Investment Due Diligence
Plan fiduciaries are considered investment experts. Without a sound investment due diligence process, plan fiduciaries may be held personally liable for poor employee investment returns.
AmRET® provides plan sponsors with a comprehensive and systematic process to analyze, select, monitor and, when necessary, replace investments. We utilize several of the best, most robust analytical tools available in the industry today and have developed our own in-house process and utilize a state-of-the-art Scorecard fund ranking system. The end result is a report of quantitative and qualitative analysis that helps reduce exposure to fiduciary liability while enhancing investment opportunities for employees.
The AmRET® system provides the following key components to our clients:
- Investment Policy Statement
- Investment Analysis and Review
- Scorecard Fund Ranking and Methodology
- Quarterly Market Summary
AmRET® generates its comprehensive analysis by utilizing multiple tools, including 401(k) Advisor, Morningstar Advisor Workstation, Zephyr's Style Advisor, and other robust investment analytical tools. Each investment is evaluated by more than a dozen different and objective analytical measurements, including:
- Upside & Downside Capture
- Style: Correlation & Style Drift
- Performance: Excess Return & Tracking Error
- Risk-Return: Standard Deviation, R-squared, Alpha, Beta & Sharpe Ratio
- Performing this detailed form of analysis on a regular basis is essential to documenting compliance with Department of Labor guidelines and minimizing exposure to fiduciary liability.