Generating Defined Contribution Plan Reports in Advisor Workstation 2.0

Transcription

1 Generating Defined Contribution Plan Reports in Advisor Workstation Generating the DC Plan Status Report How do I generate the DC Plan Status Report? Generating the DC Plan Comparison Report How do I generate the DC Plan Comparison Report? Version 1.0 i

2 Generating Defined Contribution Plan Reports in Morningstar Tools This document explains how to do the following: Create a group record to associate with a DC plan Create a DC plan to use with the DC Advisory Report Construct alerts to monitor a DC plan, and Generate the DC Advisory Report. The DC Plan Status Report can be generated for one DC plan (or model DC plan) at a time. The DC Plan Comparison Report allows you to compare two DC plans (or two model DC plans, or one DC plan and one model DC plan) in a single report. Each report is generated from a unique window; they are not produced directly from the main Advisor Workstation 2.0 window. Before generating either report, you can save time by selecting the row(s) of the plan(s) you want to use. Otherwise, you can look up the name of the plan you want to use from the respective window for each report. The table below defines some key terms to understand when working with DC plans in the new Morningstar Tools. What are some key terms to know? Term Group DC Plan Model DC Plan Definition DC plans can be assigned to a group record, which you can think of as the plan sponsor. Creating a group for each plan sponsor allows you to have multiple files for the same client all in one place. For instance, if a client has both a 401(k) and a 403(b) plan, you can create both as DC Plans and assign them to the same group (plan sponsor). This classification system is also useful if you have multiple plans for the same client, or if you want to have files for both the current fund line up and a proposed fund line up. A DC plan is used to create an investment lineup for defined contribution clients. They must be assigned to a group record. A model DC plan is not assigned to a particular group. You can use models as templates for actual DC plans, or as comparisons to existing client DC plans. Version 1.0 1

3 What is the process for creating a DC Advisory report? The DC Advisory report itself is the same in the Morningstar Tools application. However, the process and procedures used to create DC plans and the report have changed. Note the following important points about working with DC plans: When creating a DC plan, you need to determine whether it will be used as a model, or if it is for a particular plan sponsor. If the DC plan is a model, you can immediately create it. If it is for a plan sponsor, though, you need to create a group record to which the plan will be assigned. Without a group record, the DC plan can be saved only as a model DC plan. A DC plan is distinct from a portfolio. You cannot create a portfolio that is a DC plan. They are two different items in Morningstar Tools. Also, you cannot generate any DC Reports for a portfolio. Alerts are a part of the DC Advisory report. They can be created specifically for one DC plan, or for all DC plans. These alerts are also distinct from any alerts you might create for portfolios. What is the process for creating a DC Advisory report? Version 1.0 2

4 Creating a Group Record Creating a Group Record This section explains how to create a group record. You can think of the group record as the plan sponsor for a DC plan. You must create a group record in order to save a DC plan. Without a group record, you can save only model DC plans. The DC plans you create must be either saved as a model, or assigned to a group. To create a group record, do the following: 1. From the menu bar at the top of the screen, select File New Group. (Alternatively, from the Clients & Portfolios module, you can go to the Group page and click the New Group icon above the spreadsheet area.) The Group File window appears. 2. On the General Information tab, in the Group Name field, enter a name for the group. How do I create a group record? Note: Only the Group Name is required. All other information is optional. 3. From the Group Type drop-down field and select Plan Sponsor. 4. From the Status drop-down field select Client or Prospect. 5. From the Activity drop-down field and select Active, Inactive, or Former. The group Name field is the only required information you need to enter before saving a group record 6. Entering address information is optional. 7. If you have client records you would like to associate with the group, click the Clients tab and enter the information there. You can use this feature if you want to assign a non- DC client to a plan sponsor group. 8. Click Save, then click Close. The new group record can now be found on the Groups page in the Clients & Portfolios module. Version 1.0 3

