Tiburon Strategic Advisors CEO Summit XVIII April 14-15, 2010
Tiburon CEO Summit XVIII April 14-15, 2010
Table of Contents
Tiburon CEO Summit XVIII Welcome • Tiburon CEO Summit XVIII Feedback Form..………………………....……………………………... 1 • Tiburon CEO Summit XVIII Agenda……………..….……………………………...………………….. 2 • Tiburon CEO Summit XVIII Attendee List (Alphabetical & By Company).…...... 3
Day 1: Wednesday • Tiburon CEO Summit XVIII Welcome & Future of Advice with Chip Roame…………….……....4 • Guest Speaker Presentation: Steve Forbes...... 5 • Guest Speaker Presentation: Fred Tomczyk………………………….…...…………………...... … 6 • Guest Speaker Presentation: Abby Cohen…………………………………………………………… 7 • Break-Out Sessions (BOS)………………………………………………………...……………………. 8 – BOS I: Incorporating Alternative Investments in Fee-Based Platforms (Facilitated by Ron Cordes from Genworth Financial).....……………….………..Salon A – BOS II: 50,000 Clients Can’t Be Wrong (Facilitated by Julie Littlechild from Advisor Impact)…….…………………...... Salon B – BOS III: The Growth of Personal Financial Management on the Web (Facilitated by Neal Ringquist from Advisor Software)……….………….Heritage Room – BOS IV: Delivering a Differentiated Wealth Management Experience (Facilitated by Dennis Clark from Advisor Partners)….……………………………...Rise I – BOS V: Updating Modern Portfolio Theory & Static Asset Allocation (Facilitated by Kirk Michie from Triton Pacific Securities).………………………..Rise III • Guest Speaker Presentation: Jim McCool..……………………...…………………………………… 9 • Guest Speaker Presentation: Jonathan Steinberg………………………………………...………... 10 • General Session Panel Discussion: Ask the Stock Analysts……………………………………... 11
Day 2: Thursday • Tiburon Services Overview, Day One Recap & Day Two Kick-Off, & Tiburon Q&A with Chip Roame…………………………………………………….……...……………. 12 • Guest Speaker Presentation: Ed Bernard...... 13 • Guest Speaker Presentation: David Tittsworth..………………………………...………………….. 14 • Formal Tiburon CEO Summit XVIII Closing with Chip Roame……………………………………. 15 • Epilogue I: General Session Panel Discussion: Ask the Reporters.………….…………………. 16 • Epilogue II: General Session Panel Discussion: Ask the Consumers…..………………………. 17
Tiburon CEO Summit XVIII Reference Documents • Tiburon Brochure ………………………………………..…..…………………………………………… 18 • Tiburon Managing Principal ……………………………………………………………………………. 19 • Select Tiburon Staff & CEO Summit Helpers……………………..………………………………….. 20 • Tiburon CEO Summit XVIII Sponsors …...... …….….……………………………………………….. 21 • Tiburon CEO Summits Past Media Coverage.……………………………………………………….. 22
Meeting Agenda
Tiburon CEO Summit XVI will officially start at 7:45am on Wednesday, April 15, 2009, include a group dinner that night in New York and finish at 5:30pm on Thursday, April 16, 2009.
More casually, Tiburon CEO Summit XVI will begin with a cocktail reception the prior evening, Tuesday, April 14, 2009 at 6:00pm, at the Ritz Carlton Hotel in New York, NY (Battery Park City).
