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Retirement Plan Fiduciary Services

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An overview of Arete Investment Consulting\'s background and Services

An overview of Arete Investment Consulting\'s background and Services


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  • 1. Disciplined solutions for your serious money Prepared for ABC Corporation January 22, 2010
  • 2. Areté Investment Consulting Pursuit of the highest excellence Who we are • Formed in 2009 Brian A. Roberts, CFA • Investment Consulting Services • President Retirement Plans • 23 years of experience Individual Investors • $20+ billion • Product Neutral • American Funds® • Investment Fiduciary Retirement pricing models Retirement portfolios Why Areté? • Improve Account Performance • Davidson College • Remove Unnecessary Costs Honors in Economics • Manage Unwanted Risks 1 Disciplined solutions for your serious money
  • 3. Retirement Plan Services Independent and objective Investment Monitoring Cost Benchmarking Areté serves as a co-fiduciary by working alongside plan Areté provides cost benchmarking services to uncover sponsors to develop and implement the investment criteria unnecessary plan expenses. When a plan is over-compensating used to select and monitor its investment choices. Quarterly its providers, Areté assists plan sponsors with recovering these performance reporting is provided to monitor a plan's expenses. "Excess revenues" are redirected to defray other plan- investment lineup. Investment manager searches are related expenses. In some instances "excess revenues" may be conducted when investment options fail to meet the returned to participant accounts to reduce plan investment minimum quality standards established by a plan. expenses. Participant Advice Provider Searches When participants want more than investment education, When a plan outgrows or wants to replace its current provider, Areté offers an optional fee-based investment advice service Areté assists plan sponsors by conducting provider searches. that provides participants with specific investment recommen- The search process begins with an assessment of plan needs and dations. The service includes wealth forcasting studies, asset then continues with a request for proposals. Areté summarizes allocation studies, investment manager searches for non-plan provider responses to facilitate comparisons. Finalists are assets and annual performance reviews. Areté serves as a invited to present their proposal to an organization’s decision- fiduciary to plan participants who choose this service. making group. 2 Disciplined solutions for your serious money
  • 4. Investment Monitoring High quality, defensible choices 3 Disciplined solutions for your serious money
  • 5. Manager Searches Rigorous and disciplined 4 Disciplined solutions for your serious money
  • 6. Quarterly Reports olor-coding fund reviews 5 Disciplined solutions for your serious money