5 Creating a DC Plan Creating a DC Plan This section shows you how to create a DC Plan to use with the DC Advisory report. In addition to selecting investments for the plan, you can assign a value to each holding. To create a DC plan, do one of the following: From the menu bar at the top of the window, select File New DC Plan. The Morningstar DC Plan window opens. You can maximize this window to take up the whole screen, if desired. How do I create a DC plan? From the menu bar, select File New DC Plan If you are on the DC Plans page in the Clients & Portfolios module, you can right-click on a row and select New DC Plan. The advantage of using this method is that it selects all of the securities from the DC plan you right-clicked on, thus saving you time from having to look up the same investments. If you merely want to modify an existing lineup, this is the best option. You can right-click on the row of an existing DC plan and select New DC Plan Version 1.0 4

6 Creating a DC Plan How do I use the Investments tab? The Investments tab in the DC Plan window allows you to choose the holdings for a DC plan. To select investments, do the following: 1. From the Select Universe drop-down field, select the type of security you want to find. US Mutual Funds is selected by default. 2. In the Find field, type the name or ticker of the security you want to find. How do I use the Investments tab? Click here to choose an investment type Using the holdings from a model DC plan can speed the investment selection process 3. If a match does not appear automatically, click Go. 4. In the Total Search Results area, double click the name(s) of the item(s) you want to include in the DC plan. Version 1.0 5

7 Creating a DC Plan How do I use the Allocate tab? On the Allocate tab, determine how the assets will be divided among the plan holdings. You can allocate by dollars, percentage or shares. If you elect to allocate by percentages, the Total Value field becomes available. How do I use the Allocate tab? Note: DC Plans always have a fixed allocation; they cannot be set to a floating allocation (as portfolios can). The Total Value field populates automatically as you enter currency amounts or shares. If you are allocating by percentage, click in the field and type the total amount being allocated among all holdings. The Include in Totals field controls whether the value of the DC plan is included in the asset total for the group. (This would be seen in the Total Asset Value column on the Groups page in the Clients & Portfolios module; it will not impact the DC Advisory Report.) To exclude the value of a DC plan from a group s total, select No here. In the Status field, be sure Actual is selected. Select this drop-down field to decide how to allocate assets among the holdings in a plan You can enter a value in each row, or use the Apply to All row to use the same value for all holdings Version 1.0 6

8 Creating a DC Plan How do I use the Report Options tab? The Report Options tab in the DC Plan window has one just purpose with regard to the DC Advisory report: it allows you to set a benchmark for the plan. The DC Plan window can generate only the DC Plan report; you cannot generate the DC Advisory report from here. When you go to generate the DC Advisory report, though, you will not have an option to select a benchmark for the DC plan. If you intend to use a custom benchmark, you must select it from the Report Options tab. How do I use the Report Options tab? See What is the process for creating a DC Advisory report? on page 2 to learn how to generate the DC Advisory report. To set a custom benchmark for a DC plan, do the following: 1. On the Report Options tab, scroll down to the Select Plan Benchmark area. 2. The default option is the S&P 500 TR index. You can select any other single benchmark from the top drop-down field.the other drop-down field allows you to create a custom, blended benchmark. The benchmark can be based on one of the following: the Asset Allocation of the plan the Morningstar Category of the plan constituents an institutional custom benchmark, or a custom benchmark you created. To use a custom benchmark, select an option from this field The custom benchmark is seen on the following sections of the DC Advisory Report: Plan Summary, and Stock Sectors and World Regions. Version 1.0 7

9 Creating a DC Plan How do I save a DC plan? Be sure to save the DC Plan when you create it. You can save it at any point in the creation process. You can also use the Save As button to save the same (or a modified version of a) plan with a different name. To save a DC plan, do the following: 1. At the top of the DC Plan window, click Save. The Save dialog box opens. 2. Select either As Model or To Group. 3. If saving to a group, select the name of the group in the field to the right of the To Group option. If saving as a model, go to step Type a name for the plan, then click OK. How do I save a DC plan? When saving a DC plan to a group, choose the name of the group from this drop-down field Type a name for the DC plan here This document explains how to generate the DC Plan Status and DC Plan Comparison reports from Advisor Workstation. Version 1.0 8

