Distribution Services INTERMEDIARY SALES SUPPORT—DCIO€¦ · t ge 65 6% 2% 12% 0 105% 1 12 0 94 31 12 74 3 1 6 6 45 Deep Experience. ThoughTful InnovaTIon. Target date solutions

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Distribution ServicesINTERMEDIARY SALES SUPPORT—DCIO

Regional Sales Consultant Territory Contact Info Intermediary Sales Consultants

Brad Vaughan

WA, MT, OR, ID, WY, N. CA, UT, CO

Cell: [email protected]

Brooks Fisher, QPFC

Direct: [email protected] with:

Michele Giangrande S. CA, NV, AZ, NM Cell: 949.514.5494

[email protected] Lawson


Eric Milano, QPFC

ND, SD, MN, NE, IA, WI, IL


Tim White


Keith Blackmon

KS, MO, AR, OK, TX, LA


Jason Butler*


Seth Gusman

TN, MS, AL, GA, SC, NC, FL


Mike Krawczyk, CIMA® MI, IN, OH, KY Cell: 410.409.9684

[email protected]

David NorrisDirect: [email protected] with:

Jonathan Wilkinson NJ, S. NY Cell: 908.200.9960

[email protected]

Chris Augelli

WV, VA, MD, DC, PA, DE


Andrew Beliveau


Alan Valenca, CFP®, CIMA®

N. NY, CT, RI, MA, NH, VT, ME


Brendan Asaff*, CIMA®


Head of Distribution Services

Mark Cover

Manager, Intermediary Sales Consultants

Mike McKenna, CFP®

Office: 410.345.3574Cell: [email protected]

Intermediary Sales Desk:800.371.4613

troweprice.com/fi

Office: 410.345.4956Cell: [email protected]

*Senior Intermediary Sales Consultant

T. ROWE PRICE VALUE-ADD RESOURCES

CXBLADB8P 8/162016-US-25194

Next Generation Thinking

Target Date Resources

fi360 Fiduciary Score®

Value-add program that provides a unique spin—through the lens of the millennial demographic—on plan design and participant engagement best practices. Themes include:

� Power of peer recommendation � Unintended consequences of auto-services � Gamification

Resources to help position, differentiate, and educate clients on the target date space. Materials include:

� Thought leadership � Product information � Participant education

The fi360 Fiduciary Score quarterly scorecard and fund comparisons help decision makers identify and monitor investments in the course of their due diligence process. Insights include:

� Investment rating system � Investment Highlight Report � Quarterly and average scores

BrightScopeThis in-depth Beacon™ report provides access to year-over-year plan-specific trend information. It can help you prepare for client and prospect meetings or uncover potential areas where you can make recommendations for plan enhancements. Report includes:

� Plan assets � Providers � Number of participants � Investment lineups, performance, and fees

For many, saving money for retirement can be as challenging as losing weight. Both require sustained effort and new habits. Just as weight loss programs use group meetings and Internet forums to create a culture of personal responsibility, the defined contribution (DC) industry is finding that peer influence can be highly effective at fighting procrastination—and encouraging long-term savings habits.

Next generation thinking.TAP THE POWER OF PEER RECOMMENDATION TO MOTIVATE PARTICIPANTS.

Peer influence is gaining momentumThe digital world is accentuating the power of peer influence. Social recommendations, customer advocacy, and word-of-mouth marketing are among today’s most powerful marketing tools. Consider:

33.732.6 %%

Ages 25−34Ages 18−24

%68Nearly 68% of Facebook users say a Facebook friend’s recommendation would make them more likely to buy a product or visit a retailer.1

Research finds that a third of those age 18 to 34 are making proactive recommendations.2

How often do you read the peer reviews before buying online? How often do you select a restaurant based on a friend’s recommendation? Consider the popularity of Consumer Reports or Angie’s List.

“Friends” influence buying Gen Y/Millennials lead brand advocacy trend

Look at your own experience

of consumers around the world

“

”

92%say they trust earned media, such as word of mouth and recommendations from friends and family, above all other forms of advertising.

Nielsen Global Trust in Advertising Survey, 2011

Marketers may spend millions of dollars on elaborately conceived advertising campaigns, yet often what really makes up a consumer’s mind is not only simple but also free: a word-of-mouth recommendation from a trusted source. — McKinsey Quarterly, April 2010

Next generation thinking. UNINTENDED CONSEQUENCES CAN RESULT FROM JOB-JUMPING MILLENNIALS. Auto-services are widely touted as positive developments that drive better participant outcomes. Until now, however, they have been deployed on a very company-loyal demographic. How effective are those same services for a generation that changes jobs every few years?

