Capital Management

It’s Time for a Smarter 401(k)

For millions of Americans, 401(k) plans are a vital component of their retirement planning. Yet for many plan sponsors, 401(k) plans represent a financial and administrative burden. Fees and expenses are high and have increased over time, and changing regulatory and reporting requirements can strain a sponsor organization’s operations. At the same time actively managed mutual funds frequently underperform their benchmark.

Employees face their own challenges. While they value a 401(k) plan as an important benefit, they are frequently unqualified to make important investment decisions. Clearly, the time for a smarter 401(k) solution has arrived.

The Spectrum Solution

As an independent asset management firm focused on results, we designed the Stephens Spectrum 401(k) Program is the solution designed for today’s realities. Spectrum’s focus on asset allocation aligns participant goals with investment strategy. By investing exclusively in index funds – Exchange Traded Funds (ETFs) and Index Mutual Funds, collectively called Index Funds Spectrum delivers consistent performance at a lower cost. A simplified platform, Spectrum is easy for sponsors to manage and easy for participants to understand.

To simplify the asset allocation decision for plan participants, Spectrum has created ten asset allocation portfolios of Index Funds that reflect specific risk and return objectives. Employees can easily compare these portfolios and choose the one that reflects their risk tolerance and lifestyle considerations. Closely monitored by Stephens Capital Management’s investment professionals, these ten asset allocation portfolios offer diversification with exposure to a mix of asset classes, including domestic equities and bonds, international equities and bonds, and cash and cash equivalents.

A Turnkey Retirement Solution

In addition to lowering costs and simplifying the 401(k) process, Spectrum has alliances with Third Party Administrators (“TPA’”) that can lighten the administrative load on sponsors, from conversion through ongoing monitoring and reporting.


Stephens’ retirement specialists will work with TPAs in various aspects of the process of onboarding Spectrum.

Communication and Enrollment

Our team of investment adivsors works with sponsors to explain Spectrum to their employees, leveraging in-person presentations, if appropriate, and comprehensive, customized enrollment kits. TPAs offer daily participant access through a voice response system or via an online portal.


TPA’s provide complete plan administration services, including compliance testing, daily valuations and custodial services.

Updates and Reviews

We provide to the Plan’s investment committee market and fund evaluations and commentary each quarter for sponsors, and quarterly fund performance updates for plan participants. To ensure that Spectrum continues to meet the sponsor’s goals, we offer annual reviews designed to assess if the current plan design still meets the sponsor’s needs, discuss legislative and regulatory changes, and evaluate investment performance.


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