Laserfiche WebLink
A participant will pay advisory fees to EAG for the MA service and Indirectly to ECM If Empower Funds are <br />Included In the retirement plan Investment options. The fees paid to ECM for management of the Great - <br />West Funds are Included In the fund share price. <br />Item 6 — Performance -Based Fees and Side —by Side Management <br />EAG does not charge any performance —based or side -by side management fees. <br />Rem'f—Types of Clients <br />EAG provides Investment advice to participants In their retirement plans for which Empower provides <br />recordkeeping services. Members typically must be considered residents of the United States, the U.S. Virgin <br />Islands, Guam, or Puerto Rico. The plan sponsor may apply additional restrictions for participation due to plan or <br />regulatory requirements. <br />Item 8- Methods of Analysis and Investment Strategies and Risk of Loss <br />The Services described in this Brochure are based on the proprietary asset allocatlon and retirement Income <br />projection methodologies developed by Morningstar Investment Management. The development of Investment <br />advice. by Morningstar Investment Management Involves the Investment methodologies across the products and <br />services described herein. Morningstar Investment Management or Its afflllates focus on specific Investment areas <br />such as capital market assumptions and a valuation -driven approach to asset allocation. <br />Analysis Methods <br />In providing advisoryservices, Morningstar Investment Management reviews avallablequantitative data to analyze <br />and screen the Investment options within a plan. The portfolios are typically constrained to a set of investment <br />options defined by our client, which may Include their affillated Investment products. The analysis will Include <br />quantitative analytics and fundamental research on the Investment options available. Morningstar Investment <br />Management draws on Morningstar's comprehensive database of fund and security analytics. <br />Once the avallable data is identified, Morningstar Investment Management processes the data using a series of <br />optimization routines. These optimization routines serve as a blueprint for how the asset classes are combined to <br />help achieve an optimal portfolio for a given level of risk. The model portfolios include both equity and non -equity <br />asset classes that am chosen be represent a broad range of Investment categories available in a plan sponsor's <br />retirement plan menu. The asset allocation process requires that there be significant benefit (generally through <br />Increased diversification) to adding the asset class to the model portfolios. In addition, Investment options within <br />the Investment/plan menus must provide significant exposure to the desired asset class In order to be selected. The <br />asset classes that are ultimately used will depend on the available Investment options that are considered for the <br />construction of the fund -level model portfolios, In other words, Morningstar Investment Management will only <br />recommend assetdasses thatcan be fulfilled byan Investmentoptlon or combination of investment options within <br />the plan. <br />Investment Strategy <br />If accumulating for retirement, the Investment strategy is generally based on Information such as retirement <br />account balances, expected retiement age, savings rate and other preferences provided by the Individual. If you <br />have already retired, and if the plan provider offers a guaranteed lifetime withdrawal benegt program, the <br />Investment strategy is based upon account balances, additional cash flows, and life expectancy. Thls retirement <br />strategy may include some or all of the following: <br />• Retirement Income Goal (accumulation phase): The retlnernent Income goal Is the projected amount of <br />money after tax that will be needed by the Individual throughout retirement. This calculation can be based <br />on current income, adjusted to reflect the estimated dollar value at retirement age. Typically, a good <br />starting place is 75%of salary (although some plan providers may request a different rate, e.g., 80%of <br />gross pay), and then the Services project the after-tax value of thatamountat retirement age to determine <br />10 <br />City Council 19 — 88 9/19/2023 <br />