PLANADVISER - Special November 2009

Broker/dealer your salary partner salary staff salaries travel expenses General expenses

30.67% 37.14% 23.76% 18.29% 7.12% 17.61%

MediaN 16% 35% 20% 15% 5% 13%

RaNGe 1-100% 2-100% 5-55% 1-70% 1-27% 1-80%

How are you paid for qualified plan business? commissions/12b-1s 68.4% fees based on assets 74.2% Hard dollar or flat fee 48.3% per participant 5.3% per project 20.1% eRisa budget/eRisa reimbursable 22.5% other 1.0%

What do you disclose about your fees? commissions/12b-1s/sub-tas 83.1% conflicts of interest 50.3% embedded fees 49.2% explicit fees 51.8% payments from vendors 43.6% per-participant cost 48.2% plan sponsor cost 51.8% profit margin 5.6% Revenue in basis points 60.0% Revenue in dollars 51.8% Revenue sharing 38.5% services provided 61.0% source of revenue 46.2%

Has this changed in the past year?
yes 13.7%
No 86.3%

When are your fees disclosed to your clients? during Rfp process 81.4% at point of sale/upon hire 62.3% Quarterly 23.5% annually 48.0% as requested 37.3% other 2.9%

average charge to plans of the following size

RaNGe Bp (MediaN Bp) RaNGe flat fee/$ (MediaN) 1bp-500bps (50bps) $1,500-$17,000 ($5,000) 1/2bp-500bps (30bps) $2,500-$28,500 ($15,000) 10bp-300bps (25bps) $10,000-$111,000 ($30,000) 5bp-100bps (15bps) $15,000-$75,000 ($40,000) 5bp-50bps (10bps) $20,000-$150,000 ($50,000) 1bp-50bps (7bps) $40,000-$150,000 ($65,000)

$1 million $5 million $20 million $50 million $100 million $250 million

How do you disclose your fees to your clients? annual review 66.2% contract 63.2% fee disclosure statement 52.2% Rfp 25.4% form adV 41.8% other (e.g., quarterly reports, meetings) 5.5%

Criteria to decide appropriate funds (Top 5 mentions) performance (1-year return) 36.8% performance (5-year return) 73.6% performance vs. benchmarks 87.2% Manager tenure 68.0% Brand 19.2% style drift 62.4% adviser support 14.4% supporting materials 11.2% fee structure for adviser 12.0% fee structure for plan 55.2% plan demographics 33.6%