Fiduciary Investment Monitoring

Fiduciary Investment Monitoring

• Obligation to properly research investments both before and after making them– Apply system of fiduciary mandates which create a

process for selecting investment choices– Regularly monitor performance of each choice– When investment choice fails to measure up to

objective set of criteria, investment must be replaced

Our Fiduciary Investment Monitoring• 8 Fiduciary Mandates Applied

– Each fund must score in the top 25% to be considered

• Funds are Evaluated with a Scorecard– Watch List– Replacement List

• Asset Classes Clearly Defined• Two Fund Lineups (see

www.retirementplanconsultants.net)– RIA Partner – Uses 5-year mandates– DFA Partner – Uses 10-year mandates

Fiduciary Mandates Applied• Performance: The product must have positive excess performance relative

to its benchmark over a stated time period.• Product Assets: Must have a least $100 million managed in this specific

investment style.• Peer Group: The product’s return must be higher than the peer group’s 50th

percentile return.• Alpha: The product’s Alpha must be greater than or equal to 0.• Sharpe: The product’s Sharpe Ratio must be greater than or equal to the

benchmark.• Standard Deviation: The product’s standard deviation must be less than or

equal to 150% of the benchmark’s standard deviation.• Tracking Error: The product’s tracking error must be less than 10%.• Product History: Product must have been in existence for a stated time

period.

Fiduciary Quarterly/Annual fund monitoring