Portfolio Reallocation For The New GM
  401(k) Plan

In July, the Retirement Savings Plan (RSP) and Personal Savings Plan (PSP) will undergo a significant overhaul. Several existing investment options will be removed from the plans and new options will be added. We recently placed trades in our clients’ accounts to align their portfolio for the new investment menu.

As with other GM 401(k) overhauls in the past, holdings in any of the funds that will be eliminated from the plan will be mapped (transferred) into new or existing options that will remain in the plan. In some cases the designated default mapping that will occur makes sense given the exposure we desire in the portfolio.

However, there are many current holdings in client portfolios where we want to proactively override the default mapping that would occur. In these cases we are combining fund exchanges with a tactical reallocation of our clients’ portfolio to preempt any undesired default mapping as a result of changes to the investment menu.

That’s why our clients have engaged Mainstay Capital Management. We’ve done the research on the new investment options being introduced and have developed a plan for their personal portfolio to maximize opportunities in the new GM 401(k). There is no work required on their part. For GM 401(k) participants that are not clients of Mainstay, timing is critical as exiting funds will be blocked from new investments and current holdings will begin their scheduled mapping at the close of business July 15, 2011.

If you have questions about these important changes, do not hesitate to contact us toll-free at 1-866-444-6246 or send an email to mainstay@mainstaycapital.com for more information. Be sure to request our “Guide to the New RSP & PSP”, available in early July. This informative guide includes a complete review of the GM 401(k) overhaul as well as an analysis and recommendations for the new and remaining investment options in the plan.