Provider Proposal Analysis

Transcription

1 Provider Proposal Analysis Sample 401(k) Plan RFP Prepared By: Joe Advisor 6900 College Blvd Ste 930 Overland Park, KS /20/15 Securities offered through LPL Financial, Member FINRA/SIPC For Plan Sponsor Use Only Not for Use with Participants or the General Public

2 TABLE OF CONTENTS Methodology 1 Executive Summary 2 Plan Fee Summary - Ongoing Fees 3 Pricing Comparison 4 Rate Card 5 Pricing Assumptions 7 Provider Summary 8 Value Proposition 11 Fund Line-Up 14 Investment Evaluation 18 Provider Response Summary (Standard Questions) 33 Provider Response (Custom Questions) 36 Provider Response (Standard Questions) 38 Evaluation Summary 50 Provider Evaluation 51 Provider Selection Synopsis 53

3 METHODOLOGY A consultative process is used with you to understand the specific requirements and needs of your plan. These requirements are screened through an extensive database of provider capabilities and possible viable candidates. Once service provider candidates are chosen, an online request for proposal is created, featuring investment, pricing and additional information requirements customized to fit the specific needs of the plan sponsor. After a provider selection is made, a report is created and archived to document the entire selection process. PROVIDER INFORMATION COLLECTION CANDIDATE SCREENING & SELECTION È RFP CREATION & DISTRIBUTION È RESPONSE ANALYSIS È PROVIDER SELECTION PROCESS DOCUMENTATION 1

4 EXECUTIVE SUMMARY ASSET AMOUNT: $11.6 M ANNUAL CONTRIBUTION: $500,000 PARTICIPANTS: ELIGIBLE: You have indicated that the following objectives represent the plan's highest priorities: Maximize services the provider can perform to reduce plan sponsor headcount and support effort. Provide leading edge, holistic employee training. Provide Retirement Readiness tools and resources. Provider Products Considered 103 Candidates Selected 3 RFPs Issued 3 Respondents 3 Finalists Considered: Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C 2

5 PLAN FEE SUMMARY Fee Category Incumbent Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Investment Management $39,360 $53,900 $42,000 $40,439 Recordkeeping $34,800 $23,200 $26,680 $11,627 Administration $5,813 Advisor/Consultant $17,400 $17,400 $17,400 $17,440 Total Ongoing Plan Fees $91,560 $94,500 $86,080 $75, % 0.81% 0.74% 0.65% Asset generated fees greater than plan fees $5, Plan Fees greater than asset generated fees $17, Per Participant $305 $315 $287 $251 3

6 PRICING COMPARISON INCUMBENT SAMPLE PROVIDER A PRODUCT A SAMPLE PROVIDER B PRODUCT B SAMPLE PROVIDER C PRODUCT C Fees (Annual) % of Assets Fees (Annual) % of Assets Fees (Annual) % of Assets Fees (Annual) % of Assets Investment Management $ 39, % $ 53, % $ 42, % $ 40, % Recordkeeping $ 34, % $ 23, % $ 26, % $ 11, % Recordkeeping Asset Based Fee $ 34,800 $ 23,200 $ 26,680 $ 11,627 Administration $ 0 0% $ 0 0% $ 0 0% $ 5, % Administration Asset Based Fee $ 0 $ 0 $ 0 $ 5,813 Advisor $ 17, % $ 17, % $ 17, % $ 17, % Advisor Fee $ 17,400 $ 0 $ 0 $ 0 Advisor Asset Based Fee $ 0 $ 17,400 $ 17,400 $ 17,440 Total Ongoing Plan Fees $ 91, % $ 94, % $ 86, % $ 75, % Asset generated fees > than plan fees $ 5, % Plan Fees > than asset generated fees $ 17, % Total Setup (One Time) $ 0 0% $ 0 0% $ 3, % $ 0 0% Per participant setup fee $ 0 $ 0 $ 3,000 $ 0 4

7 RATE CARD Fees and Charges for services on an as-needed basis. Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Implementation/Conversion fee Included TBD Included Fixed annual fee Included TBD Included Non-discrimination tests (each) Included Included Included Form 5500 preparation Included $500 Included Trustee services Included Included Included Cost for enrollment kits? Included Included $500 Contract Charge or Wrap Fee Included TBD TBD Cost for any required annual notices? Included Included Included Is there an additional charge for extra compliance tests? Annual cost to participant for selfdirected brokerage? Annual cost or set up cost to plan sponsor for self-directed brokerage? Mailing costs for enrollment kits mailed to plan sponsor Mailing costs for enrollment kits mailed to participant Included Included Included Included TBD Included Included Included Included Included Included Included Included Included Included 5

8 RATE CARD Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Enrollment posters, payroll stuffers, flyers Included Included $500 Loan origination fee $50 $25 $75 Loan administration/annual maintenance fee Included $25 $50 In-service, non-hardship withdrawals Included Included Included QDRO processing Included Included Included Return of excess contributions Included TBD Included Ad hoc plan level reports Included Included Included What is the cost for additional education meetings (per day)? What is the cost for allowing custom built asset allocation models? What is the cost for unitizing custom build portfolios? Mailing costs of required annual notices Included TBD $1,000 Included Included Included Included Included Included $500 Included Included 6

9 PRICING ASSUMPTIONS Each service provider submitted these key proposal assumptions along with their pricing proposal. SAMPLE PROVIDER A PRODUCT A This pricing assumes thattarget Date funds will be utilized, and that the default investment option will be the age appropriate Target Date Fund. Relationship manager is assumed to perform up to 20 hours of training per year. Additional hours would be available at a rate of $100/hour with a four hour minimum. Required Revenue is 20 BPS. SAMPLE PROVIDER B PRODUCT B SAMPLE PROVIDER C PRODUCT C Educational costs are set at $2500 per day and assume that the location is within 80 miles of a major airport. Education costs include annual sessions over one business day(assumes all participants can attend in the same day). 7