Agenda Details
The planned agenda is as follows:
Tuesday, April 14, 2009
6:00pm-9:00pm: Cocktail Reception
Tiburon will host a casual cocktail reception at the
Ritz Carlton Hotel
Wednesday, April 15, 2009
7:00am-7:45am: Continental Breakfast
Attendees should feel free to bring breakfast foods to the opening session
7:45am-8:00am: General Session Presentation
Welcome & CEO Summit Logistics Facilitated by Skip Schweiss (President, TD Ameritrade Trust Company)
8:00am-9:15am: General Session Opening Keynote Presentation: Tiburon CEO Summit XVI Welcome & State of the Financial Services Industry Tiburon's Managing Principal Chip Roame Presented by Chip Roame will kick-off Tiburon CEO (Managing Principal, Tiburon Strategic Advisors) Summit XVI Introduction by Skip Schweiss (President, TD Ameritrade Trust Company)
9:15am-10:15am: Current Events General Session Panel Discussion Current Events General Session Panel Moderated by Chip Roame Discussion (Managing Principal, Tiburon Strategic Advisors) Tiburon Client Panelists: Chuck Baldiswieler (Group Managing Director, Trust Company of the West (TCW)), John Cammack (Head, Third-Party Distribution, T. Rowe Price Group), Steve Deschenes (Chief Marketing Officer, Retirement Income Group, Mass Mutual Financial Group), John Murphy (Chairman, Oppenheimer Funds), & Steve Wallman (CEO, Foliofn)
10:15am-10:30am: Morning Refreshments & Cell Phone Break Guest speaker Mark Casady (CEO, LPL Financial) 10:30am-11:30pm: General Session Guest Presentation:
Presented by Mark Casady (CEO, LPL Financial) Introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors)
11:30am-12:30pm: General Session Guest Presentation: Guest speaker Kip Condron (CEO, Axa Presented by Kip Condron Financial) (CEO, Axa Financial) Introduction by John Cammack (Head, Third-Party Distribution, T. Rowe Price Group)
12:30pm-1:30pm: Group Picture & Hot Buffet Lunch
Group picture to be taken as efficiently as possible Guest Speaker Scott Lunch served at hotel Powers (CEO, State Street Global Attendees should feel free to bring lunch to the Advisors) afternoon sessions
1:30pm-2:30pm: General Session Guest Presentation:
Presented by Scott Powers (CEO, State Street Global Advisors) Introduced by Tony Rochte (Senior Managing Director, Intermediary Business Group, State Street Global Advisors, State Street Guest Speaker Ken Corporation) Fisher (CEO, Fisher Investments)
2:30pm-3:30pm: General Session Guest Presentation:
Presented by Ken Fisher (CEO, Fisher Investments) Introduced by Chip Roame (Managing Principal, Tiburon Strategic Advisors)
3:30pm-3:45pm: Follow-On Discussion & Cell Phone Break
3:45pm-4:45pm: General Session Guest Presentation: Guest Speaker Roger Ibbotson (Professor, Yale University; Presented by Roger Ibbotson Chairman, Zebra Capital Management; (Professor, Yale University; & Former CEO, Chairman, Zebra Capital Management; & Ibbotson Associates) Former CEO, Ibbotson Associates) Introduced by Chip Roame (Managing Principal, Tiburon Strategic Advisors)
4:45pm-5:45pm: Break-Out Sessions
Modern Portfolio Theory: Dealt a Fatal Blow by the Bear Market? Break Away Brokers: Is the Flood About to Happen? Financial Advisor Technology: Building the Ultimate Wealth Management Delivery System
5:45pm-7:00pm: Free Time & Cocktail Hour
7:00pm-10:00pm: Tiburon CEO Summit XVI Group Dinner
Thursday, April 16, 2009
7:00am-7:45am: Continental Breakfast
Attendees should feel free to bring breakfast foods to the opening session
7:45am-8:00am: General Session Presentation
Day One Recap & Day Two Kick-Off Facilitated by Tif Joyce (President, Joyce Financial Management) Guest Speaker Paul Stevens (CEO, Investment Company 8:00am-9:00am: General Session Presentation: Institute) Tiburon Strategic Advisors Q&A
Facilitated by Chip Roame (Managing Principal, Tiburon Strategic Advisors) Introduction by Tif Joyce (President, Joyce Financial Management)
9:00am-10:00am: General Session Guest Presentation: Guest Speaker Jud Bergman (CEO, Presented by Paul Stevens Envestnet Asset (CEO, Investment Company Institute) Management) Introduction by Tif Joyce (President, Joyce Financial Management)
10:00am-10:30am: Cell Phone Break
10:30am-11:30am: General Session Guest Presentation:
Presented by Jud Bergman (CEO, Envestnet Asset Management) Guest Speaker Jeffrey Introduction by Chip Roame Dunham (CEO, (Managing Principal, Tiburon Strategic Advisors) Dunham & Associates Investment Counsel) 11:30am-12:30pm: General Session Guest Presentation:
Presented by Jeffrey Dunham (CEO, Dunham & Associates Investment Counsel) Introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors)
12:30pm-1:15pm Lunch Break
Lunch served at hotel Attendees should feel free to bring lunch to the afternoon sessions Guest Speaker 1:15pm-2:15pm: General Session Guest Presentation: Jessica Bibliowicz (CEO, National Financial Partners) Presented by Jessica Bibliowicz (CEO, National Financial Partners) Introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors)
2:15pm-3:00pm: General Session Panel Discussion: Ask the Consumers Panel
Facilitator: Tif Joyce (President, Joyce Financial Management) Consumer Panelists: Josh B., Maureen B,. Keith G., & Sonja W.
