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Margaret Kirch Cohenmargaret.cohen@morningstar.com
NYLIM Retirement Plan Services and Morningstar Associates Announce Revolutionary Investment Advisory Services for 401(k) Plan Sponsors

CHICAGO, Aug 16, 2002 – NYLIM Retirement Plan Services, a division of New York Life Investment Management LLC (NYLIM), and Morningstar Associates, LLC, today announced they are launching an innovative new service called Portfolio CompleteSM, a comprehensive suite of investment advisory services for NYLIM's 1,500 retirement-plan sponsor clients as well as new prospects. As a key feature of the service, Morningstar Associates will act as a fiduciary to those plan sponsors who adopt its recommended investment lineup. 

The agreement between NYLIM Retirement Plan Services and Morningstar Associates creates the largest undertaking of its kind in the industry and represents the first time a leading retirement-plan provider is offering Morningstar Associates' investment consulting and fiduciary services to its entire plan-sponsor client base and their advisors. 

As part of the program, Morningstar Associates, a registered investment advisor and independent investment consultant, will perform a variety of services ranging from investment lineup construction to ongoing investment monitoring. In some cases, Morningstar Associates will serve as a fiduciary in advising on the plan's investments. 

Portfolio Complete will become totally integrated into NYLIM's core retirement product for new clients and also will be offered to all existing plan-sponsor clients. The new service will begin to roll out in the fall of 2002. In addition, for plan sponsors working with a financial advisor, the product works seamlessly to complement the financial advisor's role. This product will be made available in addition to NYLIM Retirement Plan Services' traditional investment consulting practice.

"Given the increasing focus on defined contribution plan investments, NYLIM feels the time is right to offer its plan sponsors a fundamentally different type of investment support," said Barry Schub, senior managing director of NYLIM Retirement Plan Services. "We are excited to offer the outstanding capabilities and fiduciary support that only a company of Morningstar's stature can provide." 

To meet the varied needs of NYLIM Retirement Plan Services' clients, Portfolio Complete allows plan sponsors to choose among three levels of investment due diligence support, each designed to help meet a plan sponsor's specific needs. 

The Level 1 option, known as the "Complete Solution," provides the plan sponsor with a full investment support structure including a demographic screening of the company's employee base, a specific fund lineup, a customized investment policy statement, and ongoing investment monitoring of how the overall fund lineup--as well as each fund in it--is meeting its investment objectives. For plan sponsors who choose this option, Morningstar Associates will serve as a fiduciary in advising on the plan's investments. 

The Level 2 option, known as the "Approved Solution," gives plan sponsors a framework for building an investment lineup. This option includes a demographic screening of the company's employee base, a category-level lineup complemented by a premier list of funds, a customized investment policy statement, and ongoing investment monitoring. If the plan sponsor adheres to the recommendations of Morningstar Associates and chooses funds from the premier list, Morningstar Associates will serve as a fiduciary in advising on the plan's investments. 

The Level 3 option, known as the "Flexible Solution," includes a premier list of funds, ongoing investment monitoring, and Morningstar Associates' investment policy guidebook. A plan sponsor selecting the Flexible Solution can work with either a broker or consultant to design the plan's investment lineup. Morningstar Associates is not acting in a fiduciary capacity under this option. 

"Through this unique arrangement with NYLIM, we are able to offer plan sponsors a complete investment solution-- from overall lineup design to individual fund selection and ongoing investment monitoring--all in one comprehensive service," said Patrick Reinkemeyer, president of Morningstar Associates' Institutional Investment Consulting group. "Portfolio Complete will make it easier for plan sponsors to offer and oversee a well-structured investment menu that, in the end, will help participants more readily meet their investment objectives." 

In February of this year, the two companies also announced that NYLIM would provide the Morningstar ClearFuture investment-advice service to participants in NYLIM's client plans. Today's announcement is the next step in a growing relationship between NYLIM and Morningstar. 

About Morningstar Associates, LLC
Morningstar Associates, LLC, is a registered investment adviser and wholly owned subsidiary of Morningstar, Inc., a global investment research firm. Morningstar Associates' Institutional Investment Consulting group provides fund selection, evaluation and analysis, portfolio design, asset allocation, and monitoring services for a number of leading corporations and financial services institutions. 

About NYLIM Retirement Plan Services
NYLIM Retirement Plan Services administers more than $8 billion in comprehensive defined contribution, defined benefit and deferred compensation plans as of June 30, 2002. NYLIM Retirement Plan Services oversees retirement programs for small, medium and large companies, unions, and individuals throughout the United States, and is widely recognized for its leadership in bundled defined contribution and bundled defined benefit plans.

With more than $150 billion in assets under management as of June 30, 2002, NYLIM and its affiliates provide investment management and related services to a wide range of individual, corporate, public, and Taft-Hartley clients. NYLIM offers institutional asset management, retail investments, retirement plan services, guaranteed products, real estate investments, and alternative investments.

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