DC Diversification Tool

Plan sponsors are responsible for the selection and monitoring of investment options. Knowing the diversification of each investment option and the diversification relationship among all the investment options offered is critical. Surprisingly, investment options - even those with different stated objectives - may own many of the same stocks. The result for the plan sponsor and participant is that, without appropriate diversification, the investment options react to the market swings in a similar manner.

DeMarche offers a fund diversification measurement tool to help you identify the duplication among equity investment options. We have access to the holdings of more than 6,000 mutual funds. The DeMarche DC Diversification Tool compares equity holdings of two or more mutual funds. We analyze both the percentage of holdings that overlap and the duplication of holdings among 10 common industry sectors. We can perform this analysis on an on-going basis or as a one-time service.

The DeMarche approach to defined contribution services is comprehensive, drawing on our more than 27 years of experience evaluating markets, money managers and defined contribution providers. The result is a program that meets the needs of plan participants and helps plan sponsors meet their fiduciary responsibilities.