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TheStreet Open House

Financial Engines Enrolls 600,000th Managed Account Member

Financial Engines today announced it is now helping more than 600,000 American workers manage their 401(k) accounts through the company’s Professional Management service. The managed account service professionally manages workers’ 401(k) accounts and provides every worker access to an independent investment advisor. The company now manages more than $50 billion in assets for workers in employer-provided defined contribution plans.

With this milestone, Financial Engines confirms its place as the nation’s largest fee-only registered investment advisor (RIA), managing more than double the assets of the next-largest RIA providing investment advice to individuals, according to InvestmentNews annual rankings 1. The company also remains the leader among defined contribution managed account providers. Boston-based research firm Cerulli Associates ranked Financial Engines as the largest defined contribution managed account provider in the 1Q 2012 Cerulli Edge Retirement Edition. 2

“Financial Engines was founded with the goal of helping everyday American workers achieve a more secure retirement,” said Jeff Maggioncalda, president and chief executive officer of Financial Engines. “The key to our growth has been our independence, our technology-enabled services, and our ability to earn the trust of America’s largest employers. We have become the largest RIA in America in a very short period of time, but we’re helping only a fraction of the people who need help and will continue to expand our reach and impact.”

Helping Underserved Participants Regardless of Account Balance

Financial Engines’ proprietary technology platform enables the company to make high-quality, personalized advisory services available to millions of people who would not normally have access to independent professional advisors. Financial Engines provides professional 401(k) account management to 401(k) participants regardless of account balance. Half of the 600,000 participants in Financial Engines Professional Management have $41,000 or less in their accounts. In 2011, the company launched Financial Engines ® Income+, an extension of Professional Management and the first retirement income solution designed specifically for 401(k) plans. Income+ helps workers turn their savings into reliable retirement income by providing steady monthly payouts from a 401(k) account that can last for life.

A report from Aon Hewitt and Financial Engines published last year shows that using the help that Financial Engines provides can make a big difference in retirement readiness. According to the report, 401(k) participants who used employer-provided investment help between 2006 and 2010– such as target-date funds, managed accounts, and online advice – experience annualized returns nearly 3 percent higher (net of fees) than individuals managing their 401(k)s on their own. The full report can be accessed at www.financialengines.com.

“We selected Financial Engines to provide advisory services to our employees because we realized they needed help making the right choices to maximize their benefit under the plan,” said Madden Thomas, director of retirement benefits at Tesoro Companies Inc. “Managing a retirement portfolio can be complicated and overwhelming, and not everyone wants to do it themselves. Help from Financial Engines can enable our employees to be better prepared and on track for life after employment.”

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