Description

Navigator 401(k) introduces the next generation in 401(k) investing by providing participants with institutional asset management within their 401(k).  Managed by Clark Capital, the Navigator 401(k) solutions employ a Core and Explore Asset allocation across multiple asset classes and strategies, incorporate alternative asset classes, and two of the portfolios offer a sophisticated hedging strategy called Sentry.  Core allocations are the cornerstones and are typically highly diversified and resemble the overall market for the asset class. With the Explore allocation, opportunities for excess alpha are continuously sought. When potentially advantageous trends are observed, Explore can move quickly to invest in sectors, industries, countries or styles that may provide excess performance.

Meaningful Diversification
Allocation to Opportunistic
Alternative Investments Seeks to Expand the Efficient Frontier

The Navigator 401(k) solutions systematically attempt to take advantage of the fact that different asset classes perform differently at different points in time by constructing a highly diversified portfolio. Alternative asset classes such as commodities, currencies and real estate are included in the portfolio as they have minimal correlation to the traditional stock and bond markets historically.  This low correlation to the traditional equity and fixed income markets provides meaningful diversification. Diversification through alternative asset classes has created the opportunity to expand the efficient frontier beyond what is possible with traditional asset classes alone. Navigator 401(k) seeks to expand the efficient frontier further through targeted opportunistic asset allocation. Our opportunistic allocation is flexible and responsive to the ever changing investment markets. The opportunistic allocation is strategically managed through the explore portfolio structure to emphasize targeted areas in the pursuit of performance. 

Benefits/Features

Exchanged Traded Funds (ETF)
Navigator 401(k) offers actively managed ETFs.  An ETF is a basket of securities that represent a broad market index, country or region, or a specific market sector or industry.  Unlike mutual funds, ETFs are bought and sold on an exchange like a stock.  They offer low expense ratios compared to funds, have no trading restrictions, offer liquidity throughout the trading day, and are cost effective way to invest in a desired portion of the market.  By using ETFs, a portfolio of stocks or bonds can be bought or sold in a single transaction.

Collective Investment Trusts
Navigator 401(k) investment choices are offered though Collective Investment Trusts (CIT).  A CIT is a pooled investment vehicle regulated by the Comptroller of the Currency and available exclusively to qualified retirement plans.  CITs are a low cost alternative to traditional mutual funds and are tax exempt.  The structure of the CIT assures wide diversification and allows assets to be professionally managed among several institutional managers.  Assets of each CIT are held is a segregated account.  Clark Capital manages each CIT, tracking the securities and managers closely and making adjustments on the basis of market information and proprietary research. 

Alternative Asset Classes
To provide meaning diversification, each Navigator 401(k) investment solution offers access to alternative asset classes which include but are not limited to commodities, currencies, real estate, and absolute investment strategies. Alternative asset classes, which tend to perform independently of the traditional stock and bond markets, serve as a powerful diversification agent and historically resulted in lower portfolio volatility and improved risk adjusted returns. 

Sentry Strategy
To manage risk and minimize loss of capital, Navigator 401(k) offers two solutions that utilize the Navigator Sentry Strategy.  Navigator Sentry is a sophisticated strategy designed to protect against a significant declines in the equity markets.  Sentry uses an actively managed portfolio of put options on a S&P500, a mechanism that has traditionally been reserved for large institutional investors.  

Transparent Costs
All Fees in the Navigator 401(k) are 100% transparent.

Fiduciary
In the Navigator 401(k) Clark Capital acts as investment management fiduciary in overseeing the fund management, selection of fund managers and investments, and monitoring of each CIT to assure adherence portfolio objective and risk levels.

Turnkey Administration and Support
Navigator 401(k) is proud to partner with Granite Retirement Services, a full service retirement services company to handle all non-investment functions. Granite, with offices around the country, provides support and assistance to advisors, Third Party Administrators (TPA), and plan sponsors; training for onsite enrollment and informational seminars for plan participants; plan implementation; plan documentation; and ongoing plan administration.