PLANSPONSOR - June/July 2019 - 42
A Balancing Act
INVESTMENT FOCUS
Levels of analysis are used to gauge when to hire or fire a fund manager
" I
n the factory, we manufacture cosmetics.
In the stores, we sell hope, "
makeup magnate Charles Revson,
creator of Revlon, is said to have often
declared. Sponsors of defined contribution
(DC) retirement plans, and their
consultants and advisers, face a similar
contrast: They perform rigorous analyses
of the processes, cultures and results of
investment managers and then hope the
firms can live up to expectations with outperformance
of their benchmarks.
" But nobody has a crystal ball-
nobody can see how well a manager will
do in the future, " says Ryan Gardner,
managing partner and senior consultant
at Fiduciary Investment Advisors, consultants
to $80 billion in DC funds, in
Windsor, Connecticut. " All we have to base
our decisions on is how they have done
historically. But through good research
and a thoughtful approach, you can minimize
the number of times you get it wrong. "
The methodologies employed by
advisers and consultants for manager
selection vary in the details, but they start
with a quantitative analysis of managers'
results. " We score every investment on
12 criteria, " says Jackie Deckman, retirement
plan adviser at the eponymous
Atlanta Retirement Partners, a member of
the LPL Financial Network that oversees
42 PLANSPONSOR.com June - July 2019 Art by Subin Yang
$915 million for 97 defined contribution
plan clients. The methodologies
cover multiple dimensions of managers'
returns, risk, consistency and fees.
Global consulting giant Willis Towers
Watson brings more resources to the task,
with 90 career researchers, having, on
average, 12 years' experience, but their
starting point is much the same.
Going Deeper
A specialist consulting firm in London,
Inalytics Ltd., scrutinizes manager results
at the level of individual securities trades.
CEO Rick Di Mascio says, " I ran portfolios
and teams of portfolio managers for
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PLANSPONSOR - June/July 2019
Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2019
Fee Variations
Consider This
2019 PLANSPONSOR Recordkeeping Survey
A Balancing Act
Equity Factor Investing
Going With the Plan
NQDC Investment Menus
PLANSPONSOR - June/July 2019 - Cover1
PLANSPONSOR - June/July 2019 - Cover2
PLANSPONSOR - June/July 2019 - 1
PLANSPONSOR - June/July 2019 - 2
PLANSPONSOR - June/July 2019 - 3
PLANSPONSOR - June/July 2019 - 4
PLANSPONSOR - June/July 2019 - 5
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PLANSPONSOR - June/July 2019 - 13
PLANSPONSOR - June/July 2019 - 14
PLANSPONSOR - June/July 2019 - 15
PLANSPONSOR - June/July 2019 - Fee Variations
PLANSPONSOR - June/July 2019 - 17
PLANSPONSOR - June/July 2019 - 18
PLANSPONSOR - June/July 2019 - 19
PLANSPONSOR - June/July 2019 - Consider This
PLANSPONSOR - June/July 2019 - 21
PLANSPONSOR - June/July 2019 - 22
PLANSPONSOR - June/July 2019 - 23
PLANSPONSOR - June/July 2019 - 2019 PLANSPONSOR Recordkeeping Survey
PLANSPONSOR - June/July 2019 - 25
PLANSPONSOR - June/July 2019 - 26
PLANSPONSOR - June/July 2019 - 27
PLANSPONSOR - June/July 2019 - 28
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PLANSPONSOR - June/July 2019 - 39
PLANSPONSOR - June/July 2019 - 40
PLANSPONSOR - June/July 2019 - 41
PLANSPONSOR - June/July 2019 - A Balancing Act
PLANSPONSOR - June/July 2019 - 43
PLANSPONSOR - June/July 2019 - Equity Factor Investing
PLANSPONSOR - June/July 2019 - 45
PLANSPONSOR - June/July 2019 - Going With the Plan
PLANSPONSOR - June/July 2019 - 47
PLANSPONSOR - June/July 2019 - NQDC Investment Menus
PLANSPONSOR - June/July 2019 - 49
PLANSPONSOR - June/July 2019 - 50
PLANSPONSOR - June/July 2019 - 51
PLANSPONSOR - June/July 2019 - 52
PLANSPONSOR - June/July 2019 - Cover3
PLANSPONSOR - June/July 2019 - Cover4
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