FundQuest Retirement Management Solutions BISA Technology and Operations Conference November 14, 200

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FundQuestRetirement ManagementSolutionsBISA
Technology andOperations ConferenceNovember
14, 2006
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FundQuest Snapshot

• Founded in 1993
• Registered Investment Advisor (RIA)
• 30 billion assets under management
  administration
• Global leader in open architecture, branded,
  fee-based asset management programs
• Subsidiary of BNP Paribas Asset Management

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FundQuest Global Overview

• 165 people, including 30 investment professionals
• A global organization with investment teams in
  major markets
• US, France, Italy, Germany
• 100 distribution partners and institutions

FundQuest Presence
Luxemburg
Boston
Paris
Nuremberg
Milan
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Todays Trust Wealth Management Requirements

• Open architecture is an essential to attract new
  business and retain existing assets
• Demand for increased profitability
• Seamless integration
• Investment Officer role is evolving from
  portfolio manager to investment advisor
• Rigorous and repeatable investment manager
  selection/due diligence processes

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Criteria for Success

• Open, flexible, integrated platform
• Combines open architecture investments and
  institutions existing investment products
• Connections to existing trust accounting systems
• Wealth management expertise
• Implementation because teams are experienced in
  trust and wealth management platforms
• Reporting to improve ability to monitor accounts
  and meet compliance requirements

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Retirement Management Solutions
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The Opportunity

• 77 million US Baby Boomers heading for retirement
• By 2020 majority of US Wealth, 67, will be
  controlled by retirees/pre-retirees
• Shift from institutional to personal
  responsibility
• Investor concerns about adequacy of retirement
  income
• Increased complexity of retirement planning
  reinforces need for an advisor
• Advisor community looking to deliver best
  practices consistently and cost-effectively

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Current Environment

• General recognition that changing demographics
  present an explosive business opportunity
• Retain or capture in motion assets and
  consolidate wallet share
• Many institutions appear uncertain as to where to
  start or may not be organized to address this
  opportunity
• Solutions vs. products?
• Fees vs. commissions?
• Relationship management vs. one-time sale?
• Leaders have realized that successful execution
  requires top-down support and commitment
• Core competencies and segmentation strategy help
  determine best approach

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The Retirement Income Challenge
Investor Concerns

• Accumulation Phase
• Market returns
• Market volatility
• Inflation

• Distribution Phase
• PLUS
• Increasing longevity
• For a healthy couple retiring today at age 65
  there is a 50 chance that one of them will reach
  age 92
• Rising medical and long term care costs
• Out-of-pocket health costs will nearly triple
  between 2000 and 2030
• Public policy changes
• The trustees for Social Security and Medicare
  have estimated that the trust fund for Social
  Security will run out by 2041 and Medicares will
  run out in 2020

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The Retirement Income Challenge cont.

• Ongoing monitoring more important than ever
• If a mistake is made in managing the assets
  during the Accumulation phase time is typically
  on the investors side. They can
• Wait out market downturns
• Delay retirement
• During the Distribution phase retirees may not
  have time for other options

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Industry Response to Date - A Fragmented Approach
Products
Tools
?
- Calculators - Planning Software - Systematic
Withdrawal Plans - On line education

• Investment Products
• Target Date Funds
• Income Funds
• Managed Accounts
• Insurance Products
• Deferred/Immediate Annuity
• Life Insurance
• LTC

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FundQuests Comprehensive Solution
Products
Tools
Integrated Platform
- Calculators - Planning Software - Systematic
Withdrawal Plans - On line education

• Investment Products
• Target Date Funds
• Income Funds
• Managed Accounts
• Insurance Products
• Deferred/Immediate Annuity
• Life Insurance
• LTC

An integrated platform for the planning and
ongoing management of retirement assets
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Retirement Management Solutions Platform
Full Cycle Retirement Advice

