The Main Line Group at Morgan Stanley. Focused on Retirement for Organizations and Individuals

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1 The Main Line Group at Morgan Stanley Focused on Retirement for Organizations and Individuals

2 Two Town Place Suite 100, Bryn Mawr, PA / Main / toll-free / fax

3 Is your retirement plan consistent with your organization s goals? Are your employees properly prepared for retirement? Are they using the plan to its fullest? Do you have adequate benchmarking in place? Is your service attentive and proactive? A surprising number of plan sponsors answer no to at least one of these questions. Even more troubling, many aren t really even sure of the answers. Industry-wide, many plans are not well managed. Here s one example: According to the Profit Sharing/401(k) Council of America s 56th Annual Survey, % of plans offer more than 10 investment options; nearly two-thirds offer more than 15. This may help explain disappointing participation rates research shows that, as a retirement plans investment choices go up, individual participation is likely to go down. 2 Perhaps that helps explain low participation rates: One study showed that, of employees who attended an educational meeting and stated that they intended to enroll, only 14% actually did so. 3 The Main Line Group at Morgan Stanley focuses on retirement. We provide highly credentialed, customized investment consulting advice to a small number of select clients. Backed by Morgan Stanley, we command an extensive range of resources, expertise and strategies. In addition to our extensive experience with institutions, we also work with individuals. This dual perspective helps our clients plan more effectively. 1 Profit Sharing/401(k) Council of America, 56th Annual Survey of Profit Sharing and 401(k) Plans, October Iyengar, Jiang, Huberman, Choi, Laibson, Mandrian, and Mettrick, The Main Line Group 3

4 Meet the Professionals Left to right: David Betman, Fran Fleming, Mitchell Welsch

5 Mitchell A. Welsch, CFP, CIMA, CRPS Vice President Corporate Retirement Director Financial Advisor David J. Betman Wealth Management Associate Fran Fleming Senior Registered Associate Mitch concentrates on retirement planning. He is both a Financial Advisor working with individuals, and a Corporate Retirement Director one of fewer than 2% of all Morgan Stanley advisors; these professionals concentrate on consulting with companies on their retirement plans. Before joining Morgan Stanley, Mitch was a vice president with UBS Financial Services, part of their Prime Brokerage area that specialized in advising retirement plans. He has more than 20 years experience as a financial professional, with a focus on retirement planning. Mitch earned his B.S. degree in accounting and finance from Roger Williams College, where he graduated magna cum laude. He has also earned his Certified Financial Planner, Certified Investment Management Analyst and Chartered Retirement Plans Specialist accreditations. Mitch serves on the board of the American Society of Pension Professionals & Actuaries of Greater Philadelphia. He, his wife and two children live in Lower Gwynedd. Mitch enjoys skiing and amateur photography. mitchell.welsch@morganstanley.com Dave assists clients and the team with planning, investing and financial decision making. He has been with the team since Before joining us, Dave was a financial advisor at UBS Financial Services, working with clients in all phases of financial management. Dave earned a B.S. degree in finance from the University of Maryland. He also earned his Accredited Asset Management Specialist accreditation. He lives in Churchville with his wife and two sons. He enjoys spending time with his family, and playing softball and golf. david.betman@morganstanley.com Fran handles all operational duties at The Main Line Group: executing transactions, establishing accounts and processing transfers of money, answering the phones and addressing questions regarding client accounts. She has more than 20 years experience in the financial services industry. Prior to joining us in 2010, she began her career at Prudential Bache Securities. Fran lives in Washington Township, N.J., and enjoys spending time with her family, friends, and especially her granddaughter, Olivia. frances.r.fleming@morganstanley.com The Main Line Group 5

6 2. Design 3. Implement 1. Needs Analysis Our Process: A Step-by-Step Approach 4. Monitor 6. Employee Education 5. Review

