Financial Engines — Investor Presentation (June 2012)
10 slides from Financial Engines's investor presentation, Jun 14, 2012
Slide 1: Income+ Plan Sponsor Briefing: How it works and early results
Income+ Plan Sponsor Briefing Exhibit 99.1 How it works and early results Christopher L. Jones EVP and Chief Investment Officer Financial Engines Forward Looking Statements The following plan sponsor briefing contains forward-looking statements. These forward- looking statements are based on the Com
Slide 2: Financial Engines
financial engines’
Slide 3: Income+
Income+ Feature of Professional Management – No additional fee for participants or sponsors – Uses plan’s existing investment options—no in-plan annuity required Helps prepare for retirement payouts – Income Checkup with an advisor to develop an income plan – Gets portfolio income-ready via higher f
Slide 4: Financial Engines
beererd financial engines:
Slide 5: Income+ is getting strong traction with plan sponsors
Income+ is getting strong traction with plan sponsors* Plans with over $19 billion in plan assets and nearly 300,000 participants have implemented Income+ * Financial Engines Data Warehouse as of 3/31/12. Income+ highlights Large TX - based health care system live FORTUNE 20 financial services co. 1
Slide 6: Early Results - What we're seeing
Early Results - What we’re seeing 1. Strong enrollment uptake 2. Passive (opt-out) enrollment has biggest impact 3. Income+ enrollees likely to be taking too much risk
Slide 7: Strong enrollment uptake
Proprietary & Confidential | Not for participant use. Strong enrollment uptake 16.4% 9.7% 6.2% Plans w/Income+ All Professional Management plans Target date funds* Enrollment rate of participants 60 and older *TDFs = 60+ participants with 95% or more invested in TDFs. Financial Engines does not sell
Slide 8: Passive (opt-out) enrollment makes big impact
Passive (opt-out) enrollment makes big impact Figures represent average enrollment rates into Professional Management by participants age 60 and older in plans offering Income+. Income+ passive enrollment rate 5X higher than active enrollment 50.3% 10.1% Passive enrollment Active enrollment
Slide 9: Many taking too much risk
Many taking too much risk Risk levels, before and after enrollment Potential 1-year loss reduction: 31% 1.7 0.7 1.1 0.6 percentile 10 percentile Legend S&P 500 Risk level th th
Slide 10: Summary
Summary Early in adoption cycle Gaining more traction than other in-plan retirement income solutions Strong interest from near-retirees and retirees
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