Investment Management

Section 401(k) Investing

At O’Brien Management, we have given a great deal of thought about how to construct investment portfolios to maximize the value of 401(k) plans, and have developed an approach that provides participants with both choice and the same high-quality investment management received by our high net worth investment clients: The O’Brien Management Retirement Managed Asset Portfolios (OBM Retirement MAPs©). Using the OBM Retirement MAPs system, participants have the ability to choose among three distinct portfolios.

Each portfolio is constructed by using low-cost, high quality mutual funds that are selected, continuously evaluated, and closely monitored by the O’Brien Management investment staff. The funds are the same investments used in our individual clients’ portfolios. The three Retirement MAPs are unique in their asset allocation mix, and are appropriate for investors with varying goals. Following is a brief description of each portfolio and an overview of who might consider investing in it:

OBM Retirement MAP - Aggressive Growth

This portfolio seeks high capital appreciation and is most suitable for more aggressive investors with a longer-term investment horizon and a higher tolerance for risk and volatility of returns. The portfolio is heavily weighted toward equities, which generally make up 80% of its assets. The Aggressive Growth Portfolio also allocates a small percentage of its assets to bond funds(10%) and alternative asset funds (10%) to help dampen volatility.

OBM Retirement MAP – Growth

This portfolio seeks above average capital appreciation and is most suitable for investors who have a longer-term investment horizon but tend to have a more moderate tolerance for risk and volatility. The portfolio’s asset allocation favors equities (approximately 65% of the portfolio), but also includes modest bond (25%) and alternative asset (10%) components that provide a stream of current income and help to manage the portfolio’s overall volatility.

OBM Retirement MAP – Conservative

This portfolio seeks high current income and typically will deliver below average capital appreciation. It is most suitable for investors with a lower risk tolerance and a shorter-term investment horizon. The portfolio’s asset allocation is heavily weighted toward bonds (65% of the portfolio) to provide current income and lower than average volatility. The portfolio includes a small allocation to equities (25% of the portfolio) and alternative asset funds (10% of the portfolio)to help provide diversification and give participants some exposure to asset classes that have historically provided higher returns.

Please contact us to learn more about OBM MAPs.