Mutual of Omaha Retirement Services Open
Architecture 2.0
In Conjunction with Callan Associates Inc.
AFN46398
• Popularity of Open Architecture
 80% of 401(k) advisory firms offer open-arch
platforms
• Benefits and Challenges
• Opportunities through due diligence
Build Your Own Bundle
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Alliance Bernstein
PIMCO
John Hancock
Franklin Templeton
MFS
Stadion
Morningstar
T. Rowe Price
Waddell & Reed
Lord Abbett
Goldman Sachs
Vanguard
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Allianz
Blackrock
Wells Fargo
Dodge & Cox Funds
The Royce Funds
Cohen & Steers
Harbor Funds
Causeway Funds
Oppenheimer Funds
SSGA
Met West
William Blair Funds
• Time
• More work
 Select
 Monitor
 Generate reports
• Risk
• Fiduciary Responsibility
• Technology
• Access to wide variety
funds/asset classes
• Allows for diversified risk
• Can lower fees through
competition
• Allow for easy growth
• Ability to showcase value
added process through
fund selection
Mutual of Omaha Retirement Services
Open Architecture 2.0
• Consider a different approach
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Select from vast universe of diverse funds
Extensive due diligence selection/monitoring
Fiduciary protection
Diversifies risk through established lineups
Save time & money
• Callan Associates and Mutual of Omaha’s Investment
Manager Oversight Committee (IMOC)
• Callan is third-party strategic asset consultant
• Formal search process with five basic steps:
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Establish search criteria
Develop list of initial candidates
Quantitative and Qualitative screening
Perform peer review and select semi-finalists
Conduct finalist presentations and select manager/fund
• Utilizes multiple methods of due diligence
collecting both qualitative and quantitative
data
• Over 40 years in the investment industry
• Responsible for nearly $2 trillion in assets
Mutual of Omaha Retirement Services
Open Architecture 2.0
The Process
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Every search starts from scratch
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Backed by extensive due diligence/18 senior
consultants
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Over 30 CFA charterholders
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Disciplined and consistent
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Utilizes peer review (Manager Search
Committee) to ensure quality control
The Outcome:
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Identification of managers and funds best fit
for the investment program
• Proprietary database and
analytics
• Searches are clientdriven, customized and
disciplined
• Oversight committee for
manager searches
Global Manager Research
By the Numbers
22
3
9
7
Specialty Consultants
Support Analysts
CFA and/or CAIA charterholders
Masters degrees
703 Manager Searches completed over the
last 5 years
$150 bn Assets represented
by these searches
1,110 Average number of
manager meetings per year
2300+ Organizations tracked in
proprietary database
6500+ Unique products tracked in
proprietary database
20,000+ Individual investment
vehicles tracked in proprietary
database
Qualitative Analysis
Quantitative Analysis
Philosophy/Process
Historical Performance
What is the firm’s investment philosophy and process? Has it
remained consistent over time?
How has strategy performed relative to peers and benchmarks over
various measures and time periods? (cumulative, calendar year, rolling
periods, rising/declining markets, stylistically extreme periods).
Performance
Risk Adjusted Returns
Is there a rational explanation for periods of large
out/underperformance?
Have the returns generated by the portfolio been in line with the risks
being taken?
People/Organization
Portfolio Characteristics
What are the investment professionals’ qualifications and
experience?
How do these characteristics compare to peers and to stated
benchmarks? Does this help explain historical performance patterns
given market environment?
Portfolio Construction
Attribution
How are portfolios constructed and what are the parameters?
What are the sources of relative performance? Is this consistent with
stated philosophy, process, and objectives?
Advantages of Working
with Mutual of Omaha
Retirement Services Open
Architecture 2.0
• Product level
 Callan Associates
• Plan level
 Mesirow Financial
• Participant level
 Non-proprietary QDIA Continuum options
• Mesirow Financial Fiduciary Partnership Service
 ERISA Section 3(21) selection and monitoring co-fiduciary service
 Full discretionary ERISA Section 3(38) Investment Manager service
 Reviews all the funds and provides fiduciary coverage for funds on
the Elite and Guideline lists
 Provides ongoing fund monitoring and reporting
A separate agreement is required for services from Mesirow. Additional fees apply.
• Combines quantitative screens/qualitative analysis
• Mesirow Financial POLICE Report®
– Performance
– Organization
– Legal
– Investment Policy
– Consistent Style
– Expenses
• Quarterly marketing commentary and fund fact sheets
QDIA Options
• Four QDIA options (all non-proprietary):
– Target Date Funds:
• Vanguard Target Retirement Funds
• GlidePath Retirement Series
– Individually Managed Accounts:
• Stadion Money Management
• Morningstar® Retirement ManagerSM
• Organized investment
oversight for you
• Differentiates service
model
• Scalable / repeatable
• Saves you time
Disclaimers and Important
Information
Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC09(CT) or 902-GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in
all states except New York. United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide
except in New York. Companion Life Insurance Company, Hauppauge, NY 11788 is licensed in New York and
underwrites the group variable annuity (Form 900-GAQC-07(NY)). Each company accepts full responsibility for
each of their respective contractual obligations under the contract but does not guarantee any contributions or
investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as
provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life Insurance
Company, nor their representatives or affiliates offers investment advice in connection with the contract.
Specific features of the Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT)
or 651-GAQR-10(OR)) vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available
in Nevada or New York.
Group variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred
basis for retirement purposes. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½,
a 10 percent federal tax penalty may apply. Investing in a group variable annuity involves risk, including possible
loss of principal.
Investments in target date funds are subject to the risks of their underlying funds. The year in the fund name refers
to the approximate year (the target date) when an investor in the fund would retire and leave the work force. The
fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its
target date. The principal value of the fund(s) is not guaranteed any time, including on or after the target date.
For producer use only. Not to be used with any plan sponsor or participant
Disclaimers and Important
Information
Mesirow Financial is not affiliated with Mutual of Omaha and its affiliates. Mesirow Financial refers to
Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial
name and logo are registered service marks of Mesirow Financial Holdings, Inc. ©2014, Mesirow
Financial Holdings, Inc. All rights reserved. Advisory services offered through Mesirow Financial
Investment Management, Inc. an SEC Registered Investment Advisor.
Callan Associates, Inc. is not affiliated with Mutual of Omaha and its affiliates.
Stadion Money Management, LLC is not affiliated with Mutual of Omaha and its affiliates.
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