10 PROVIDER SUMMARY Each Provider was asked to document any additional information they believe that the plan sponsor should know about their proposal. This information typically includes summary points each provider wants to make about their particular strengths related to this plan, and any key assumptions regarding the services they have proposed. SAMPLE PROVIDER A PRODUCT A PLAN COST: $94, % We appreciate the opportunity to serve your employee's in the important company benefit. We havecarefully crafted our platform over time to allow detailed customization to meet the unique needs ofdifferent plans and employee groups. In addition to what you have read about our firm and products, we'd like to highlight a few specific benefits of our company and our proposed solution, based on what you have communicated as being your highest priorities: - Ability to offload employee services activities. We offer a full range of services we can provide for youin this area, including creating, printing and distributing participant statements. - Customization of availability of retirement planning tools for participants. We are able to rearrangeand even substitute retirement planning tools to fit the needs of different employees. 8

11 PROVIDER SUMMARY We appreciate the opportunity to propose our services to your employees. To address the highest priorities of this plan, we want to highlight the following: 1. Open Architecture fund availability SAMPLE PROVIDER B PRODUCT B 2. Tailored educational services based on your needs 3. Local, in-city resources to meet your needs for services. Please call us with any questions regarding our proposal. PLAN COST: $86, % 9

12 PROVIDER SUMMARY Thank you for the opportunity for our firm to propose on this plan. We believe our company and products are uniquely positioned to serve your employees. SAMPLE PROVIDER C PRODUCT C PLAN COST: $75, % Our firm has a long and rich history of serving the employer-sponsored retirement plan marketplace.we have one of the highest ratings for our overall service technology and also rank among the highest in participant satisfaction levels. We offer numerous service options to our customers to accommodate their unique requirements. We look forward to deeper discussion with you to make sure we have shaped our proposed products and services to match your true needs. 10

13 VALUE PROPOSITION Each service provider is given the opportunity to summarize the unique value that they provide to the marketplace. This content represents the one page summary that they created. Sample Provider A Product A ASSETS UNDER MANAGEMENT (MILLIONS): $49,000.0 NUMBER OF PLANS: 31,920 We champion the commitment of plan sponsors and intermediaries to drive better retirement outcomes by personally engaging and motivating employees to invest in their futures with optimism. As a leading retirement plan provider, we are committed to offering our partners a broad array of plan solutions to meet their needs including independent, market-driven investments, superior plan design and fiduciary and compliance guidance. This product is targeted to meet the needs of plans 5 Million in assets and up. AVERAGE PARTICIPANTS PER PLAN: 44 11

14 VALUE PROPOSITION Our service is designed to support efficient management of daily plan and participant needs and provides a single location to quickly and securely view, monitor, and update plan information. Sample Provider B Product B ASSETS UNDER MANAGEMENT (MILLIONS): $1,259.6 NUMBER OF PLANS: 16,500 Simplified plan administration, including the ability to run compliance tests any time Full participant support from completing transactions to ordering enrollment materials Educational tools and informational updates Customized quarterly administration and monthly plan confirmation reports Loan modeling, loan paperwork, and distribution processing Automation of census and payroll submissions Ad hoc reporting to view plan trends and progression AVERAGE PARTICIPANTS PER PLAN:

15 VALUE PROPOSITION Sample Provider C Product C ASSETS UNDER MANAGEMENT (MILLIONS): $47,800.0 NUMBER OF PLANS: 43,562 Designed to provide comprehensive services that simplify administration and ensure compliance, our retirement plan solutions are tailored to meet your needs and the way you do business. Our capabilities span a full range of best-in-class services and products backed by our industry expertise and a team approach allowing you to partner with one source to achieve your goals. With more than 30 years of experience as an award-winning industry leader in pioneering comprehensive retirement plan solutions and exemplary client service, we understand that there are multiple pathways to building a successful retirement program. From plan design to document generation to processing and administration, our solutions are tailored to provide flexibility to fit your business. AVERAGE PARTICIPANTS PER PLAN: 47 13

16 FUND LINE-UP Sample Provider A: Product A Fund Name Category Assets Fidelity Retirement Money Market - FRTXX JPMorgan Core Bond Select - WOBDX Fidelity Advisor Strategic Income I - FSRIX Hartford Inflation Plus R5 - HIPTX Fidelity Advisor Freedom Income I - FIAFX Fidelity Advisor Freedom 2010 I - FCIFX Fidelity Advisor Freedom 2015 I - FFVIX Fidelity Advisor Freedom 2020 I - FDIFX Fidelity Advisor Freedom 2025 I - FITWX Fundamental Large Cap Value Class 1 - JHFLCV1 Franklin Small-Mid Growth Class 1 - JHFRSGX1 Money Market/Stable Value Intermediate-Term Bond Investment Expense (percentage) Total Revenue Share (percentage) Additional Asset Fees (percentage) Total Plan Generated Revenue ($) $ 1,700, $ 9,690 $ 700, $ 5,110 Multisector Bond $ 1,000, $ 9,100 Inflation-Protected Bond $ 1,000, $ 7,500 Retirement Income $ 750, $ 4,875 Target Date Target Date Target Date Target Date $ 1,100, $ 8,250 $ 1,000, $ 7,900 $ 1,000, $ 8,100 $ 1,100, $ 9,350 Large Value $ 1,000, $ 9,500 Mid-Cap Growth $ 1,250, $ 15,125 INVESTED ASSETS TOTAL $ 11,600,000 $ 77,100 $ 23,200 $ 17,400 $ 94,

