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Expense ratios/fees: The investment option’s fees should be reasonable relative to its peer group.
Stability of the organization: There should be no perceived organizational problems and the same
portfolio management team should be in place for at least two years.
The RIA may place a fund on a Watch list. Examples of watch list criteria include but are not limited to the
following:
Sustained relative underperformance (absolute and/or risk adjusted).
There is a change in the professionals managing the portfolio.
There is a significant decrease in the product’s assets.
There is an indication the manager is deviating from his/her stated style and/or strategy.
There is a material increase in the fund’s fees and expenses.
Any extraordinary event occurs that may interfere with the manager’s ability to fulfill their role in
the future.
Target-Date Funds
The
Committee
intends to offer a series of target date retirement funds as a part of the Plan’s investment lineup. The
Committee
will apply the following guidelines in the selection and monitoring of the target date funds in addition to
the applicable criteria listed above:
•
The Plan’s objective in offering the funds
•
The Plan’s risk tolerance and participant demographics
•
The asset allocation and “glide path” of the target date fund series
•
The performance of the underlying funds inside the target date fund series
If the Plan does not intend to provide target date funds, please check this box.
V.
INVESTMENT REVIEW PROCEDURES
The
Committee
recognizes that ongoing measurement and analysis of investment performance are important in the
process of upholding its fiduciary responsibility and effectively managing the plan’s assets. The review process
provides the information needed to exercise informed judgment and reach sound decisions regarding investment
options. The
Registered Investment Advisor (RIA)
will conduct a periodic review of the plan investment options and
prepare an Investment Review, which will include at a minimum, analysis of the following:
•
The plan’s overall asset allocation by investment and style.
•
Investment performance of each investment option on an absolute and relative basis.
•
The style conformity, diversification and risk measurements of each fund.
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