beyond open architecture
DESCRIPTION
Beyond Open Architecture. Webcast December 8 th , Noon CST. Speakers. Kevin Harley CEBS, Vice President, National Sales Manager. Sheree R. Yoder Vice President and Portfolio Manager. Michael J. Shlensky Vice President, Conversion Manager. Stephanie L. Napier - PowerPoint PPT PresentationTRANSCRIPT
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Beyond Open Architecture
Webcast
December 8th, Noon CST
2
Speakers
Kevin Harley
CEBS, Vice President, National Sales Manager
Sheree R. Yoder
Vice President and Portfolio Manager
Michael J. Shlensky
Vice President, Conversion Manager
Stephanie L. Napier
Vice President, Employee Benefit Counsel
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Inflexion point for DC: Increasing use of auto-everything; opt out, as opposed to opt in
Whither the sophisticated participant?
PLANSPONSOR Industry Overview
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Is Open Architecture now a requirement?
Yes, but proprietary DC models still do well
Most providers say they are open architecture
It is not what you say but what you do in practice
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Proprietary funds are pushed because of economics
How are your economics different?
Client philosophy first
State of the art technology platform
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Is Open Architecture more expensive?
Costs vs. Net Return
Fee Transparency
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Open Architecture in Practice
Core line-up
Life style (Risk Based)
Life cycle (Age Based)
Individually Directed Accounts
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What is the difference between an IDA & SDBA?
Both offer more flexibility than a core line-up Any asset allowed by ERISA
Registered Mutual Funds Publicly traded securities Non-publicly traded securities Hedge funds Real Estate Limited Partnerships
Freedom to select an advisor to manage their portfolio
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How do you work with the Plan Sponsor in setting parameters?
Determine limits and guidelines for investments
Securities law restrictions More plan sponsor involvement up
front M&I reviews non-publicly traded
investment materials
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How do the trades flow in an IDA?
We can trade Delivery vs. Payment with any broker selected
M&I maintains custody of assets
Flexibility is the key
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Is the IDA an evolved SDBA?
Our belief: need to accommodate non- publicly traded securities and an advisor selected by a participant
Increased automation
Trust Company capabilities
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Is the IDA an expensive feature for Plan Sponsors?
Participant demographics
IDA = Retail brokerage
Who is paying for what
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What are the advantages for the Advisor?
Trade individual security issues through their own brokerage arm, which provides direct compensation
Establish asset allocation across all investment classes and maintain a single investment approach for all of a participant’s assets
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What role can the Advisors play in the IDA?
Professional money management IDA becomes an extension of
existing accumulation program Mirror private savings of each
participant Maintain personal relationships
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What is getting in the way of broader adoption of IDAs?
Plan Sponsor attitudes
It is the participant’s money
Satisfying the vocal minority
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Who would be interested in this product?
Professional service groups
Large corporations with a significant number of highly compensated executives
Technology and Financial Service firms
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Thank You…
For more information, contact:
Kevin HarleyNational Sales ManagerM&I Trust Company866/[email protected]