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Beyond Open Architecture

Webcast

December 8th, Noon CST

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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 Company866/418-9339retirementservices@micorp.com