Applying a Consistent Approach to Monitoring Investment Performance
Establishing the ideal fund line-up is a critical first step but we don't stop there. We apply a consistent approach to monitoring investment performance, revising the menu as necessary to help ensure that the investment menu remains effective, and that investment performance meets the plan's expectations.
Depending on your specific needs (typically quarterly), we will conduct a thorough review of the performance of all investments. The objectives established in the investment menu creation process will serve as the basis for our on-going analysis. It is important to note that no single attribute drives the on-going selection and retention process. Typical criteria analyzed in this process include:
Once the reporting is complete and delivered, we will work with you to:
Investment Consulting
Ideal Investment Menu
Investment Performance Monitoring
Establishing the ideal fund line-up is a critical first step but we don't stop there. We apply a consistent approach to monitoring investment performance, revising the menu as necessary to help ensure that the investment menu remains effective, and that investment performance meets the plan's expectations.
Depending on your specific needs (typically quarterly), we will conduct a thorough review of the performance of all investments. The objectives established in the investment menu creation process will serve as the basis for our on-going analysis. It is important to note that no single attribute drives the on-going selection and retention process. Typical criteria analyzed in this process include:
- performance relative to peers and benchmarks
- risk profile including holdings and sector weightings
- correlation between the investment options
- style drift/consistency
- expense ratio relative to peers
- detailed performance attribution analysis
- investment firm stability/developments, including manager tenure and staff turnover
- participant behavior and fund utilization
Once the reporting is complete and delivered, we will work with you to:
- Establish/maintain a "Watch List"
- Recommend specific actions (including replacements)
- Periodically analyze the current investment architecture and provide recommendations for appropriate revisions
- Document all analysis and decisions and secure the materials off-site.
Investment Consulting Ideal Investment Menu Investment Performance Monitoring