17 FUND LINE-UP Sample Provider B: Product B Fund Name Category Assets Fidelity Retirement Money Market - FRTXX Invesco Core Plus Bond Y - CPBYX Money Market/Stable Value Intermediate-Term Bond Investment Expense (percentage) Total Revenue Share (percentage) Additional Asset Fees (percentage) Total Plan Generated Revenue ($) $ 1,700, $ 7,140 $ 1,200, $ 7,320 PIMCO Diversified Inc Instl - PDIIX Multisector Bond $ 1,300, $ 9,750 Columbia Inflation Protected Secs Z - CIPZX Inflation-Protected Bond $ 1,400, $ 8,400 Fidelity Freedom Income - FFFAX Retirement Income $ 1,500, $ 7,350 Vantagepoint Milestone 2010 TM - VQRQX Great-West SecureFoundation LT 2015 G - MXSJX MFS Lifetime 2020 I - MFLIX Fidelity Freedom FFTWX Target Date Target Date Target Date Target Date $ 1,200, $ 6,600 $ 1,200, $ 7,920 $ 1,000, $ 6,500 $ 1,100, $ 7,700 INVESTED ASSETS TOTAL $ 11,600,000 $ 68,680 $ 26,680 $ 0 $ 68,

18 FUND LINE-UP Sample Provider C: Product C Fund Name Category Assets Fidelity Retirement Money Market - FRTXX Columbia Intermediate Bond W - CIBWX Fidelity Advisor Strategic Income I - FSRIX AB Bond Inflation Strategy A LW - ABNAX.LW Fidelity Advisor Freedom Income I - FIAFX Fidelity Advisor Freedom 2010 I - FCIFX Fidelity Advisor Freedom 2005 I - FFIVX Fidelity Advisor Freedom 2015 I - FFVIX Fidelity Advisor Freedom 2020 I - FDIFX Fidelity Advisor Freedom 2025 I - FITWX Money Market/Stable Value Intermediate-Term Bond Investment Expense (percentage) Total Revenue Share (percentage) Additional Asset Fees (percentage) Total Plan Generated Revenue ($) $ 1,700, $ 7,140 $ 1,200, $ 10,200 Multisector Bond $ 1,300, $ 9,880 Inflation-Protected Bond $ 1,400, $ 11,200 Retirement Income $ 1,500, $ 7,500 Target Date Target Date Target Date Target Date Target Date $ 1,100, $ 6,600 $ 11, $ 64 $ 1,230, $ 7,872 $ 1,085, $ 7,162 $ 1,100, $ 7,700 INVESTED ASSETS TOTAL $ 11,626,721 $ 75,319 $ 34,880 $ 0 $ 75,

19 FUND LINE-UP Incumbent Line-Up Fund Name Category Assets Fidelity Retirement Money Market - FRTXX Invesco Core Plus Bond Y - CPBYX Money Market/Stable Value Intermediate-Term Bond Investment Expense (percentage) Total Revenue Share (percentage) Additional Asset Fees (percentage) Total Plan Generated Revenue ($) $ 1,700, $ 11,390 $ 1,200, $ 10,320 PIMCO Diversified Inc Instl - PDIIX Multisector Bond $ 1,300, $ 13,000 Columbia Inflation Protected Secs Z - CIPZX Inflation-Protected Bond $ 1,400, $ 11,900 Fidelity Freedom Income - FFFAX Retirement Income $ 1,500, $ 11,100 Vantagepoint Milestone 2010 TM - VQRQX Fidelity Freedom FFFVX Great-West SecureFoundation LT 2015 G - MXSJX MFS Lifetime 2020 I - MFLIX Fidelity Freedom FFTWX Target Date Target Date Target Date Target Date Target Date $ 1,000, $ 8,000 $ 500, $ 4,050 $ 1,000, $ 9,100 $ 1,000, $ 9,000 $ 1,000, $ 9,500 INVESTED ASSETS TOTAL $ 11,600,000 $ 68,360 $ 29,000 $ 29,000 $ 97,

20 INVESTMENT EVALUATION - COMPOSITE RETURN Annualized Returns 09/30/15 Composite Returns* Last QTR YTD 1 YR 3 YRS 5 YRS Net Exp. Total Plan Exp. Ratio Total Plan Fee Incumbent Line-up (0.41) $ 91,560 Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C $ 94,500 (0.38) $ 86,080 (0.31) $ 75,319 *Composite returns are calculated by adding up the returns of each underlying fund weighted by the percent of assets relative to total plan assets. 18

21 INVESTMENT EVALUATION - PERFORMANCE SUMMARY The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent moth-end please visit Standardized Return assumes reinvestment of dividends and capital gains. It depicts performance without adjusting for the effects of taxation or any applicable maximum sales charges but is adjusted to reflect ongoing fund expenses. If adjusted for taxation or maximum sales charges, the performance quoted would be significantly reduced. For variable annuities (if applicable), additional expenses will be taken in account, including M and E risk charges, fund-level expenses such as management fees and operating fees, and contract-level administration fees charges such as surrender, contract and sales charges. Annualized Returns 09/30/2015 Fund Score Annualized Returns (Peer Group % Rank) Incept. Date Expenses Money Market/Stable Value Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Fidelity Retirement Money Market - FRTXX N/A of (N/A) 0.01 (N/A) 0.01 (N/A) 1.51 (N/A) /2/ Fidelity Retirement Money Market - FRTXX N/A of (N/A) 0.01 (N/A) 0.01 (N/A) 1.51 (N/A) /2/ Fidelity Retirement Money Market - FRTXX N/A of (N/A) 0.01 (N/A) 0.01 (N/A) 1.51 (N/A) /2/ Fidelity Retirement Money Market - FRTXX N/A of (N/A) 0.01 (N/A) 0.01 (N/A) 1.51 (N/A) /2/ Intermediate-Term Bond Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Invesco Core Plus Bond Y - CPBYX 10 of (10) 3.74 (9) 4.65 (17) N/A (N/A) /3/ JPMorgan Core Bond Select - WOBDX 10 of (12) 1.89 (65) 3.55 (57) 4.73 (31) /3/ Invesco Core Plus Bond Y - CPBYX 10 of (10) 3.74 (9) 4.65 (17) N/A (N/A) /3/ Columbia Intermediate Bond W - CIBWX 9 of (59) 2.10 (56) 3.71 (52) 4.37 (49) /27/ Incumbent Line-up Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C 19

