Framework for Defined Contribution Plans: Performance Measurement

In this course, Bill Emmett, a senior consultant at Callan, discusses the evaluation of manager performance within Defined Contribution Plans. The main fiduciary tasks include setting strategy, selecting managers, and monitoring results. The course emphasizes both quantitative and qualitative aspects of assessing managers, such as performance relative to benchmarks and peer groups, understanding risk measures like standard deviation and tracking error, and evaluating qualitative factors like team structure and communication. The script also highlights the unique case of target-date funds, their glide paths, and implementation returns, stressing the importance of time and holistic evaluation in manager performance assessment.