Find 3(38) Investment Managers

Secure the highest level of fiduciary protection by partnering with a 3(38) Investment Manager. These specialists assume full discretion over your plan’s investment decisions, significantly reducing your personal and corporate liability.

Browse 155 providers in this category.

Provider ranking

  12. Heffernan Financial Services

    Plan Advisor

    Walnut Creek, CA

    Credentials: CFP® - Certified Financial Planner • CFA® - Chartered Financial Analyst

    Stats: $1.0B under management

    Company: Est. 1995 • 3 employees

    View Profile

Delegate Risk with Top 3(38) Investment Managers

For retirement plan sponsors, managing fiduciary liability is often the most stressful aspect of offering a 401(k) or defined benefit plan. Hiring a 3(38) Investment Manager is the most effective way to mitigate this risk. Unlike standard advisors, a 3(38) manager is a named fiduciary under ERISA who has the power to manage, acquire, and dispose of plan assets. By appointing a 3(38) manager, you effectively transfer the responsibility—and the liability—of investment selection and monitoring from your investment committee to a qualified professional.

The Critical Difference: 3(38) Managers vs. 3(21) Advisors

When searching for plan advisors, it is vital to understand the distinction in authority. A 3(21) advisor provides recommendations, but you retain the final say and the ultimate liability. In contrast, a 3(38) Investment Manager takes the "keys to the car." They have full discretion to make changes to the investment lineup without needing your prior approval. This distinction is crucial for sponsors who lack the time or expertise to evaluate complex financial metrics constantly.

Leading ERISA attorneys often recommend the 3(38) model for companies looking to maximize protection against class-action lawsuits related to investment performance or excessive fees.

Key Benefits of Hiring a 3(38) Fiduciary

Partnering with a 3(38) Investment Manager offers tangible benefits beyond peace of mind. These experts streamline plan operations and enhance governance structures.

  • Maximum Liability Transfer: The manager assumes legal responsibility for investment decisions, shielding the plan sponsor from claims of imprudent selection.
  • Streamlined Administration: Because the manager can replace underperforming funds immediately without committee votes, the plan reacts faster to market changes.
  • Compliance and Quality: These managers are held to the highest "prudent expert" standard under ERISA, ensuring your 401k plans utilize high-quality, cost-effective investment options.

Finding the Right Fiduciary Partner

Not all firms are willing or qualified to act as a 3(38) Investment Manager. It requires a specific level of insurance, expertise, and operational capability. When reviewing providers in this category, ask for their Investment Policy Statement (IPS) process and confirm their status in writing. Whether you are running a small business plan or a large corporate fund, utilizing a 3(38) manager is a best practice that protects both the company and the employees' retirement futures.