Frank Polefrone Senior Vice President,

Access Data, a Broadridge Company

Advisor-Driven Retirement Market Profiling The Top Retirement Advisors

November 5, 2013

2

• Advisor Driven Retirement Market

• The Data Challenge

• Independent Retirement Platforms

• Distributors

• Advisor Insights

Agenda

Retirement Market Landscape

4

Advisor-Driven – Retirement Market Landscape

DC Assets seeing highest growth rate

Advisors driving plan growth

Top 20 Independent

Recordkeepers

Wirehouse Independent B/D’s & RIAs

Investment Only Fund

Firms

5

55% of $5.1 Trillion of DC

is Advisor Driven Business

6

Advisor Driven Retirement Assets

= $2.8 Trillion

7

Total Assets

$2.8

Advisor Sold

DC Plans 446K Advisor Sold

DC Participants 49M

Independents

$1.6T

$1.2T Schwab/Fidelity

8

446K employers with

49M participants

• Primarily Transaction Oriented Employee Base

The data challenge

9

5K BDs with 500K RRs

14K RIAs

10

The Data Challenge

• Complex distribution model

• Increased regulatory requirements

• Revenue sharing requirements

• Lack of transparency and market information

• Difficulty identifying and influencing retirement specialists

Advisor Driven Retirement

Top Platforms

12

Advisor Driven Retirement Platforms

Source: Retirement Plan Sponsor Survey

Supermarket & Fund Platforms

1.6 Trillion

Rank Company Assets Plans

1 Fidelity 1,096,623 32,293

2 Prudential 199,488 5,145

3 Charles Schwab 109,363 1,164

4 Ascensus 41,973 41,338

5 ADP 40,473 35,384

6 American Funds 37,648 34,686

7 The Newport Grp. 23,422 2,261

8 CUNA Mutual/CPI 11,315 6,214

9 Daily Access 8,050 1,595

10 Aspire Financial 5,637 6,056

Insurance Platforms

1.1 Trillion

Rank Company Assets Plans

1 ING 301,720 47,718

2 Great West 178,166 27,266

3 Principal 136,987 47,857

4 MassMutual 104,318 37,159

5 Transamerica 82,292 20,345

6 Nationwide 79,161 40,698

7 John Hancock 71,105 44,620

8 Lincoln 48,940 23,429

9 New York Life 32,595 1,650

10 OneAmerica 18,100 9,700

13

DC Assets by Platform Type

$425

$1,053

$1,206

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Mutual Fund Platform Insurance Platforms Supermarket Fund Platforms

DC Assets ($B)

Source: Plan Sponsor Survey

14

DC Plans by Platform Type

132,679

300,442

33,457

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Mutual Fund Platform Insurance Platforms Supermarket Fund Platforms

Number of Plans

Source: Plan Sponsor Survey

15

DC Participants by Platform Type

8.98

19.10

17.10

-

2

4

6

8

10

12

14

16

18

20

Mutual Fund Platform Insurance Platforms Supermarket Fund Platforms

Number of Participants (M)

Source: Plan Sponsor Survey

16

Advisor Driven Retirement Platforms

Source: Retirement Plan Sponsor Survey

Small Plans

Rank Company $1MM -

$10MM % Share

1 Fidelity 49,349 9.2%

2 John Hancock 47,908 9.0%

3 Great West 40,202 7.5%

4 Principal 35,220 6.6%

5 ING 35,177 6.6%

6 MassMutual 33,911 6.3%

7 TIAA-CREF 23,430 4.4%

8 Nationwide 23,018 4.3%

9 Ascensus 22,016 4.1%

10 American Funds 20,838 3.9%

Mid Plans

Rank Company $10MM -

$50MM % Share

1 Fidelity 85,480 15.5%

2 TIAA-CREF 48,143 8.7%

3 Great West 32,672 5.9%

4 Principal 32,110 5.8%

5 Wells Fargo 26,334 4.8%

6 ING 25,750 4.7%

7 Prudential 24,527 4.4%

8 MassMutual 23,969 4.3%

9 Vanguard 19,768 3.6%

10 Transamerica 19,032 3.4%

Distributors Selling DC Plans

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Proportion of 401(k) Producers – 2012

52%

Don’t Sell

401(k)

48%

Sell 401(k)

