City of Edmond 457 Deferred Compensation Plan

Transcription

City of Edmond 457 Deferred Compensation Plan
Exceeding Your Expectations
500 West Madison Street, Suite 1700 | Chicago, IL 60661 | 312.853.1000
Table of Contents
Firm Background………….…………….. Page 3
Defined Contribution Expertise
Expertise...……….. Page 8
Manager Research & Selection………….. Page 12
Performance2 Evaluation...……...……...… Page 18
2
Ab t DiMeo
About
DiM Schneider
S h id & A
Associates,
i t L.L.C.
LLC
Founded in 1995
• Based in Chicago, IL
• $40 Billion + Assets Under Ad
Advisement
isement
• Conflict-Free Consulting
• 250+ Institutions
• 200+ Wealthy Families
61 Professionals
•8 Partners
•29 Investment Consultants
•20+ Professionals Participate in Research Efforts
•Numerous CFA Charterholders, CIMAs, and CFPs
•10 Member Investment Committee
3
3
Deepp & Experienced
p
8 Firm Principals
Robert DiMeo
CEO
William
Schneider
Institutional Consulting
g
Douglas Balsam, CIMA®
Director of Institutional Consulting
Jeff Benoit
Director of Taft-Hartley Consulting
Brian Carlson, CFA
Senior Consultant
Linda Coffey
Senior Consultant
Robert DiMeo
Senior Consultant
Steven Dufault, CIMA®
Senior Consultant
James Jensen, CIMA®
Senior Consultant
James Modelski, CIMA®
Senior Consultant
Sam Pollack
Senior Consultant
Matthew Porter, CIMA®
Senior Consultant
Matthew Rice,
Rice CFA
CFA, CAIASM
Senior Consultant
Steve Spencer, CIMA®
Senior Consultant
Jeff Barrow
Consultant
Jessica Ludwig
Consultant
Jon Salett
Consultant
Mordecai Tolbert
Consultant
Brian White
Consultant
Shreya Canakapalli
Service Associate
Michael
Benoit
Douglas
Balsam
The Wealth Office™
Michael Benoit, CIMA®, CFP ®
Managing Director, TWO
Chad Tischer, CFP ®
Director of Consulting, TWO
Nick Breit, CFP ®
Senior Consultant
Jonathon Fellows
Fellows, CFA
Senior Consultant
Adam Newell, CFA, CFP ®
Senior Consultant
Joseph Cortese
Senior Consultant
Kevin Koykar, CFP ®, ChFC®
Senior Consultant
Deborah Canale, CRPC, RP
Consultant
Aimee O’ Connor
Consultant
William Parker, CIMA ®
Consultant
Joe Scime
Scime, CFP ®
Consultant
Angela DiBrito
Service Associate
Erika Flores
Service Associate
Peter Kenney
Service Associate
Jennifer Zepp
Service Associate
Matthew
Porter
Matthew
Rice
Research & Analytics
y
CAIASM
Matthew Rice, CFA,
Chief Investment Officer
Matthew Porter, CIMA
Director of Research Analytics
Geoffrey Strotman, CFA
Manager of Traditional Asset Research
Craig Adkins, CFA, CPA
Senior Alternative Investment Analyst
Todd Leedy, CAIASM
Senior Alternative Investment Analyst
Jackie Rondini, CFP, CMFC
Senior Investment Analyst
Bryce Anderson, CFA
Alternative Investment Analyst
Maggie Bolotin
Alternative Investment Analyst
Anthony Novara, CFA
Research Analyst
Brad Long
Research Analyst
Bryce McNaul
Research Associate
Brad Daniels
Manager of Performance Analytics
Mike O’Neill, CMFC
Senior Analyst
Angela Repta
Senior Analyst
Amr Abdallah
Analyst
Jennifer Bailey
Analyst
Andrew Maccioli
Analyst
Ryan Vervoort
Analyst
Matt Vivas
Analyst
Chad
Tischer
James
Modelski
Compliance
p
& Operations
p
Scott Blim
Chief Operating Officer
Susan Lerche
Controller
Jason Smith
Technology Associate
A d A
Andy
Andrews
d
Staff Accountant
Jenna Friedman
Senior Marketing Associate
Brianne Garritano
Marketing Associate
Cris Ohr
Business Development Consultant
Terry Sidlow
Business Development Consultant
Patricia Murphy
Director of First Impressions
Andrea Hogan
Associate
Christa Stine
Executive Assistant
Fi Recognition
Firm
R
iti andd Expertise
E
ti
Top 10 Endowment/Foundation Consultants – Plan Sponsor Magazine*
Top 40 Worldwide Consultants – Pension & Investment Special Report**
Top 20 Fastest
Fastest-Growing
Growing Registered Investment Advisors – Forbes
Forbes***
New
Book!
