Advised
Sponsor provides a customized level of performance
reporting whereby AAG works with plan sponsors
to recommend, monitor and evaluate plan’s
investment options. This service is available
to non-ERISA plans only that have customized investment
lineups.
Advised Sponsor is ideal for
plan sponsors who have already established benchmarks
for the evaluation of their plan’s investment
options, but need assistance in the evaluation
and analysis of the performance relative to those
established benchmarks.
The Advised Sponsor service
includes the following:
Investment Policy Review
and Creation
A sound process is a crucial
element in a plan sponsor’s role as a fiduciary.
At AAG we believe this process begins with sound
investment policies and guidelines. AAG helps
Plan Sponsors develop of appropriate investment
policies and guidelines to help optimize the success
of plan investment options.
Our Investment Policy Review
and Creation approach includes:
- Review of your investment policy for reasonableness
and appropriateness given the current fund menu
- Development of an investment policy, if no
policy exists
- Future reviews of the plan’s fund menu,
ensuring a documented, objective process for
evaluation over time
- Documented updates as the financial markets
evolve.
Comprehensive
Fund Performance Review
With Advised Sponsor, AAG leverages
institutional quality data, sophisticated software
and our extensive knowledge about mutual fund
companies to provide plan sponsors with a Comprehensive
Fund Performance Review report that presents a
more sophisticated level of performance benchmarking
and analysis.
The Comprehensive Fund
Performance Review includes the following:
- An Economic Update and Capital Market Review
- An Executive Summary featuring our top-down
analysis to ensure adequate asset class coverage.
- A Customized Report Card, including participant-level
utilization of
investment options, and plan-specific observations
and recommendations.
- The report card analysis measures each investment
option’s compliance against the plan’s
investment policy. Customized benchmarks are
used where applicable. For those funds that
are not compliant, performance attribution analysis
is conducted and presented to the plan sponsor.
- Comparisons of the options against appropriate
passive industry indexes and active peer groups
of similar funds
- Risk analysis using StyleADVISOR®
software that includes manager style, risk/return
and quantification of the managers’ performance
in both up and down markets
- Recommendations for fund retention and, where
necessary, suggestions for suspension and replacement
- On-site visits with you and your reporting
board and committee to present and further assess
the overall plan as well as plan participant
needs and desires
Fund
Manager Search
Based on the investment policy
and guidelines, AAG can give plan sponsors or
committees recommendations on complimentary funds
that willprovide the greatest potential for participants
to reach their retirement goals.
AAG’s Fund Manager
Search process involves:
- In-depth analysis and screening using some
of the industry’s most sophisticated software
and research
- Identification of managers who historically
have outperformed the market using stylistically
pure, repeatable investment processes
- Additional screen checks for reasonable expense
ratios, low portfolio turnover and strong risk-adjusted
returns. AAG can provide plan sponsors with
the analysis and interpretive narrative to make
informed, sound decisions
- A fund search report that documents the investment
guidelines, discloses the funds that comply
and provides documentation for the reasons for
inclusion in the investment lineup
- Complete due diligence and documentation
for the plan
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