  • 7. Cost Benchmarking Uncovering unnecessary expenses How much are they Who is the plan What are they being receiving for Is the amount paying? paid to do? their services? (1) reasonable ? • Investment selection 1 Investment Advisor or Broker and monitoring • Participant education • x.xx% of assets • $ xx,xxx Yes or No • Participant Services (800#, internet access, etc.) • x.xx% of assets 2 Recordkeeper and Plan Administrator • Plan sponsor services • $ xx,xxx Yes or No (compliance and legal services) • x.xx% of assets 3 Investment Manager • Investment Management • $ xx,xxx Yes or No (1) Amounts should include both direct and indirect compensation. 6 Disciplined solutions for your serious money
  • 8. ABC Corporation Retirement Plan Plan Revenue and Payments Analysis Fund Expenses Plan Revenue Sources Plan Paid Expenses Arete's Fees Fund Plan Record- Advisor Advisor Expense Total Annual Total Plan Revenue keeping Payment Advisor Payment Plan Investments Assets as of Ratio Cost Receipts Credits 12b-1 fees Revenue Ratio Revenue Ratio Advisor Revenue MFS Value A $ 584,307 1.00% $5,843 $ 2,337 0.15% 0.25% $876 0.25% $ 1,461 0.16% $ 935 Davis NY Venture A $ 55,360 0.85% $471 $ 304 0.30% 0.25% $166 0.25% $ 138 0.16% $ 89 Maxim S&P 500 Indes $ 591,378 0.60% $3,548 $ 2,070 0.35% 0.00% $2,070 0.25% $ 1,478 0.16% $ 946 Growth Fund of America R3 $ 1,553,449 0.94% $14,602 $ 10,097 0.15% 0.50% $2,330 0.25% $ 3,884 0.16% $ 2,486 Perkins Mid Cap Value S $ 247,463 1.34% $3,316 $ 1,237 0.50% 0.00% $1,237 0.25% $ 619 0.16% $ 396 First Eagle Overseas A $ 182,073 1.15% $2,094 $ 546 0.05% 0.25% $91 0.25% $ 455 0.16% $ 291 Columbia Small Cap Value A $ 21,607 1.30% $281 $ 108 0.25% 0.25% $54 0.25% $ 54 0.16% $ 35 Maxim Index 600 Portfolio $ 389,738 0.60% $2,338 $ 1,364 0.35% 0.00% $1,364 0.25% $ 974 0.16% $ 624 Alger Small Cap Growth Instl $ 92,965 1.27% $1,181 $ 465 0.50% 0.00% $465 0.25% $ 232 0.16% $ 149 Oppenheimer Developing Mkts Y $ 406,521 0.95% $3,862 $ 1,016 0.25% 0.00% $1,016 0.25% $ 1,016 0.16% $ 650 American Funds Europacific R3 $ 1,380,657 1.11% $15,325 $ 8,974 0.15% 0.50% $2,071 0.25% $ 3,452 0.16% $ 2,209 Columbia Real Estate Equity Z $ 60,178 1.04% $626 $ 150 0.25% 0.00% $150 0.25% $ 150 0.16% $ 96 T Rowe Price Retirement 2010 Adv $ 377,237 0.83% $3,131 $ 1,509 0.40% 0.00% $1,509 0.25% $ 943 0.16% $ 604 T Rowe Price Retirement 2020 Adv $ 712,920 0.98% $6,987 $ 2,852 0.40% 0.00% $2,852 0.25% $ 1,782 0.16% $ 1,141 T Rowe Price Retirement 2030 Adv $ 164,719 1.03% $1,697 $ 659 0.40% 0.00% $659 0.25% $ 412 0.16% $ 264 T Rowe Price Retirement 2040 Adv $ 178,827 1.04% $1,860 $ 715 0.40% 0.00% $715 0.25% $ 447 0.16% $ 286 T Rowe Price Retirement 2050 Adv $ 450,914 1.04% $4,690 $ 1,804 0.40% 0.00% $1,804 0.25% $ 1,127 0.16% $ 721 PIMCO Mortgage Back Sec Adm $ 1,362,016 0.75% $10,215 $ 3,405 0.25% 0.00% $3,405 0.25% $ 3,405 0.16% $ 2,179 PIMCO Total Return Adm $ 49,890 0.71% $354 $ 125 0.25% 0.00% $125 0.25% $ 125 0.16% $ 80 Key Guaranteed Portfolio $ 2,269,325 0.84% $19,062 $ 19,062 0.84% 0.00% $19,062 0.25% $ 5,673 0.16% $ 3,631 Totals $ 11,131,544 $ 101,482 $ 58,801 $ 30,972 $ 27,829 $ 17,810 - Wtd. Avg. Expense 0.91% Expected Costs $ 14,950 $ 17,810 Expected Cost Savings $ 16,022 $ 10,018 Total Expected Cost Savings 0.23% $ 26,041 Recordkeeping and