Brinker Capital Introduces ETFs to Defined Contribution Retirement Plans

Retirement plan engineered with advantages of active and passive management

BERWYN, Pa.--(BUSINESS WIRE)--Brinker Capital, a leading independent investment management firm, announced today the addition of seven exchange-traded fund (ETF) strategies to its Defined Contribution retirement plan offering. The move provides plan participants with additional means of achieving their financial goals by capitalizing on the benefits of active, as well as passive, portfolio management.

“Over the past several years, ETFs have become one of the fastest-growing segments of the asset management industry and are an increasingly popular investment vehicle for both professional and retail investors”

Brinker Capital is helping forge new territory in the retirement plan space as it is one of the first fiduciaries to bring this cost-effective managed solution to market.

While incorporating ETFs into Brinker Capital’s retirement portfolios may be new, the philosophy behind them is a long-standing practice for the $11 billion investment management firm. Since its founding in 1987, Brinker Capital’s team of investment professionals has accepted full fiduciary responsibility, which is important to plan sponsors and the investment process.

Brinker Capital will be offering the ETF in collaboration with their record-keeper, Professional Capital Services, LLC, a pioneer in offering ETFs in 401(k) plans since 2006.

“Over the past several years, ETFs have become one of the fastest-growing segments of the asset management industry and are an increasingly popular investment vehicle for both professional and retail investors,” said John Coyne, president of Brinker Capital. “Despite this popularity, not many retirement plan managers have figured out a way to incorporate ETFs into 401(k) plans because of trading complexities. After years of research and a technology build-out, we’re pleased to be offering these investment vehicles in our Defined Contribution plans.”

Noted Mr. Coyne: “While ETFs are available from some providers, we believe we are the only ERISA 3(38) Fiduciary offering ETFs and active management in a fully managed suite of offerings. This offers protections to the plan sponsors and cost effective model management to the plan participant.”

The new program is already available to Brinker clients.

The income stream of each ETF retirement strategy depends on an investor’s risk tolerance and time horizon. However, all models are designed to offer consistent, competitive performance, while seeking to achieve better risk-adjusted returns over the long term. Each strategy in the program maintains a highly diversified portfolio.

Asset allocation within each portfolio is divided into fixed income, real assets, absolute returns, domestic equity, private equity and international equity. Exposure to alternative investments is directly related to investor risk tolerance. Mutual funds will be used where appropriate ETFs are not available or where active management has a significant competitive advantage. The ETFs are based on strategies with graduated levels of risk and reward, including:

• Defensive: Predominately fixed income with a small equity component and some exposure to alternative asset classes.
• Conservative: Low volatility with some growth potential.
• Moderately Conservative: Moderate level of volatility with the opportunity for long-term growth of capital.
• Moderate: Long-term capital appreciation with a moderate level of volatility.
• Moderately Aggressive: Maximize long-term capital appreciation.
• Aggressive: Heavily allocated to equity, with smaller allocations to fixed income and alternative asset classes.
• Aggressive Equity: Mostly investments in equity, with a small allocation to alternative asset classes.

About Brinker Capital

Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Visit Brinker’s website at www.brinkercapital.com.

About Professional Capital Services (PCS)

Professional Capital Services, LLC (“PCS”) was founded by the tax and ERISA attorneys at Dilworth Paxson LLP, a 75-year-old Philadelphia-based law firm. PCS provides sophisticated record-keeping services for Brinker Capital’s Retirement Plan Services Programs.