Paychex Guided Fund Select

[Pages:9]Paychex? Guided Fund Select Non-Broker Series

Quarterly Investment Fiduciary Report

Quarter ending September 30, 2021

As an independent fiduciary, we act solely in the best interest of our investors, helping to make retirement planning simple.

Our ultimate goal is to ensure that participants have the personalized advice they need to create the future they want.

20 YEARS OF INNOVATION AND SUCCESS 1.5 MILLION CUSTOMERS ASSISTED

Methodology

Our research shows a majority of investors prefer avoiding risk over seeking reward.

That's why we employ a rigorous and proprietary methodology, developed by Nobel Laureate Dr. Harry Markowitz and led by our Investment Committee. Our team has over 2 decades of experience and dedication towards creating a system that makes smart trade-offs between expected future growth and possible shortfalls.

? 2021 GuidedChoice? | Confidential & Proprietary

Table of Contents:

? Market Environment and Investment Commentary ? Managed Account Performance ? Managed Accounts vs. Targeted Asset Class Performance ? Fund vs. Benchmark Comparison

2

MARKET ENVIRONMENT AND INVESTMENT COMMENTARY

Date: September 30, 2021 Plan Funds: Non-Broker Series

Market environment: Q3 2021

Risk was not rewarded in Q3

Although bond returns were negative, equity risk was rewarded over the past 12 months

Market environment: Four quarters ending Q3 2021

Growth led Value among Large Cap stocks, trailed

Value has led Growth over the trailing 12 months

Value among Small Cap stocks

Commentary During the quarter, global supply chain bottlenecks led to concerns about inflation and stagflation. The riskiest asset prices fell. Bonds and US Large Cap stocks barely made money; US Small Cap and Emerging Market Stocks lost money. Growth again led Value among Large Caps; among Small Caps, Growth returns were worse than Value returns. Over the trailing year, investment grade bonds lost money while High Yield bonds and stocks enjoyed double-digit returns. Value led Growth across all size segments.

Over the quarter, all but the most conservative portfolios lost money. Portfolio returns ranged from -0.3% to +0.3%, while relative returns ranged from +0.2% to +0.8%.

?2021 GuidedChoice? Confidential & Proprietary

Among asset class funds on the roster at quarter-end, during the quarter the top performing relative to its benchmark was DFA US Small Cap I (+3.0%). The bottom performing relative to its benchmark was American Funds Europacific Growth R6 (-1.9%). Over the past 12 months, all portfolios made money. Portfolio returns ranged from +0.4% to +32.0%, while relative returns ranged from -0.0% to +1.0%. Among asset class funds on the roster at quarter-end, over the trailing 12 months the top performing relative to its benchmark was DFA Emerging Markets Core Equity I (+9.0%). The bottom performing relative to their benchmarks were Principal MidCap R5 (-12.9%) and Janus Henderson Triton I (-13.8%). Note: The fund portfolio returns include the advisory fee charged by GuidedChoice.

?2021 GuidedChoice? Confidential & Proprietary

Investment Policy Statement Service

Managed Account Performance

Non-Broker Series

Performance date: September 30, 2021 Report date: October 11, 2021

Risk Level

Extremely Conservative Conservative

Moderately Conservative Moderate

Moderately Aggressive Aggressive

Extremely Aggressive

Total Expense

Ratio

0.59% 0.70% 0.72% 0.72% 0.72% 0.73% 0.70%

1-Month

-0.45% -1.24% -1.90% -2.42% -2.90% -3.47% -4.09%

3-Month

0.25% 0.33% 0.22% 0.02% -0.10% -0.29% -0.32%

YTD

-0.21% 3.47% 5.70% 7.42% 9.67% 11.71% 13.85%

12-Month

0.39% 7.88% 13.08% 17.38% 22.42% 27.35% 32.01%

3-Year

4.08% 7.10% 8.65% 9.68% 10.70% 11.78% 12.89%

5-Year

2.77% 5.51% 7.16% 8.92% 10.65% 12.43% 14.05%

The GuidedChoice Portfolio Program consists of a menu of Portfolios. Each Portfolio invests in various investment funds. By allocating different percentages of each Portfolio among various Funds, the Program can offer diversified portfolio options covering a wide variety of time horizons, investment goals, and risk tolerance levels applicable to different investors. Based on the selection of, and the percentage of each Portfolio's asset mix, a Portfolio's asset mix may range from conservative to very aggressive. Each Portfolio seeks to maximize the total return to its selectors over the long-term, consistent with the risk parameters established for that Portfolio. There is no guarantee of the performance of the Portfolio or that its objective can be obtained. Past performance is not a guarantee of future results.