Administration Costs # of Plan Participants 130 Recordkeeping/Admin. Cost Ranges Actual Recordkeeping/Admin. Costs Arete Fee Schedule Costs Est. Annual Costs Est. Annual Dollar Blended Areas of Costs (High) Cost (High) (Low) Cost (Low) Fee Type Amount Rate Plan Size Recordkeeping $ 80 $ 10,400 $ 65 $ 8,450 Plan Recordkeeping Revenue $ 30,972 0.25% $ 1,000,000 Plan Administration $ 20 $ 2,600 $ 10 $ 1,300 Billed Recordkeeping Fees $ - 0.25% $ 5,000,000 Relationship Management $ 30 $ 3,900 $ 5 $ 650 Billed Plan Administration Fees $ - 0.18% $ 10,000,000 Sales Support $ 15 $ 1,950 $ 5 $ 650 Billed - Other Fees $ - 0.15% $ 15,000,000 Total Costs $ 145 $ 18,850 $ 85 $ 11,050 Total Costs $ 30,972 0.14% $ 20,000,000 7 Expected Costs (Avg) $ 14,950 Custom $ >25,000,000
  • 9. Cost Allocation Methods for participant investment education Pre-Pension Protection Act Post-Pension Protection Act [ ] [ ] Charge Everyone Charge • Regardless of use (Disproportionate cost sharing) No One Charge No One • Default Assets to a QDIA (1) (2) • Offer limited support • Provide optional investment (Potential liabilities under ERISA) advice for participants (3) (1) The Pension Protection Act of 2006 created 404(c) protection under ERISA for plan sponsors when participant accounts are defaulted to a Qualified Default Investment Alternative (QDIA). (2) Requires a minimum of 30 days advance notice and an opt out provision for participants. (3) The Pension Protection Act of 2006 created a new category of plan service provider, a “fiduciary adviser,” that exempts providing investment advice to plan participants from ERISA’s prohibited transaction provisions provided the compensation received does not vary based on an advisor's recommendations. 8 Disciplined solutions for your serious money
  • 10. Adantages/Benefits to restructuring cost allocation Lower Investment Expenses Reduced Fiduciary Liability "Better" Long-Term Investment Decsions Advice, Not Education Less Work 9 Disciplined solutions for your serious money
  • 11. Participant Advice ...more than investment education Wealth Forecasting Studies Asset Allocation Studies Investment Manager Searches (for non-plan assets) Account Monitoring and Rebalancing Annual Portfolio Reviews 10 Disciplined solutions for your serious money
  • 12. Ibbotson Wealth Forecasting Engine™ Projects the impact of different saving, spending and asset allocation decisions $10 mil 1 mil 100k • 50% confidence level • 75% confidence level • 90% confidence level 10k 65 Years old 70 75 80 85 90 95 100 IMPORTANT: This is a visual interpretation of confidence intervals resulting from a hypothetical Monte Carlo simulation and does not reflect actual investment results, and is not a guarantee of future results. Results may vary over time and with each simulation. 11
  • 13. Asset-Class Winners and Losers Uncertain returns underscore the case for diversification 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Highest 8.1% 37.6 23.0 33.4 28.6 29.8 21.5 22.8 17.8 60.7 20.7 14.0 26.9 11.6 25.9 return 3.9 34.5 17.6 22.8 20.3 27.3 5.9 3.8 1.6 39.2 18.4 7.8 16.2 9.9 1.6 3.1 31.7 6.4 15.9 13.1 21.0 –3.6 3.7 –13.3 28.7 10.9 5.7 15.8 5.5 –36.7 1.3 11.6 5.2 5.3 4.9 4.7 –9.1 –11.9 –15.7 1.4 8.5 4.9 4.8 4.7 –37.0 –7.8 5.6 –0.9 2.1 –7.3 –9.0 –14.0 –21.2 –22.1 1.0 1.2 3.0 1.2 –5.2 –43.1 Lowest return • Small stocks • Large stocks • International stocks • Long-term government bonds • Treasury bills Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009 12