Client Survey Results
(excerpt)
•96% of respondents believe we
provide exceptional value for the
fees we charge
•97% rank the firm as above
average/superior
•99% of clients would
recommend our services
Details of 2010 survey available upon request
*Top 10 Consultants by number of reported endowment/foundation consulting clients 2010
**T 40 C
**Top
Consultants
lt t ranked
k db
by worldwide,
ld id iinstitutional
tit ti
l ttax-exemptt advisory
d i
assets
t under
d advisement
d i
t as off N
November
b 2011
*** Top 20 Registered Investment Advisors in 2011, ranked by the most assets added since 2008
5
O C
Our
Commitment
it
t to
t You
Y
“Help Clients prosper by placing their interests first and providing
straightforward
t i htf
d advice
d i built
b ilt on practical
ti l intellectual
i t ll t l capital.”
it l ”
Help Clients
P
Prosper
Place Client
Interests First
Provide
Straightforward
Advice
Practical
Intellectual Capital
•Satisfy Fiduciary Responsibilities
p
Performance
•Improve
•Reduce Expenses
•Unbiased, Conflict-Free Advice
Written, Robust Code of Ethics
•Written
•Only Source of Revenue = Client Fees
•No Manager Pays to be in Our Database
•Proactive Recommendations
•Unambiguous Direction
•Clear Action Plan
•Research Focus: Add Return, Reduce Risk, or Both
•Timely Thought Leadership: TIPS, REITs, MLPs
•Proprietary, Leading-Edge Tools
6
R
Representative
t ti Client
Cli t List
Li t
NONPROFIT ORGANIZATIONS
CORPORATIONS
PROFESSIONAL FIRMS
Advocate Charitable Foundation
American
e ca Soc
Society
ety of
o Anesthesiologists
est es o og sts
The Art Institute of Chicago
Augustana College
Austin Community Foundation
Better Business Bureau
Chicago Foundation for Women
Chicago Zoological Society
Clarke University
Clerics of St. Viator
College of American Pathologists
Community Health Network
Conception Abbey
Concordia University – River Forest
DePaul University
Evans Scholars Foundation
Fenwick High School
Fourth Presbyterian Church
Gallaudet University
Jewish Community Centers of Chicago
Moody Bible Institute
Morton Arboretum
National Association of Realtors
NorthShore University HealthSystem
P k Ni
Park
Nicollet
ll t Health
H lth S
Services
i
Roosevelt University
Seattle Cancer Care Alliance
Sisters of Charity, BVM
St. Edward’s University
g
United Wayy for Southeastern Michigan
Amsted Industries
Auburn Gear,, Inc.
Ball Horticultural Company
Bissell, Inc.
Briggs & Stratton Corporation
Dean Foods
Everett Smith Group, Ltd.
FABCO Equipment
Fiserv, Inc.
Follett Corporation
Gordmans, Inc.
Guardian Industries Corporation
Heico Holding, Inc.
Illinois Tool Works
JBT Corporation
Klein Tools, Inc.
