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FundQuest Retirement Management Solutions BISA Technology and Operations Conference November 14, 200

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Title: FundQuest Retirement Management Solutions BISA Technology and Operations Conference November 14, 200


1
FundQuestRetirement ManagementSolutionsBISA
Technology andOperations ConferenceNovember
14, 2006
2
FundQuest Snapshot
  • Founded in 1993
  • Registered Investment Advisor (RIA)
  • 30 billion assets under management
    administration
  • Global leader in open architecture, branded,
    fee-based asset management programs
  • Subsidiary of BNP Paribas Asset Management

3
FundQuest Global Overview
  • 165 people, including 30 investment professionals
  • A global organization with investment teams in
    major markets
  • US, France, Italy, Germany
  • 100 distribution partners and institutions

FundQuest Presence
Luxemburg
Boston
Paris
Nuremberg
Milan
4
Todays Trust Wealth Management Requirements
  • Open architecture is an essential to attract new
    business and retain existing assets
  • Demand for increased profitability
  • Seamless integration
  • Investment Officer role is evolving from
    portfolio manager to investment advisor
  • Rigorous and repeatable investment manager
    selection/due diligence processes

5
Criteria for Success
  • Open, flexible, integrated platform
  • Combines open architecture investments and
    institutions existing investment products
  • Connections to existing trust accounting systems
  • Wealth management expertise
  • Implementation because teams are experienced in
    trust and wealth management platforms
  • Reporting to improve ability to monitor accounts
    and meet compliance requirements

6
Retirement Management Solutions
7

The Opportunity
  • 77 million US Baby Boomers heading for retirement
  • By 2020 majority of US Wealth, 67, will be
    controlled by retirees/pre-retirees
  • Shift from institutional to personal
    responsibility
  • Investor concerns about adequacy of retirement
    income
  • Increased complexity of retirement planning
    reinforces need for an advisor
  • Advisor community looking to deliver best
    practices consistently and cost-effectively

8

Current Environment
  • General recognition that changing demographics
    present an explosive business opportunity
  • Retain or capture in motion assets and
    consolidate wallet share
  • Many institutions appear uncertain as to where to
    start or may not be organized to address this
    opportunity
  • Solutions vs. products?
  • Fees vs. commissions?
  • Relationship management vs. one-time sale?
  • Leaders have realized that successful execution
    requires top-down support and commitment
  • Core competencies and segmentation strategy help
    determine best approach

9

The Retirement Income Challenge
Investor Concerns
  • Accumulation Phase
  • Market returns
  • Market volatility
  • Inflation
  • Distribution Phase
  • PLUS
  • Increasing longevity
  • For a healthy couple retiring today at age 65
    there is a 50 chance that one of them will reach
    age 92
  • Rising medical and long term care costs
  • Out-of-pocket health costs will nearly triple
    between 2000 and 2030
  • Public policy changes
  • The trustees for Social Security and Medicare
    have estimated that the trust fund for Social
    Security will run out by 2041 and Medicares will
    run out in 2020

10

The Retirement Income Challenge cont.
  • Ongoing monitoring more important than ever
  • If a mistake is made in managing the assets
    during the Accumulation phase time is typically
    on the investors side. They can
  • Wait out market downturns
  • Delay retirement
  • During the Distribution phase retirees may not
    have time for other options

11
Industry Response to Date - A Fragmented Approach
Products
Tools
?
- Calculators - Planning Software - Systematic
Withdrawal Plans - On line education
  • Investment Products
  • Target Date Funds
  • Income Funds
  • Managed Accounts
  • Insurance Products
  • Deferred/Immediate Annuity
  • Life Insurance
  • LTC

12
FundQuests Comprehensive Solution
Products
Tools
Integrated Platform
- Calculators - Planning Software - Systematic
Withdrawal Plans - On line education
  • Investment Products
  • Target Date Funds
  • Income Funds
  • Managed Accounts
  • Insurance Products
  • Deferred/Immediate Annuity
  • Life Insurance
  • LTC

An integrated platform for the planning and
ongoing management of retirement assets
13