3:00-3:45pm: General Session Panel Discussion: Ask the Advisors Panel
Facilitator: Jenn Connelly (CEO, JCPR) Financial Advisor Panelists: Tom Lydon (President, ETF Trends), Mark Penske (CEO, United Advisors), Adam Sheer (President. The Roosevelt Group), & Bill Walsh (President, Hennion & Walsh)
3:45-4:30pm: General Session Panel Discussion: Ask the Gatekeepers Panel
Facilitator: Bill Salus (Chief Business Development Officer, PNC Global Investment Servicing) Gatekeeper Panelists: Bill Crager (President, Envestnet Asset Management), Steve Dunlap (Chief Operating Officer, Pershing Managed Account Solutions), AJ Harper (President, ADVISORport, PNC Global Investment Servicing), & Brian O'Toole (CEO, Genworth Financial Wealth Management)
4:30pm-5:30pm: Break-Out Sessions
Separately Managed Accounts & Other Fee-Account Programs Alternative Investments: What is the True Working Definition of Alternative Investing? Ascend To New Heights: Distribution Insight That Works
Tudor Jones is responsible for all logistics, photography, & media relations; feel free to contact him on site with any questions.
Tiburon CEO Summit XVIII Attendee List
Rick Adler Mike Apker Chuck Baldiswieler Chip Roame Chris Alpaugh CEO Business Head CEO Managing Principal Senior Managing Director Convergent Capital Reporting & Data Aggregation TCW Funds Tiburon Strategic Advisors Alliance Bernstein Management Services TCW Group Envestnet Asset Management
Jordan Berlin Tony Batman Jon Baum Michael Bell Jud Bergman Senior Managing Director CEO CEO CEO CEO Advanced Equities Financial 1st Global Capital Corporation The Dreyfus Corporation Curian Capital Envestnet Asset Management Corporation
Philip Blancato John Cammack Frank Campanale Ed Bernard Chris Blunt President Chairman CEO Vice Chairman Executive Vice President Ladenburg Thalman Asset Mutual Fund Education Advanced Equities Wealth T. Rowe Price Group New York Life Management Alliance Management
Tiburon CEO Summit XVIII Attendee List
Sal Capizzi Greg Cicotte Chief Sales & Marketing Amit Choudhury Randy Ciccati Dennis Clark Executive Vice President Officer Managing Principal President President Jackson National Life Dunham & Associates Pinnacle Partners Systems ING Wealth Solutions Advisor Partners Insurance Company Investment Counsel
Abby Cohen Chris Collins Mike Clinton Steve Cohen Jenn Connelly President Business Head Chief Operating Officer Chief Strategy Officer CEO Global Markets Institute Multi-Media Sales Loring Ward Group Pro Funds Group JCPR Goldman Sachs Group The Wall Street Journal
Scott Couto Ron Cordes Executive Vice President Anne Copeland Chris Cordaro Bill Crager Co-Chairman Investment Product Executive Vice President CEO President Genworth Financial Wealth Management & Marketing Wells Fargo Corporation Regent Atlantic Capital Envestnet Asset Management Management Fidelity Investments Institutional Services Company
Tiburon CEO Summit XVIII Attendee List
Peter Crenier Erika Cramer Business Head Ben Cukier Jeff Cusack Wayne Cutler Partner Business Development Partner President Managing Director Silver Lane Advisers Investment Services FTV Capital Forward Management Novantas Fiserv Corporation
Joe Deitch Jeffrey Dunham Dick Davies Gene Dongieux Darren Duffy Chairman CEO Senior Managing Director Chief Investment Officer Chief Operating Officer Commonwealth Financial Dunham & Associates Alliance Bernstein Mercer Global Advisors Lipper Network Investment Counsel
Randy Epright Steve Dunlap Jon Eaton Chief Operating Officer Harold Evensky Pat Farrell Chief Operating Officer Business Head AIG Advisor Group President CEO Pershing Managed Account Sponsor Relations American International Group Evensky & Katz Investacorp Solutions LPL Financial (AIG)
Tiburon CEO Summit XVIII Attendee List
Mike Gianoni Steve Forbes Rich Franchella Gary Gallagher Rich Goldman Group President CEO Senior Managing Director Executive Vice President CEO Financial Institutions Group Forbes Media RBC Wealth Management LPL Financial Security Global Investors Fiserv Corporation
Gail Graham Matt Grove Sean Hanlon Larry Greenberg Jim Hale Executive Vice President Business Head CEO CEO Founding Partner Marketing RIA Business Hanlon Investment Jefferson National Financial FTV Capital Fidelity Institutional Wealth New York Life Management Services
Scott Hanson AJ Harper Roger Hartley Keith Hartstein Debbie Hazell Co-CEO President Managing Member President CEO Hanson McClain PNC Managed Investments Mitchell Hartley Advisers John Hancock Funds Fischer, Francis, Trees, & Watts
Tiburon CEO Summit XVIII Attendee List
