Distribution Services INTERMEDIARY SALES SUPPORT—DCIO
Distribution Services INTERMEDIARY SALES SUPPORT--DCIO
fi
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Intermediary Sales Desk: 800.371.4613
Head of Distribution Services
Mark Cover
Office: 410.345.4956 Cell: 443.902.2849 Mark_Cover@
Regional Sales Consultant Territory
Contact Info
Brad Vaughan
WA, MT, OR, ID, Cell:206.258.0367 WY, N. CA, UT, CO Brad_Vaughan@
Manager, Intermediary Sales Consultants
Mike
Office: 410.345.3574
McKenna, Cell: 443.928.7140
CFP?
Michael_McKenna@
Intermediary Sales Consultants
Brooks Fisher, QPFC
Direct:719.278.6598 Brooks_Fisher@ Partnered with:
Michele Giangrande
S. CA, NV, AZ, NM
Cell:949.514.5494 Michele_Giangrande@
Lauren Lawson
Direct:410.345.2593 Lauren_Lawson@ Partnered with:
Eric Milano, QPFC
ND, SD, MN, NE, Cell:401.741.9221
IA, WI, IL
Eric_Milano@
Tim White
Direct:410.577.8153 Tim_White@ Partnered with:
Keith Blackmon
Seth Gusman
KS, MO, AR, OK, Cell:832.372.2027
TX, LA
Keith_Blackmon@
TN, MS, AL, GA, Cell:410.404.1110
SC, NC, FL
Seth_Gusman@
Jason Butler*
Direct:410.345.2264 Jason_Butler@ Partnered with:
Mike Krawczyk, CIMA?
MI, IN, OH, KY
Cell:410.409.9684 Michael_Krawczyk@
Jonathan Wilkinson
NJ, S. NY
Cell:908.200.9960 Jonathan_Wilkinson@
Chris Augelli
Alan Valenca, CFP?, CIMA?
WV, VA, MD, DC, Cell:410.458.7137
PA, DE
Chris_Augelli@
N. NY, CT, RI, MA, Cell:978.404.2114
NH, VT, ME
Alan_Valenca@
Direct:410.577.8085 David Norris David_Norris@
Partnered with:
Andrew Beliveau
Direct:410.577.8083 Andrew_Beliveau@ Partnered with:
Brendan Asaff*, CIMA?
Direct:410.345.4972 Brendan_Asaff@ Partnered with:
*Senior Intermediary Sales Consultant
T. ROWE PRICE VALUE-ADD RESOURCES
Next Generation Thinking
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
Target Date Resources
Resources to help position, differentiate, and educate clients on the target date space. Materials include: Thought leadership Product information Participant education
fi360 Fiduciary Score?
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
Next generation thinking.
LET GAMIFICATION ENERGIZE PARTICIPANT ENGAGEMENT.
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.
Next generation thinking. TAP THE POWER OF PEER RECOMMENDATION TO MOTIVATE PARTICIPANTS.
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.
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"]
Consumer brands like
NIKE+ AND FITBIT USED GAMIFIED PRODUCTS TO DRIVE OVER 5 MILLION PLAYERS
to beat their personal fitness goals every day of the year.*
[Gabe Zicherman, author of "The Gamification Revolution" *Nike and FitBit are not affiliated with T. Rowe Price.]
OVER 70% OF ORGANIZATIONS
had at least one "gamified" application in 2014.
[Gartner Group]
"92%of consumers around the world
Next generation thinking.
say they trust earned media, such as word of mouth and
UNINTENDED CONSEQUENCES CAN RESULT recommendations from friends and family, above all
FROM JOB-JUMPING MILLENNIALS.
" 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
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
4.4 years
from a trusted source. -- McKinsey Quarterly, April 2010
for a generation that changes jobs every few years? Young emploYees face greatest
Average tenure of American jobs today* *Bureau of Labor Statistics
Peer influence is gaining momentum The 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:
impact of low default rates
Thanks 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.
91% Millennials who expect to stay in
68% a job for less than three years.
Ages 18-24 Ages 25-34
32.6%
33.7%
Auto-enrollment defAult % Auto-increAse % Auto-increAse cAP %
6%
2%
12%
3
1
12
3
1
12
3
1
6
# of job cHAnges 0 0 3 6
% of goAl met "Friends" influence buying
At Age 65 Nearly 68% of Facebook users say a
105% 94
Facebook friend's recommendation would make them more likely to buy a product or visit a retailer.1
74
45
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.
Gen Y/Millennials lead brand advocacy trend
Research finds that a third of those age 18 to 34 are making proactive recommendations.2
Look at your own experience
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.
emploYers also face negative impacts Over 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.
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.
Past performance cannot guarantee future results. Results will vary for other periods. *As of 6/30/2015.
What sets T. Rowe Price Retirement Funds apart
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.
The numbers and the industry accolades speak for themselves
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 PRICE of the T. Rowe Price Retirement Funds ranked in the PERSPECTIVE first or second quartile of their Lipper peer group.* April 2015
In-depth analysis and insights to inform your decision making.
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.
Richard K. Fullmer, CFA
MORNINGSTAR ANALYST RATINGTM for the Retirement Funds as of 12/31/2014 .1
"RECOMMENDED FUNDS" T. Rowe Price: One of only two target date mutual fund families to be included in the Money 50.2
100% OF OUR RETIREMENT FUNDS beat their 10-year Lipper average as of 6/30/2015.3
Glide Path Classification: SENSIBLY REFRAMING "TO VERSUS THROUGH"
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 shapebased. 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.
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
Deep Experience. ThoughTful InnovaTIon.
Target date solutions from T. Rowe Price
BrightScope
This in-depth BeaconTM report provides access to year-overyear 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
"fi360" and "fi360 Fiduciary Score" are registered trademarks of fi360, Inc. T. Rowe Price Investment Services, Inc., Distributor
CXBLADB8P 2016-US-25194
SECTIONS 1 & 2: Plan Overview & Plan Assets
Plan Overview WHAT IT IS: Basic company information as filled out on the previous year's Form 5500.*
BrightScope Customized Plan Reports
USERGUIDE
TURN PLAN DATA INTO MORE SUCCESSFUL DISCUSSIONS
Provided by T. Rowe Price
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: referencepoint. It comprises plan data from more than 800 full-service plans and 2 million participants.
Plan Assets
WHAT IT IS:
Plan net assets and plan net flows as listed on each year's Form 5500 for which data is available.
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?
*All data shown in this brochure is hypothetical; no actual plan data is shown.
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?
BRIGHTSCOPE USER GUIDE | 3
FOR INSTITUTIONAL INVESTOR USE ONLY
SECTIONS 3 & 4: Providers & Participants
Providers
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: 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.
Participants WHAT IT IS: Active (eligible) participants and participants with balances 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 autoenrollment)?
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 periodically reassessed plan asset growth or average account balance versus fees charged? Provided the lowest-cost share classes available? Introduced new products and services?
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?
4 | TURN PLAN DATA INTO MORE SUCCESSFUL DISCUSSIONS
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.
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.
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.
In addition to an evaluation of plan health, BrightScope's in-depth BeaconTM 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
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.
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.
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.
FOR INSTITUTIONAL INVESTOR USE ONLY
C1TIL4GS5 2015-US-7618
T. Rowe Price and BrightScope are not affiliated companies. 2/15
8/16
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