22 INVESTMENT EVALUATION - PERFORMANCE SUMMARY Annualized Returns 09/30/2015 Fund Score Annualized Returns (Peer Group % Rank) Incept. Date Expenses Multisector Bond Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total PIMCO Diversified Inc Instl - PDIIX 10 of (0.62) (48) 4.11 (40) 6.28 (27) 6.58 (17) /31/ Fidelity Advisor Strategic Income I - FSRIX 9 of (0.66) (49) 3.83 (49) 5.52 (51) 6.23 (28) /3/ PIMCO Diversified Inc Instl - PDIIX 10 of (0.62) (48) 4.11 (40) 6.28 (27) 6.58 (17) /31/ Fidelity Advisor Strategic Income I - FSRIX 9 of (0.66) (49) 3.83 (49) 5.52 (51) 6.23 (28) /3/ Inflation-Protected Bond Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Columbia Inflation Protected Secs Z - CIPZX 5 of 12 (1) (5) (90) (1.44) (67) 2.55 (44) 3.40 (55) /27/ Hartford Inflation Plus R5 - HIPTX 5 of (2.58) (50) (1.78) (84) 2.50 (48) 3.76 (28) /21/ Columbia Inflation Protected Secs Z - CIPZX 5 of 12 (1) (5) (90) (1.44) (67) 2.55 (44) 3.40 (55) /27/ AB Bond Inflation Strategy A LW - ABNAX.LW N/A of (2.74) (N/A) (0.35) (N/A) 2.43 (N/A) N/A (N/A) /27/ Retirement Income Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Fidelity Freedom Income - FFFAX 5 of (19) 4.21 (62) 4.91 (67) 4.12 (51) /17/ Fidelity Advisor Freedom Income I - FIAFX 5 of (25) 4.10 (65) 4.89 (67) 4.20 (48) /24/ Fidelity Freedom Income - FFFAX 5 of (19) 4.21 (62) 4.91 (67) 4.12 (51) /17/ Fidelity Advisor Freedom Income I - FIAFX 5 of (25) 4.10 (65) 4.89 (67) 4.20 (48) /24/ Incumbent Line-up Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C 20

23 INVESTMENT EVALUATION - PERFORMANCE SUMMARY Annualized Returns 09/30/2015 Fund Score Annualized Returns (Peer Group % Rank) Incept. Date Expenses Target Date Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Fidelity Freedom FFFVX 6 of (9) 6.17 (67) 7.07 (67) 4.71 (40) /6/ Vantagepoint Milestone 2010 TM - VQRQX 10 of (29) 7.21 (39) 7.82 (49) 5.25 (22) /1/ Fidelity Advisor Freedom 2010 I - FCIFX 9 of (11) 7.51 (25) 8.33 (34) 5.32 (20) /24/ Vantagepoint Milestone 2010 TM - VQRQX 10 of (29) 7.21 (39) 7.82 (49) 5.25 (22) /1/ Fidelity Advisor Freedom 2005 I - FFIVX 6 of (15) 6.02 (72) 7.02 (69) 4.74 (38) /6/ Fidelity Advisor Freedom 2010 I - FCIFX 9 of (11) 7.51 (25) 8.33 (34) 5.32 (20) /24/ Target Date Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Great-West SecureFoundation LT 2015 G - MXSJX 10 of (3) (5) 9.84 (21) N/A (N/A) /13/ Fidelity Advisor Freedom 2015 I - FFVIX 9 of (9) 7.97 (43) 8.68 (47) 5.58 (22) /6/ Great-West SecureFoundation LT 2015 G - MXSJX 10 of (3) (5) 9.84 (21) N/A (N/A) /13/ Fidelity Advisor Freedom 2015 I - FFVIX 9 of (9) 7.97 (43) 8.68 (47) 5.58 (22) /6/ Target Date Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total MFS Lifetime 2020 I - MFLIX 9 of (49) 8.01 (57) 9.43 (42) N/A (N/A) /29/ Fidelity Advisor Freedom 2020 I - FDIFX 9 of (15) 8.71 (43) 9.56 (40) 5.58 (14) /24/ MFS Lifetime 2020 I - MFLIX 9 of (49) 8.01 (57) 9.43 (42) N/A (N/A) /29/ Fidelity Advisor Freedom 2020 I - FDIFX 9 of (15) 8.71 (43) 9.56 (40) 5.58 (14) /24/ Incumbent Line-up Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C 21

24 INVESTMENT EVALUATION - PERFORMANCE SUMMARY Annualized Returns 09/30/2015 Fund Score Annualized Returns (Peer Group % Rank) Incept. Date Expenses Target Date Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Fidelity Freedom FFTWX 9 of (7) (41) (40) 6.05 (31) /6/ Fidelity Advisor Freedom 2025 I - FITWX 9 of (15) (45) (41) 5.97 (37) /6/ Fidelity Freedom FFTWX 9 of (7) (41) (40) 6.05 (31) /6/ Fidelity Advisor Freedom 2025 I - FITWX 9 of (15) (45) (41) 5.97 (37) /6/ Large Value Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Fundamental Large Cap Value Class 1 - JHFLCV1 11 of (9) (4) (1) 6.88 (28) N/A 10/14/ Mid-Cap Growth Score YTD 1 YR 3 YRS 5 YRS 10 YRS SI Inception Date Net Total Franklin Small-Mid Growth Class 1 - JHFRSGX1 9 of (44) (17) (26) 8.97 (46) N/A 02/14/ Incumbent Line-up Sample Provider A: Product A Sample Provider B: Product B Sample Provider C: Product C 22

