Xavier University · Ranked#40 in Financial Advisor Magazine's 2019 Annual RIA Ranking** NAPATop DC...

Cornerstone Advisors Asset Management, LLC

74 W. Broad Street, Suite 340, Bethlehem, PA 18018

Xavier University

403(b) Plan Update

March 2020

Chief Executive Officer

Thomas J. Scalici, CFP®, CEBS, AIF®

cornerstone-companies.com 2* Cornerstone Advisors Asset Management, LLC assets under management as of 12/31/2018 as reported in most recent Form ADV Filing

** For details on how the rankings were determined, please see the section entitled “Rankings Explained”

† See slide titled “Designations Explained” for more information about our designations.

Introduction to Cornerstone

We have

$5.7+ billion in

assets under

management*.

We have

maintained

greater than

97% client

retention

over the past

10 years.

Our team has

40+† professional

designations

• CFP®

• CFA®

• AIF®

• CEBS

• CIPM

• CRPSSM

• ChFC®

• CASLTM

• CLU®

• RICP®

• FPQPTM

$5+BILLION

97%CLIENTRETENTION

40+PROFESSIONALDESIGNATIONS

INDUSTRYAWARDS& RECOGNITION

Ranked 43rd on Barron’s 2019 Top 50 institutional consultants list**

Named by Pensions & Investments as one of the world’s largest OCIO ranking #51 for 2019**

Ranked #40 in Financial Advisor Magazine's2019 Annual RIA Ranking**

NAPA Top DC Advisor Teams for 2019**

http://www.cornerstone-companies.com/

3cornerstone-companies.com

Xavier University Retirement Plans Administrative Committee

Phil Chick * Connie Perme * Christine Roncaglione * Brian Balyeat

Jeff Coleman * Christine Morley * Jenni Dramis

Roles & Responsibilities

▪ Determine investment objectives and policies as outlined in Investment Policy Statement (IPS)

▪ Establish a list of acceptable investments and portfolio guidelines

▪ Provide information to plan participants

▪ Review and approve all plan service agreements

▪ Negotiate compensation arrangements for investment service providers

▪ Monitor performance of all service providers

▪ Establish acceptable peer group performance for each investment manager

▪ Provide guidance to service providers on educational and communication programs

▪ Evaluate any administrative issues

▪ Amend and update the IPS as appropriate

▪ Approve any investment changes

Serving the best interest of plan participants and beneficiaries



Retirement Choice Platform (RC)

More than 2,000 other plans around the country have already migrated to this platform

This represents more than 25% of plans with TIAA

Around 1,100 plans move every 2-3 years

Enhancements

▪ Reduced plan expenses

▪ Fee transparency

▪ Administrative efficiency

▪ Greater investment choice through a self-directed brokerage account

TIAA’s Institutional Platform



Reduced Total Plan Expenses

0.46% 2016

0.39% 2018

0.36%* Effective 4/1/2020

-22%Overall

Reduction

*Expense ratio calculation is estimated based on mapping all mutual funds assets

outside of the Vanguard target date funds into the Vanguard 2045 fund, which has an

expense ratio of 0.15% and is the most expensive of the Vanguard target date funds.

Assets based on 6/30/2019 asset values from TIAA.



Fee Transparency & FairnessEffective April 1, 2020, an annual plan servicing fee of 0.15%, $1.50 per $1,000 invested, will be deducted

proportionally from each of your investments on a quarterly basis. This is not a new fee; it is currently built

into the cost of many of the funds in the plan. What is new is that it will now be transparent.

This amount will be realized by assessing a fee or credit to each investment you choose within the plan.

It will be assessed on a level basis regardless of your investment election or platform.

Fee breakdown from TIAA’s transition guide.

