Nepsis, which serves high-net-worth individuals and financial advisers, has developed proprietary managed models for its clients. The addition of the Lincoln Trust platform means the firm can bring its investment management philosophy to the retirement market. Nepsis is slated to offer retirement plans, both as a core fund lineup consisting of high-performing funds, as well as its own customized portfolio strategies.
According to Deyan Stojanovich, vice president, institutional sales for Lincoln Trust, the 401(k) plans of numerous small businesses have mutual funds that underperform yet are over-subscribed, or group annuities whose fee structure and investment options can be detrimental to the end investor.
“Too often, participants chase performance at the time of enrollment, irrespective of market conditions, and never make changes again,” Stojanovich said. “This partnership will allow Nepsis to provide customized tactical 401(k) asset-allocation strategies to participants who would rather leave their investment decisions in the hands of industry professionals.”
One challenge for investment advisory firms has been managing individual accounts in a firm-wide retirement plan and replicating the strategy among multiple participants. Using its model portfolios at a global level on Lincoln Trust’s platform, Nepsis will be able to efficiently execute its tactical strategies to take advantage of market conditions.
“We have been looking into building a retirement offering for years, and the Lincoln Trust solution has made the transition seamless,” said Mark Pearson, president and chief investment officer of Nepsis. “Would-be retirees are always looking for better options in their plans beyond cookie-cutter offerings, and we are excited at the prospect of extending our investment expertise to this space.”
Lincoln Trust Company, in Denver, is a provider of open architecture 401(k) solutions for broker/dealers and registered investment advisers.
Based in Minneapolis, Nepsis has approximately $160 million of assets under management.