To watch the video, click here: https://loom.com/share/ddfe38a18a5545cb9f34a680aa2f8a0c
Step-by-Step Instructions
1. Introduction to Historical Cost Trend Report 0:00
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The historical cost trend report is a powerful cost management tool.
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Unlike fee benchmarking reports, which are point-in-time, this report shows cost optimization over time.
2. Importance of Historical Cost Trend Report 0:12
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It represents the value you've delivered in optimizing plan costs over multiple years.
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Useful for demonstrating annual progress to clients and demonstrating value.
3. Accessing Fee History 0:24
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Navigate to the 'Plans' section to access fee history.
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Check for multiple years of fee history available.
4. Analyzing Fee History Data 1:04
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Review the fee history by year:
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2023: $5 million in assets, 250 participants, all-in fees at 1.05%.
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2024: Assets grew to $8 million, 375 participants, fees dropped to 0.87%.
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2025: Assets increased to $12 million, 500 participants, fees further reduced to 0.6%.
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5. Reasons for Fee Changes 2:02
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Fee reductions may result from:
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Transitioning to lower-cost share classes or CITs.
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Negotiating record-keeping fees.
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Implementing fixed fee per participant arrangements.
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6. Generating the Historical Cost Trend Report 2:23
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To run the report:
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Go to 'Reporting' > 'Cost Management' > 'Historical Cost Trend'.
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Select the plan and save the report.
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7. Interpreting the Report 2:37
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The report generates a one-page snapshot visualizing:
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Asset growth and fee reductions over time.
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Estimated cumulative savings had the client not optimized their cost structure.
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8. Value of the Historical Cost Trend Report 3:32
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Clients appreciate this report as it shows long-term value rather than just point-in-time data.
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It effectively demonstrates how cost optimization has benefited the client.