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Investment Due Diligence

Market volatility makes it critical for retirement plan sponsors and fiduciaries to develop and maintain investment due diligence procedures and supporting documentation. DCG will work with the retirement plan committee to develop and maintain the plan's investment strategy, which is codified in an investment policy statement. This investment policy statement is used as a guide to evaluate your current investment offerings, measuring them against applicable indices and criteria points, using your existing provider's complete menu and the broader universe of investment options. The intended result is confidence that your plan's investments are diversified, well managed, and meet the stated objectives of your investment policy statement.

DCG provides this comprehensive analysis by utilizing multiple tools, including Zephyr's Style Advisor and FiRM, some of the most robust investment analytical tools available. Each investment is evaluated by strict criteria guidelines and objective analytical measurements, like:

  • Risk-Return: Standard Deviation, R-squared, Alpha, Beta & Sharpe Ratio
  • Upside & Downside Capture
  • Style: Correlation & Style Drift
  • Performance: Excess Return & Tracking Error

Performing this analysis on a regular basis helps in documenting compliance with Department of Labor guidelines and helps address fiduciary requirements.