Sponsors are behind the curve in using risk-assessment tools to gauge the suitability of investments, and will need advisors to fill this gap. The graph below illustrates the gauges advisors most commonly use to evaluate investments:
Advisors mostly use performance metrics, advanced metrics less recognized1
Source: Voya Investment Management
Expertise will be of particular importance to gauge the suitability of investments for clients, and advisors will need a rigorous methodology. An effective way to evaluate plan investments is to familiarize yourself with Voya’s Consistency Lens™ methodology, which includes six factors that can help identify potential for consistent, repeatable results over time. Read Applying a Consistency Lens™ to Fund Evaluations to learn more about the methodology and how you can put its power to work.
Survey of the Retirement Landscape: Insights from Current Research
Voya Investment Management recently released the second edition of its survey of retirement plan sponsors and plan advisors, to identify and better understand the current service needs of sponsors and help DC-focused advisors better align their offerings and priorities to meet those needs. Though some perceptions have changed since the initial survey in 2016, views on a few key issues have evolved and several new issues have arisen. We present key findings of the study in this series of insights. For all the research results, read Survey of the Retirement Landscape: Challenges and Opportunities for Advisors.
1 Question: Which of the following are the most important factors in selecting investment options used for clients’ retirement plan menus?
For financial professional use only. Not for inspection by, distribution or quotation to, the general public.
This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management (“Voya IM”) considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may differ materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information.