CLS follows a disciplined approach to seeking, screening, selecting, monitoring, and replacing fund options within the plan.
- Seeking Diversification: CLS seeks funds that offer global diversification among the major asset classes an investor may want exposure to over a full market cycle.
- Screening: By completing an initial screening of each fund, CLS is able to review and identify investments within each asset class that meet our criteria.
- Assessing & Selecting: CLS utilizes a fund selection process to assist in manager/investment selection. Investments that have shown a consistent performance and style history, are attentive to fund costs, and are from large, reputable organizations are selected.
- Monitoring & Replacing: Every investment is monitored and reviewed regularly by CLS’s Investment Team, who looks at a variety of information including expense ratio, portfolio turnover, total return, size of the fund, and more. When the number of established criteria are not met, the fund will be placed on our “watch list.” After the fund remains on this list for eight consecutive quarters, it will be removed and replaced. The investment policy statement will detail all of the criteria within the plan.