• Turnkey investment planning platform for the
  management of retirement assets
• Platform includes
• Web-based analytical tools and retirement income
  planning process
• Ability to implement using firms platform of
  investment choices
• Ability to provide ongoing monitoring and
  management of retirement assets to track
  adherence to plan and service client for life.
• Open-architecture, branded, and customizable
• Flexible implementation options

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Best Practice Approach for Retirement Management

Profile
Capture Client Data, Establish Spending Goals,
Identify Income Sources and Risk Tolerance
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Review Current Asset Allocation and Perform
Initial Monte Carlo Analysis
Analyze
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PLAN
Perform What-if Analysis, Examine Trade-offs,
Refine Alternative Plan
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Optimize
Agree on Plan, Invest/Re-Allocate Assets and
Establish Withdrawal Plan
IMPLEMENT
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Implement
Perform Client Check-up, Identify Critical
Variances, Adjust and Re-Plan as Necessary
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Monitor
MONITOR
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Key Benefits

• Targets institutions preferred product choices
• Creates consolidation platform
• Offers speed to market solution
• Ensures adherence to compliance
• Delivers straightforward sales track to advisors
  by facilitating dialogue with clients
• Retains clients at and through retirement

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How our Retirement Income Planning Platform Works
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It starts with a straight forward, interactive
and advisor-centric Retirement Income Planning
profile
Key Benefits
Customized and branded to your organization
Trust Departments/Firms
Broker-Dealers
Banks
Advisor-centric retirement planning platform
supports

• Ability to manually enter data or integrate with
  existing accounting data
• Ability to revise plan as circumstances change

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Assists clients in considering the impact of each
possible trade-off
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Entering goals along with a range of ideal vs.
acceptable and a willingness to compromise begins
the trade-off discussions
Insurance Companies
Banks
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Enables clients to define their entire income
picture
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Clients can provide summary level information for
retirement income, or complete a comprehensive
worksheet to break down each source of income.
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Risk questions can be configured for consistency
with an organizations existing standards
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Broker-Dealers
Banks
Our series of questions can be customized to your
firms needs help advisors assess risk
tolerance ultimately recommend a retirement plan
thats personalized for the client
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Helping clients realize if their retirement goals
are on track is easier than ever
At a high level, show clients if their current
plan is on track to meet their retirement goals
Trust Departments/Firms
Wealth-Management Groups
Broker-Dealers
Banks
Partner to the Nations Investment Leaders
Show Clients Additional Detail they may want
before discussing alternative approaches to
meeting their retirement goals
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The impact of withdrawal strategies on retirement
goals
Key Benefits
Understanding how different withdrawal strategies
can impact a clients portfolio can better
position your advisors to build a retirement
income plan that is best suited for the client
Trust Departments/Firms
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Partner to the Nations Investment Leaders
Our color key system shows your advisor and their
clients the impact of different withdrawal
strategies over time
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Customized and branded reports to meet your
organizations needs
Key Benefits
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Ability to configure format and customize
sections.
Partner to the Nations Investment Leaders
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Retirement Management Solutions Keys to Success

• Straightforward output that drives to sales
• Robust technology platform providing
• Ease of data capture summary level or detailed
• Advanced Analytical capabilities
• Integration with CRM and transaction processing
  systems
• Consistent application of best practices and
  optimized advice
• Ability to manage a broad pool of resources
• Multiple product and account types
• Incorporate in-house and held-away assets and
  income
• Balance income generation with legacy planning
  goals
• Ongoing reporting, client management, and
  goal-tracking process
• Education and training program for advisors
• Collateral materials and marketing support

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Trust and Wealth Management Benefits Summary

• Open architecture and integration with existing
  offerings makes institution more competitive
• Due diligence and investment expertise supports
  fiduciary responsibilities
• Customizable platform and research services,
  including retirement income module, enable trust
  officers to increase focus on advisory role
• Seamless integration with the institutions trust
  accounting system ensures implementation quality
  and reporting continuity