IWS Digital Advice Solution: Betterment Institutional

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1 IWS Digital Advice Solution: Betterment Institutional Betterment Institutional (Betterment) allows RIAs to utilize the company s automated investing services and client experience to grow their business. Fidelity Institutional Wealth Services is working with Betterment to reach advisors who may be interested in adopting a digital advice model to help service their mass-affluent net new asset needs. Evolving Business Models The emergence of digital advice is one of the fastmoving trends affecting advisors today. More and more, individual investors (typically Gen-X and Gen-Y digital natives who are comfortable with technology and value accessibility) are interacting with advisors digitally, showing a real appetite for virtual financial advice. As such, RIAs are continually evolving their business model to help maintain a competitive edge. IWS Practice Management & Consulting is focused on educating RIAs on the options they have to help move their businesses forward, including introducing our clients and prospects to our many strategic alliance programs. To learn more about our alliance with a digital advice provider, please see the attached Betterment Institutional fact sheet. The emergence of digital advice is one of the fast-moving trends affecting advisors today.

2 For an introduction to Betterment Institutional, please contact your Fidelity relationship manager or sales representative. FIDELITY INSTITUTIONAL WEALTH SERVICES 200 SEAPORT BOULEVARD Z2B1 BOSTON, MA Fidelity Brokerage Services LLC (FBS) has entered into an arrangement with Betterment Securities whereby FBS provides information and education about Betterment Institutional to registered investment advisors (RIAs) interested in an investment- based digital advice solution, and Betterment Securities compensates FBS for such introductions. The amount of compensation FBS receives will vary based on the amount of assets the RIAs transfer to Betterment Securities. FBS s receipt of this compensation may incent FBS to introduce RIAs to Betterment Institutional. In no event shall FBS s introduction to Betterment Institutional constitute an endorsement, recommendation, or opinion as to the appropriateness of any relationship between RIAs and Betterment Institutional, Betterment Securities, or their agents or affiliates, or as to the suitability of any investment advice provided by Betterment Institutional or its agents or affiliates. For Investment Professional Use Only. Not for distribution to the public as sales material in any form. The content in the attached fact sheet is provided by Betterment Institutional. The content provided and maintained by any third-party Web site is not owned or controlled by Fidelity Investments. Fidelity takes no responsibility whatsoever nor in any way endorses any such content. The information contained herein is provided for informational purposes only and should not be considered legal, tax, or compliance advice. There is no form of legal partnership, agency, affiliation, or similar relationship among an investment professional, the third-party service providers, and Fidelity Investments, nor is such a relationship created or implied by the information herein. Betterment Institutional is an independent company and is not affiliated with Fidelity Investments. Providing this Betterment Institutional fact sheet does not suggest a recommendation or endorsement by Fidelity Investments. Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or its affiliated companies. Clearing, custody, or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC, Members NYSE, SIPC FMR LLC. All rights reserved

3 INTRODUCING Betterment Institutional The next-generation platform for advisors and their clients. What is Betterment Institutional? Betterment Institutional is a new experience for advisors and clients alike. With technology designed to streamline a client s investment process and accelerate an advisor s ability to serve their clientele, Betterment Institutional is the leading digital platform for advisors. Betterment Institutional gives advisors the tools they need to change the experience for all parties in wealth advisory. Advisor practices will become more productive, more efficient, and provide a next-generation interface for their clients. With Betterment Institutional, advisors can bring the best of digital advice to their clients, automate their workflow, and spend time in front of clients, building new business and strengthening existing relationships. 1

4 Advanced advisor tools. A better client experience. Branded client experience Paperless signup. Clients enroll online with no paperwork or signatures needed. Branded client experience. An advisor s brand is front and center in the client experience, s, and statements. Web and mobile apps. Clients can access their accounts through the web or on-the-go with beautifully designed iphone and Android apps. Advanced advisor tools Automated billing. Betterment Institutional automatically tracks, calculates, and distributes advisor fees. Advisor dashboard. Advisors have access to a real-time dashboard that provides transparency into their business and helps them manage client portfolios. Secure co-browsing. Advisors can securely access the client experience, and run a virtual meeting to set up client accounts, answer questions, and review performance. Automated portfolio services Tax Loss Harvesting+. Daily, continuous tax loss harvesting scans client portfolios for opportunities to realize losses. Tax optimization. Optimal tax lots are selected to minimize capital gains taxes, and cash flows and dividends are used to tax-efficiently rebalance portfolios. Diversified, low-cost portfolio. Advisors can offer a globally diversified set of 12 ETFs ranging from short-term Treasuries to international bonds and emerging market equities. Portfolio flexibility. Advisors can express their opinions about the markets by adjusting the allocation models within the portfolio. 2

5 Who is it for? Betterment Institutional is ideal for advisors who want to reach a wider range of clients, segment their business, serve millennials and emerging affluent investors, or simply spend more time working with existing clients. Simplify. Spend less time crunching numbers, executing trades, filing paper, producing ad hoc reports, and rebalancing portfolios. Betterment Institutional s advanced technology makes managing client portfolios easier than it has ever been. Segment. Develop strategies for the emerging affluent millennials and Generations X and Y. Serving new segments is now as easy as the click of a button. Scale. Onboard clients with a simple, paperless signup form and use Betterment Institutional s automated portfolio services to make it easier to service more clients, more efficiently. Start. Train new advisors in an easy to use environment and develop a succession plan to ensure the longevity of your business. What does it cost? There are no minimums, no upfront costs, and never any transaction costs. The asset management fees are divided into three components: 1. The Betterment Institutional platform fee of 25 bps. 2. Your advisor spread on top of the 25bps platform fee (up to 125 bps). 3. The expenses for the underlying low-cost ETFs, which are paid out of dividends. 3

6 All return figures shown above are for illustrative purposes only, and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market circumstances. Brokerage services provided to clients of Betterment LLC by Betterment Securities, an SEC registered broker-dealer and member FINRA/SIPC. Investments: Not FDIC Insured No Bank Guarantee May Lose Value. This material is limited to the dissemination of general information pertaining to Betterment s services. The information contained herein is not intended to be personal legal, investment or tax advice or a solicitation to buy or sell any security or engage in a particular investment strategy. Nothing herein should be relied upon as such. The views expressed are for commentary purposes only and do not take into account any individual personal, financial, or tax considerations. There is no guarantee that any claims made will come to pass. Investing in securities involves a risk of loss that investors should be prepared to bear. Past performance does not guarantee future results. Individuals should consult their financial professional before making any investment decision. Betterment LLC ( Betterment ) is an SEC registered investment adviser with its principal place of business in the State of New York. This is not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment is not registered. For additional information about Betterment, including fees and services, please contact Betterment or refer to the Investment Adviser Public Disclosure website ( Please read the disclosure statement carefully before you invest or send money. 4