Performance Measurement

PFM Advisors measures performance on a time-weighted basis and compares performance against an applicable benchmark. Risk levels are determined on the manager level by the quality and type of holdings managed versus their benchmark.

This also applies at the total fund level during the asset allocation process in determining what risk tolerance is allowed. All of the standard risk metrics that are used in the search process are also used in performance measurement.

PFM Advisors employs The RogersCasey PARis platform as its performance measurement system for our consulting clients. This system measures a client's performance against similar funds in a universe of more than 1,100 plans encompassing more than $1 trillion in assets.

Additionally, PFM Advisors monitors each manager's adherence to the policy objectives and guidelines. The quarterly monitoring report shows position weightings for the top holdings as well as sector weightings. Fixed income quality standards are similarly monitored. We present any violation of the guidelines in the executive summary. Adherence to performance objectives is also presented in the summary.

The PARis reporting system generates more than 250 different displays for each client. While we typically select 20-30 of these for inclusion in a quarterly report, all are available. We work with each client to develop the most appropriate selection of displays to meet that client’s specific needs. Our objective is to inform, without overwhelming.

In addition, the PARis performance measurement system provides us with several hundred benchmarks. We choose the most appropriate benchmark for each client, as well as create hybrid benchmarks.

Our standard report contains a clear, concise executive summary to help in the Trustees' quick understanding of the results. This is supported by the full customized report.

Back to Our Process
Portfolio Structuring
Manager Searches