Current Total

Cost

New Total

Cost

A B C B + C A + C

Annuity ContractExpense

Ratio

Revenue

Sharing

Plan

Servicing Fee

Total Admin

Fee

Total Mgmt &

Admin Fee

CREF Stock R2 0.35% 0.20% -0.05% 0.15% 0.30%

TIAA Real Estate 0.83% 0.24% -0.09% 0.15% 0.74%

A B A + B

Fund Expense Ratio Plan Servicing FeeTotal Mgmt & Admin

Fee

TIAA-CREF Lifecycle 2045 Instl (OLD) 0.45% 0.00% 0.45%

Vanguard Target Retirement 2045 (NEW) 0.15% 0.15% 0.30%

Impact on Annuity Contracts

Total Cost of Old vs. New Target Date Funds



Administrative EfficiencyConsolidation of retirement plan assets into one contract

#150517 - Legacy

Defined Contribution Plan

• Mutual fund assets will

automatically transfer to the

RC Contract

• Annuity assets may be

transferred by contacting

TIAA* and requesting a cross-

contract transfer

#150519 - Legacy

Tax Deferred Annuity Plan

• Mutual fund assets will

automatically transfer to the

RC Contract

• Annuity assets may be

transferred by contacting

TIAA* and requesting a cross-

contract transfer

#407978 – NEW RC

Defined Contribution Retirement Plan

• All future contributions will be

applied to the new contract

beginning with the 3/31/2020

payroll date

• If you do not choose an

investment option, the

appropriate target-date fund

will be selected for you

*certain restrictions may apply to TIAA Traditional assets



New RC Core Fund Menu

Core Plus

BondHigh Yield Real Estate

Multi-

Alternative

Large Cap

Value

Large Cap

Core

Large Cap

Growth

International

Core Plus

Small Cap

Value

Small Cap

Growth

Emerging

Markets

Baird Core

Plus Bond

JPMorgan

High Yield

TIAA-CREF

Real Estate

Securities

Goldman

Sachs

Satellite

Strategies

American

Funds

Washington

Mutual

TIAA-CREF

Social

Choice

Equity

T. Rowe

Price Growth

Stock

American

Funds

Europacific

Growth

Victory

Sycamore

Small Co.

Opportunities

Vanguard

Explorer

Harding

Loevner

Emerging

Markets

Cash &

Equivalents

Cash &

EquivalentsCore Bond Large Cap Core

International

Core PlusMid Cap Core Small Cap Core

TIAA Traditional

(RC)

Vanguard Federal

Money Market

Vanguard Total

Bond Market

Vanguard 500 Index

OR

TIAA 500 Index

Vanguard Total

Intl Stock Index

Vanguard Mid

Cap Index

Vanguard Small

Cap Index

OR

TIAA Index

Passive Core

Options

Target Date Funds

Retirement

Income2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065

Asset Allocation

Funds

Active Core

Options

Conservative Aggressive

Self-Directed

Brokerage

Self-Directed Brokerage Account

NEW NEW NEW

NEW NEW NEW NEW

NEW



Default Investment OptionIf you do not choose an investment option, an age-appropriate target

date fund will be selected for you.

Birth Year Portfolio

1998 or later Target Date 2065

1993-1997 Target Date 2060

1988-1992 Target Date 2055

1983-1987 Target Date 2050

1978-1982 Target Date 2045

1973-1977 Target Date 2040

1968-1972 Target Date 2035

1963-1967 Target Date 2030

1958-1962 Target Date 2025

1953-1957 Target Date 2020

1948-1952 Target Date 2015

1948 or earlier Target Retirement Income



What Are Target Date Funds?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40 35 30 25 20 15 10 5 0 5 10 15 20 25

Years until retirement Years after retirement

Fixed Income

Equity

Age-appropriate asset

allocations based on

years until retirement.

Automatic risk (equity)

reduction as you near

retirement.

One-step diversification

across asset classes.

A simple yet sophisticated investment solution.

Target date portfolios simplify investment decisions and

mitigate emotional reactions to market performance.



Vanguard Target Date Glidepath



Hypothetical Mapping: Annuities

Old Fund Fund Category New Fund Fund Category

TIAA RASRA-CREF:Eq Idx R2 Large Cap Core TIAA-CREF S&P 500 Index Instl Large Cap Core

TIAA RASRA-CREF:Growth R2 Large Cap Growth T. Rowe Price Growth Stock I Large Cap Growth

TIAA RASRA-CREF:Gbl Eq R2 Global Equities60% to TIAA-CREF S&P 500 Index Instl

40% to Vanguard Total Intl Stock Index Adm

Large Cap Core

Intl Large Cap Core

TIAA RASRA-CREF:Stock R2 Global Equities70% to TIAA-CREF S&P 500 Index Instl

30% to Vanguard Total Intl Stock Index Adm

Large Cap Core

Intl Large Cap Core

TIAA RASRA-CREF:Social Choice R2 Balanced Allocation Map to appropriate target date. Target Date