Chandresh Iyer John Iachello Richard Hoey Global Business Head CEO Brian Jacobs Dwight Jacobsen Chief Economist Investment Administration Brokerage Clearing & Chief Commercial Officer Executive Vice President The Bank of New York Mellon Services Operations Hatteras Funds The Dreyfus Corporation Corporation Citigroup Global Transaction Ameriprise Financial Services
Tom Johnson Business Head Bryce James Alistair Jessiman David Jobson David Johnson Business Development President Managing Director Executive Vice President Partner Retirement Income Security Smart Portfolios Novantas Allianz Global Investors Harpeth Partners Products New York Life
Eric Kirsch Business Head Jamie Kase Deena Katz Mark Katzelnick Rob Klapprodt Global Insurance Asset Executive Vice President Chairman Chief Operations Officer President Management Group State Street Global Advisors Evensky & Katz National Financial Services Vestmark Software Goldman Sachs Asset Management
Tiburon CEO Summit XVIII Attendee List
Jeff Lancaster Chuck Lewis Randal Langdon Stephen Langlois Bruce Lavine Principal CEO President Executive Vice President President Bingham, Osborn, & My Vest Corporation & Lindner Capital Advisors LPL Investment Holdings Wisdom Tree Investments Scarborough Personal Capital Corporation
Sarah Libbey Bob Lindner Julie Littlechild Jeff Lovell Joe Luby President CEO CEO Chairman CEO Fidelity Charitable Gift Fund Lindner Capital Advisors Advisor Impact Lovell Minnick Partners Jagen Funds
Doug Mangini John Lunny Tom Lydon Frank Maiorano Chief Operating Officer George McClelland CEO President CEO Retail & Intermediary Division Vice Chairman Vestmark Global Trends Investments Trust Company of America Morgan Stanley Investment F-Squared Investments Management
Tiburon CEO Summit XVIII Attendee List
Jim McCool Tom McManus Jerry Miller Jim Minnick Sanjiv Mirchandani Executive Vice President Chief Investment Officer CEO President President The Charles Schwab Wells Fargo Advisors Van Kampen Investments Lovell Minnick Partners National Financial Services Corporation
Kevin Mooney Keith Mitchell Viggy Mokkarala Robert Moore Ed Morrison Executive Vice President Managing Member Executive Vice President Chief Financial Officer Chief Operating Officer Business Development Mitchell Hartley Advisers Envestnet Asset Management LPL Investment Holdings Albridge Solutions Jagen Funds
Cheryl Nash Paul Morton Mike Mulcahy Amit Muni Jim Nagengast Global Business Head Business Head President Chief Financial Officer President Product Strategy Strategy & Platforms Bridgeway Funds Wisdom Tree Investments Securities America Investment Services Barclays Wealth Americas Fiserv Corporation
Tiburon CEO Summit XVIII Attendee List
Alan Pace Harry O’Mealia Liz Nesvold Bob Oros Kevin Osborn Regional Business Head CEO Managing Partner Executive Vice President Executive Vice President Americas Legg Mason Investment Silver Lane Advisors LPL Investment Holdings Prudential Investments Prime Finance Counsel Citigroup
Greg Pacholski David Perkins Chad Perry Alex Potts Scott Powers CEO CEO Deputy General Counsel CEO CEO Albridge Solutions Hatteras Investment Partners LPL Financial Loring Ward Group State Street Global Advisors
Tiburon CEO Summit XVIII Attendee List
George Riedel Margaret Prentice Howard Present Don Putnam Neal Ringquist Business Head Chief Marketing Officer CEO Managing Partner President Intermediary Distribution Regent Atlantic Capital F-Squared Investments Grail Partners Advisor Software T. Rowe Price Group
Bill Salus Rich Santos Tony Rochte Jake Rohn Jim Ross Chief Business Development Group Publisher Senior Managing Director Executive Vice President Senior Managing Director Officer Registered Rep & State Street Global Advisors Albridge Solutions State Street Global Advisors PNC Global Investment Trust & Estates Servicing
Michael Sapir Paul Schaeffer Ken Schapiro Skip Schweiss Maggie Serravalli CEO President President President Executive Vice President Pro Funds Group ReFlow Management Condor Capital Management TD Ameritrade Trust Company Fidelity Institutional
Tiburon CEO Summit XVIII Attendee List
Tom Sholes Executive Vice President David Smith Luciano Siracusano Babu Sivadasan Esther Stearns Strategic Planning & Global Group Publisher Chief Investment Strategist Executive Vice President President Product Management Charter Financial Publishing Wisdom Tree Investments Envestnet Asset Management LPL Financial PNC Global Investment Network Servicing
Randy Takian Jonathan Steinberg John Surface Leslie Swid Marie Swift Business Head CEO Executive Vice President Executive Vice President CEO Americas Distribution Wisdom Tree Investments Ever Bank Financial Impact Communications Impact Communications Morgan Stanley Investment Management