25 INVESTMENT EVALUATION - LPL FINANCIAL 12 FACTOR SCORING The Score provided in the Performance Summary section of the report represents the LPL Financial 12 Factor score. Following is detailed data regarding how the fund proposed by the providers scored for each of the 12 factors. Please refer to next page for additional detail regarding the 12 Factor Scoring Methodology. LPL Financial 12 Factor Scoring - Non - Target Date Funds Columbia Inflation Protected Secs Z-CIPZX 5 yr R-Sqrd > 80% Style Consistency 1 yr Return vs. peers 3 yr Return vs. peers 5 yr Return vs. peers 5 yr Up > Down ratio 5 yr Info. ratio > 0 Mgr Tenure Relative Expense Ratio 3 yr Info. ratio > 0 5 yr Beta 3 yr Beta Total Score Invesco Core Plus Bond Y-CPBYX Fidelity Retirement Money Market- FRTXX PIMCO Diversified Inc Instl-PDIIX Fidelity Advisor Strategic Income I- FSRIX Hartford Inflation Plus R5-HIPTX Fundamental Large Cap Value Class 1-JHFLCV1 Franklin Small-Mid Growth Class 1- JHFRSGX JPMorgan Core Bond Select-WOBDX AB Bond Inflation Strategy A LW- ABNAX.LW Columbia Intermediate Bond W- CIBWX

26 INVESTMENT EVALUATION - LPL FINANCIAL 12 FACTOR SCORING LPL Financial 12 Factor Scoring - Target Date Funds 5 yr R-Sqrd > 80% 1 yr Return vs. peers 3 yr Return vs. peers 5 yr Return vs. peers 5 yr Up > Down ratio 5 yr Info. ratio > 0 Mgr Tenure Relative Expense Ratio 5-year Sharpe ratio 3 yr Info. ratio > 0 5 yr Beta 3 yr Beta Total Score Fidelity Freedom Income-FFFAX Fidelity Freedom 2005-FFFVX Fidelity Freedom 2025-FFTWX MFS Lifetime 2020 I-MFLIX Great-West SecureFoundation LT 2015 G-MXSJX Vantagepoint Milestone 2010 TM- VQRQX Fidelity Advisor Freedom 2010 I- FCIFX Fidelity Advisor Freedom 2020 I- FDIFX Fidelity Advisor Freedom 2015 I- FFVIX Fidelity Advisor Freedom Income I- FIAFX Fidelity Advisor Freedom 2025 I- FITWX Fidelity Advisor Freedom 2005 I- FFIVX

27 INVESTMENT EVALUATION - FUND DISCLOSURES The fund data provided below should be reviewed in conjunction with the performance data presented in the Investment Evaluation section of this report. Morningstar determines rank and peer values relative to each fund s Morningstar Category and Fund Type. Data as of 09/30/2015 Fund Peer Group Size Expenses Intermediate-Term Bond 1 YR 3 YRS 5 YRS 10 YRS Gross Net Invesco Core Plus Bond Y - CPBYX 1,088 1, Contractual waiver: 0.17 for ExpenseRatio expires on 12/31/2015; Disclosure: Invesco Advisers, Inc. (Invesco or the Adviser) has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement (excluding certain items discussed in the SAI) of Class Y shares to 0.61% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on December 31, JPMorgan Core Bond Select - WOBDX 1,088 1, Contractual waiver: 0.14 for ExpenseRatio expires on 12/1/2015; Disclosure: The Fund's adviser, administrator and distributor (the Service Providers) have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding Acquired Fund Fees and Expenses, dividend expenses relating to short sales, interest, taxes, expenses related to litigation and potential litigation, extraordinary expenses and expenses related to the Board of Trustees' deferred compensation plan) exceed 0.58% of the average daily net assets of Select Class Shares. This contract cannot be terminated prior to 12/1/15 at which time the Service Providers will determine whether or not to renew or revise it. Columbia Intermediate Bond W - CIBWX 1,088 1, Contractual waiver: 0.06 for ExpenseRatio; Disclosure: Under the agreement, the following fees and expenses are excluded from the Fund's operating expenses when calculating the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investment in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, extraordinary expenses and any other expenses the exclusion of which is specifically approved by the Board. This agreement may be modified or amended only with approval from all parties. Multisector Bond 1 YR 3 YRS 5 YRS 10 YRS Gross Net PIMCO Diversified Inc Instl - PDIIX Fidelity Advisor Strategic Income I - FSRIX

