The document discusses current challenges in defined contribution retirement plans including lack of access and savings, leakage of funds, and confidence in having enough savings. It then summarizes Morningstar's offerings for retirement plans, including managed accounts and fiduciary services. Morningstar has over $82.5 billion in managed account assets with 1.6 million participants. The document compares the fees for Morningstar's managed accounts, fiduciary services, and managed portfolio options.

2. Retirement segment
(US account 62.4% of the world’s
retirement assets)

3. Current Challenges in DC Plan
• 90% of workers in companies with 500 or more employees
have access to either a DB or DC plan, but just over half, 53%
of workers of companies with fewer than 100 employees,
have that access. It boils down to administration to do and
Cost.
• 7 in 10 (69%) are confident they will have enough to live
comfortably. Less Focus on Decumulation side as How do
you make that money last the rest of your life, when you
don't know your expiration date.

4. Current Challenges
• 40% of workers are likely to fall short of being able to cover their
expenses in retirement. That's a deficit of $3.68 trillion due to
problem of leakage.
• Challenging in an environment where there are firms out there
waiting to chop it off, and to sue you for innovating, knowing
that, you know, their strategy is not to litigate the merits of what
you're doing, but instead to force settlements because of the
unbelievable costs in trying to defend these cases. Opportunities
to create efficiencies in the system around distributed ledger
,blockchains, cloud-based systems, Robo- advisory solutions

5. Current Environment
Inability of Social Security – aging population, low
fertility rate and improved life expectancy
Lack of access to employer sponsored plans- 45%
(62.8 million people) either do not participate or do not
have access to employer-sponsored retirement plans.
Low interest rate environment- pressures to adjust
pension promises downwards or to increase
contributions
Low retirement savings - average US citizen is not
saving enough for retirement.
Underfunding of DB plans- the money needed to cover
current and future retirements is not readily available

7. Morningstar Investment Management LLC has been providing
managed accounts and point-in-time advice for more than 15 years.
Plan sponsors offer
their managed
accounts
107K+ Participants with
access to managed
accounts
19M
Assets under
management and
advisement in their
managed accounts
service
$82.5B
Participants using
their managed
accounts
1.6M+

8. • Managed Accounts, Advice, and Guidance- Providing you
with a personalized plan
• Fiduciary Services or Custom Models- Fiduciary Services
lets you focus on your business by helping mitigate the risk
and responsibility that comes with building retirement plan
lineups
• Morningstar ® Managed Portfolios - Built and Managed
by team of investment professionals, who monitor them
carefully and decide what to buy and sell.

9. Registered Investment Advisor
Morningstar is making a move to upend the 401(k) business by reinventing who
pays and who oversees managing plans.
Managed accounts aren’t new to 401(k) arena. Financial Engines oversees the managed
accounts and doesn't allow outside advisors to provide advice. Morningstar is seeing
growing demand for advisory services.
Morningstar's technology, which lets advisors set up portfolios.
Morningstar is going direct to a lot of recordkeepers who are all considering advisor-
managed accounts.
Morningstar is off to a roaring start, inking deals with top RIA players in the defined
contribution retirement plan business including CAPTRUST, Sageview Advisory Group,
Resource Investment Advisors, Pensionmark, Mesirow Advisors and CBIZ.

10. S W
O T
WEAKNESSES
• Small business owners finding
difficult to figure out fee
• Customer Service at times Lag
• Not serving <20 Employee
THREATS
Intense Competition
from peers
STRENGTHS
• Bundled Solution
(HR/Retirement/Health)
• Trusted name
• Highest Organic Visibility
• Content Libraries “Fidelity
Learning Center”
• Loaded Employee and
Employer Benefit
OPPORTUNITIES
• Expansion into New
Geographies
• Innovation in Retirement space
SWOT
SWOT ANALYSIS

11. People Management

12. Setting goals • SMART ( Specific Measurable Aligned Reachable
Time-bound)
• BHAG (Big Hairy Audacious Goal)
• Quality of work Vs Quantity of time
• Employee Goal
(Performance/Development/Personal Aspiration)
• Ongoing Collaboration (Be Supportive/Remove
Barriers)
• Gather Data (Observation/self-rating)
• Accountability (Give Feedback/ Stay Connected/
Collect Sample work)

13. Decision-making
Impact
Reversable or Irreversible
Cost being Wrong
Time
Personal Bias

14. Conflict
Management

15. Delegate work
Obstacle
• Letting go past
• Trusting
• Explaining others
What to Delegate
• Track all Task
• Task Dislike or procrastinate
• Task Better for others
• Consider Employee Development
Delegate to Team
• Employee working on
• Map task to development plan
• Benefit for them
• Instructions/Timeline/Priorities/
Checkin
Successful Delegation
• Meaning & Purpose
• Benefit for them
• Provide prompt Feedback

16. Bring Best
From Team
Have a clear purpose
Build your team’s vision
Work with your team’s strengths
Get comfortable with being uncomfortable
Help them to overcome obstacle
Praise effort and reward your team

17. 17
SUBRAT KUMAR DASH
THANK YOU OPEN FOR QUESTIONS?

18. Managed Accounts, Advice, and Guidance
Beginning Account Value: $10,000
Managed Accounts Fee: $10,000 x .005 = $50
Investment Fees (0.30%): $10,000 *.003 = $30
Administrative Fees: $50
Recordkeeping Fees: $40
Total Annual Fees: $170
Account Value after Annual Fees: $9,830
Fiduciary Services or Custom Models
$1,000,000 (beginning plan value) * 0.0008 (annual fee of 8 basis points) = $800
Morningstar ® Managed Portfolios
Beginning Account Value: $10,000
Portfolio Investment Management Fee: $0
Investment Fees (0.30%): $10,000 *0.003 = $30
Administrative Fees: $50
Recordkeeping Fees: $40
Total Annual Fees: $120
Account Value after Annual Fees: $9,880