David Tittsworth Leno Toich Eric Teal Bill Thomas Allen Thorpe Executive Director Co-CEO Chief Investment Officer CEO Managing Director Investment Adviser Informa Investment Solutions First Citizens Banc Shares Grail Advisors Hellman & Friedman Association Informa
Tiburon CEO Summit XVIII Attendee List
Fred Tomczyk Frank Trotter Mitch Vigeveno Greg Vigrass Lac Vuong CEO President CEO President Co-CEO TD Ameritrade Ever Bank Direct Turning Point Folio Institutional Informa Investment Solutions
Gib Watson Steve Wallman Amiee Watts Scott Welch Leo Wells CEO CEO Executive Vice President Senior Managing Director CEO Prima Capital Management Foliofn JCPR Fortigent Wells Real Estate Funds
Kim Wright-Violich George Wilbanks Marty Willis Wayne Withrow Bob Worthington President Managing Director Chief Marketing Officer Executive Vice President President Schwab Charitable Russell Reynolds Associates Oppenheimer Funds SEI Investments Hatteras Funds The Charles Schwab Corporation
Tiburon CEO Summit XVIII Attendee List
Peter Ziemba General Counsel Wisdom Tree Investments
Tiburon CEO Summit XVIII Attendee List by Company
Jordan Berlin Frank Campanale Chip Roame Tony Batman Julie Littlechild Senior Managing Director CEO Managing Principal CEO CEO st Advanced Equities Financial Advanced Equities Financial Tiburon Strategic Advisors 1 Global Capital Corporation Advisor Impact Corporation Corporation
Randy Epright John Iachello Neal Ringquist Dennis Clark Chief Operating Officer David Jobson CEO President President AIG Advisor Group Executive Vice President Brokerage Clearing & Advisor Software Advisor Partners American International Group Allianz Global Investors Operations Advisor Partners (AIG) Ameriprise Financial
Debbie Hazell Jim Nagengast Chris Alpaugh Dick Davies Paul Morton CEO President Senior Managing Director Senior Managing Director Business Head Fischer, Francis, Trees, & Securities America Alliance Bernstein Alliance Bernstein Strategy & Platforms Watts Ameriprise Financial Axa Group Axa Group Barclays Wealth Americas BNP Paribas
Tiburon CEO Summit XVIII Attendee List by Company
Jeff Lancaster Chandresh Iyer Alan Pace Principal David Smith Global Business Head Mike Mulcahy Regional Business Head Bingham, Osborn, & Group Publisher Investment Administration President Americas Scarborough Charter Financial Publishing Services Bridgeway Funds Prime Finance Boston Private Financial Network Citigroup Global Transaction Citigroup Holdings Services
Rick Adler Sal Capizzi Joe Deitch Jeffrey Dunham CEO Ken Schapiro Chief Sales & Marketing Chairman CEO Convergent Capital President Officer Commonwealth Financial Dunham & Associates Management Condor Capital Management Dunham & Associates Network Investment Counsel City National Corporation Investment Counsel
Mike Apker Business Head Jud Bergman Bill Crager Viggy Mokkarala Babu Sivadasan Reporting & Data Aggregation CEO President Executive Vice President Executive Vice President Services Envestnet Asset Management Envestnet Asset Management Envestnet Asset Management Envestnet Asset Management Envestnet Asset Management
Tiburon CEO Summit XVIII Attendee List by Company
Scott Couto Gail Graham Executive Vice President John Surface Frank Trotter Executive Vice President Mark Katzelnick Investment Product Executive Vice President President Marketing Chief Operations Officer Management & Marketing Ever Bank Financial Ever Bank Direct Fidelity Institutional Wealth National Financial Services Fidelity Investments Services Institutional Services Company
Chris Cordaro Harold Evensky Sarah Libbey Sanjiv Mirchandani Maggie Serravalli CEO President President President Executive Vice President Regent Atlantic Capital Evensky & Katz Fidelity Charitable Gift Fund National Financial Services Fidelity Institutional Fiduciary Network Fiduciary Network
Peter Crenier Deena Katz Margaret Prentice Mike Gianoni Eric Teal Business Head Chairman Chief Marketing Officer Group President Chief Investment Officer Business Development Evensky & Katz Regent Atlantic Capital Financial Institutions Group First Citizens Banc Shares Investment Services Fiduciary Network Fiduciary Network Fiserv Corporation Fiserv Corporation
Tiburon CEO Summit XVIII Attendee List by Company
Cheryl Nash Global Business Head Greg Vigrass Steve Wallman Steve Forbes George McClelland Product Strategy President CEO CEO Vice Chairman Investment Services Folio Institutional Foliofn Forbes Media F-Squared Investments Fiserv Corporation
