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Schwab Enables Retirement Plans To Track Monthly Performance

Charles Schwab Corporate Services has introduced a new monthly report for retirement plan sponsors to monitor the investments in their plans.

Called the Fiduciary and Investment Reporting Package, the report is designed for SchwabPlan and SchwabPlan Select plan sponsors. Sponsors will be able to monitor fund performance based on criteria established in each plan's investment policy statement (IPS), according to Schwab. The report will also include plan asset allocations and trend data, market commentary, retirement plan industry data and fund summaries.

"At a glance, plan sponsors [can now] know the performance of their funds based on their own criteria and compare [it to] customized benchmark indices," said Robert Oros, vice president of product and investment development for retirement plan services at Schwab.

When plan sponsors establish the IPS, they can set criteria for when a fund in the plan reaches "watch" or "termination" status, which might be based on a percentile rank by Morningstar, for example. The report will also indicate if a fund in the plan has engaged in style drift.

"If a fund in their plan reaches watch or termination status, plan sponsors can work with Schwab or their investment adviser to decide if they want to take any action," said Ben Brigeman, senior vice president of retirement plan services at Schwab. "This new report is intended to serve as a tool to help in that decision-making process and to provide an overall snapshot of the plan."