Marathon Oil Company
Material Sciences Corporation
Michigan CAT
Molex, Inc.
Oil-Dri Corporation of America
O’Neil Industries, Inc.
Palace Sports & Entertainment, Inc.
Scholle Corporation
Spra ing S
Spraying
Systems
stems Co
Co.
TAMKO Building Products, Inc.
Tecta America
Underwriters Laboratories Inc.
Ulta Salon, Cosmetics & Fragrance, Inc
United Stationers, Inc.
Burke, Warren, MacKay & Serritella
HOK,, Inc
Kirkland & Ellis LLP
Loebl Schlossman & Hackl
Mayer Brown
McDermott, Will & Emery
Pappageorge Haymes, LTD
Perkins + Will
Schuyler Roche & Crisham, PC
Silveredge Consulting
Skidmore, Owings & Merrill LLP
Troutman Sanders LLP
Ungaretti & Harris
Wiss, Janney, Elstner Associates
TAFT-HARTLEY PLANS
Asbestos Workers Local 34
Asbestos Workers Local 39
Cedar Rapids Electrical Workers Local 405
Des Moines Iron Workers Local 67
IBEW Local 347
Iowa Iron Workers Heavy Highway
Illinois Education Association
Indiana State Council of Plasterers & Cement
Masons Local 692
Machinery Movers & Riggers Local 136
Northern MN-WI Area Retail Clerks
Ornamental Ironworkers Local 63
Operating Engineers Local 49
Sheet
S
eet Metal
eta Worker
o e Local
oca 10
0
7
Defined Contribution Expertise
8
C fli t F S
Conflict-Free
Services
i
Investment Menu Design
g
Ongoing Performance Evaluation
Custom Lifecycle/Target Term Funds
Manager/Fund Search
Investment Policy Statements
Recordkeeper
p Search
Plan Design
g
CIOutsource™
Fee Analysis
Risk Management
Plan Benchmarking
Fiduciary Report Card
Fiduciary Institute
Participant
p
Education
9
Investment Menu Pyramid
Review & Benchmark
Participant Behavior,
Plan Demographics,
Best Practices and
Fiduciary Duties
Proprietary Investment Search
Process with Innovative
Conflict-Free Options
SDB*
Core Options
Distinct
Understandable
Target-term Funds
Off the shelf or Custom
Off-the-shelf
Build an investment menu based on a solid
understanding of participant demographics, capital
markets, best practices and fiduciary duties.
*Self-directed brokerage accounts.
accounts Not appropriate for all plans and
typically garner small percent of assets.
10
Expertise
Plan Expenses
Recordkeeper
• Leverage to effectively
negotiate
• 15-20 recordkeeper searches
annually
• Commingled/Separate
accounts
• Help you improve or replace if
needed
• “Excess Revenue” accounts
• Clients currently use over 20
different recordkeepers
• Investment flexibility – nonproprietary
i t
funds;
f d active/index
ti /i d
• “Apples-to-Apples”,
“A l t A l ” “D
“Dollarsll
to-Dollars” comparisons
• Service and fee guarantees
11
Manager Research & Selection
12
P tP
Past
Performance
f
iis a Poor
P
IIndicator
di t
Quantitative
Screens
Deep-Dive
Research
Healthy
Committee
Debate
13
Deep Investment Research Team
Traditional Investment
Manager Research
Hedge Fund Manager Research
Craig Adkins, CFA, CPA, MBA
Bryce Anderson, CFA
Maggie
gg Bolotin
Jon Fellows, CFA, MBA
Todd Leedy, CAIASM
Adam Newell, CFA
Matthew Rice, CFA, CAIASM
Real Assets Manager Research
Nick Breit, CFP®
Brian Carlson, CFA
Joe Cortese, MBA
Todd Leedy, CAIASM
Matthew Porter, CIMA®
Mordecai Tolbert
Amr Abdallah
Jennifer Bailey
Brad Daniels
Brad Long
Andrew Maccioli
Bryce McNaul
Anthony Novara, CFA, MBA
Mike O’Neill, CMFC®
Angela Repta
Jackie Rondini, CFP®, CMFC®
Geoff Strotman,
Strotman CFA,
CFA MBA
Ryan Vervoort
Matthew Vivas
Capital Markets Research