Ron Cordes Howard Present Ben Cukier Jim Hale Tom Lydon Co-Chairman CEO Partner Founding Partner President Genworth Financial Wealth F-Squared Investments FTV Capital FTV Capital Global Trends Investments Management
Eric Kirsch Abby Cohen Business Head Rich Goldman Don Putnam Bill Thomas President Global Insurance Asset CEO Managing Partner CEO Global Markets Institute Management Group Security Global Investors Grail Partners Grail Advisors Goldman Sachs Group Goldman Sachs Asset Guggenheim Partners Management
Tiburon CEO Summit XVIII Attendee List by Company
Sean Hanlon Scott Hanson David Johnson Brian Jacobs David Perkins CEO Co-CEO Partner Chief Commercial Officer CEO Hanlon Investment Hanson McClain Harpeth Partners Hatteras Funds Hatteras Investment Partners Management
Bob Worthington Allen Thorpe Leslie Swid Marie Swift Leno Toich President Managing Director Executive Vice President CEO Co-CEO Hatteras Funds Hellman & Friedman Impact Communications Impact Communications Informa Investment Solutions
David Tittsworth Kevin Mooney Lac Vuong Randy Ciccati Joe Luby Executive Director Executive Vice President Co-CEO President CEO Investment Adviser Business Development Informa Investment Solutions ING Wealth Solutions Jagen Funds Association Jagen Funds
Tiburon CEO Summit XVIII Attendee List by Company
Philip Blancato Jenn Connelly Amiee Watts Larry Greenberg Pat Farrell President CEO Executive Vice President CEO CEO Ladenburg Thalman Asset JCPR JCPR Jefferson National Financial Investacorp Management
Harry O’Mealia Randal Langdon Bob Lindner Mike Clinton Alex Potts CEO President CEO Chief Operating Officer CEO Legg Mason Investment Lindner Capital Advisors Lindner Capital Advisors Loring Ward Group Loring Ward Group Counsel
Jon Eaton Jeff Lovell Jim Minnick Gary Gallagher Stephen Langlois Business Head Chairman President Executive Vice President Executive Vice President Sponsor Relations Lovell Minnick Partners Lovell Minnick Partners LPL Financial LPL Investment Holdings LPL Financial
Tiburon CEO Summit XVIII Attendee List by Company
Robert Moore Bob Oros Chad Perry Esther Stearns Scott Welch Chief Financial Officer Executive Vice President Deputy General Counsel President Senior Managing Director LPL Investment Holdings LPL Investment Holdings LPL Financial LPL Financial Fortigent
Keith Hartstein Marty Willis Gib Watson Gene Dongieux Roger Hartley President Chief Marketing Officer CEO Chief Investment Officer Managing Member John Hancock Funds Oppenheimer Funds Prima Capital Management Mercer Global Advisors Mitchell Hartley Advisers
Doug Mangini Randy Takian John Cammack Keith Mitchell Chief Operating Officer Jerry Miller Business Head Chairman Managing Member Retail & Intermediary Division CEO Americas Distribution Mutual Fund Education Mitchell Hartley Advisers Morgan Stanley Investment Van Kampen Investments Morgan Stanley Investment Alliance Management Management
Tiburon CEO Summit XVIII Attendee List by Company
Tom Johnson Chuck Lewis Matt Grove Business Head Chris Collins Chris Blunt CEO Business Head Business Development Business Head Executive Vice President My Vest Corporation & RIA Business Retirement Income Security Multi-Media Sales New York Life Personal Capital Corporation New York Life Products The Wall Street Journal New York Life
Rich Santos Wayne Cutler Alistair Jessiman Amit Choudhury AJ Harper Group Publisher Managing Director Managing Director Managing Principal President Registered Rep & Novantas Novantas Pinnacle Partners Systems PNC Managed Investments Trust & Estates
Tom Sholes Bill Salus Executive Vice President Ed Morrison Greg Pacholski Jake Rohn Chief Business Development Strategic Planning & Global Chief Operating Officer CEO Executive Vice President Officer Product Management Albridge Solutions Albridge Solutions Albridge Solutions PNC Global Investment PNC Global Investment Servicing Servicing
Tiburon CEO Summit XVIII Attendee List by Company
Steve Cohen Michael Sapir Kevin Osborn Rich Franchella George Wilbanks Chief Strategy Officer CEO Executive Vice President Senior Managing Director Managing Director Pro Funds Group Pro Funds Group Prudential Investments RBC Wealth Management Russell Reynolds Associates
Wayne Withrow Erika Cramer Liz Nesvold Bryce James Jamie Kase Executive Vice President Partner Managing Partner President Executive Vice President SEI Investments Silver Lane Advisers Silver Lane Advisors Smart Portfolios State Street Global Advisors
Scott Powers Tony Rochte Jim Ross Jeff Cusack Paul Schaeffer CEO Senior Managing Director Senior Managing Director President President State Street Global Advisors State Street Global Advisors State Street Global Advisors Forward Management ReFlow Management