7 1 Needs Analysis To build an effective retirement plan, you must identify and articulate what you want your plan to accomplish. This step is often overlooked, leading to disappointing results. At The Main Line Group, we perform an in-depth needs analysis around issues like these: What are your goals for the plan? How do you measure the success of your plan? Have you updated or reviewed your investment policy statement? Is your Participant Education Strategy effective? Have you incorporated behavioral finance concepts into your plan? What percentage of your workforce can retire at 65 with at least 75% income replacement? The answers to these questions, and others, form the basis for your plan. 2 Design of Infrastructure Once we know your objectives, we will guide you through a process to design a plan that meets your needs and goals. We will: Make a detailed analysis of your investment policy statement and/or create a new one Set criteria for selecting asset classes and investment styles Establish benchmarks for fund evaluation Implement selection procedures Articulate a process for removing funds Create an education policy statement Conduct a provider search Optimize plan design based on behavioral finance studies and established participant patterns 3 Implementation To put your new plan in place, we perform an asset class analysis, drawing on the insights of Morgan Stanley s Global Investment Committee. We use both Investment Advisor research and our own proprietary screening to select appropriate funds. Additionally, we make recommendations for automatic enrollment, default rate increases, and automatic escalation adjustments to match the general plan design. Finally, we monitor and coordinate with the vendors to simplify plan conversion and improve the client s experience. Our open architecture platform allows us to make unbiased recommendations that work for you. Before we recommend any fund, we evaluate it based on many criteria: past performance, of course, but also investment philosophy, portfolio construction process, management team, business operations, research capabilities and many others. A rigorous, comprehensive process enhances the chances for investment success. 4 Monitor/Performance Measurement At least once per quarter, we review the elements of your plan. For investments, we look at detailed performance data, which may include expenses and fees, and measure them against a proprietary scorecard we create from your investment policy statement. If necessary, we offer replacements, or place funds on a watch list. We also look at participation and deferral rates, evaluate participant asset allocation, and assess employee retirement readiness. 5 Plan Review In addition to the quarterly monitoring, we review your plan annually in greater depth. We consider and propose updates to your investment and education policy statements. We deliver a fiduciary benchmark report. We provide legislative updates, ongoing capital markets analysis, fiduciary training, and we update your fiduciary audit file. 6 Employee Education Employee education is crucial to the success of your plan. Each employee education plan we create is unique, but they share a common process we move your employees through these steps: enroll, plan, save, invest and enjoy. Our plans teach employees about the issues of retirement, and then motivate them to take control of their finances. We demonstrate appropriate strategies, offer asset allocation models, and empower people to define their own goals and optimize the resources available to them.

8 The Main Line Group Offers a Full Range of Services Investment Oversight Assist in Creating an Investment Policy Statement Analyze Asset Style Select and Monitor Funds and ETFs Create Performance Reports Create Custom Asset Allocation Models Perform Target Date Analysis Provide Stable Value Research Plan Design Analyze Plan Health and Employee Retirement Readiness Maximize the Effectiveness of Company Contributions Generate Provider Searches and Evaluations Monitor Industry Trends Review and Implement Sponsor Best Practices Provide Ongoing Design Review Participant Education Craft an Education Policy Statement Formulate Participant Communication Strategy Coordinate or Conduct Enrollment Meetings Provide On-Site Education, Including Seminars and One-on-One Meetings Conduct Financial Planning Webinars Offer Off-Site or Phone Consultations Create Individual Financial Plans Assess Education Strategy Risk Management Provide Fiduciary Training Provide Plan Benchmarking Evaluations Provide Guidance on Maintaining Complete Audit Files Offer Corporate Governance Suggestions Provide Legislative Updates Conduct Fee Negotiation with Existing Providers 8 Morgan Stanley

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10 The Power of Morgan Stanley Morgan Stanley is one of the largest, most experienced, most respected financial services firms in the world. We work with some of the most sophisticated institutional clients, providing consultation on retirement plans to institutions and individuals. As our client, you will benefit from the market insight, global presence, risk management resources and analytical rigor that are hallmarks of our team. Founded in 1935 $1.9 Trillion in Client Assets $472 Billion in Retirement Assets Custodian to 490,000 Retirement Plans Services 23,000+ Bundled Defined Contribution Plans Local Team of Professionals Dedicated to Your Success Note: all statistics as of 3/31/ Morgan Stanley

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12 The investments listed may not be suitable for all investors. Morgan Stanley LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor s individual circumstances and objectives. Tax laws are complex and subject to change. Morgan Stanley LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise agreed to in writing by Morgan Stanley. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. Investments and services offered through Morgan Stanley LLC, member SIPC Morgan Stanley Smith Barney LLC. Member SIPC. CA Insurance Lice #OD37555 CRC CS /14