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Asset Allocation the Right Way

Reach realistic retirement income security with your Accenture retirement plan using Horizon™ flexible asset allocation. Grow your retirement plan value and achieve a 100% replacement ratio for your final salary.

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Asset Allocation the Right Way

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  1. Money Market (No Asset Allocation) Fixed Asset Allocation (PDAA) Horizon™ Flexible Asset Allocation (FAA) Horizon™ Flexible Asset Allocation“Asset Allocation the Right Way”™ “Reach Realistic Retirement Income Securitywith your Accenture Retirement Plan” Start Finish:RetirementIncomeSecurity Elliot Fineman Senior Vice President Compass Investors, LLC Direct: (312) 938-0248 efineman@compassinvestors.com March 2006

  2. Your Retirement Plan Goal Should Be… • FACT: Studies show that most people rely on their current income for their livingexpenses. This will be no different at retirement age. • According to Sue Stevens, Director of Financial Planning for Morningstar, • “Most of my clients plan to have 100% of their pre-retirement income.” • Olivia Mitchell, Executive Director of Wharton’s Pension Research Council Financial Planners espouses that • “People will need a 100% [salary] replacement rate.” • Note: Assuming a 3% annual salary increase, your Final salary will be 1-3 times your Current salary depending on the number of years left to work.

  3. Risk Factor Status Comment At 65, a 50% chance of reaching 90 Life Expectancy ñ (1) i.e., 20-25 years with no salary (2) Medical Costs ñ +14% Per Year Social Security ? Benefit levels in doubt 3% Per Year over 20-25 years of retirement = Inflation ñ A 50% loss of Purchasing Power $100 cost today will cost $200 in 20-25 years Why Should This Be Your Goal? “A 100% replacement of your Final Salaryduring retirement is a MUST!” (Wharton, Morningstar, Wall Street Journal, Compass Institute) Most Retirement Plan Participants are on a path toreplace ONLY 60% (before inflation) of their Final Salary.—Fidelity Investments study, January, 2006 • Wharton 8/27/03, Pacific Life 10/04; • Wall Street Journal 7/1/04

  4. How Your Retirement Plan Can Provide You With a 100% Replacement Ratio STEP 1: Grow the value of your Retirement Plan to20X your final salary by retirement. STEP 2: Then, buy an annuity/bond that pays5% annual interest. This is readily doable by most with a 6% contribution with a 3% company match.

  5. What You Need To Reach Retirement Goal:Horizon™ Action Report for Accenture’s 401(k) Plan(Entire Plan Allocation) Exhibit Only The Action Report identifies the best positioned funds every 5 weeks and it takes 5 to 10 minutes to reallocate.

  6. Compass Investors, LLCandCompass Institute, LLCCredentials Compass Investors Horizon™ is the right way to do Asset Allocation and grow your Retirement Plan.

  7. Compass Investors Horizon™Supported Retirement Plans • Individuals with the following company-sponsored Retirement Plans and/or IRAs are currently using Compass Investors Horizon™: Horizon™ has produced long-term, audited results—with low risk—that exceed the best traditional Asset Allocation approaches of financial experts (such as Fidelity, Vanguard,Value Line, and Financial Planners) by over 80%.

  8. The Evolution of Retirement Plan Strategy for:Needed Higher Returns, Low Risk and Protection of Plan Value • Money Market (Cash) • Default Option • Buy & Hold (Stocks) • Dollar Cost Averaging • Predetermined Asset Allocation (PDAA) (Stocks & Bonds) • Fixed % • Flexible Asset Allocation (FAA) (Stocks & Bonds) • Flexible % Compass Institute was the leader in developing FAA and uncovered the ‘Time of Retirement’ risk