Tiburon CEO Summit XVIII Attendee List by Company
George Riedel Ed Bernard Skip Schweiss Fred Tomczyk Jon Baum Business Head Vice Chairman President CEO CEO Intermediary Distribution T. Rowe Price Group TD Ameritrade Trust Company TD Ameritrade The Dreyfus Corporation T. Rowe Price Group
Kim Wright-Violich Steve Dunlap Richard Hoey Jim McCool Dwight Jacobsen President Chief Operating Officer Chief Economist Executive Vice President Executive Vice President Schwab Charitable Pershing Managed Account The Bank of New York Mellon The Charles Schwab The Dreyfus Corporation The Charles Schwab Solutions Corporation Corporation Corporation
Greg Cicotte Chuck Baldiswieler Michael Bell Darren Duffy Frank Maiorano Executive Vice President CEO CEO Chief Operating Officer CEO Jackson National Life TCW Funds Curian Capital Lipper Trust Company of America Insurance Company TCW Group
Tiburon CEO Summit XVIII Attendee List by Company
Mitch Vigeveno Rob Klapprodt John Lunny Anne Copeland Tom McManus CEO President CEO Executive Vice President Chief Investment Officer Turning Point Vestmark Software Vestmark Wells Fargo Corporation Wells Fargo Advisors
Leo Wells Bruce Lavine Amit Muni Luciano Siracusano Jonathan Steinberg CEO President Chief Financial Officer Chief Investment Strategist CEO Wells Real Estate Funds Wisdom Tree Investments Wisdom Tree Investments Wisdom Tree Investments Wisdom Tree Investments
Peter Ziemba General Counsel Wisdom Tree Investments
Tiburon CEO Summit XVIII
Welcome & Keynote Opening Presentation New York, NY April 14, 2010
Outline
• Tiburon CEO Summit XVIII Welcome, Brief Introductions, & Agenda Highlights
• The Future of Advice: Top Five Themes from Tiburon Client Project Requests
1 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon Strategic Advisors
Tiburon Strategic Advisors
• Focus on corporate-level strategy - Serve senior executives only at financial services companies - Key services: strategy consulting, market research, & market seminars - Served over 300 corporate clients and completed over 1,200 projects since 1998 - Publish series of 62 off-the-shelf research reports ($5K each; $25K for access to all reports for all employees for a year) - Host semi-annual Tiburon CEO Summits
• Chip Roame background - McKinsey & Company - The Charles Schwab Corporation - Tiburon since 1998 (12 years)
Source: Tiburon Research & Analysis 2 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summits - Vision
Tiburon CEO Summits Vision
“The financial services industry lacks a CEO level conference that runs across traditional industry lines. I have come to realize that CEOs from many segments are dealing with the same issues from different perspectives... I have benefited greatly from hearing these perspectives and Tiburon’s clients would as well. My vision is probably most like Allen & Company’s Media Summit, as I envision all CEOs attendees from across the financial services industry”
Source: Tiburon Research & Analysis 3 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVII (Last October in San Francisco, CA) – Guest Speakers
Tiburon CEO Summit XVII Guest Speakers (October 2009 * Ritz Carlton Hotel * San Francisco, CA)
• Jon Baum (The • Deena Katz • Andrew Rudd Dreyfus Corporation) (Evensky & Katz) (Advisor Software)
• John Calamos • Pete Kight (Fiserv) • Chuck Schwab (The (Calamos Asset Charles Schwab Management) • Steve Lockshin Corporation) (Convergent Wealth • Ken Fisher (Fisher Advisors) • Steve Wallman Investments) (Foliofn)
• Fred Jonske (M • Jim Weddle (Edward Financial Group) Jones & Company)
Source: Tiburon Research & Analysis 4 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summits – Overall Satisfaction
Tiburon CEO Summits Overall Satisfaction (1-10; 10 = High)
9.2 8.5 8.7 8.7 8.6 8.7
XII XIII XIV XV XVI XVII
Source: Tiburon Research & Analysis 5 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summits - Guest Speakers Feedback Scores
Tiburon CEO Summits General Session Speakers Feedback Scores
Chip Roame (XII) 9.3
Pete Kight (XVII) 9.3
Don Phillips (XIII) 9.3
Chip Roame (XIII) 9.2
Chip Roame (XI) 9.1
Chip Roame (XV) 9.1
Steve Lockshin (XII) 9.0
Bill Hambrecht (XV) 8.9
Chip Roame XVI) 8.9
Ken Fisher (XVI) 8.8
Source: Tiburon Research & Analysis 6 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII - Sponsors
Tiburon CEO Summit XVIII Sponsors
Source: Tiburon Research & Analysis 7 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII - Media Sponsors
Tiburon CEO Summit XVIII Media Sponsors
Source: Tiburon Research & Analysis 8 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII - Media Strategy (White House Briefing Room)
