CapAcuity has an exclusive marketing relationship with Atlas Benefit Finance (ABF), a boutique investment bank that specializes in administering total return swap hedges of non-qualified deferred compensation (NQDC) plans.

ABF brings their knowledge of tax, accounting, actuarial, corporate finance, regulations, legislative change, plan design, administrative systems, and participant education to these often complex and highly customized plans.

ABF clients include large asset managers as well as many companies in the Fortune 1000. The Atlas team brings decades of combined industry experience from best-in-class financial services firms, with seasoned experts in tax, accounting, capital markets, insurance, consulting, and asset management. CapAcuity’s team has worked with ABF since 2011 to bring solutions to executive benefit plan sponsors.

AN EFFICIENT SOLUTION

NQDC plans create frequently reweighted mark-to-market “short” positions on corporate balance sheets. These exposures trigger highly visible un-budgeted executive compensation expense.

ABF has created an efficient solution with supporting systems and controls to hedge this exposure in a tax- and accounting-advantaged manner. The total return swap strategies (TRS Hedge™) they use require knowledge and systems to respond to changing investment menus, perform ongoing correlation analyses, measure P&L exposures, manage dynamic re-weighting, and perform tax and accounting recordkeeping and reporting.

ABF has developed systems, controls, intellectual resources and IP to support the implementation and ongoing administration of this total return swap hedging strategy.

For more information about Atlas Benefit Finance, visit their website.