How We Work with Morningstar Investment Management LLC 2016 Morningstar Investment Management LLC. All rights reserved. These materials are for information and/or illustration purposes only. Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. The Morningstar name and logo are registered marks of Morningstar, Inc. This presentation includes proprietary materials of Morningstar Investment Management LLC. Reproduction, transcription or other use, by any means, in whole or in part, without the prior, written consent of Morningstar Investment Management LLC is prohibited.
Morningstar, Inc. A Trusted Name Established, recognized, and highly regarded among individual investors, financial advisors, and financial services institutions. g Morningstar, Inc. stands for: /Investor focused /Independent /Innovative /Comprehensive /Investment Expertise 2
Morningstar, Inc. Who is Morningstar, Inc. g Fundamental, bottom-up approach to investment research g Approximately 300 researchers and investment analysts g Data on approximately 525,000 investment offerings g 5,500 equity and manager research reports g Real time global market data on over 18 million other investments* g Innovative, proprietary research tools g Early adopter of new technology g Technology has enabled evolution from data to analysis to advice Data as of 3/31/16. Source: Morningstar Latest Stats, April 2016. *Global market data includes equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. 3
Morningstar, Inc. Our Value Supporting individual investors to make better investment decisions based on timely data and tested investment practices like diversification and understanding/ measuring risks g Strive to make complex financial data accessible and easy to use g Enhancing retirement income capabilities g Access to leading Investment managers g Conduct interviews, gain insights and offer opinions of the markets g Forward thinking and industry leading research from Morningstar Investment Management LLC 4
Morningstar, Inc. Fundamental Strengths Morningstar, Inc. strengths form the foundation for Amerivest to have the tools to meet their business challenges which help clients pursue their investment goals Amerivest Supplemental Income Portfolios Amerivest Opportunistic Portfolios Amerivest Core Portfolios Amerivest Managed Risk Portfolio 5
Strategic Relationship The Morningstar Investment Management group includes Morningstar Investment Management LLC and Morningstar Investment Services LLC, both U.S. registered investment advisers and subsidiaries of Morningstar, Inc. Globally, other affiliates or subsidiaries of Morningstar, Inc. can provide consulting or investment advisory services in Europe, Africa, Asia, and Australia. All investment advisory services described herein are provided by one or more of the U.S. registered investment advisor subsidiaries. 6
How Morningstar Investment Management LLC Works with Amerivest Investment Management, LLC g Recommend asset allocation models with Amerivest oversight g Review and recommend mutual funds and exchange-traded funds to be used in the portfolios and determine their portfolio weightings g Provide ongoing research and monitoring of the funds g Provide rebalance recommendations to the Amerivest team g Provide economic commentary and outlook g Guest on quarterly client facing webcasts providing market insight and portfolio updates 7
Morningstar Investment Management LLC Manager Research and Portfolio Analysis Manager Research g Quarterly reviews g Maintain relationships g Investment oversight Managers Portfolios Portfolio Analysis g Proprietary tools g Executing on analysis g Wrapping it all together for clients 8
Amerivest Solution Suite Morningstar Investment Management s Presence is Felt in Every Amerivest Portfolio Supplemental Income Portfolios g Conservative g Moderate Core Mutual Fund and ETF Portfolios g Conservative g Moderate g Moderate Growth g Growth g Aggressive Opportunistic Portfolios g Moderate Growth g Aggressive For illustrative purposes only. Not to be used to assess the exact risk/return relationship between portfolios. No guarantees can be given about future performance 9
Disclosures g Before investing in an Amerivest portfolio, be sure to carefully consider the underlying funds objectives, risks, charges, and expenses. g For a prospectus containing this and other important information about each fund, contact an Amerivest Specialist at 888-310-7921. Please read the prospectus carefully before investing. g All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing. Asset allocation and diversification do not eliminate the risk of experiencing investment losses. g Mutual funds are subject to market, exchange rate, political, credit, interest rate and prepayment risks, which vary depending on the type of mutual fund. g ETFs can entail risks similar to direct stock ownership, including market, sector, or industry risks. Some ETFs may involve international risk, currency risk, commodity risk, and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities. 10
Disclosures g Amerivest Portfolios is an investment advisory service of Amerivest Investment Management, LLC ( Amerivest ), a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc., member H FINRA "http://www.finra.org/, SIPC "http://www.sipc.org/. Amerivest Investment Management, LLC and TD Ameritrade, Inc. are both wholly owned subsidiaries of TD Ameritrade Holding Corporation. Amerivest is a trademark of TD Ameritrade IP Company, Inc. Amerivest provides nondiscretionary and discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information, please see the Amerivest Disclosure Brochure (ADV Part 2) http://www.tdameritrade.com/forms/tda4855.pdf. g Morningstar Investment Management LLC ( Morningstar Investment Management ) is a registered investment adviser and subsidiary of Morningstar, Inc. Morningstar Investment Management provides consulting services to Amerivest Investment Management, LLC ( Amerivest ) but is not acting in the capacity of advisor to individual investors. Morningstar Investment Management provides recommendations to Amerivest regarding asset allocation targets and selection of securities appropriate for the Amerivest Portfolios; however, Amerivest retains the discretion to accept, modify or reject Morningstar Investment Managements recommendations. Morningstar Investment Management selects securities for the Amerivest portfolios from the universe of investments made available through TD Ameritrade. Asset Allocation target allocations are subject to change without notice. Morningstar Investment Management establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Investment Management LLC is not affiliated with Amerivest or TD Ameritrade. 11