  9. Market Cycle:1/1/1997 - 12/31/2005 True Investment Performance (No contributions) Application of Horizon™ to the Accenture 401(k) Plan vs. Plan's Best Asset Allocation/Life Cycle Fund (PDAA), Money Market, and the Plan Index (PI) The chart shows 4 different paths a Accenture 401(k) Plan participant could take. $100,000 is put into each of 4 strategies on 1/1/97 and no further contributions are made. By 7/30/05, Horizon™ (dark blue line) had grown to $400,000. The best PDAA fund (light blue line) was worth only $200,000—less than 1/2 of the Horizon™ FAA value. After the peak of the initial Up market (March, 2000) the results seen during the ensuing 3-year Down Market that followed are striking. Horizon's™ low point is $232,000 The PDAA strategy falls to $136,000,losing nearly 1/3 of it’s Plan value. Why? Because PDAA requires that a big % be held in stocks for the entire Down market, losing money the entire time. Thevalue of the best PDAA strategy fell close to Money Market levels for more than a year. You could not retire with such low Plan value.This is the horrific “Time of Retirement Risk” that all PDAA approaches expose you to. (Continued on next slide) Up Market (A) Down Market (B) Up Market (C) Horizon™ FAA Recovery Max = $428,000 +$196,000 Horizon™ FAAInitial Max= $322,000 Horizon™ FAA Low AfterInitial Max = $232,000 -$90,000 (-27.9%) PDAARecovery Max= $211,000 PDAA Initial Max = $200,000 -$64,000 (-32.0%) +$75,000 PDAA Low AfterInitial Max = $136,000

  10. Horizon™ Proven Best for All Market Cycles:Success = “Marathon” not a “Sprint”

  11. What is Average Annual Return (AAR) • Average Annual Return (AAR): The true average yearly investment return over the life of the plan • Excludinggrowth due to Contributions and/or Profit Sharing If Over 10 Years AAR Is $1000 grows to $2000 7.2% (No contributions) $1000 grows to $2000 0.7% (With 9%/year ($90) contribution) Overestimating your AAR gives a FALSE sense of security—a Fatal error. Note: Typical self-directed AAR < 5%

  12. Long-Term AAR Asset Class (1) 1925-2002 Equities (Stocks) 10.2% Fixed Income (Bonds) 5.5% Money Market/Cash 3.8% Inflation 3.4% Long-term AAR by Asset ClassOver Market Cycles The barrier to long-term AAR Note: In general, Stocks and Bonds move in opposite directions. The BEST long-term AAR you can expect withwrong way Asset Allocation is between 5.5% and 10.2%. But, a 12% MINIMUM long-term AAR is required toreach Retirement Income Security (RIS) by age 65. • Ibbotson Associated

  13. Accenture Plan Money DJIA Time Period Best PDAA: Market Horizon™ Fidelity Freedom Funds* Current Guarantee Period 15.0% 6.9% 1.3% 2.6% 1/1/2002 - 12/31/2005 Up/Down/Up Market Cycle 17.5% 8.6% 3.6% 5.9% 1/1/1997 - 12/31/2005 Down/Up Market Cycle 1/1/2000 - 12/31/2005 Average over Both Market Cycles * 1/1/2002 - 7/30/2005 and 1/1/1997 - 7/30/2005: Freedom 2020 1/1/2000 - 7/30/2005: Freedom 2000 AAR Comparisons: Horizon™ for Accenture Retirement Plan vs. Best PDAA Strategy(Two Market Cycles, Guarantee Period) • The chart shows the most recent 2 market cycles and the Horizon™running 3 year Performance Guarantee period* for the Accenture 401(k) Plan. • The Horizon™ FAA solution produces returns that surpassed, by far, all the best PDAA strategies and the Dow Jones Index. • During the Down/Up market cycle, the best PDAA AAR was only slight higher than that of a Money Market fund. • Horizon™is always the best thing to do over all market cycles as it: • Minimizes and stops losses in Down markets; • Maximizes gains in Up markets. • So what do get when you become a Horizon™ subscriber. Let’s see… • * Horizon™ will, over any 3 year period, guarantee to outperform the return of the Plan Index and the best PDAA fund available in the Plan, or the best 80/20 Equity/Fixed Income mix of the Plan’s funds if the Plan does not have an PDAA Fund. 8.7% 3.4% 2.7% (1.2%) 13.0% 6.0% 3.2% 2.4%

  14. Age When Final Salaries (100% Replacement Ratios) Are Reached With Various Strategies for Accenture’s 401(k) Plan Results shown for “Typical” Plan Participant* A low AAR will NEVER provide income security by age 65.No one can afford to gamble on the ‘Time of Retirement’ risk.