TIAA RASRA-CREF:Bond Mkt R2 Core BondVanguard Total Bond Market Index Adm Core Bond

TIAA RASRA-CREF:Infl-Lkd Bond R2 TIPS

TIAA RASRA-CREF:Real Estate Acct Real Estate TIAA-CREF Real Estate Sec Instl Real Estate

TIAA Traditional Account (GSRA) Cash & Equivalents

TIAA Traditional Account (RC) Cash & EquivalentsTIAA Traditional Account (RA) Cash & Equivalents

TIAA Traditional Account (SRA) Cash & Equivalents

TIAA RASRA-CREF:Money Mkt R2 Cash & Equivalents Vanguard Federal Money Market Investor Cash & Equivalents

The assets in these old funds will NOT be automatically transferred to the RC

platform. You can keep or transfer these funds, but no new money can be added.



Hypothetical Mapping: Mutual Funds (1/2)The assets in these funds will automatically be transferred to the RC Platform. If you do not

wish to have your funds invested in a target date fund, you must make an active election.

Old Fund Category New Fund Category

American Funds Washington Mutual R6 Large Cap ValueAmerican Funds Washington Mutual R6 Large Cap Value

TIAA-CREF Large-Cap Value Idx Inst Large Cap Value

TIAA-CREF Equity Index Instl Large Cap Core

TIAA-CREF S&P 500 Index Instl Large Cap CoreTIAA-CREF Growth & Income Instl Large Cap Core

TIAA-CREF S&P 500 Index Instl Large Cap Core

TIAA-CREF Social Choice Eq Instl Large Cap Core TIAA-CREF Social Choice Eq Instl Large Cap Core

TIAA-CREF Large-Cap Gr Idx Instl Large Cap GrowthT. Rowe Price Growth Stock I Large Cap Growth

TIAA-CREF Large-Cap Growth Inst Large Cap Growth

TIAA-CREF Mid-Cap Value Instl Mid Cap Value

Vanguard Mid Cap Index Admiral Mid Cap BroadVanguard Mid Cap Index Admiral Mid Cap Broad

TIAA-CREF Mid-Cap Growth Instl Mid Cap Growth

Victory Sycamore Small Company Opp R6 Small Cap Value

TIAA-CREF Quant Small-Cap Equity Instl Small Cap BroadTIAA-CREF Small-Cap Blend Idx Inst Small Cap Broad

TIAA-CREF Small-Cap Blend Idx Inst Small Cap Broad

Vanguard Explorer Adm Small Cap Growth

TIAA-CREF International Eq Idx Instl International Large Cap CoreVanguard Total Intl Stock Index Admiral International Large Cap Core

TIAA-CREF International Eq Instl International Large Cap Core

American Funds Europacific Growth R6 International Core Plus American Funds Europacific Growth R6 International Core Plus

Harding Loevner Emerging Markets Advisor Emerging Markets Harding Loevner Emerging Markets Advisor Emerging Markets

JPMorgan High Yield R6 High Yield Bond JPMorgan High Yield R6 High Yield Bond

Baird Core Plus Bond Inst Core Plus Bond

TIAA-CREF Real Estate Sec Instl Real Estate TIAA-CREF Real Estate Sec Instl Real Estate

Goldman Sachs Satellite Strategies Instl GTAA Goldman Sachs Satellite Strategies Instl GTAA

Vanguard Federal Money Market Investor Cash & Equivalents Vanguard Federal Money Market Investor Cash & Equivalents



Hypothetical Mapping: Mutual Funds (2/2)The assets in these funds will automatically be transferred to the RC Platform. If you do not

wish to have your funds invested in a target date fund, you must make an active election.

Old Fund Category New Fund Category

Vanguard Target Retirement 2065 Inv Target Date 2065 Vanguard Target Retirement 2065 Inv Target Date 2065

TIAA-CREF Lifecycle 2060 Institutional Target Date 2060Vanguard Target Retirement 2060 Inv Target Date 2060

Vanguard Target Retirement 2060 Inv Target Date 2060



















TIAA-CREF Lifecycle 2010 Institutional Target Date 2010

Vanguard Target Retirement Income Inv Retirement IncomeTIAA-CREF Lifecycle Retire Income Instl Retirement Income

Vanguard Target Retirement Income Inv Retirement Income



Self-Directed Brokerage Account

What is a self-directed brokerage account?