  • 14. Reduction of Risk Over Time 1926–2008 Small stocks Large stocks Government bonds Treasury bills 150% 120 90 60 Compound 30 annual return: 11.7% 9.6% 5.7% 3.7% 0 –30 –60 1-year 5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year Holding period Past performance is no guarantee of future results. Each bar shows the range of compound annual returns for each asset class over the period 1926–2008. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009 13
  • 15. Maximize the Risk versus Return Tradeoff 1970–2008 12% Return Maximum risk portfolio: 100% Stocks 80% Stocks, 20% Bonds 11 60% Stocks, 40% Bonds 50% Stocks, 50% Bonds Minimum risk portfolio: 25% Stocks, 75% Bonds 10 100% Bonds 9 10% Risk 11 12 13 14 15 16 17 18 19 Past performance is no guarantee of future results. Risk and return are measured by standard deviation and arithmetic mean, respectively. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009 14
  • 16. More Funds Do Not Always Mean Greater Diversification Duplication is NOT Diversification Equity portfolio A Equity portfolio B Deep-value Core-value Core Core-growth High-growth Deep-value Core-value Core Core-growth High-growth Giant Giant Large Large Mid Mid Small Small Micro Micro Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2009 Morningstar, Inc. All rights reserved. 3/1/2009 15
  • 17. Retirement Plan Fees Clearly defined and product neutral Investment Monitoring Participant Advice (optional) • First $5,000,000 in plan assets 0.25% • First $2,000,000 of personal asset 0.25% • Next $20,000,000 in plan assets 0.10% • Over $2,000,000 of personal asset 0.15% (Custom quotes for plans greater than $25,000,000) (Minimum annual fees per user) Services include: Services include: • Development of an Investment Policy Statement (IPS) • Wealth Forecasting Studies (WFS) • Quarterly Performance Reporting (QPR) • Asset Allocation Studies (AAS) • Investment Manager Searches (IMS) • Investment Manager Searches for non-plan assets (IMS) • Cost and Revenue Discussions with current vendors • Investment Monitoring for non-plan assets • Two days of on-site educational meetings per year • Account Monitoring and Rebalancing • Annual Portfolio Reviews Additional Services: • Extra days of on-site educational meetings • Investment Education Webinars (IEW) Provider Searches (optional) • Based on the number of providers included Cost Benchmarking Studies (optional) the search. • Based on the number of provider responses included in the study. 16 Disciplined solutions for your serious money
  • 18. Impact of Fees over Time $6,000,000 Account Assumptions Current Account $5,000,000 Value $ 11,131,544 Additional Annual $4,000,000 Investments $ 500,000 Investment Return before Fees 9% $3,000,000 Competitor's Fees as a % of Assets 0.91% $2,000,000 Arete's Fees as a % of Assets 0.68% $1,000,000 $- 5 10 15 20 25 Ending Value Difference $196,875 $623,970 $1,457,854 $2,992,014 $5,708,635 Illustration only. Actual fees may vary. Number of Years Return assumption is only hypothetical. 17