39%

31%

53%

62%

45%

RIA

Bank

Independent

Regional

National

BASE = All Advisors

/ = Significant change from 20111 t0 2012

Source: Cogent Research, Retirement Plan Advisor Brandscape ® 2012

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401(k) AUM by Producer Level

44%

25%

49% 52%

66%

42%

39%

52%

43% 33%

23%

33%

18% 23%

8% 15% 11%

25%

0%

20%

40%

60%

80%

100%

Total National Regional Independent Bank RIA

Light Moderate Heavy

BASE = Advisors with 5%+ AUM in 401(K) Plans

/ = Significant change from 20111 t0 2012

Source: Cogent Research, Retirement Plan Advisor Brandscape ® 2012

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Market Distribution of Advisors

* Source: Cogent Research, Retirement Plan Advisor Brandscape ® 2012

With 5% or more in 401(k) AUM*

Independent 43%

National 28%

Regional 14%

RIA 12%

Bank 4%

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401(k) Asset Allocation: Bundled Vs. Unbundled

42% 34%

40% 46%

20%

61%

58% 66%

60% 54%

80%

39%

0%

20%

40%

60%

80%

100%

Total National Regional Independent Bank RIA

Unbundled Bundled

BASE = Advisors with 5%+ AUM in 401(K) Plans

Source: Cogent Research, Retirement Plan Advisor Brandscape ® 2012

22

Distributors of Advisor Sold DC Plans

3,799 3,986

58,173

18,523

-

10,000

20,000

30,000

40,000

50,000

60,000

Banks and Trust Companies

Registered Investment Advisors

Advisors at Independent/ Regional BDs

Advisors at Wirehouse/National

Source: Access Data, a Broadridge Company

Advisors Selling DC Plans

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Advisors Selling DC Plans

85,486

67,358

18,128

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Total Advisors Selling DC Plans

Advisors on One Platform Advisors on Multiple Platforms

Source: Access Data, a Broadridge Company

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Dually Registered Advisors

50,031

40,501

9,530

-

10,000

20,000

30,000

40,000

50,000

60,000

Total Dually Registered Advisors Selling DC Plans

Dually Registered Advisors - One Platform

Dually Registered Advisors - Multiple Platforms

Selling DC Plans

Source: Access Data, a Broadridge Company

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Advisors Selling DC Plans

85%

92%

58%

15%

8%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Advisors Selling DC Plans

Advisors on One Platform Advisors on Multiple Platforms

Insurance Platform

Mutual Fund Platform

Source: Access Data, a Broadridge Company

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Dully Registered Advisors

81%

90%

62%

19%

10%

38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Dually Registered Advisors Selling DC Plans

Dually Registered Advisors – One Platform

Dually Registered Advisors – Multiple Platforms

Insurance Platform

Mutual Fund Platform

Source: Access Data, a Broadridge Company

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Top Advisors by Number of Platforms

3.68

2.2

1.3

-

1

2

3

4

Heavy Users Moderate Users Total Advisors

(Average Number)

Source: Access Data, a Broadridge Company

29

Retirement Specialists – Number of Platforms

13,170

3,377

1,109

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Moderate Users Heavy Users Retirement Specialists

Retirement Specialists Use 4+ Platforms

Source: Access Data, a Broadridge Company

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Advisor Driven Business Expected to Grow

$2.5 $2.8 $3.0 $3.2 $3.5 $3.7 $3.9 $4.1

$2.1 $2.3

$2.4 $2.5

$2.5 $2.6

$2.6 $2.6

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

2011E 2012E 2013P 2014P 2015P 2016P 2017P 2018P

DC Assets: Investment Only vs. Proprietary ($T)

Investment Only Proprietary

Source: Simfund Pro, 7.0 / Access Data, a Broadridge Company

55%

45%

62%

38%

31

20+, 16%

10-19, 24%

5-9, 25%

1-4, 35%

Currently Manage in 2012

Average Number of 401(k)s Managed per Year

BASE = Advisors with 5%+ AUM in 401(K) Plans

Source: Cogent Research, Retirement Plan Advisor Brandscape ® 2012

20+, 24%

10-19, 25%

5-9, 28%

1-4, 23%

Anticipate in 2013

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• Use data to segment and service

• Focus on retirement specialists

• Use data to identify best prospects

• Partner with distributors and access points

• Service small to medium plans

• Leverage multi-channel communications, engaging content and education to support advisors

Strategies for Driving Growth

Advisor Support Marketing Participant Comms

Wrap Up & Discussion