28 INVESTMENT EVALUATION - FUND DISCLOSURES Data as of 09/30/2015 Fund Peer Group Size Expenses Inflation-Protected Bond 1 YR 3 YRS 5 YRS 10 YRS Gross Net Columbia Inflation Protected Secs Z - CIPZX Contractual waiver: 0.29 for ExpenseRatio expires on 11/30/2015; Disclosure: Columbia Management Investment Advisers, LLC and certain of its affiliates have contractually agreed to waive fees and/or to reimburse expenses (excluding transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and extraordinary expenses) until November 30, 2015, unless sooner terminated at the sole discretion of the Fund's Board of Trustees. Under this agreement, the Fund's net operating expenses, subject to applicable exclusions, will not exceed the annual rates of 0.60% for Class Z. Hartford Inflation Plus R5 - HIPTX Contractual waiver: 0.04 for ExpenseRatio expires on 2/29/2016; Disclosure: Hartford Funds Management Company, LLC (the "Investment Manager") has contractually agreed to reimburse expenses (exclusive of taxes, interest expenses, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent necessary to maintain total annual fund operating expenses as follows: 0.60% (Class R5). In addition, Hartford Administrative Services Company ("HASCO"), the Fund's transfer agent, has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of the average daily net assets per fiscal year for all classes. Each contractual arrangement will remain in effect until February 29, 2016, and shall renew automatically for one-year terms thereafter unless the Investment Manager or HASCO, respectively, provides written notice of termination prior to the start of the next term or upon approval of the Board of Directors of The Hartford Mutual Funds, Inc. AB Bond Inflation Strategy A LW - ABNAX.LW Retirement Income 1 YR 3 YRS 5 YRS 10 YRS Gross Net Fidelity Freedom Income - FFFAX Fidelity Advisor Freedom Income I - FIAFX Target Date YR 3 YRS 5 YRS 10 YRS Gross Net Fidelity Freedom FFFVX Vantagepoint Milestone 2010 TM - VQRQX Fidelity Advisor Freedom 2010 I - FCIFX Fidelity Advisor Freedom 2005 I - FFIVX

29 INVESTMENT EVALUATION - FUND DISCLOSURES Data as of 09/30/2015 Fund Peer Group Size Expenses Target Date YR 3 YRS 5 YRS 10 YRS Gross Net Great-West SecureFoundation LT 2015 G - MXSJX Contractual waiver: 0.02 for ManagementFee expires on 4/30/2016; Disclosure: GWCM has contractually agreed to reduce its management fee in an amount at least equal to any compensation (including Rule 12b-1 fees) received from registered open-end management investment companies that are not part of the same "group of investment companies" as the Fund ("Unaffiliated Fund(s)") by GWCM, or an affiliated person of GWCM, in connection with investment by the Fund in the Unaffiliated Fund. The agreement's current term ends on April 30, Fidelity Advisor Freedom 2015 I - FFVIX Target Date YR 3 YRS 5 YRS 10 YRS Gross Net MFS Lifetime 2020 I - MFLIX Contractual waiver: 0.17 for OtherFee expires on 8/31/2015; Disclosure: Massachusetts Financial Services Company has agreed in writing to bear the fund's expenses, excluding management fees, distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs, investment-related expenses, and fees and expenses associated with investments in investment companies and other similar investment vehicles, such that "Other Expenses" do not exceed 0% of the fund's average daily net assets annually for each class of shares. This agreement will continue until at least August 31, 2015, after which Massachusetts Financial Services Company may increase such expense limitation to 0.10% of the fund's average daily net assets annually for each class of shares without a vote of the fund's Board of Trustees. Fidelity Advisor Freedom 2020 I - FDIFX Target Date YR 3 YRS 5 YRS 10 YRS Gross Net Fidelity Freedom FFTWX Fidelity Advisor Freedom 2025 I - FITWX Large Value 1 YR 3 YRS 5 YRS 10 YRS Gross Net Fundamental Large Cap Value Class 1 - JHFLCV1 1,754 1,737 1,730 1,635 N/A

30 INVESTMENT EVALUATION - FUND DISCLOSURES Data as of 09/30/2015 Fund Peer Group Size Expenses Mid-Cap Growth 1 YR 3 YRS 5 YRS 10 YRS Gross Net Franklin Small-Mid Growth Class 1 - JHFRSGX1 1,064 1,058 1, N/A

31 INVESTMENT EVALUATION - PLAN FEES AND PRICING DISCLOSURE Type of Plan Fee Setup Recordkeeping and Administration Investment Management Credits Revenue share paid to recordkeeper Retained by Investment Manager Total Ongoing Plan Fees Asset Generated Fees Greater than Plan Fees/Plan Fees Greater than Asset Generated Fees Description These are one-time costs to set up your plan. Charges that include participant recordkeeping, compliance, custody and plan audit expenses. Third Party Administrator (TPA) cost is also included. Fees associated with managing the investments in a particular fund. Portion of Investment Management fees paid from the investment manager to the recordkeeper. The Investment Management fees retained by the investment manager after paying revenue share to the recordkeeper. This may be used to pay third parties such as financial advisors. Credits include other applicable plan fees and/or offsets to plan costs. Total Ongoing Plan Fees represent the sum of Recordkeeping and Administration fees, Investment Management fees, and any other applicable plan fees or offsets to plan fees. It excludes Setup fees and Participant Transaction fees. Revenue share less Recordkeeping and Administration fees may result in potential excess revenue or shortfall. Excess revenue may be used by the recordkeeper to offset other plan costs including payments to financial advisors. Plan fees may be paid by plan sponsors or out of plan assets. If covered by plan assets, these fees can be paid by a percentage of assets (e.g. 0.50%) or allocated equally to each participant account. The table above shows the plan cost components identified in this report. Payments to financial advisors may not be specifically reflected in this report. In some cases, plan fees may be offset through revenue sharing payments that are collected from investment management firms. Plan fee and pricing information is completed by the service provider as a general pricing proposal and is not guaranteed. Data is for comparative purposes only and may not be relied upon to satisfy any regulatory fee disclosure requirements. A detailed pricing proposal and investment sample menu from each service provider must accompany this report and should be reviewed carefully prior to making a final provider selection. Actual service provider and advisor/consultant fees will be subject to individual contractual terms. FUND LINE-UP DISCLOSURES Total Revenue Share - if your advisor is broker of record on this plan, he/she may be receiving a portion of the total revenue share. Additional Asset Fees - represents asset based fees added to Investment Expense and Total Revenue Share and charged against plan assets. 29

