BEST KNOWN IN the community bank market, Pentegra has made significant strides to become a player in the advisor-sold Small and Mid Markets.  With roots as a multiple employer plan begun over 60 years ago and a passively managed investment philosophy, Pentegra is worth reviewing for experienced retirement advisors.

Begun to manage the DB plans for several banks as a multiple employer plan, they have branched out to individual DC and DB plans.  While most clients are banks, with nine regional wholesalers, many of their new plans come from advisors.  SSGA manages their collective trust index funds that average 67 BP’s not including advisor compensation.  Pentegra not only handles DB plans but is also capable of dealing with company stock which is rare for their market.  Their risk based asset allocation funds are also handled by SSGA and Pentegra is about to launch target date funds.  Targeting plans $3-$20 million, they will handle start-ups.

Though relatively small with 800 corporate retirement plans and $4.3 billion under management, Pentegra’s commitment to the market is solid based on their ownership structure.  They are a not-for-profit cooperative whose Board of Directors is made up of their clients, which would make a sale or exit impractical.  With the resurgence of the independent TPA market, Pentegra is an excellent choice with national coverage, strong corporate commitments and a solid investment menu.

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