Investment Oversight



We define a successful investment menu by how well it grows participants’ assets over time. We incorporate a defined investment review and monitoring process to analyze and evaluate the investment criteria and success. Looking at performance alone is not enough; there needs to be a defined methodology to look behind the numbers for the real truths and hidden problems.

 

We utilize an investment scorecard analyzing core investment attributes to determine the appropriateness of every investment.  If a fund does not meet these minimum standards, they are excluded from future plans and removed from current plans.  This scorecard also guides us in choosing and recommending our investment platform.

Average annual returns can actually be quite deceiving.  Unfortunately, most committees and many consultants rely heavily on them. In fact, the sequence of returns is actually more critical than the returns themselves. Take for example the scenario below where (as most do), average annual returns are used as a primary evaluation criteria for the success of an investment.  In the case below, the obvious choice is actually not so obvious.  The Agbay Group looks behind the numbers to help ensure more consistent and reliable investment choices.

 

Growth of assets is more important
and more meaningful than average annual returns.


Average annual returns can be quite deceiving:

 

Year 1 Year 2
100% -50%
Average Annual Return = 25% 
Growth of assets = 0% 

 

 

 

We incorporate a disciplined and quantifiable six-point investment criteria removing most, if not all, subjectivity and emotion from the investment equation. It evaluates all the investments placing them in a "pass", "fail" or "watch" mode. This allows us to then act accordingly on both the buy AND sell-side of the investment equation. We believe this clearly sets our retirement plan services apart.

 

Click Here to receive a fiduciary quality review of your investments, complete the form below with your top 10 funds: