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The U.S. and Canadian defined contribution systems are failing 401(k) retirement savers on a number of counts, including a lack of diversification and an overdependence on the “style box” investment design, warns a defined contribution industry report from Clear Path Analysis released Thursday.

The North American DC marketplace may be maturing, but its continued reliance on U.S. securities shows a lack of diversification that is harming investors, especially as the U.S. markets struggle against the current low-interest rate environment, concludes the “DC Retirement Plan, North America 2013” report from London-based Clear Path Analysis.

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