Item 5: Fees and Compensation
DeMarche offers all of its general services, both individually or as part of retainer agreements. DeMarche
accepts “subscription fees only” upon client request. DeMarche does not receive direct compensation in
connection with the purchase or sale of a security, such as a sales load. Clients are not required to pay for
advisory services in advance. DeMarche charges for the specific services it performs, and there is no “start-
up” fee associated with its services. Clients may incur other fees, such as investment management or
custodial fees, in connection with implementing DeMarche’s investment advice. Fees for services are not
deducted from client assets.
Services may be purchased from DeMarche with hard dollar payment. Clients are invoiced by DeMarche upon
the provision of services, and such invoices are due within 30 days. Payments that are paid to DeMarche in
advance are refundable to the client upon termination of an advisory contract.
All services may be terminated by either party upon written notice provided such terminating party fulfills all
of its obligations under any agreement through the date of such termination.
Descriptions of DeMarche services are listed alphabetically. Fees vary depending on the level of service,
complexity of client portfolios and other relevant factors.
DC Analytics
DC Analytics is a quarterly performance analysis for defined contribution retirement plans. Performance is
measured and compared to standard industry benchmarks and appropriate fund universes. In addition, the
report shows how each option's risk/return profile compares to other funds in its style group. Further, this
PART II (A) FORM ADV: FIRM BROCHURE
analysis provides an overview that illustrates unintended gaps and overlaps that limit the ability of plan
participants to diversify their portfolios.
Defined Contribution Investment Policy Development
DeMarche works with plan sponsors to develop an investment policy that states sponsor's objectives,
outlines plan structure, and establishes the criteria for monitoring and evaluating performance. This
document also spells out the responsibilities of those involved in implementing the plan, sets procedures for
selecting options and managers, establishes investment guidelines and communicates sponsors philosophy
and expectations to providers and managers.
Defined Contribution Bundled Provider Search
DeMarche researches defined contribution providers on an ongoing basis in order to identify companies that
are best suited to serve client's needs. DeMarche has developed a comprehensive Request for Proposal (RFP)
to collect information needed to identify the best qualified providers. The RFP is customized to meet client
needs, with responses compiled, evaluated, and summarized for client's review. DeMarche also participates
in the finalist interviews and provides the selection committee with input and advice.
DC Fund Analysis
DeMarche's Investment Funds Analysis service was established to evaluate mutual funds and assist fund
sponsors who provide a number of investment options to employees through 401(k) plans. In a Basic
Review, DeMarche reviews quantitative data directly from external databases and investment managers,
conducts a subjective review of the information and separates funds into competitive and non-competitive
categories.
Also available at the client's request, competitively ranked funds are examined more closely by DeMarche's
Manager Review Committee (MARC) in a complete review. These funds are eligible for consideration for an
approved designation.
DC Fund Search
See Manager Search.
Fund Diversification Monitor
The Fund Diversification Monitor (FDM) is DeMarche's comprehensive performance evaluation report. The
FDM provides complete performance diagnostics and attribution analysis. This analysis identifies how a
manager's decisions increased or decreased the value of the portfolio. The report for an equity manager
analyzes the manager's use of four investment skills: sector diversification, security selection, security
concentration and market timing. The report for a bond manager analyzes the manager's use of three
investment skills: sector diversification, security selection and duration management.
The FDM report is available quarterly and can be used to evaluate U.S. and international equity, U.S. fixed
income and balanced managers.
Fund Transaction Audit
The Fund Transaction Audit is a quarterly transaction-by-transaction audit of all activity in a portfolio to
identify discrepancies that may affect a fund's overall performance. In addition to the strict accounting of
numbers to make sure interest and dividends are credited properly, the audit analyzes the timeliness and cost
of transactions.
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General Consulting Services
DeMarche provides various levels of general consulting services. The primary business of DeMarche
Associates is to furnish investment advice to institutional investors through consultations. DeMarche tailors
its advisory service to the individual needs of its clients. DeMarche provides objective, expert interpretation of
complex investment data and workable recommendations. Our research-based approach, backed by our
investment experience, provides tangible benefits that enable a fund to meet its goals.
Investment Objectives and Asset Allocation
This service helps institutional investors identify the asset mix that has the greatest probability of earning a
target rate of return at an acceptable level of risk over time. DeMarche works with clients who want only a
review of their existing guidelines and asset mix and with clients who require a complete investment analysis
that results in establishing an overall investment program and structure that matches investable assets to
long-term liabilities.
Manager Optimization
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