10 Generating the DC Plan Status Report Generating the DC Plan Status Report This section explains how to generate the DC Plan Status Report. This report is always generated from the Defined Contribution Plan window. The Report Options tab in this window allows you to choose which options and pages to include on the report. Since only one plan can be opened in the Defined Contribution Plan window at once, you cannot generate the DC Plan Status Report for more than one plan at a time. To generate the DC Plan Status Report, do the following from the DC Plans (or Model DC Plans) page in the Clients & Portfolios module: 1. Open the Defined Contribution Plan window one of two ways: Right-click on the name of a DC plan, then select DC Reports>Plan Status. Click once on the name of a DC plan to select it, then use the menu bar at the top of the screen to select Reports DC Reports>Plan Status. How do I generate the DC Plan Status Report? Select this option from the Reports>DC Reports menu 2. The Defined Contribution Plan window opens. Review the information on the Investments, Allocate, and Fees tabs, to ensure it is correct. 3. Click the Report Options tab. Note: The options available on this tab and the ordering of reports will vary by institution. The screen shots you see here might differ from your version. Version 1.0 9

11 Generating the DC Plan Status Report How do I generate the DC Plan Status Report? 4. To include a section of the report, make sure the box is checked to the left of its name. 5. For the Investment Option page, you might be able to choose the four data points which are displayed. 6. To change the order in which items appear, click the blue arrows to the right of a report s name. 7. You can change the benchmark being used by selecting a different index than the default S&P 500, or by using a custom, blended benchmark. Use the blue arrows to change the position of an item in the report You might be able to change the data points appearing on this part of the report You might also be able to change the time period You can select a custom benchmark from this field 8. When all of your selections are made, click the Generate Report icon at the top of the Defined Contribution Plan window. The report appears in a new window as a PDF. Version

12 Generating the DC Plan Comparison Report Generating the DC Plan Comparison Report The DC Plan Comparison Report is generated from the DC Plan Comparison Report Builder window. You can compare any two DC plans (or model DC plans) to one another; both DC plans do not need to be from the same group record. Only two DC plans can be compared at once. You cannot choose a benchmark for this report. The DC Plan Comparison Report will use the benchmark(s) you assigned to each plan in the Defined Contribution Plan window. To generate the DC Plan Comparison Report, do the following from the DC Plans (or Model DC Plans) page in the Clients & Portfolios module: 1. Click once on the first DC plan you want to use in the DC Plan Comparison Report 2. For the second DC plan you want to use, hold down the <CTRL> key while clicking on its row. 3. Open the Defined Contribution Plan window one of two ways: Right-click on the name of one of the two selected DC plans, then select DC Reports Plan Comparison. Use the menu bar at the top of the screen to select Reports DC Reports>Plan Status. How do I generate the DC Plan Comparison Report? Select this option from the Reports DC Reports menu 4. The Plan Comparison Report Builder window opens. The two DC plans you selected are in the Total Search Results area. Click the Add All button. The two DC plans are moved to the Plans Selected area. If you are comparing a DC plan to a model DC plan, you will have to look for one of the items on the Plans tab in the Plan Comparison Report Builder window. You cannot select one of each item in the main Advisor Workstation 2.0 window, then open the Plan Comparison Report Builder window and see both items in the Total Search Results area. Only the last item you selected will appear here. 5. Click the Report Options tab. Note: The options available on this tab and the ordering of reports will vary by institution. The screen shots you see here might differ from your version. Version

13 Generating the DC Plan Comparison Report How do I generate the DC Plan Comparison Report? 6. For the following pages, you might be able to choose the data points which are displayed on the report: Diversification and Consistency Risk and Return Expenses Relative to Category, and Operations. The fields marked with an arrow allow you to choose the data fields to appear on the report 7. For the Risk and Return and Category Performance sections, you can change the trailing time period used. 8. To change the order in which items appear, click the blue arrows to the right of a report s name. 9. When all of your selections are made, click the Generate Report icon at the top of the Plan Comparison Report Builder window. The report appears in a new window as a PDF. Version