The benchmarks for the VA 529 evolving portfolios all include the phrase "+ 100 basis points". From the documentation:
"The Portfolio Benchmark is a blended composite benchmark that reflects the asset allocation of the Portfolio over time, appropriate strategic benchmark index components for each underlying investment manager, and an adjustment reflecting the inVEST administrative fee for the Portfolio."
For instance, the evolving portfolio which is currently 50/50 has an expense ratio of 0.61, which includes the VEST program administrative fee of 0.20. The benchmark info reads:
"13.75% S&P 500 / 3.75% Russell 2500/ 3.75% MSCI US Small Cap 1750 / 13.75% MSCI AC EAFE / 7.5% MSCI Emerging Markets / 7.5% FTSE EPRA-NAREIT Developed Real Estate / 5% Barclays Corporate High Yield / 10% JP Morgan Emerging Bond Market Index Global Diversified / 15% Barclays Capital Aggregate / 20% T-Bills + 100 basis points"
The expense ratios for the evolving portfolios range from 0.30 to 0.79 but they all have this "+ 100 basis points" in their benchmark descriptions. What does that mean? Are they lowering all the benchmarks by a percent? If so, is there a justification for that?
Thanks for any insights you may have regarding benchmarks reporting.