  15. Horizon™ for Accenture Required TOTAL % % Contributions Going Average AAR = 13% over Contribution to reach Forward * Both Market Cycles Current Retirement Goal by age 65 Age with Best LifeCycle Fund Age when Participant Accenture Plan value Average AAR = 6% over Retirement % % at age 65 Both Market Cycles Goal is Met 27% 25 Participant = 24% Accenture = 3% 35 45 * You can calculate your own numbers using the free calculator available on the Compass Investors website Calibrated Contribution Levels for Accenture Plan to Reach Retirement Goal—Final Salary Every Year of Retirement for Life—by Age 65 (or sooner) 62 4% 2% $2,483,000 36% 63 2% 1% $2,444,000 Participant = 33% Accenture = 3% 58% 65 4% 2% $1,951,000 Participant = 55% Accenture = 3%

  16. Realities of Retirement Plans and Horizon™ • Mutual Funds contain a hidden cover charge • ¾% - 1% of Assets = 15% - 18% of final Plan value,even if you do nothing • Net Plan value is 11-13 times greater than its hidden fees • Horizon’s™ fixed-fee = 0.3% - 0.4% of final Plan value • Horizon’s™ net Plan value is 190 times greater than its fees. • OnlyHorizon™ can and does offer Performance Guarantees • No cost/feesinvolved in reallocation • Best positioned funds—NOT Market Timing (which attemptsto catch Daily Trends)

  17. What Horizon™ provides by doingAsset Allocation the Right Way • Plan values by age 65 that are 4 to 8 times higher than traditional (i.e., wrong way) Asset Allocation approaches. • Far less risk by protecting Plan values in Down markets. • A Managed Account at a fraction of the cost • 80% to 90% lower • Lower cost outlay options • Increased take-home pay • Redirect savings to other company benefits(e.g., Long Term Care Insurance)

  18. Horizon™ Subscription Options • Horizon™ subscription fee • Subscribe during this year’s enrollment period? • “Yes” = $50/month or ~$1/day if you itemize (Fixed-fee for life) • “No” = $70/month (subject to rate increases) • ‘Jump Start’ Program • New 401(k) Plan Participant or Plan balance < $10,000 • 1st 3 years @ 50% discount You only have one chance to reach your needed retirement goal. Horizon™ is proven to be the only strategythat can allow you to do it.

  19. Possible Outcomes Over The Next Year Biggest risk to protecting and growing your plan value is to delay taking action with Horizon™.

  20. Final Comments AboutA Given Set of Funds in an Existing Retirement Plan • There can only be ONE solution that • Optimizes return while minimizing risk and protecting Plan value. • Horizon™ is the right way to do Asset Allocationover all Market Cycles • Outperforms in Up markets, • Protects Plan value in Down markets, • Delivers the quickest recovery after Down markets, • Produces the highest Plan values at Retirementwith the lowest risk. Only Horizon™ can provide all this—and does so with the lowest risk.

  21. How to enroll in Horizon™ during this year’s enrollment period • We look forward to welcoming you to the Horizon™ family. • NOTE: In addition to supporting company and University Retirement Plans, Compass Investors has assembled selected fund collections that are guided by Horizon™ for people who are: • Rolling over into an IRA; • Have or want to establish a Roth 401(k) Plans; • Have money outside a retirement Plan that they want to guide with Horizon™; • Have their own business and want to build retirement income security using Horizon™. • Send an email to: inquiries@compassinvestors.com for information on how to start using the breakthrough Horizon™ strategy for your Retirement Plan today. • You are eligible for special subscription optionsthat include: • A lifetime, fixed subscription fee • Two Performance Guarantees • A New Subscriber gift • The Jump Start discount (if eligible) • To subscribe to Horizon™ and be advised of this year’s enrollment period, send an email to: • inquiries@compassinvestors.com. • Be sure to include your Plan name (i.e., Accenture) in the email. IMPORTANT: You must subscribe during this year’s enrollment period to being using Horizon™.

  22. Long-term AAR Results forRecent Market Cycles Horizon’s™ plan-specific performance results have been independently audited by Ashland Partners & Co., LLP the world-wide leading firm that audits reported performance results.

  23. Increase contributions by 100%

  24. Increase AAR by 60%

  25. Delay increasing AAR by 1 year. $69,000 impact on final Plan value

  26. Increase AAR to Horizon’s™ expected 12.5%

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