METHODOLOGY

Summary: The information in the report is assembled and organized from our Annual Sales Compensation Questionnaire which is completed by companies; plus extensive field and telephone interviews are utilized for both collection and validation of data. DGL collects, analyzes and maintains a dynamic participant (companies and individuals) database.

In order to make valid peer comparisons, this report divides Mutual Fund Companies into two peer groups — 1st Tier Group and 2nd Tier Group Companies. Companies are categorized as top-performing or average-performing based upon sales production per Wholesaler.

GROUPINGS: Data is segmented by:

• Product — All Products and Channels, Single-Product, Multi-Product, Single-Channel, and Multi-Channel;
• Distribution — Banks, Consultants, Insurance, Planners/Independents, and Wire Houses;
• Sales Force Size — <24, 24-55, 56-80, 81-100, and >101 (includes Internal and External Wholesalers, Divisional and National Sales Managers, plus Channel Managers);
• Territory — >6 States, >3-6 States, >1-3 States and <=1 State; and,
• Sales Manager Levels — National and Divisional.

KEY DEFINITIONS:

1st Tier Group Companies: Those companies for which mutual fund assets exceed $60.0 Billion.

2nd Tier Group Companies: Those companies for which mutual fund assets are $60.0 Billion or less.

Top Companies: The top 7 companies in each of the tier groups with the highest sales production per sales person. Note: the makeup of the Top 7 companies in each tier group remains constant throughout the report.

Average Companies: Average tier group benchmarks are averages of all companies in the tier group sample including the Top 7.

All Products and Channels: Aggregate of Sales Forces responsible for selling single or multiple products in single or multiple channels.

Single-Product: Sales Force responsible for single product sales (e.g., Mutual Funds only).

Multi-Product: Sales Force responsible for multiple product sales (e.g., Mutual Funds and Annuities, but not Mutual Funds only).

Single-Channel: Sales Force sells to single distribution channel audience (e.g., Banks or Planners/Independents, but not both).

Multi-Channel: Sales Force sells to multiple distribution channel audiences (e.g., Banks and Planners/Independents, but not Banks only).

Spans of Control:

• Inside Sales per Wholesaler — The average number Inside Sales assigned to a single Wholesaler.
• Channel Managers per Distribution Audience — The average number of Channel Managers assigned to a single Distribution Channel.
• Wholesalers per Sales Manager — The average number of Wholesalers reporting to a single Sales Manager.