Sway ResearchDCIO Products and Services

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Agenda

•Background

•Areas of expertise

•DCIO Products and Services

•Overview

•DCIO metrics tracked

•In-depth research studies

•Study calendar

•Custom DCIO research

•Representative clients

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Background

• Chris J. Brown—founder and principal

• Began financial services career as a Smith Barney Financial Consultant in the early 1990’s

• With Financial Research Corp. from 1997 to 2006

• VP, Director of Research 2000-2002

• Founded Retirement Market Research unit in 2003

• Launched the syndicated research business of Cogent Research in October 2006

• Founded Sway Research in July 2007

• Single employee model with broad network of contractors that specialize in specific research areas or market segments

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Expertise

•Author of the following in-depth research studies

•Defined Contribution

•IODC Growth Trends (FRC, Jun. 2004)

•Optimizing IODC Distribution (FRC, Jun. 2005)

•Keys to Success in the Small Business Retirement Market (FRC, Feb.

2006)

•Aligning an Organization for Platform Sales Success (Sway, Jan. 2008)

•Best Practices in DCIO Sales and Marketing (Sway, Oct. 2008)

•Demographic Research

• IRA Rollover Trends (FRC, Nov. 2003)

• Converting Retirement Income Planning into Practice (FRC, Aug. 2006)

• Investor Brandscape (Cogent Research, Feb. 2007)

• Capturing the Hearts & Wallets of Peak Accumulators (Sway/MHC, Apr. 2009)

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

DCIO Products and Services

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Product & Service Overview

• In-depth research studies

• Custom research

• Competitive benchmarking

• Marketplace intelligence

• Strategy consulting

• Distribution and marketing strategy

• Organizational alignment

• Executive strategy sessions

• Launch of an initiative or facilitation of a strategic planning session

• Data licensing

• Utilize Sway data and analysis in whitepapers and/or value-add programs

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

DCIO Business Metrics Tracked

Sales & Assets

• Annual gross sales

• Annual change in DCIO assets

• Sales to assets

• Sales by channel

• Annual goals vs. actual gross sales

• # of focus partner platforms

• % of sales from focus partners

Sales & Marketing Budgets

• Annual sales spend

• Annual marketing spend-total and across categories

• Annual spend by channel

• Annual sales spend per salesperson

Sales & Marketing Staff

• # of full-time sales and marketing personnel by function

• Productivity – gross sales per salesperson

• Avg. years of experience

• DCIO assets per FTE

• Total comp.– externals, internals, key accounts, and consultant relations

• Variable comp. components

• Profitability across market segments

• Sales force time allocations

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

The State of DCIO Distribution 2010 – To be published October 2009

• In-depth study based on surveys and interviews with DCIO sales leaders (19) and platform gatekeepers (11)

• Featuring

• Analysis of DCIO profitability across products (Fund, CIT, Sub-advisory)

• Sales force productivity per head

• Sales force size and structure

• Annual DCIO sales and marketing budgets

• Allocation of sales force time and marketing budgets

• Best practices in fostering cross-organizational cooperation

• DCIO compensation benchmarks and trends

• Impact of the market crash on investment menus

• Gatekeeper outlook for manager change activity

• Outlook for Target-Date and QDIA alternatives

• 10 Principles for DCIO sales success

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

In-Depth Research Studies

In-Depth Research Studies Continued

Best Practices in DCIO Sales and Marketing – Oct. 2008

• Based on surveys and interviews of DCIO leaders (14), DC platform gatekeepers (9), and retirement advisers (107)

• Featuring

• Benchmarks for DCIO budgets and sales force headcounts

• DC platform gatekeepers’ perspectives on best-in-class sales support

• Retirement advisers’ insights into preferred value-add programs

• Sales force productivity benchmarks and strategies for enhancement

Aligning an Organization for Platform Sales Success – Jan. 2008

• Based on surveys and interviews of platform sales executives at 10 leading asset management companies

• Featuring

• Strategies for integrating sales and marketing functions across platform businesses

• Sales force compensation models

• Investment-only profitability benchmarks

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Smaller Scale Studies in Slide Deck Format

2008 Market Crash Impact Survey – Feb. 2009

• Slide deck analysis of a survey of 17 DCIO business leaders

• Featuring

• Insights into the impact of the 2008 crash on DCIO assets and sales

• Analysis of the resulting change in sales and marketing budgets, including areas most affected

• Analysis of the key challenges facing DCIO business leaders

DCIO Recordkeeper Payments: Policies and Benchmarks – May 2008

• Slide deck analysis of a survey of 13 DCIO business leaders

• Featuring

• Average payments to DC platforms for retail and institutional shares of mutual funds, including the split between fund fees (from the sub T/A) and distributor fees (from the management fee)

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Representative Clients

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

Chris J. BrownPrincipal

Sway Research LLC603-382-5300

chris@swayresearch.comwww.swayresearch.com

Fall 2009Copyright 2009 by Sway Research LLC. All rights reserved. Unauthorized use or reproduction is prohibited.