When Plan Sponsors are asked "How is your plan doing?", the answer seems to surround the idea of the market: the S&P 500 or the DJI. However that becomes a comparison of A) the largest equity companies in America with B) some large, some medium, and some small equities in America along with some foreign companies, along with a large block of bonds and perhaps some real estate, and ........
Further, That plan comparison would vary based on the market performance and also vary based on allocations of the plan funds.
PRISM considers it important to know and understand if the plan is outperforming the market. But what is "the market"?
PRISM developed a method of comparing the returns of each individual fund and then comparing them with the returns of the average of all available funds of the same class, and then totaling them for Returns based on Plan Allocations.
The returns of "average of returns" of the same style, and based on the Plan's allocation becomes "The Market" for that plan. The difference between the Plan’s Returns and the Market’s Returns provide the Plan’s Earnings; ie., how much did the Plan outperform their market.
PRISM then compares the Earnings with over 2,000 other 401k Plans in the country and percentile (1-100) ranks them for the ultimate PRISM Proof. 401k PRISM plans consistently perform in the top 5% of Plans in the country.