Trustees utilizing discretionary consulting programs often seek to hire an independent third party consultant to provide oversight and monitoring of the actions taken by discretionary consultant(s). Depending on the needs of a benefit plan, a Board of Trustees can determine the level of oversight desired.
Oversight Consulting Services (“OCS”)
Under OCS, IPS reports on performance of total plan and investment managers and ranks those returns in a comparable peer universe. IPS monitors the discretionary consultant’s compliance with the benefit plan’s investment policy, as well as the compliance of the underlying investment managers utilized by the discretionary consultant.
Services can include:
- Review of investment policy and guidelines
- Quarterly investment performance evaluation and peer ranking
- Quarterly portfolio compliance monitoring
- Trustee education
- Independent calculation of investment returns reported by discretionary consultant
- Attendance at Board of Trustees’ meetings