Smith Barney Inc. will expand the niche it carved for itself as one of the few vendors offering investment advice to defined contribution plan participants by introducing a stand-alone investment advice service to plan sponsors that do not offer Smith Barney investment options.
Smith Barney will create tactical asset allocation models using investment options offered by a particular plan.
Based on the score of an investor profile worksheet completed by each plan participant, Smith Barney will advise the participant which TAA model portfolio to select.
Distribution of the new program will capitalize on Smith Barney's network of 11,000 financial planners/brokers.
By taking on the fiduciary responsibility for participants' investment decisions, Smith Barney has a requirement to provide more consulting services, such as ongoing performance measurement of individual accounts and investment options, said Jeff Miller, senior vice president and director of corporate retirement plans.
Where plans don't offer a sufficiently varied lineup of investment alternatives, Smith Barney will suggest additions or subtractions of funds to allow the TAA models to offer optimal portfolios.