Software as a Service (SaaS) TandemModels TandemModels® is delivered to investment managers and advisors in a single platform environment (SaaS) for asset allocation model design and management, trading, cash flow management, portfolio re-balancing, performance reporting, and custodial integration and reconciliation.

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Seamlessly Managing Your Clients Portfolios A study by Aite Group reported: “RIA firms (Investment managers) waste an average of two days per week on operational tasks, rather than serving existing clients or acquiring new clients, when they are not using fully integrated systems. An integrated system can boost firm revenue by up to 30 percent by giving them more time to focus on client service and practice management.”

“Investment Managers that have some integration have close to twice the amount of investable assets compared to RIAs that lack integration.” 1

TAMPS Limited by Software Integration

TAMPs (Turnkey Asset Management Programs) are only able to offer investment managers software integration which rely on third party software products. In contrast, Invest n Retire, LLC provides investment managers with a single platform environment, TandemModels®, for building, analyzing, and managing allocation models; eliminating the need to integrate third party applications.

TandemModels® provides investment managers with a vertically integrated solution that gives them the ability to trade exchange traded funds (ETFs) and securities intraday with access to real-time pricing with FIX connections.2 Through our system managers realize efficiencies in trading with direct market access (DMA) allowing them to focus more time on client service and practice management.

“We believe investment managers will benefit from leveraging TandemModels® trading proficiencies which aims to minimize market impact while improving execution quality,” Darwin Abrahamson, CEO.

Single Platform Environment Goes Beyond Mere Integration

Going beyond mere software integration, Invest n Retire® Software as a Service (SaaS) hosting model reduces technology costs by 40% or more compared to Application Service Provider (ASP) models and integrated software products. SaaS increases efficiencies while reducing costs by eliminating the need to purchase servers and software which require IT support, upgrades, data backup, data security, and disaster recovery.

Reducing Custody Costs and Eliminating Trade-Away Fees

A significant benefit for investment managers is our record keeping and trading capabilities which drastically reduces the end client’s cost for custody services and eliminates trade-away fees charged by the big four custodians.3

Our record keeping technology allows managers to consolidate their clients Unified Managed Accounts (UMA) in one Master UMA through a trust company or a broker/dealer. Consolidating multiple UMAs in one Master UMA eliminates data transfer and reconciliation problems among multiple custodians and enables clients to drastically reduce the cost for custody services.

“Our technological proficiency and working relationship with custodians, who do not charge trade-away fees, enables managers to seek best execution without being penalized.”

1 Aite RIA Productivity and Profitability: Integration Pays 2013 2 Financial Information eXchange (FIX) is an electronic communications protocol for optimizing electronic trading. 3 Trade-away fees are charged by the big four custodians when an investment manager or RIA places trades through a broker-dealer other than the one owned by the custodian.

Exorbitant Trade-Away Fees Charged by the Big Four Custodians Investment managers desire best execution for clients. However, when you consider that the big four RIA custodians are charging advisory firms giant fees for trading away, sometimes in the tens of thousands, the importance of low custodial cost and the elimination of trade-away fees is magnified.

“Schwab Advisor Services, TD Ameritrade Institutional, Pershing Advisor Solutions, and Fidelity Institutional Wealth Services are levying what are known as “trade-away” fees to RIA firms that buy exchange traded funds through a broker-dealer other than the one owned by the custodian. The advisor typically chooses to use third parties because they believe that RIA custodians are executing trades poorly along the bid-ask curve and forcing them to make ETF purchases at unacceptably high prices.” 4

“Industry leaders say these new ETF-related fees from custodians are a major problem . . .” 5

Chris Romano, director of research and trading with Fusion Investments Group comments: “We don’t even consider trading away at Fidelity because of the high ticket trade away fee. On the smaller account sizes, it can be a really significant fee. If the fee is $20 that can really add up.” 6

Institutional Trade Execution with Transaction Cost Analysis Reporting

Invest n Retire® provides access to leading institutional execution desks that specialize in sourcing liquidity for equities, options, futures and ETFs. This provides investment managers with Direct Market Access (DMA), a suite of algorithms, block liquidity, NAV executions, and translation trades, which use correlated products to enhance liquidity.

Investment managers will have the ability to adjust execution methodologies to match total order size and timeframe with their objectives. By evaluating several factors such as quantity, liquidity, volatility of the underlying components and market conditions, an institutional execution desk can source liquidity efficiently, anonymously, and with minimal market impact.

Prior to order execution, an experienced institutional execution desk can help determine several factors such as the most cost-effective execution (e.g. is the expected execution price plus risk premium of the ETF greater than the expected execution price of the underlying components plus costs) and the ideal approach to align fill prices with the appropriate benchmark (e.g. closing price, opening price, NAV, National Best Bid and Offer (NBBO).

Upon the conclusion of each trade day, investment managers have access to a best execution report that measures performance against the NBBO, VWAP or other relevant benchmark. For larger, more complex trades, manager may request a market impact analysis.

Self-Aligning Portfolios™

Our patented technology includes a feature within its trading component, Self-Aligning Portfolios™. Instead of investing a client’s cash contributions based on the percent allocation for each investment option within the model‚ our system analyzes each holding within the portfolio and determines if a holding is under-weighted or over-weighted according to the percent allocation for the model.

4 RIA Custodians Charge Steep new ETF-related Fees RIABIZ November 18, 2013 5 Ibid. 6 Ibid.

After the analysis‚ the system uses the cash to purchase more shares for any investment that is under-weighted and fewer shares for any investment that is over-weighted. “By investing contributions using this methodology‚ each portfolio maintains its balance by self-aligning itself with each cash flow‚” explains Darwin Abrahamson.

Reports and Client Web Portal

TandemModels® provides time weighted performance reporting for clients and GIPs reporting for investment managers. TandemModels® also provides detailed transaction reporting which includes trading costs and SEC fees. Our client Web portal is smart phone accessible and can be customized with an investment manager’s logo and colors, at no additional cost.

Summary SaaS technology is an all-inclusive business architecture which delivers value rather than disconnected software which TAMPS attempt to piece together. With our SaaS hosting model investment managers will reduce their total operating cost and staff hours required to service clients which will increase their firm’s net income. And, by reducing custody costs and eliminating steep trade-away fees, managers will be able to add smaller client accounts cost effectively.

About Invest n Retire, LLC

Invest n Retire, LLC is a technology company located in Portland, Ore. Our patented software is used for record keeping and trading for defined contribution plans (DC) and Unified Managed Accounts (UMAs). Our system, System and Method for Managing Tax-deferred Retirement Accounts (pat. US 8,060,428 and pat. US 8,639,604), solves a multitude of problems confronting the retirement and advisor community.

Contact Darwin Abrahamson at darwin@investnretire.com or 503-217-2021 for more information.

I N V E S T N R E T I R E , L L C 6 2 0 S W F I F T H A V E N U E , S U I T E 1 1 0 0 P O R T L A N D , O R E G O N 9 7 2 0 4

I n v e s t m e n t A d v i s o r s S t r i v e t o L o w e r C o s t s

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