  • 19. Sample Investment Fee Analysis (Plan Participant Advice Fees) ABC Brokerage Firm Arete Investment Consulting Investment Expenses Investment Expenses Fund Total Total Total Total Fund Advisory Expense Investment Annual Annual Investment Expense Advisory Mutual Funds Assets Fee Ratio Fees Cost Cost Fees Ratio Fee Assets Mutual Funds T Rowe Price Small $ 100,000 1.50% 1.09% 2.59% $2,590 $1,170 1.17% 0.92% 0.25% $ 100,000 T Rowe Price Small Value Adv Value Europacific Growth $ 100,000 1.50% 0.84% 2.34% $2,340 $880 0.88% 0.63% 0.25% $ 100,000 Europacific Growth Fund F1 Fund F2 Growth Fund of $ 100,000 1.50% 0.69% 2.19% $2,190 $710 0.71% 0.46% 0.25% $ 100,000 Growth Fund of America F1 America F2 Washington Mutual $ 100,000 1.50% 0.67% 2.17% $2,170 $690 0.69% 0.44% 0.25% $ 100,000 Washington Mutual Investors F1 Investors F2 PIMCO Total Return $ 100,000 1.50% 0.71% 2.21% $2,210 $710 0.71% 0.46% 0.25% $ 100,000 PIMCO Total Return A Instl Totals $ 500,000 $11,500 $ 4,160 $ 500,000 Totals 2.30% 0.83% Impact of Fees over Time $2,000,000 $1,800,000 Assumptions $1,600,000 $1,400,000 Account Value $ 500,000 $1,200,000 Additional Annual Investments $ 50,000 $1,000,000 $800,000 Investment Return before Fees 9% $600,000 Competitor's Fees $400,000 as a % of Assets 2.30% $200,000 Arete's Fees $- as a % of Assets 0.83% 5 10 15 20 25 Ending Value Difference $62,366 $203,345 $479,364 $981,122 $1,852,798 Illustration only. Actual fees may vary. 18 Return assumption is only hypothetical. Number of Years
  • 20. The Areté Team Katharine • Boston University, MS Mass Communication • Johns Hopkins University, MS Business S.L. Merrill Marketing professional with expertise in strategy, market planning, product development and product management for such companies as VeriSign Inc, LifeMinders, Inc., and the National Journal Group Elizabeth • Randolph- Macon College, BA Economics and Business Administration • Old Dominion University, MBA Roberts Liaison between Financial Advisory community and American Funds Group; Worked with advisors to select investments to best suit client needs A. Williamson • Hampden-Sydney College, BA History Beasley, Jr. Product specialist identifying client needs, matching with appropriate solutions for companies such as Golfdom and GVA Advantis Commercial Real Estate Services 19 Disciplined solutions for your serious money
  • 21. Ending Account Values Ending Account Values Retirement Plan Data based on based on Competitor's Fees Arete's Fees Annual Net Return Beginning Annual Net Return Year Beginning Value Investments (After fees) Ending Value Value Investments (After fees) Ending Value 1 $ 11,131,544 $ 500,000 $ 940,992 $ 12,572,536 $ 11,131,544 $ 500,000 $ 967,744 $ 12,599,288 2 $ 12,572,536 $ 500,000 $ 1,057,568 $ 14,130,104 $ 12,599,288 $ 500,000 $ 1,089,861 $ 14,189,149 3 $ 14,130,104 $ 500,000 $ 1,183,575 $ 15,813,679 $ 14,189,149 $ 500,000 $ 1,222,137 $ 15,911,286 