Domenic DiPiero

President and Founder, Newport Capital Group

Business at a Glance

PLANADVISER: What differentiates your team in a crowded advisory marketplace today? Please expand on what you do differently in practice, not philosophy.

DiPiero: Newport Capital Group values our ability to serve our clients without answering to outside parties. We serve as 3(21) and 3(38) fiduciaries, providing a consultative service model. With the increase in M&A activity in the advisory space, many firms are owned by large national brokerage and insurance firms that use their position to cross-sell financial products. We believe this creates a conflict of interest that impacts fiduciary duty. Newport Capital Group receives no compensation from third parties, and our only revenue is the direct compensation stated in our service agreements.

Our strength lies in recognizing each plan sponsor’s individual qualities to create a plan design that is individualized, seeking to improve retirement readiness and participant outcomes. As an independently owned and operated firm, we have the flexibility to accommodate the culture and needs of plan sponsors and plan participants.

PLANADVISER: What does “success” look like for your firm beyond asset growth?

DiPiero: We measure our success by our unwavering commitment to our clients. Our success is also found in our ability to serve as 3(21) and 3(38) fiduciaries without outside influence. We avoid the conflicts of interest found in firms owned by global benefit conglomerates that cross-sell financial products. We remain focused on personalized plan design that maximizes retirement readiness.

PLANADVISER: What is the most complex or persistent challenge your 403(b) clients face today? How have you helped address it?

DiPiero: The primary challenge for 403(b) clients is ensuring participants have sufficient savings to retire comfortably. Improving readiness is imperative because participants’ actions today directly affect their future financial security.

We help plan sponsors recognize that participants who are not prepared for retirement often work later in life, which creates a financial strain on the firm through rising health and disability insurance costs. Organizations often approach the retirement plan from varying perspectives: as a moral commitment to employee welfare; a strategic tool for attracting and retaining top talent; or a mandatory compliance function to meet ERISA standards. Regardless of the viewpoint, Newport Capital Group helps plan sponsors build stable programs that support both the participants and the organization’s long-term financial health.

We act as a link between plan sponsors and recordkeepers, reducing fiduciary risk through oversight, governance best practices and keeping participants at the forefront of all decisionmaking. We coordinate with recordkeepers to establish a calendar of rotating education programs that reflect the current demographics of the participant base. Well-managed plans that emphasize the importance of consistent contributions provide participants with the best chance of success in saving for retirement. Our experience shows that merging plan design components and scenario analysis with employer contributions is the most effective approach to balance the goals of retirement readiness with the budget requirements of both the sponsor and participant. This strategy effectively connects the interests of the participants with those of the organization. We perform a thorough analysis of projected employee retention, the costs of the recommended plan design elements and the substantial financial impact of losing top-tier talent. By using this data, we address the objectives of HR while satisfying the analytical concerns of Finance. We match the goals of both groups while continuing to advocate for the participants.

PLANADVISER: How did you build expertise in the 403(b) market, and what advice would you give advisers considering this specialization?

DiPiero: Newport Capital Group has specialized in the defined contribution market for more than 21 years. Our 403(b) expertise expanded as these plans began to face the same fiduciary oversight as 401(k) and defined benefit plans. By applying a uniform, high standard of care, we successfully handled the litigation risks that have affected many large 403(b) sponsors. Today, nonprofit clients represent 27% of our total assets under advisement.

We have guided numerous health care, educational and charitable institutions in strengthening their fiduciary oversight. Our analysis frequently leads to plan consolidations that significantly reduce costs for both sponsors and participants.

For advisers considering this specialization, my primary advice is to serve on nonprofit boards to understand their unique governance structures, which differ fundamentally from corporate environments. Success in the 403(b) space requires proficiency in working with both investment committees and boards of trustees. While day-to-day decisions are often delegated to committees, the board remains the final arbiter on broader governance and compensation strategies.

Disclosures
1SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Please remember that different types of investments involve varying degrees of risk, and that there can be no assurance that the future performance of any specific investment or investment strategy (including those that may be recommended to the Plan by Newport Capital Group and/or subsequently selected by the Plan’s participants), will be profitable, equal any corresponding performance level(s), or be suitable for any specific participant’s portfolio. Please remember to contact Newport Capital Group, in writing, if there are any changes in the Plan’s financial situation or objectives for the purpose of Newport Capital reviewing/evaluating/revising its previous recommendations and/or services. A copy of Newport Capital Group’s current written disclosure statement discussing its advisory services and fees remains available upon request. The terms and conditions of the services to be provided by Newport Capital Group to the Plan shall be set forth in a written Retirement Plan Advisory and Consulting Agreement between the parties. Please Note: Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Newport Capital Group is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Newport Capital Group by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. The rating is not indicative of future performance. No fees were paid to participate for all of the awards listed. The CERTIFIED FINANCIAL PLANNER™, CFP® and federally registered CFP (with flame design) marks (collectively, the “CFP® marks”) are professional certification marks granted in the United States by Certified Financial Planner Board of Standards, Inc. (“CFP Board”). The CFP® certification is a voluntary certification; no federal or state law or regulation requires financial planners to hold CFP® certification. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. The Chartered Financial Analyst (CFA) designation is a globally respected, graduate-level investment credential established in 1962 and awarded by the CFA Institute, the largest global association of investment professionals. To earn the CFA designation, candidates must (1) pass three sequential, six-hour examinations, (2) have at least four years of qualified professional investment experience, (3) join the CFA Institute as members, and (4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct. The Accredited Investment Fiduciary® (“AIF®”) designation certifies that the recipient has specialized knowledge of fiduciary standards of care and their application to the investment management process. To receive the AIF® designation, individuals must complete a training program, successfully pass a comprehensive, closed book final examination under the supervision of a proctor and agree to abide by the AIF® Code of Ethics. In order to maintain the AIF designation, the individual must annually renew their affirmation of the AIF® Code of Ethics and complete six hours of continuing education credits. The certification is administered by the Center for Fiduciary Studies, LLC (a Fiduciary 360 (fi360) company).