Funding and Hedging Strategies
Determining the appropriate funding vehicle for a deferred compensation plan
is complex and every client is unique. While the majority of our clients utilize a combination of COLI and/or mutual funds, Newport has expertise in all funding strategies: company stock, corporate-owned life insurance (COLI), mutual funds, total return swaps, etc.
Your financing strategy must be designed and assets invested appropriately, because non-qualified plans impact your corporate financial reporting. We strive to minimize corporate earnings volatility by developing and proactively optimizing your ongoing financing and hedging strategy.
Insurance Carrier/Product Due Diligence
Understanding insurance carriers and product structures are among Newport's core competencies. Our tailored evaluation includes contract analysis, pricing and guaranteed issue negotiations, carrier credit research, and policy placement As one of the nation’s largest administrator of institutional insurance, our clients enjoy some of the best products and pricing offered by the nation’s premier carriers. Newport's years of practical experience and product/turnkey administrative services allow our clients to outsource all administrative activities related to their COLI assets.
Asset Rebalancing and Trading
Newport’s asset/liability management (ALM) team performs a daily review of the aggregate participant liability and allocation of plan assets. Assets are automatically rebalanced by the ALM team based on established guidelines ensuring that participant liabilities and plan assets are highly correlated, thus helping to minimize earnings impact to the plan sponsor.