An investment option within the core fund menu that allows participants to invest in mutual funds outside the core fund menu.

What are the requirements?

▪ Minimum of $1,000 initial deposit by participant

▪ Participant must meet mutual fund minimums, typically $500

What are the costs?

▪ No additional cost to plan sponsor; costs are borne by the participant

▪ No annual or maintenance fees other than mutual fund fees

▪ Trading, transaction, and redemption fees vary based on mutual funds in use



Maintaining Perspective & Discipline

Dates of S&P’s

biggest

declines

Black

Monday8/25/87-

12/4/87

Gulf War7/16/90-

10/11/90

Asia Monetary

Crisis7/17/98-

8/31/98

Tech

Bubble3/27/00-

10/9/02

Financial

Crisis10/9/07-

3/9/09

US Credit

Downgrade3/10/11-

10/3/11

Trade

War10/3/18-

12/24/18

S&P 500 -33.5% -19.9% -19.3% -49.0% -56.8% -19.0% -19.6%

Next 12 months +21.4% +29.1% +37.9% +33.7% +68.6% +32.0% +37.1%

Source: Morningstar as of 2/28/20. Returns are principal only, not including dividends. Past performance does not guarantee future results. Index performance is for illustrative purposes only. You

cannot invest directly in an index.

$324,019

$161,706

$82,256$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Stay invested Missed 10 top-performingdays

Missed 25 top-performingdays

Hypothetical growth of $100,000 over 20 years

Sources: BlackRock, Bloomberg, Morningstar as of 2/28/20. Growth represented by the S&P 500 Index from

1/1/2000 to 12/31/2019. Index performance is for illustrative purposes only. It is not possible to invest directly in an

index. Past performance does not guarantee future returns.

Over the last 20 years,

24 of the 25 worst trading days were within one month of the 25 best trading days.

Sources: BlackRock, Bloomberg, Morningstar as of

2/28/20. Only period without a corresponding best day

within one month was September 17, 2001. Past

performance does not guarantee or indicate future results.



The Challenges of Market Timing

Case 1: Consistent

annual investments

Invest $100 at the

start of each year

Case 2: Investing

on the best day

Invest $100 on the

lowest index level

day of each year

Case 3: Investing

on the worst day

Investing $100 on

the highest index

level day of each

year

Case 4: Missing

the three best

days each year

Investing $100 at

the start of each

year but missing the

three best trading

days each year7.82% 8.06% 7.50%

-1.25%

Are the odds of correctly timing the market worth the incremental returns?

Source: Allianz Global Investors, Commerzbank. Datastream US Total Market Total Return Index 1963-2019 using IRR on $100 investment. The

hypothetical performance and simulations shown are for illustrative purposes only and do not represent actual performance, nor are they a reliable

indicator for future results. Past performance is no guarantee of future results. It is not possible to invest directly in an index.



Anticipating Volatility“An ounce of prevention is worth a pound of cure.”

Prudent Policies

Regular Rebalancing

Risk Monitoring

Fee Management

We determine appropriate asset

allocations based on time horizon

and risk tolerance.

We recognize that returns are a

byproduct of risk and monitor it to

ensure alignment with policies.

We take a disciplined approach to

rebalancing during rising markets to

avoid inadvertent up-risking.

We evaluate and negotiate fees to

mitigate additional drag on portfolio

returns.



Coronavirus Impact on Global Economy

IMPACT

Travel/tourism slowdown

Cancellation of travel plans and

large events, flight and cruise

restrictions

Quarantines and closures, fear

and aversion to public

gatherings

Factory closures create delays

and shortages, lower investment

due to uncertainty

Higher demand for healthcare

services and products

Lower demand keeps prices low

and volatile

Decline in equity prices and

interest rates, increasing risk

aversion and spreads

Consumption slowdown

DEMAND SHOCK SUPPLY SHOCK FINANCIAL MARKET SHOCK

ECONOMIC EFFECTS

Falling consumer demand as a result of

restrictions and overall sentiment

Production disruption due to restricted

movementVolatility in financial markets

Supply chain disruptions

Stress on healthcare

systems

Falling oil/commodity

prices

Financial market volatility



What Happens Next

▪ Series of educational meetings introducing the program occurring this month

▪ All active participants will automatically be enrolled in the new contract #407978

▪ If no investment election is made, all current mutual fund assets in the old contracts and all

new contributions in the new contract will automatically be invested in the appropriate

Vanguard Target Date Fund based on your date of birth.