Young emploYees face greatest impact of low default ratesThanks to services such as auto-enrollment and auto-increase, more American workers are being given the opportunity to enroll and increase their savings levels than ever before.

However, when you consider the job-jumping tendencies of Millennials, the impact of these services can be less positive than anticipated. According to the Bureau of Labor Statistics, the average job tenure of Americans today is 4.4 years.

As the chart below shows, the default levels selected for auto-enrollment and auto-increase can be make-or-break decisions for younger workers.

Assumptions: Age 25, $40,000 salary, 3% inflation, 7% investment return, and a 50% company match on the first 6% of pay. Job changes occur every three years after the initial year of hire. Percent of goal met is defined as being able to maintain a lifestyle equal to 90% of final salary, with 25% of final salary replaced by Social Security and other sources (e.g., DB plan or wages). Number shown is percent of lifestyle covered by savings at age 65 with a 4% initial withdrawal amount.

emploYers also face negative impactsOver the long term, inadequate retirement savings may lead to the unintended consequence of a workforce that cannot afford to retire. An older workforce, reluctant to leave the company, could negatively impact a company’s:

¡ Health care costs: It’s no secret that it costs more to cover and care for an older, perhaps less-healthy, population.

¡ Payroll costs: A 65-year-old worker with 15 years of tenure is probably paid more than a 25-year-old worker would be for essentially doing the same job.

¡ Worker’s compensation costs: In manufacturing and other skilled labor industries, there could be a higher risk of job-related injuries.

4.4 yearsAverage tenure of

American jobs today**Bureau of Labor Statistics

91%Millennials who expect to stay in a job for less than three years.

Auto-enrollment defAult % Auto-increAse % Auto-increAse cAP % # of job cHAnges

% of goAl met At Age 65

6% 2% 12% 0 105%

3 1 12 0 94

3 1 12 3 74

3 1 6 6 45

Deep Experience. ThoughTful InnovaTIon.

Target date solutions from T. Rowe Price

CHOOSE AN EXPERIENCED TARGET DATE PROVIDER

T. Rowe Price’s investment philosophy aligns well with the interests of long-term investors like sponsors and participants. This is reflected in our assets under management, nearly 60% of which are retirement related. Partner with a firm that has over 75 years in the asset management business and over 30 years of retirement plan experience. To learn more about our target date funds, call 1-800-371-4613.

Proven results from a target date leader

At T. Rowe Price, we believe that investment

success comes from balancing market, inflation,

and longevity risks. This principle is at the core

of our target date philosophy—and serves as the

foundation for every decision we make to achieve

the best possible outcomes for our clients.

What sets T. Rowe Price Retirement Funds apart

The numbers and the industry accolades speak for themselves

COMPETITIVE, DIVERSE UNDERLYING INVESTMENTS

1 T. Rowe Price Retirement Funds are composed of 18 predominately actively managed T. Rowe Price mutual funds.

Because of our disciplined process, several of the standalone underlying funds have been closed to new investors. Through T. Rowe Price Retirement Funds, participants can gain access to what have historically been some of our more popular investment options.

AN EXTENDED GLIDE PATH

2 Allocations continue to shift from equity to fixed income for 30 years after the target retirement date. This exposure to equity

helps continued growth potential—in an effort to keep pace with inflation and maintain purchasing power over the long term.

MANAGER TENURE AND STABILITY

3 Our Retirement Funds reflect the collective thinking of some of the firm’s most senior managers. Lead Manager Jerome

Clark has been at the helm since the funds’ inception in 2002.

This depth of experience carries over to the underlying funds’ managers. Firmwide, our portfolio managers average 17 years’ tenure with the firm*—among the longest in the industry.

FUND PERFORMANCE VS. PEER GROUP of the T. Rowe Price Retirement Funds ranked in the first or second quartile of their Lipper peer group over the 3-, 5-, and 10-year time periods.*

FUND PERFORMANCE VS. THE BENCHMARK of the T. Rowe Price Retirement Funds beat their custom benchmark over the 3-, 5-, and 10-year time periods.*

EXPENSES of the T. Rowe Price Retirement Funds ranked in the first or second quartile of their Lipper peer group.*

100% OF OUR RETIREMENT FUNDSbeat their 10-year Lipper average as of 6/30/2015.3

MORNINGSTAR ANALYST RATING™

for the Retirement Funds as of 12/31/2014 .1Past performance cannot guarantee future results. Results will vary for other periods.