4 $ 15,813,679 $ 500,000 $ 1,319,777 $ 17,633,456 $ 15,911,286 $ 500,000 $ 1,365,419 $ 17,776,706 5 $ 17,633,456 $ 500,000 $ 1,466,997 $ 19,600,453 $ 17,776,706 $ 500,000 $ 1,520,622 $ 19,797,327 6 $ 19,600,453 $ 500,000 $ 1,626,127 $ 21,726,579 $ 19,797,327 $ 500,000 $ 1,688,738 $ 21,986,065 7 $ 21,726,579 $ 500,000 $ 1,798,130 $ 24,024,710 $ 21,986,065 $ 500,000 $ 1,870,841 $ 24,356,906 8 $ 24,024,710 $ 500,000 $ 1,984,049 $ 26,508,759 $ 24,356,906 $ 500,000 $ 2,068,095 $ 26,925,000 9 $ 26,508,759 $ 500,000 $ 2,185,009 $ 29,193,767 $ 26,925,000 $ 500,000 $ 2,281,760 $ 29,706,760 10 $ 29,193,767 $ 500,000 $ 2,402,226 $ 32,095,993 $ 29,706,760 $ 500,000 $ 2,513,202 $ 32,719,963 11 $ 32,095,993 $ 500,000 $ 2,637,016 $ 35,233,009 $ 32,719,963 $ 500,000 $ 2,763,901 $ 35,983,864 12 $ 35,233,009 $ 500,000 $ 2,890,800 $ 38,623,809 $ 35,983,864 $ 500,000 $ 3,035,457 $ 39,519,321 13 $ 38,623,809 $ 500,000 $ 3,165,116 $ 42,288,925 $ 39,519,321 $ 500,000 $ 3,329,608 $ 43,348,929 14 $ 42,288,925 $ 500,000 $ 3,461,624 $ 46,250,550 $ 43,348,929 $ 500,000 $ 3,648,231 $ 47,497,159 15 $ 46,250,550 $ 500,000 $ 3,782,119 $ 50,532,669 $ 47,497,159 $ 500,000 $ 3,993,364 $ 51,990,523 16 $ 50,532,669 $ 500,000 $ 4,128,543 $ 55,161,212 $ 51,990,523 $ 500,000 $ 4,367,212 $ 56,857,735 17 $ 55,161,212 $ 500,000 $ 4,502,992 $ 60,164,204 $ 56,857,735 $ 500,000 $ 4,772,164 $ 62,129,898 18 $ 60,164,204 $ 500,000 $ 4,907,734 $ 65,571,938 $ 62,129,898 $ 500,000 $ 5,210,808 $ 67,840,706 19 $ 65,571,938 $ 500,000 $ 5,345,220 $ 71,417,158 $ 67,840,706 $ 500,000 $ 5,685,947 $ 74,026,652 20 $ 71,417,158 $ 500,000 $ 5,818,098 $ 77,735,256 $ 74,026,652 $ 500,000 $ 6,200,617 $ 80,727,270 21 $ 77,735,256 $ 500,000 $ 6,329,232 $ 84,564,488 $ 80,727,270 $ 500,000 $ 6,758,109 $ 87,985,379 22 $ 84,564,488 $ 500,000 $ 6,881,717 $ 91,946,205 $ 87,985,379 $ 500,000 $ 7,361,984 $ 95,847,362 23 $ 91,946,205 $ 500,000 $ 7,478,898 $ 99,925,103 $ 95,847,362 $ 500,000 $ 8,016,101 $ 104,363,463 24 $ 99,925,103 $ 500,000 $ 8,124,391 $ 108,549,494 $ 104,363,463 $ 500,000 $ 8,724,640 $ 113,588,103 25 $ 108,549,494 $ 500,000 $ 8,822,104 $ 117,871,598 $ 113,588,103 $ 500,000 $ 9,492,130 $ 123,580,233 Summary Information Competitors Arete's Ending Ending Value Year Ending Value Value Difference 5 $ 19,600,453 $ 19,797,327 $ 196,875 10 $ 32,095,993 $ 32,719,963 $ 623,970 15 $ 50,532,669 $ 51,990,523 $ 1,457,854 Illustration only. Actual fees may vary. 20 $ 77,735,256 $ 80,727,270 $ 2,992,014 20 Return assumption is only hypothetical. 25 $ 117,871,598 $ 123,580,233 $ 5,708,635
  • 22. Ending Account Values Ending Account Values based on based on Plan Participant Data Competitor's Fees Arete's Fees Annual Net Return Beginning Annual Net Return Year Beginning Value Investments (After fees) Ending Value Value Investments (After fees) Ending Value 1 $ 500,000 $ 50,000 $ 36,850 $ 586,850 $ 500,000 $ 50,000 $ 44,935 $ 594,935 2 $ 586,850 $ 50,000 $ 42,669 $ 679,519 $ 594,935 $ 50,000 $ 52,691 $ 697,626 3 $ 679,519 $ 50,000 $ 48,878 $ 778,397 $ 697,626 $ 50,000 $ 61,081 $ 808,707 4 $ 778,397 $ 50,000 $ 55,503 $ 883,899 $ 808,707 $ 50,000 $ 70,156 $ 928,864 5 $ 883,899 $ 50,000 $ 62,571 $ 996,471 $ 928,864 $ 50,000 $ 79,973 $ 1,058,837 6 $ 996,471 $ 50,000 $ 70,114 $ 1,116,584 $ 1,058,837 $ 50,000 $ 90,592 $ 1,199,429 7 $ 1,116,584 $ 50,000 $ 78,161 $ 1,244,745 $ 1,199,429 $ 50,000 $ 102,078 $ 1,351,507 8 $ 1,244,745 $ 50,000 $ 86,748 $ 1,381,493 $ 1,351,507 $ 50,000 $ 114,503 $ 1,516,010 9 $ 1,381,493 $ 50,000 $ 95,910 $ 1,527,403 $ 1,516,010 $ 50,000 $ 127,943 $ 1,693,953 10 $ 1,527,403 $ 50,000 $ 105,686 $ 1,683,089 $ 1,693,953 $ 50,000 $ 142,481 $ 1,886,434 11 $ 1,683,089 $ 50,000 $ 116,117 $ 1,849,206 $ 1,886,434 $ 50,000 $ 158,207 $ 2,094,641 12 $ 1,849,206 $ 50,000 $ 127,247 $ 2,026,453 $ 2,094,641 $ 50,000 $ 175,217 $ 2,319,858 13 $ 2,026,453 $ 50,000 $ 139,122 $ 2,215,575 $ 2,319,858 $ 50,000 $ 193,617 $ 2,563,475 14 $ 2,215,575 $ 50,000 $ 151,794 $ 2,417,369 $ 2,563,475 $ 50,000 $ 213,521 $ 2,826,996 15 $ 2,417,369 $ 50,000 $ 165,314 $ 2,632,683 $ 2,826,996 $ 50,000 $ 235,051 $ 3,112,047 16 $ 2,632,683 $ 50,000 $ 179,740 $ 2,862,422 $ 3,112,047 $ 50,000 $ 258,339 $ 3,420,386 17 $ 2,862,422 $ 50,000 $ 195,132 $ 3,107,555 $ 3,420,386 $ 50,000 $ 283,531 $ 3,753,917 18 $ 3,107,555 $ 50,000 $ 211,556 $ 3,369,111 $ 3,753,917 $ 50,000 $ 310,780 $ 4,114,697 19 $ 3,369,111 $ 50,000 $ 229,080 $ 3,648,191 $ 4,114,697 $ 50,000 $ 340,256 $ 4,504,953 20 $ 3,648,191 $ 50,000 $ 247,779 $ 3,945,970 $ 4,504,953 $ 50,000 $ 372,140 $ 4,927,092 21 $ 3,945,970 $ 50,000 $ 267,730 $ 4,263,700 $ 4,927,092 $ 50,000 $ 406,628 $ 5,383,721 22 $ 4,263,700 $ 50,000 $ 289,018 $ 4,602,718 $ 5,383,721 $ 50,000 $ 443,935 $ 5,877,656 23 $ 4,602,718 $ 50,000 $ 311,732 $ 4,964,450 $ 5,877,656 $ 50,000 $ 484,289 $ 6,411,945 24 $ 4,964,450 $ 50,000 $ 335,968 $ 5,350,418 $ 6,411,945 $ 50,000 $ 527,941 $ 6,989,886 25 $ 5,350,418 $ 50,000 $ 361,828 $ 5,762,246 $ 6,989,886 $ 50,000 $ 575,159 $ 7,615,045 Summary Information Competitors Arete's Ending Ending Value Year Ending Value Value Difference 5 $ 996,471 $ 1,058,837 $ 62,366 10 $ 1,683,089 $ 1,886,434 $ 203,345 15 $ 2,632,683 $ 3,112,047 $ 479,364 Illustration only. Actual fees may vary. 20 $ 3,945,970 $ 4,927,092 $ 981,122 21 Return assumption is only hypothetical. 25 $ 5,762,246 $ 7,615,045 $ 1,852,798
  • 23. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this booklet, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions and laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this booklet serves as the receipt of, or as a substitute for, personalized investment advice or legal advice from Areté Investment Consulting, LLC. To the extent that a reader has any questions regarding the applicability of any specific legal issues that are highlighted, you are encouraged to consult with the legal advisor of your choosing. Finally, please remember to contact Areté Investment Consulting, LLC in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement that details our advisory services and fees is available for your review upon request. 22 Disciplined solutions for your serious money
  • 24. 477 Goodspeed Road • Virginia Beach, VA 23451 (757) 422-2210 • Fax: (757) 422-2110 • www.areteic.com Disciplined solutions for your serious money