Retirement Plan Advisor - Reason #6

6. Performance Reporting

A comprehensive investment performance report is essential for fiduciaries’ prudent investment decisions. The Plan Advisor generally produces performance reports and makes a presentation to the fiduciaries on a quarterly basis. Performance reports normally include information such as that listed in the table below.

Typical Items Appearing in Performance Reports

1. An economic/market review.
2. A status report on any manager replacements, watch list, additions, or terminations.
3. A ”scorecard” (summary, plus supporting detail) comparing each investment’s performance with the standards in the IPS.
4. Disclosure of investment-related fees (expense ratios).
5. Investment profiles or fact sheets.

The following only applies to retirement participant-directed investments:

1. Dollar amount invested in each investment option, plus percentage of the entire plan.

The following only apply to fiduciary-directed investment portfolios:

1. The portfolio’s current asset allocation versus the target asset allocation stated in the IPS.
2. A narrative on portfolio and asset class performance, to identify portfolio components that added to or detracted from overall performance.
3. A consolidated portfolio performance report in executive summary format.

• The portfolio’s historical performance versus a custom benchmark index.
• The performance of broad segments of the portfolio versus relevant indexes.
• The dollar amounts invested with each manager.
• An analysis of portfolio risk characteristics using Modern Portfolio Theory conventions.
• Summary of investment expenses and a liquidity schedule for each manager.
• Disclosure of each manager’s legal and accounting firms.

View our next blog entry to continue the series. To learn all Seven Reasons for Hiring a Dedicated Retirement Plan Advisor, download our full whitepaper.

If you have any questions about retirement plan services, or would like to begin talking to a dedicated retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.