RT Journal Article SR Electronic T1 What Every Plan Sponsor Needs to Know About Transaction Costs JF Trading FD Institutional Investor Journals SP 20 OP 35 VO 2001 IS 1 A1 Wayne H. Wagner A1 Steven Glass YR 2001 UL http://guides.pm-research.com/content/2001/1/20.abstract AB With increasing frequency, plan sponsors (and their consultants) are expanding the scope and focus of their oversight activities to include the trading practices of managers. These efforts can only have a positive effect. For a variety of reasons, and in a number of ways, review of execution efficiency is an essential ingredient in the prudent oversight of assets under management. In this article the authors attempt to answer many of the questions that jump to mind when discussing the merits of transaction cost analysis. The chapter is divided into three sections. The first provides a brief primer on the importance of transaction costs and relevant fiduciary considerations. The second focuses on the more common issues and problems that prudent oversight may uncover. The final section considers the practical benefits of this analysis in terms of manager follow-up; as well as application of these principles to instances where plan sponsors directly impact trade costs (such as transitions, directed brokerage, and manager searches). A concluding summary offers a bullet-point checklist of practical measures a plan sponsor can take.