BeManaged Overview

CONFLICT-FREE, INSTITUTIONAL 401(K) ADVICE

THAT WORKS• Free 1-on-1 Consultations

• Education with “The Answer”• Fiduciary Safe Harbor

Copyright © 2011 BeManaged. All rights reserved.

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401(K) PARTICIPANTS NEED HELP

Dalbar studies illustrate the negative impact of investors’ decisions on their long term portfolio returns (3.17% for investors vs. 8.2% for the market*)

Source - http://goo.gl/I4qsT


http://goo.gl/I4qsT

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401(K) INVESTORS WANT ADVICE

A recent Hewitt study illustrated not only that participants want advice but were specific about how they want it delivered: 1on1 – 51% Online – 23%

Source - http://goo.gl/eqy8x


http://goo.gl/eqy8x

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SERVICE OPTIONS AND APPROACH

•“Do-It-For-You” Account Management

•2-5 Portfolio Adjustments per Year

•4-6 Personalized Updates to Manage Investment Behavior

•Personal Annual Review

BeManaged

•“Advise-You-What-To-Do” Investment Advice

•2-5 Portfolio Adjustments per Year

•4-6 Personalized Updates to Manage Investment Behavior

•Personal Annual Review

BeAdvised


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OUR SERVICE APPROACH

Group Meetings

Department Meetings

Free Face-to-Face

Consultations

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GROUP MEETINGS Meetings provide education as well as set expectation

for 1on1 consultations Standard group meetings limited to 20-25 minutes

Myths and Tips of Investing in Volatile Markets Investing 101-301

Customize content to length of meeting We have delivered 5-10 minute “Who We Are and What We Do” in

department meetings

Analogies are used to simplify concepts and behaviors to accelerate learning of investment principles Ingredients and recipe analogy to help investors understand asset

allocation Comparing share depreciation to home equity

Focus participants on becoming great savers instead of investors


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CONSULTATION PROCESS – 1ST STEP – INVESTOR PROFILE

Risk Counselor guides participant through investor questionnaire, located at http://bemanaged.com

Desired level of risk is illustrated on investment worksheet


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CONSULTATION PROCESS – 2ND STEP – MAP OUT PORTFOLIO AND RISK METRICS

Login to the provider site to compare questionnaire results with how they are invested

Results illustrated on Investment Worksheet


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CONSULTATION PROCESS – 3RD STEP – REVIEW SAVINGS RATE

Review savings rate Provide BeRetired

retirement income analysis report to help stimulate savings increases

Discuss strategies for maximizing savings


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CONSULTATION PROCESS – 4TH STEP – TAKING ACTION

Review options for fixing any investment issues

Discuss final points and answer any questions regarding BeManaged and BeAdvised services

Customize communication preferences


HOW IT WORKS – START TO FINISH – YEAR 1


Free 1on1 Consultatio

n

Ongoing Manageme

nt

Proactive Updates

Personal Annual Review

HOW IT WORKS – START TO FINISH – YEAR 2


Ongoing Manageme

nt

Proactive Updates

Personal Annual Review

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RESULTS OF CONSULTATIONS – REPORTED TO PLAN SPONSOR / ADVISOR

Participants receive a detailed analysis of their portfolio

Discuss strategies to increase savings via immediate or auto-escalation features

‘Participant Success Metrics’ and by-products of consultation are reported back to the employer/consultant, including: Savings increasesPIN resetsRestarted contributions to planEnrolled in planUtilization of decisions made regarding

BeManaged, BeAdvised, newsletter only, etc.Copyright © 2011 BeManaged. All rights

reserved.

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STANDARD FEE SCHEDULE – QUOTED TO SPECIFICS OF RETIREMENT PLAN

Account Balance

Quarterly Fee

$0 - $83,333 0.15%

$83,333+ $125

Account balances in the plan

Travel Reimbursement Hotel Airfare (if applicable) Car Rental (if

applicable)

Standard Fee ScheduleVariables Impacting Fee Schedule


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UTILIZATION AND RESULTS Small / Mid Market

Plans (75 – 1,000 participants) 30%– 70%

Large Market Plans (1,000+ participants) Greater than 15%

All Results Reported to Plan Sponsor and/or Plan Advisor


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WHAT MAKES BEMANAGED UNIQUE – OUR FOCUS 1-on-1 Participant Consultations – Result in industry-leading utilization Centrally Delivered, Process Driven Advice and Management- All advice is

delivered by our dedicated Research Department so to maximize consistent, prudent, fiduciary advice; a critical component of managing our liability as well as that of the companies we serve.

High Touch Communication Approach- Our proactive, personalized communications decrease poor investment behavior while resulting in a >96% retention rate.

Participant Investment Policy Statement- Each participant receives a personalized IPS to ensure fiduciary prudence which serves as a foundation for our ongoing communications.

Focused Service Delivery- Participant consultations are not muddled by the sale of IRAs, brokerage accounts, or insurance products. The time the company invests in their employees is focused on their 401k, not prospecting for product sales opportunities.

Annual Corporate Review - In accordance with the provisions of the PPA Fiduciary Adviser safe harbor, we proactively provide an annual report of model performance, contribution increases, and participant success metrics that result from BeManaged’s interactions with participants.

Acknowledge Fiduciary Position in Writing- In accordance with the PPA Fiduciary Adviser provisions, we acknowledge our fiduciary position specific to the PPA Fiduciary Adviser role in writing with both the plan and the participants using our service.


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PPA FIDUCIARY ADVISER SAFE HARBOR

Level Fee Adviser “the amount the adviser receives for giving the

advice remains the same no matter what advice is given and how the participant invests his account” Fee leveling must extend to all affiliated firms as well

Compensation must be reasonable Must make certain disclosures to the participants

including the compensation and fact it is acting as a fiduciary

Must be annually audited Source - http://reish.com/publications/article_detail.cfm?ARTICLEID=609


http://reish.com/publications/article_detail.cfm?ARTICLEID=609

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PPA FIDUCIARY ADVISER SAFE HARBOR

Fiduciary Safe Harbor The plan sponsor or another independent

fiduciary must prudently select and monitor the fiduciary adviser, but so long as all the conditions of the exemption are satisfied (and the terms of the arrangement require compliance with the exemption, including acknowledgment of fiduciary status), it has no duty to monitor the advice given to the participants. In other words, the plan sponsor has no responsibility or liability under ERISA for the advice given.

Source - http://reish.com/publications/article_detail.cfm?ARTICLEID=609


http://reish.com/publications/article_detail.cfm?ARTICLEID=609

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BEMANAGED CREDENTIALS AND QUALIFICATIONS

CEFEX (Centre for Fiduciary Excellence) Fiduciary Adviser (PPA)o 1st company in the nation to

complete Pension Protection Act (PPA) Fiduciary Adviser certification

o ISO organization for investment fiduciaries to confirm adherence to global fiduciary standard including: business process, investment management and methodology, documentation and PPA Fiduciary Adviser provisions for Fiduciary Adviser (PPA) certificate holders

Dedicated Research Department John Whaley, CFA heads

dedicated Research Department

All advice and management is delivered centrally so to ensure quality, consistency and prudence

Research team members guided by Chartered Financial Analyst ethical standards

Qualifications Business Structure


http://www.cefex.ca/

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CONTACT US

Toll Free – (888) 738-87805088 Corporate Exchange Blvd, Suite 140

Grand Rapids, MI 49512

http://BeManaged.com

References available upon request


http://bemanaged.com/

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