▪ Any time after enrollment to the new contract #407978:

▪ Select your investment elections

▪ Transfer your assets from the legacy contracts to the RC contract by calling TIAA and requesting a

cross-contract transfer

▪ Review or update your beneficiary designation

▪ TIAA representatives will walk you through next steps and key dates


cornerstone-companies.com 21

Rankings ExplainedInclusion in rankings and surveys does not imply anything about a particular client’s experience or investment results with Cornerstone Advisors Asset Management, LLC.

2019 Barron’s Top Institutional Consultants

The Barron’s Top Institutional Consultant list was based on a range of criteria, including institutional investment assets managed by the company’s financial advising team;

revenue generated by those assets; the number of clients the team serves; the number of team members and their regulatory records; and the advanced, professional

designations and accomplishments of the team.

2019 Pensions & Investments OCIO Ranking

The Pensions & Investment OCIO list ranks firms based on institutional assets in outsourced investment programs, with full/partial discretion, in millions. The data gathered is

based off of March 31, 2018 assets under management. For more information, please visit: https://researchcenter.pionline.com/v3/rankings/outsourcing-manager/datatable

2019 Financial Advisor Magazine (FA Mag) Annual RIA Ranking

FA Magazine invites all independent registered investment advisors to participate who meet certain criteria. Firms are ranked based on assets under management as of year-

end 2017 ADV filings. To be eligible for the ranking, firms must be independent registered investment advisors and file their own ADV statement with the SEC and provide

financial planning and related services to individual clients. For more information, please visit: https://www.fa-mag.com/news/ria-survey---ranking-2018-39594.html?section=133.

2019 NAPA Top DC Advisor Teams

The NAPA Top DC Advisor Teams list is ranked by self-reported DC assets under advisement. For more information, please visit https://www.napa-net.org/industry-

intel/accolades/top-dc-advisor-teams.

2019 Best Places to Work in Money Management

Pensions & Investments partnered with Best Companies Group, an independent research firm specializing in identifying great places to work, to conduct a two-part survey of

employers and their employees. The first part, worth 25 percent of the total score, consisted of evaluating each nominated company’s workplace policies, practices, philosophy,

systems, and demographics. The second part, worth 75 percent of the total evaluation, involved an employee survey designed to measure employee experience. For a

complete list of the 2019 Pensions & Investments Best Places to Work in Money Management winners and write-ups, go to www.pionline.com/BPTW2019.


cornerstone-companies.com 22

DisclosuresSecurities offered through M Holdings Securities, Inc., MEMBER FINRA/SIPC

Investment Advisory Services are offered through Cornerstone Advisors Asset Management, LLC, which is independently owned and operated.

Performance quoted is past performance and is no guarantee of future results.

Unless otherwise noted, data obtained from Callan Associates.

All indices are unmanaged and not available for direct investment.

Cornerstone Advisors Asset Management, LLC and Cornerstone Institutional Investors, LLC have exercised reasonable care in the preparation

of this presentation. Several portions of this presentation are obtained from third party sources. While we have attempted to verify all

information within, we disclaim all responsibility for any errors that may occur due to third party information and data.

The information is provided solely for informational purposes and therefore should not be considered an offer to buy or sell a security. Except

as otherwise required by law, Cornerstone shall not be responsible for any trading decisions or damages or other losses resulting from, this

information, data, analyses or opinions or their use. Please read the prospectus carefully before investing. It is not a replacement for any

account statement or transaction confirmation issued by the provider. Please compare this document to your custodial statement for accuracy,

as applicable.

All materials, including advertising, sales promotion, or demonstration materials which refer directly to the Russell Indexes shall expressly state

that Frank Russell Company is the owner of the Russell Marks in language consistent with and substantially similar to the following example:

Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a

trademark of Frank Russell Company. 2293478


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