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CBIZ RPS reviews plan investment options quarterly utilizing the qualitative and quantitative metrics
described in the Investment Policy Statement. CBIZ RPS will include the following criteria in an
Investment Policy Statement to select and monitor specific investment options:
Management Tenure – How long has the portfolio manager(s) been overseeing the portfolio?
Operating Expense, or Management Fee – Is the manager fee competitive relative to its peer
group and commensurate with the quality of the product?
Investment Performance – Is it consistently competitive relative to its peer group over the
trailing 1, 3, 5, and 10 year periods?
Sharpe Ratio – is the manager adding value relative to level of risk of the portfolio?
Calendar Year Performance – Is the manager’s over/under performance attributable to a few
reporting periods, or is there a longer term consistency?
Allocation by Holding – Is it diversified within the top 10 holdings? How many positions in
total does it hold?
Allocation by Sector – Is it diversified amongst the different sectors of the economy and
where is it making its larger commitments?
Financial Statistics for Stock Funds such as the average price/earnings ratio and the median
market capitalization – Is it true to its stated style or has it drifted?
Financial Statistics for Bond Funds such as average credit quality, effective duration and
average maturity – Is it over or underweighting government and/or corporate bonds and how
much credit/duration risk is the manager taking?
3. Describe how benchmarks are chosen or developed. Can your firm provide customized
benchmarks?
CBIZ Retirement Plan Services utilizes benchmarks for each of our client’s investment options. The
following is a sample list of primary benchmarks we utilize for different asset classes:
•
Barclay’s Aggregate Bond
•
S&P 500
•
Russell 1000
•
Russell 1000 Growth / Value
•
Russell 2000
•
Russell 2000 Growth / Value
•
Russell Mid Cap
•
Russell Mid Cap Growth / Value
•
MSCI EAFE
In addition to the primary benchmarks, we compare each fund’s performance to its peer group (i.e.,
Large Cap Value, Large Cap Growth, etc.). We utilize Morningstar Direct for these comparisons.
We can also provide customized or style benchmarks through Morningstar Direct for unique products
that are historically difficult to benchmark.
4. How do you measure risk? How do you measure return?
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