32 INVESTMENT EVALUATION - LPL 12 FACTOR SCORING METHODS LPL Financial Retirement Partners proprietary Scoring System is based on an evaluation of 12 different factors. Each factor is assessed using a Pass/Fail system: a favorable characteristic receives a passing score of 1, while an unfavorable characteristic receives a failing score of zero. There are four areas that are scored: Investment Style: Performance: Risk/Risk-adjusted Returns: Qualitative Factors: 2 Points 4 Points 4 Points 2 Points The Total Score is the sum of the individual scores. The individual component scores are equally weighted. The best possible score is 12 points. The Total Score can be used to help evaluate an investment, as per the following guidelines: SCORE Suitable ( Blue Ribbon status) 7-9 Acceptable 6 or fewer Watch List The Total Score is designed to help evaluate an investment, but it should not be sole source of information used to select and monitor an investment. Scores are updated quarterly, using the last five years of data. Please read the Important Disclosures page at the end of this report. 30

33 INVESTMENT EVALUATION - LPL 12 FACTOR SCORING METHODS Style-Related Factors (16.7% of total score) Style Consistency* < 29 When selecting an investment, you want to know that it has provided a relatively true exposure to the category in which it falls A style consistency score of less than 29 implies that the divergence of an investment portfolio from its stated investment style or objective as measured by the drift from the Morningstar category is minimal R-Sqrd 80% When selecting an investment, you want to know how correlated the investment s returns are with its benchmark index This value of R2 implies that the investment s return moves in the same direction as the index 80% or more of the time Return-Based Factors (33.3% of total score) 1-, 3-, and 5-year return > peer group median When selecting an investment, you want to know that it has demonstrated an ability to outperform relative to its peers A total return greater than the peer group median implies that the investment has outperformed more than half of other investments in its same category The investment can potentially receive 1 point for each time period: 1-, 3-, and 5-years Up capture/down capture > 1 When selecting an investment, you want to know that it captures more than 100% of market returns in up markets and helps cushion the loss in down markets by capturing less than 100% of the fall A ratio of greater than 1 implies that the investment captures more when the market is up than when it is down Risk-Based Factors (33.3% of total score) 3- and 5-year Information Ratio > 0 When selecting an investment, you want to know how its returns compare to the index and to the amount of risk it took to generate those returns An Information Ratio greater than 0 implies that the investment outperformed its benchmark index 0.75 < 3- and 5-year Beta < 1.15 When selecting an investment, you want to know how much risk the manager takes on relative to their benchmark index. You want managers to take some risk as you need to take some risk to generate decent returns but, not so much risk that it is egregious. A Beta of 1 means that the manager is taking on the same level of risk as the benchmark index A Beta between 0.75 and 1.15 implies that the manager is taking on risk that is between 75% and 115% of the benchmark index Qualitative Factors (16.7% of total score) Gross expense ratio <= category average When selecting an investment, you want to know how much it costs as total fees reduce the total return captured by the investor An expense ratio less than the category average implies that the fund charges no more than the average of all others that fall into the same category Longest manager tenure > category average When selecting an investment, you want to know that the track record being reviewed is primarily one from the current management team A tenure greater than the category average implies that the manager has been on the investment team for a relatively long period of time 31

34 INVESTMENT EVALUATION - LPL 12 FACTOR SCORING METHODS Beta - A measure of volatility, or systematic risk, of a security or a portfolio comparison to the market as a whole. A Beta of 1.00 means that a portfolio s risk is at parity with the market benchmark associated with that portfolio. A Beta less than 1.00 means that a portfolio is less volatile than the market, a Beta over 1.00 means a portfolio is more volatile/risky than the market. A Beta range of will earn a point within the scoring system. Information Ratio - A measure of risk-adjusted return that is more commonly used by institutional clients than Sharpe Ratio. The higher the Information Ratio, the better the investment s risk-adjusted return. Information Ratio ( IR ) is defined as the annualized excess return divided by the tracking error. Investments with a positive IR receive a favorable score on the scorecard. R-Squared - A statistic that measures how well the investment tracks the benchmark index. For example, an R-Squared statistic of 90% indicates that 90% of the movement in the investment can be explained by the movement in the underlying benchmark index. The scorecard compares the investment s R-Squared to 80%. Sharpe Ratio - (Used for Target Date funds only) A measure of risk-adjusted return. Sharpe Ratio uses Standard Deviation as the risk statistic. Standard Deviation - A measure of the dispersion of a set of performance data from its mean. The greater the range of returns, the higher the standard deviation. Standard deviation is calculated to measure the volatility of a fund s returns which is an indicator of a fund s performance consistency and is also used as a measurement of a portfolio s risk. Style Consistency statistic calculated within Morningstar Direct, Style Consistency measures the change of a portfolio s weighting in each underlying asset class over a period of five years broken up into 36-month rolling windows. The Style Consistency statistic measures the variability of a portfolio s style through time. For instance, a Style Drift of 0 demonstrates quarterly rebalancing of a fund s underlying holdings to their original target weightings. A Style Drift statistic of indicates moderate variability in a fund s underlying securities weightings. A Style Drift value less than 29 will earn a point on the scorecard. Up Capture, Down Capture - The Up Capture reflects how the investment has historically performed relative to the benchmark index in an Up market. For example, an investment with an Up Capture of 110 has returned 110% of the benchmark index return in Up market cycles. Similarly, the Down Capture statistic measures the investments historical relative performance in Down markets. The scorecard measures Up Capture relative to Down Capture, giving a favorable score if Up Capture is greater than Down Capture. 32