*As of 6/30/2015.

“RECOMMENDED FUNDS” T. Rowe Price: One of only two target date mutual fund families to be included in the Money 50.2

EXECUTIVE SUMMARY

■■ The convention of classifying target date glide paths as either “to retirement” or “through retirement” suffers from a number of significant shortcomings that could lead those who rely on it to make misinformed investment decisions.

■■ The allure of “to/through” is that it provides a simple shorthand method for assessing a glide path’s investment objectives based solely on its shape. The problem is that while a glide path’s design objectives will influence its shape, it does not follow that a glide path’s shape can be translated back to its design objectives.

■■ We prefer a classification system that is solidly objectives-based rather than shape-based. Retirement plan objectives tend to be twofold: lifetime income replacement and limiting the risk of capital loss. Because these objectives compete against each other, glide path design involves the decision of how much to emphasize one objective versus the other.

■■ Our approach attempts to directly measure the emphasis placed on each objective. This allows glide paths to be not only categorized by their direction of emphasis, but also ranked by their magnitude of emphasis.

■■ T. Rowe Price offers two glide paths, each of which attends to both objectives, but with different degrees of emphasis.

Glide Path Classification:SENSIBLY REFRAMING “TO VERSUS THROUGH”

Richard K. Fullmer, CFA

It has become customary in the investment industry to employ a shorthand method of classifying target date portfolios as either “to retirement” or “through retirement” strategies based on the shape of their asset allocation glide paths. The purpose of such classification, presumably, is to help investors and retirement plan sponsors identify glide paths that may be suitable for their objectives. This is a noble purpose, one that perhaps arose out of a sense that target date portfolio providers had not communicated their objectives clearly enough, in which case it should not be surprising that some type of classification paradigm arose from the void.

Unfortunately, the “to/through” classification paradigm has serious shortcomings that make it wholly unsuitable for this purpose. The designation between “to” and “through” is a misnomer that serves to confuse more than it does to distinguish. One source of confusion is a lack of agreement on how these terms are defined. Even if a common definition existed, however, the “to/through” classification convention would still be of limited value to investors because its shape-based methodology reveals very little about the objectives a glide path seeks to achieve. Moreover, it forces categorization into one of only two buckets—as if investor preferences were

PRICE PERSPECTIVEApril 2015

In-depth analysis and insights to inform your decision making.

Humans are game players. We’re hard-wired to compete, solve problems, and achieve goals. Enter gamification: the art and science of applying game design to engage and motivate employees. While it has had success with all demographics, it has proven especially effective with millennials, who have grown up with the Internet and online games (earning the label “digital natives”). In the last few years, gamification has entered the mainstream as a proven business strategy.

LET GAMIFICATION ENERGIZE PARTICIPANT ENGAGEMENT.

Next generation thinking.

[Gabe Zicherman, author of “The Gamification Revolution” *Nike and FitBit are not affiliated with T. Rowe Price.]

Consumer brands like

NIKE+ AND FITBIT USED GAMIFIED PRODUCTS TO DRIVE OVER 5

MILLION PLAYERSto beat their personal fitness goals every day

of the year.*

OVER 70% OF ORGANIZATIONS

had at least one “gamified” application in 2014.

[Gartner Group]

OVER 70% OF FORBES GLOBAL 2000 COMPANIES

surveyed planned to use gamification for marketing and customer retention.

[Van Grove, Jennifer (July 28, 2011). “Gamification: How Competition Is Reinventing Business, Marketing and Everyday Life”]

What you receive You now have access to customized reports that present a variety of plan-specific statistics from BrightScope’s database of retirement plan information.

In addition to an evaluation of plan health, BrightScope’s in-depth Beacon™ report gives you access to year-over-year trend information, such as:

n Plan assets n Providers n Number of participants n Investment lineups n Investment performance n Investment fees

How to use the information You can access comprehensive plan information with a phone call or e-mail. This takes the legwork out of locating and organizing data—so you can focus on individual sponsor concerns or refine your value proposition.

Meeting preparation is tedious. But having key information—such as fee benchmarking data, how long an investment has been in a lineup, and annual asset trends—ahead of time lets you walk in with best practice recommendations and discussion points at the ready. You’ll look more prepared, experienced, and knowledgeable in the eyes of your clients.

Get started today Contact your T. Rowe Price representative with the name of a client or prospect. Using BrightScope’s database, T. Rowe Price will produce a report and send it to you.