Retirement Management Solutions Platform
Full Cycle Retirement Advice
  • Turnkey investment planning platform for the
    management of retirement assets
  • Platform includes
  • Web-based analytical tools and retirement income
    planning process
  • Ability to implement using firms platform of
    investment choices
  • Ability to provide ongoing monitoring and
    management of retirement assets to track
    adherence to plan and service client for life.
  • Open-architecture, branded, and customizable
  • Flexible implementation options

14
Best Practice Approach for Retirement Management

Profile
Capture Client Data, Establish Spending Goals,
Identify Income Sources and Risk Tolerance
1
Review Current Asset Allocation and Perform
Initial Monte Carlo Analysis
Analyze
2
PLAN
Perform What-if Analysis, Examine Trade-offs,
Refine Alternative Plan
3
Optimize
Agree on Plan, Invest/Re-Allocate Assets and
Establish Withdrawal Plan
IMPLEMENT
4
Implement
Perform Client Check-up, Identify Critical
Variances, Adjust and Re-Plan as Necessary
5
Monitor
MONITOR
15
Key Benefits
  • Targets institutions preferred product choices
  • Creates consolidation platform
  • Offers speed to market solution
  • Ensures adherence to compliance
  • Delivers straightforward sales track to advisors
    by facilitating dialogue with clients
  • Retains clients at and through retirement

16
How our Retirement Income Planning Platform Works
17
It starts with a straight forward, interactive
and advisor-centric Retirement Income Planning
profile
Key Benefits
Customized and branded to your organization
Trust Departments/Firms
Broker-Dealers
Banks
Advisor-centric retirement planning platform
supports
  • Ability to manually enter data or integrate with
    existing accounting data
  • Ability to revise plan as circumstances change

18
Assists clients in considering the impact of each
possible trade-off
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Entering goals along with a range of ideal vs.
acceptable and a willingness to compromise begins
the trade-off discussions
Insurance Companies
Banks
19
Enables clients to define their entire income
picture
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Clients can provide summary level information for
retirement income, or complete a comprehensive
worksheet to break down each source of income.
20
Risk questions can be configured for consistency
with an organizations existing standards
Key Benefits
Trust Departments/Firms
Wealth-Management Groups
Broker-Dealers
Banks
Our series of questions can be customized to your
firms needs help advisors assess risk
tolerance ultimately recommend a retirement plan
thats personalized for the client
21
Helping clients realize if their retirement goals
are on track is easier than ever
At a high level, show clients if their current
plan is on track to meet their retirement goals
Trust Departments/Firms
Wealth-Management Groups
Broker-Dealers
Banks
Partner to the Nations Investment Leaders
Show Clients Additional Detail they may want
before discussing alternative approaches to
meeting their retirement goals
22
The impact of withdrawal strategies on retirement
goals
Key Benefits
Understanding how different withdrawal strategies
can impact a clients portfolio can better
position your advisors to build a retirement
income plan that is best suited for the client
Trust Departments/Firms
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Partner to the Nations Investment Leaders
Our color key system shows your advisor and their
clients the impact of different withdrawal
strategies over time
23
Customized and branded reports to meet your
organizations needs
Key Benefits
Wealth-Management Groups
Insurance Companies
Broker-Dealers
Banks
Ability to configure format and customize
sections.
Partner to the Nations Investment Leaders
24
Retirement Management Solutions Keys to Success
  • Straightforward output that drives to sales
  • Robust technology platform providing
  • Ease of data capture summary level or detailed
  • Advanced Analytical capabilities
  • Integration with CRM and transaction processing
    systems
  • Consistent application of best practices and
    optimized advice
  • Ability to manage a broad pool of resources
  • Multiple product and account types
  • Incorporate in-house and held-away assets and
    income
  • Balance income generation with legacy planning
    goals
  • Ongoing reporting, client management, and
    goal-tracking process
  • Education and training program for advisors
  • Collateral materials and marketing support

25
Trust and Wealth Management Benefits Summary
  • Open architecture and integration with existing
    offerings makes institution more competitive
  • Due diligence and investment expertise supports
    fiduciary responsibilities
  • Customizable platform and research services,
    including retirement income module, enable trust
    officers to increase focus on advisory role
  • Seamless integration with the institutions trust
    accounting system ensures implementation quality
    and reporting continuity
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