Bryce Anderson, CFA
Brian Carlson, CFA
Jon Fellows,
Fellows CFA,
CFA MBA
Todd Leedy, CAIASM
Matthew Rice, CFA, CAIASM
10 Member
Investment
Committee
Private Equity
q y Manager
g
Research
Todd Leedy, CAIASM
Sam Pollack, MBA
14
Traditional Manager Research
Initial Screens
•Style analysis
•Proprietary multi-factor
model
Qualitative
Q
lit ti
Review
•Compared to peer(s) and
•Portfolio characteristics Custom
benchmark(s)
•Expenses
p
•Portfolio composition
Questionnaire
•Assets managed
and Analysis
•Market capitalization
•Duration
•Investment and noninvestment assessment
•People
p
•Process
•Philosophy
•Performance
Risk Management
•Risk
•Operational
Deep-dive
Research
•The 4 “P’s”
Organizational structure
•Organizational
•Succession plans
•Compensation
•Compliance systems
•Trading process
•Portfolio construction
•Buy/Sell discipline
•Composite methodology
•Portfolio holdings
•Legal & regulatory
concerns
Committee Approval
•Investment Committee:
-10 Members
- Partners
- Sr. Consultants
- Sr. Analysts
y
•Robust review and debate
•Majority approval required
to include/retain manager
•Results in 5 to 7 managers
per asset class
____________
__
Deep-dive research and committee debate differentiates DiMeo Schneider's
Schneider s approach
approach.
15
Alternative Investments Manager Research
 Experienced 12-person alternative investments research team
 $2.6
$2 6 billion in alternative investment assets under advisement
Initial Screening
Managers are screened
via initial review of
materials, conference
presentations, and/or
meetings with fund
personnel to determine if
further diligence is
warranted:
–Strategy
–AUM
–Terms
T
–Pedigree
–Down market
preservation
–Performance
Investment
Process –
Quantitative
Review
Leverage
Long/short attribution
Drawdown analysis
Correlation and Beta
analysis
Volatility
Ratio Analysis – Sharpe,
Information, and Sortino
Exposure– long/short,
geographic, sector,
i t
instrument
t
Investment
Process –
Qualitative Review
Investment team
Investment strategy
Research process
Portfolio construction
Risk management
Edge: Determine
whether a manager has a
quantifiable edge that
warrants investment
consideration
Operational Due
Diligence
Review and test where
possible internal controls
surrounding key
processes
Trading and settlements
Reconciliations
Pricing and NAV
calculations
Cash management
Compliance
Disaster recovery
Review and confirm
external relationships
a)Prime broker(s)
b)Administrator
c)Auditor
d)Regulator
Comprehensive
Report and
Approval
 Review comprehensive
report that includes all due
diligence findings and
performance analysis
 Alternative investment team
reviews reports with followup inquiry
 Majority approval required
to include/retain manager
on approved list
 30-40 approved direct
hedge fund managers.
 5-7 approved fund of hedge
funds.
 3-10 approved managers in
sub categories of real
assets and private equity
16
“B Patient
“Be
P ti t or Invest
I
t Passively”
P i l ”
For complete White Paper
and other useful resources,
please visit:
www dimeoschneider com
www.dimeoschneider.com
17
Performance Evaluation
18
M i f l Information
Meaningful
I f
ti by
b YOUR Definition
D fi iti
Universe
Ranking
Index
Comparison
Manager
Evaluation
Summary
Expense
Evaluation
19

City of Edmond 457 Deferred Compensation Plan

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