35 PROVIDER RESPONSE SUMMARY Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Number of years provider has provided defined contribution retirement plan services? Number of years provider has been providing daily valuation record keeping services? Participate currently in any alliances or joint marketing efforts (describe)? No Deliver services through any parent or subsidiary relationships (describe)? Number of total participants in the plans provider administers? 1,414,638 4,799, ,398 Amount of total 401(k) assets you record keep (enter as millions)? 12, ,089 43,140 33

36 PROVIDER RESPONSE SUMMARY Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Accept and input beneficiary information from the prior recordkeeper at conversion? No Process on-line loan requests with spousal consent? Generate and send Enrollment Kits to newly eligible participants? Automatically track eligibility? Support contribution auto escalate on a plan level? Provide auto enrollment notices? Post compliance documents online? Offer plan sponsor materials in languages other than English? 34

37 PROVIDER RESPONSE SUMMARY Sample Provider A Product A Sample Provider B Product B Sample Provider C Product C Support record keeping, if required, of a put on the Stable Value Fund? No Prepared to comply with fee disclosure regulations? Administer a Plan Expense Reimbursement Account (PERA) (Describe in detail)? Willing to put a portion of record keeping fees at risk if performance standards are not met (describe in detail)? No 35

38 PROVIDER RESPONSE Each Provider was asked to answer a set of questions related to the services they would provide for this specific plan. These questions were assembled based on the specific needs of the plan sponsor. Answers are supplied by the Provider(s). Please propose your relationship manager for this client. Provide background, experience, and number of clients he/she is currently assigned to. SAMPLE PROVIDER A: PRODUCT A: Our customer relationship manager, Ms Logan, is a resident of your headquarters city and is in town a minimum of every every Friday, Saturday and Sunday. Ms Logan has been with our company for over 7 years, has been in a customer management role for 10 years, and has been in the retirement industry for over 12 years SAMPLE PROVIDER B: PRODUCT B: Our relationship manager will be one of our 3 most experienced people in this position company-wide. They will currently be assigned to between 15 and 20 clients total, including this plan sponsor. This person will have at least 5 years of experience in this role. SAMPLE PROVIDER C: PRODUCT C: Our customer relationship manager, Ms Smith, has over 8 years in the retirement industry, including 2 as one of our top customer relationship managers.she currently is responsible for 14 clients, including 8 in your headquarters city. Therefore, Ms Smith will be spending time in your city frequently, allowing flexibility in working with your schedule Describe your firm's future plans for expanding available investment options (within the next 3 years). SAMPLE PROVIDER A: PRODUCT A: Over the next year we plan to offer at least one non-proprietary age based asset allocation fund offering. In addition, we will support advisor created custom target date portfolios. SAMPLE PROVIDER B: PRODUCT B: 36

39 PROVIDER RESPONSE Each Provider was asked to answer a set of questions related to the services they would provide for this specific plan. These questions were assembled based on the specific needs of the plan sponsor. Answers are supplied by the Provider(s). We are already open architecture and offer the choice of nearly all funds, including many options for Age based target date funds. SAMPLE PROVIDER C: PRODUCT C: We already offer 15 fund families in our primary product. We have started to offer some key CIT investment products and will be expanding these offerings significantly over the next 24 months. Describe the breadth of services you provide around the production and delivery of participant materials. SAMPLE PROVIDER A: PRODUCT A: We can prepare and distribute all participant communications with no effort on the part of the plan sponsor. SAMPLE PROVIDER B: PRODUCT B: We prepare materials and can deliver them to participants via . SAMPLE PROVIDER C: PRODUCT C: We rely on the plan sponsor to deliver any materials if delivery is by mail or physical, in-workplace delivery. We handle any electronic delivery, including . 37

40 PROVIDER RESPONSE Each Provider was asked to answer a set of questions related to the services they would provide for this specific plan. These questions were assembled based on the specific needs of the plan sponsor. Answers are supplied by the Provider(s). Number of years provider has provided defined contribution retirement plan services? SAMPLE PROVIDER A: PRODUCT A: 63 SAMPLE PROVIDER B: PRODUCT B: 73 Great-West Financial has been providing investment management services and administering non-profit, public, and corporate defined contribution plans since the 1940s. SAMPLE PROVIDER C: PRODUCT C: 33 Number of years provider has been providing daily valuation record keeping services? SAMPLE PROVIDER A: PRODUCT A: 45 SAMPLE PROVIDER B: PRODUCT B: 29 Great-West Financial has been providing daily valuation since SAMPLE PROVIDER C: PRODUCT C: 38

41 PROVIDER RESPONSE Each Provider was asked to answer a set of questions related to the services they would provide for this specific plan. These questions were assembled based on the specific needs of the plan sponsor. Answers are supplied by the Provider(s). 28 Participate currently in any alliances or joint marketing efforts (describe)? SAMPLE PROVIDER A: PRODUCT A: Lincoln partners with Morningstar Associates, LLC (an independent third party) to provide Morningstar Retirement ManagerSM, an online solution that offers investment education, research and guidance with optional managed account services. Lincoln also partners with Ibbotson Associates, a leading authority on asset allocation, for constructing LifeSpan asset allocation portfolios. SAMPLE PROVIDER B: PRODUCT B: No We do not participate in any alliances or joint marketing efforts with other providers. However, our partnerships with some of the nation s leading mutual fund companies have allowed us to offer name-brand investments to our clients while reducing costs for participants. As a major retirement services provider, Great-West Financial has negotiated favorable arrangements with many key investment firms. As a result, our clients can offer their employees a wide range of cost-effective investments combined with the ease of dealing with a single entity. SAMPLE PROVIDER C: PRODUCT C: Deliver services through any parent or subsidiary relationships (describe)? 39