Outcome-Driven Policies, Factor Risk Minimization Insulate Retirement Plan Participants in Volatile Markets

Unified Trust Company’s UnifiedPlan® managed account solution realizes best quarter of relative performance in program’s history

LEXINGTON, Ky.--(BUSINESS WIRE)--While the first quarter of 2020 was marked with market volatility and mounting economic concerns for most investors, Unified Trust Company’s UnifiedPlan Qualified Default Investment Alternative (QDIA) outperformed its target-date fund peers and had its best relative quarter since the portfolios’ inception. Unified Trust Company (“Unified Trust”) is a national bank trust company and fiduciary that serves individual, institutional and retirement plan investors with a mix of digital and traditional advice.

Unified Trust’s UnifiedPlan is a risk-controlled managed QDIA account solution and was specifically designed to improve outcomes and combat volatility. The UnifiedPlan is currently outperforming target date fund peers by about 3-4% year-to-date, and outperforming Backend Benchmarking’s robo advisor benchmark universe by about 2.6%. Notably, participants closest to retirement saw the best performance, outperforming target-date fund peers by 4.5%. The UnifiedPlan QDIA maintains an over 85% participation rate in the managed account, extending the performance benefit widely among Unified Trust Company clients.

“The first quarter of 2020 was the worst in history for the Dow Jones Industrial Average, and we continue to observe volatility in the markets,” said Dr. Gregory Kasten, Founder and CEO of Unified Trust. “Our objective is to help investors reach their retirement goals in all economic climates. The UnifiedPlan was designed to help insulate participants from market volatility, particularly those at or near retirement, and we are thrilled to see this approach advance our investors’ goals even in this uncertain time.”

The UnifiedPlan manages three distinct types of risk: factor risk, sequence risk and diversification risk. The plan uses outcome-driven policies that prioritize participant outcome and risk posture above investment manager performance to minimize factor risk. Sequence risk is mitigated through the use of wealth preservation strategies that protect near-retirees against sizable market losses. Finally, the use of stable value asset classes promotes diversification while offering guaranteed rate of return with less investment risk.

Unified Trust serves as a discretionary trustee for its clients and partners, applying a superior level of care for each investor. Founded in 1985 by Dr. Gregory Kasten, MD, the firm draws its roots from the standard of care doctors offer their patients and apply it to work with investors.

“In our current reality, we are seeing countless examples of medical doctors adhering to a superior standard of care, as they work tirelessly on the frontlines to fight the pandemic,” Kasten commented. “This level of dedication is at the core of Unified Trust’s philosophy. Our focus on improving participant outcomes is consistent with the original ERISA policy. This focus gives us the privilege of delivering tangible reassurance to clients in turbulent times.”

For more information on Unified Trust and its history, please visit www.unifiedtrust.com.

About Unified Trust Company

Unified Trust Company, N.A. (Lexington, Ky., $5 billion in assets under management) is a national bank trust company and discretionary trustee, serving individual, institutional and retirement plan investors. As a fiduciary, the firm is dedicated to helping people achieve successful financial outcomes. It is the first trust company in the U.S. and among the first globally to be certified for fiduciary best practices by the Centre for Fiduciary Excellence.