U.S. stocks also yields
promise, Kelly continued. Year to date
through June 30, technology stocks
delivered 17.2%, consumer discretionary stocks, 11.0%; industrials.
9.5%; materials, 9.2%; financials,
6.9%; and real estate, 6.3%, he said.
“Creating a portfolio that includes U.S.
stocks that are overweight and underweight will help you.”
Nonetheless, in the near term,
Kelly believes that the infrastructure
Plan Sponsor Confidential
Two winners of 2017 PLANSPONSOR
Plan Sponsor of the Year awards
spoke about how their adviser has
helped them—and why they thought
they needed to start working with an
adviser in the first place.
“The main reason is inertia,” said
Larry Schmidt, director of human
resources (HR) at Searles Valley
Minerals, of why Searles hired Bukaty
Companies Financial Services as its
retirement plan adviser. “We are a
mining company, and the leader-
ship and employees don’t change
often. Some of our employees are in
their 80s. We are cautious in making
changes, but we realized that spon-
sors will ultimately be held respon-
sible for plans that don’t produce. We
needed to get off the dime.”
The retirement plan committee
of LSG Group “wasn’t convinced we
needed help from an adviser because
we had help from our finance depart-
ment,” said Tobias Junker, vice
president of human resources total
rewards and labor relations. “But
when we were asked about our fidu-
ciary responsibilities, [we could not
answer]. We decided to create a three-
pronged approach, comprising the
fiduciary committee, the recordkeeper
and a retirement plan adviser, whose
rebuild that will occur following the
devastating hurricanes Harvey, Irma
and Nate could result in GDP growth of
2.5% to 3.5% in the third quarter.