Defined Benefit

Concurrent Solution Investing (CSI) is our solution-based framework for setting priorities and successfully managing these plans

 

In selecting as asset allocation policy, Defined Benefit plan sponsors have more to consider than the traditional tradeoffs of risk and return. They must look beyond a two-dimensional efficient frontier to consider other risks like surplus volatility and liquidity. Concurrent Solution Investing (CSI) is a proprietary approach that considers four broad functions of risk- Investment, Funding, Interest Rate, and Financial Statement. Collaborating with independent actuaries, we help you identify key variables, establish priorities, weigh tradeoffs of maximizing return or minimizing surplus volatility, and ultimately define the best balance of concurrent solutions. Multiple studies have shown that 50% to 90% of portfolio return can be attributed to asset allocation1. To ensure our clients have an asset allocation that is positioned to best perform in the current market environment, we have designed an industry-leading asset allocation modeling process. The asset allocation model employs both Strategic (shorter-term) and Secular (longer-term) model inputs. We believe Strategic model inputs provide more appropriate and realistic risk and return assumptions to construct an optimal asset allocation for the current economic environment than asset allocation models based solely on long-term history. This unique approach differentiates DeMarche from other consultants and helps clients to craft an investment strategy that will work best in current market conditions and over the long term.

 

Institutional Investment Management Focus Team |  Defined Benefit

Mark A. Andes

Manager of Investment Research & Alternative Assets and Consultant

James F. Dykstal, CFA

Senior Consultant

Timothy J. Marchesi, CFA

Chairman, President & Chief Executive Officer

Travis C. Newman

Senior Consultant

Ryan M. Pickert

Consultant, Client Development

Thomas C. Woolwine

Vice Chairman

Whether you’re an Institution looking for investment services or a Manager looking to contribute to our research program, we’re here to help.

1 Brinson, Gary P., L. Randolph Hood, and Gilbert L. Beebower, 1986. Determinants of Portfolio Performance. Financial Analysts Journal 42(4):39-48
Ibbotson, Roger G., 2010. “The Importance of Asset Allocation.” Financial Analysts Journal, March/April
Xiong, James X., Roger G. Ibbotson, Thomas M. Idzorek, and Peng Chen, 2010. “The Equal Importance of Asset Allocation and Active Management,” Financial Analysts Journal, March/April.