We can also provide a guide that explains each section of the report, how to position information with clients, as well as provocative questions to start engaging conversations.

Not sure who to contact at T. Rowe Price? Call our internal sales desk at 1-800-371-4613.

FOR INSTITUTIONAL INVESTOR USE ONLY

T. Rowe Price and BrightScope are not affiliated companies.

Who is BrightScope?BrightScope is a nationally recognized financial information company that offers detailed investment and provider data on 50,000 defined contribution (DC) plans, covering more than $3 trillion in assets.

Using a plan’s Form 5500 and financial audit information, BrightScope is able to aggregate and organize vital statistics that DC professionals can analyze to enhance plan design and improve retirement outcomes.

C1TIL4GS5 2/152015-US-7618

Powerful rePorting. exPert analysis.T. Rowe Price has partnered with BrightScope to provide you with comprehensive, plan-level data that allows you to have higher-value interactions with clients and prospects.

USERGUIDETURN PLAN DATA INTO MORE SUCCESSFUL DISCUSSIONS

BrightScope Customized Plan Reports

FOR INSTITUTIONAL INVESTOR USE ONLY

Provided by T. Rowe Price

4 | TURN PLAN DATA INTO MORE SUCCESSFUL DISCUSSIONS

SECTIONS 3 & 4: Providers & Participants

LOOK DEEPER:

Take note of how long a plan has partnered with a particular recordkeeper or provider and how long ago they may have made a change.

FOOD FOR THOUGHT:

n Are there opportunities for you to work closer or in better sync with other providers listed?

n Could you obtain plan data or intelligence more easily from the other providers?

n If the plan has been with its current providers for three to five years, have those providers periodi- cally reassessed plan asset growth or average account balance versus fees charged? Provided the lowest-cost share classes available? Introduced new products and services?

WHAT IT IS:

The plan’s top three providers by role, as listed on each year’s Form 5500 for which data is available.

LOOK DEEPER:

Much like plan asset trends, participant trends can reflect several factors of plan health:

n Is the plan growing or shrinking in size?

n Is the rise or fall in participants due to company growth (or reduction), demographic changes (e.g., baby boomers retiring or a recent influx of young employees), or recent plan design enhancements (e.g., implementation of auto- enrollment)?

FOOD FOR THOUGHT:

n If the number of participants has grown quickly, what has the sponsor done to address or enhance plan design to accommodate a broader participant base?

n Has the sponsor considered a possible increased fiduciary responsibility to provide a retirement benefit that will help get their employees to a successful retirement?

n Do you, as an advisor, want to take on (or continue to service) a plan with a shrinking participant population?

WHAT IT IS:

Active (eligible) participants and participants with balances as listed on each year’s Form 5500 for which data is available.

Participants

Providers

BRIGHTSCOPE USER GUIDE | 3

SECTIONS 1 & 2: Plan Overview & Plan Assets

LOOK DEEPER:

Knowing the industry, you can now use that information to benchmark the plan against its peer group.

FOOD FOR THOUGHT:

n Use surveys, case studies, or other well-regarded studies to benchmark the plan relative to peers.

n Do you advise other plans within that particular industry? If so, you may be able to benchmark it using data you already have.

n Use T. Rowe Price’s free benchmarking site: troweprice.com/referencepoint. It comprises plan data from more than 800 full-service plans and 2 million participants.

WHAT IT IS:

Basic company information as filled out on the previous year’s Form 5500.*

LOOK DEEPER:

n Is the plan growing or shrinking in asset size?

n Is the rise or fall in assets due to market conditions, company growth (or reduction), or recent plan design enhancements?

FOOD FOR THOUGHT:

n As the advisor, is the growth or reduction in assets aligned with the level of service you’re providing?

n What is the return on investment you’re receiving based on the amount of time spent servicing the plan?

n Should you reconsider your level of service, fees, or willingness to retain them as a client?

WHAT IT IS:

Plan net assets and plan net flows as listed on each year’s Form 5500 for which data is available.

Plan Assets

Plan Overview

* All data shown in this brochure is hypothetical; no actual plan data is shown.

“fi360” and “fi360 Fiduciary Score” are registered trademarks of fi360, Inc. T. Rowe Price Investment Services, Inc., Distributor

Documents

Distribution Services INTERMEDIARY SALES SUPPORT—DCIO€¦ · t ge 65 6% 2% 12% 0 105% 1 12 0 94 31 12 74 3 1 6 6 45 Deep Experience. ThoughTful InnovaTIon. Target date solutions