An individual may lose money by investing in any Portfolio. The likelihood of loss is greater if money is invested for a shorter period of time. Investment in any Portfolio is not a deposit or obligation of, or insured or guaranteed by, any entity or person, including the U.S. Government and the Federal Deposit Insurance Corporation.

? 2021 GuidedChoice? | Confidential & Proprietary

5

Investment Policy Statement Service

Managed Accounts vs. Targeted Asset Class Performance

Non-Broker Series Performance date: September 30, 2021 Report date: October 11, 2021

Risk Level

Fund Series Level

Targeted Asset Class Level

Extremely Conservative Conservative

Moderately Conservative Moderate

Moderately Aggressive Aggressive

Extremely Aggressive

Extremely Conservative Conservative

Moderately Conservative Moderate

Moderately Aggressive Aggressive

Extremely Aggressive

3-Month Returns 0.25% 0.33% 0.22% 0.02% -0.10% -0.29% -0.32%

12-Month Returns 0.39% 7.88%

13.08% 17.38% 22.42% 27.35% 32.01%

0.02% -0.03% -0.28% -0.52% -0.64% -0.75% -1.08%

-0.25% 7.37% 12.03% 17.40% 21.56% 26.47% 31.79%

? 2021 GuidedChoice? | Confidential & Proprietary

Difference

0.23% 0.36% 0.50% 0.54% 0.54% 0.47% 0.76%

0.65% 0.50% 1.04% -0.02% 0.86% 0.88% 0.22%

6

Investment Policy Statement Service

Risk Level

Extremely Conservative Conservative

Moderately Conservative Moderate

Moderately Aggressive Aggressive

Extremely Aggressive

Extremely Conservative Conservative

Moderately Conservative Moderate

Moderately Aggressive Aggressive

Extremely Aggressive

Fund Series Level

Targeted Asset Class Level

3-Year Returns

4.08%

3.58%

7.10%

7.11%

8.65%

8.36%

9.68%

9.63%

10.70%

10.62%

11.78%

11.75%

12.89%

12.92%

5-Year Returns 2.77% 5.51% 7.16% 8.92% 10.65% 12.43% 14.05%

2.16% 5.76% 7.49% 9.31% 10.74% 12.43% 14.11%

Difference

0.50% 0.00% 0.29% 0.05% 0.09% 0.04% -0.03%

0.61% -0.25% -0.33% -0.39% -0.09% 0.00% -0.07%

? 2021 GuidedChoice? | Confidential & Proprietary

7

Investment Policy Statement Service

Fund vs. Benchmark Comparison

Non-Broker Series Performance date: September 30, 2021 Report date: October 11, 2021

Cash Funds Federated Hermes US Treas Cash Res IS Idx: FTSE Treasury Bill 3 Mon USD Difference

B

Vanguard Short-Term Federal Adm Idx: FTSE Treasury Bill 3 Mon USD Difference

B

TICKER

UTIXX IDXGC01

VSGDX IDXGC01

Total Expense

Ratio 1-Month 3-Month

12YTD Month 3-Year 5-Year

0.2%

0.00% 0.00% 0.00%

0.1%

-0.15% 0.00% -0.15%

0.00% 0.01% -0.01%

0.00% 0.04% -0.04%

0.02% 0.01% 0.02%

0.10% 0.04% 0.06%

0.00% 0.07% -0.07%

0.97% 1.14% -0.17%

0.55% 0.07% 0.48%

3.36% 1.14% 2.21%

0.97% 1.13% -0.16%

2.00% 1.13% 0.87%

? 2021 GuidedChoice? | Confidential & Proprietary

8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download