Tiburon CEO Summit XVIII Media Strategy
Source: Tiburon Research & Analysis 9 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII - Guest Speakers
Tiburon CEO Summit XVIII Guest Speakers
• Ed Bernard (T. Rowe • Jim McCool (The • David Tittsworth Price Group) Charles Schwab (Investment Adviser Corporation) Association) • Abby Cohen (Goldman Sachs • Jonathan Steinberg • Fred Tomczyk (TD Group) (Wisdom Tree) Ameritrade)
• Steve Forbes (Forbes Media)
Source: Tiburon Research & Analysis 10 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 1)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Chip Roame Steve Forbes Fred Tomczyk (Tiburon) (Forbes Media) (TD Ameritrade)
• Welcome, Brief • CEO of Forbes Media since • CEO of TD Ameritrade since Introductions, & Agenda 1990 2008 Highlights - Campaigned for the • Formerly Republican nomination - TD Bank Financial Group • The Future of Advice: Top for US presidency (twice) - Canada Trust Five Themes from Tiburon • Formerly - London Life Client Project Requests - Chairman of the Board of • Topics International - Long-term growth in Broadcasting for Radio difficult economic & Free Europe & Radio market environments Liberty - Mergers & acquisitions • Topics learnings and - Operating a opportunities multinational media corporation - New regulatory regime - Cornerstones of success
Source: Tiburon Research & Analysis 11 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 2)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Abby Cohen Jim McCool Break-Out Sessions (Goldman Sachs Group) (Charles Schwab)
• President of Goldman Sachs • Incorporating Alternative • Executive Vice President of Global Markets Institute Investments in Fee-based The Charles Schwab • Also Platforms (Ron Cordes) Corporation since 2006 - Presidential Councillor, • 50,000 Clients Can’t Be • Formerly Cornell University Wrong (Julie Littlechild) - The Hampton Company - Board of Directors, • Updating Modern Portfolio • Topics Brookings Institution Theory & Static Asset - Independent financial - Investment Committee, Allocation (Kirk Michie) advisors a& retirement Major League Baseball • Differentiated Wealth plans • Topics Management Experience - Changing landscape for - Future of investing (Dennis Clark) financial advisors - Recent financial services • Growth of Personal - New challenges in the industry events Financial Management on 401K industry - New regulations the Web Technology (Neal - Shifts in products & Ringquist) client focus
Source: Tiburon Research & Analysis 12 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 3)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Jonathan Steinberg Ask the Stock Analysts Group Dinner (Wisdom Tree)
• CEO of Wisdom Tree • Facilitator: • Delmonico’s Investments since 2004 - Liz Nesvold (Silver Lane - Amazing event… 100+ • Formerly Advisors) attendee expected - CEO, Individual Investor • Panelists: - 6:15-7:15 cocktails Group - Gerard Cassidy (RBC followed by dinner - Editor-in-Chief, Capital Markets) (tbc) Individual Investor & - Jeff Davis (Guggenheim Ticker Magazines Partners) - The Bear Stearns - Jefferson Harralson Companies (Keefe, Bruyette, & • Topics Woods) (tbc) - Exchange traded funds - Rich Repetto (Sandler, experience & future O’Neil, & Company) • Objective: - Industry trends - Winners
Source: Tiburon Research & Analysis 13 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 4)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
David Tittsworth Day One Recap & Ed Bernard (Investment Adviser Day Two Kick-Off (T. Rowe Price Group) Association)
• Tiburon Strategic • Vice Chairman of T. Rowe • Executive Director of Advisors Price Group since 2006 Investment Adviser • Tiburon CEO Summits • Also Association since 1996 • Day #1 Recap - Chairman, Board of • Formerly • Tiburon Q&A Governors, - Counsel, US House • Day #2 Kick-Off Investment Company Committees & Sub- Institute Committees • Topics - Partner, Chambers, - Competing in the new Conlon, & Hartwell economy • Topics - Maintaining a client - Pillars of US focus regulatory reform - Simplified product - Next steps under offerings consideration by regulators
Source: Tiburon Research & Analysis 14 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 5)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Formal Ask the Reporters Ask the Consumers CEO Summit Closing
• Formal closing • Facilitator: • Facilitator: • Tiburon CEO Summit XIX - Jeff Dunham (Dunham - Chip Roame reminder & Associates) • Panelists: • Feedback forms! • Panelists: - Mark A. • Welcome to media - Ruthie Ackerman - Matt S. representatives (American Banker) - David T. - Shelly Banjo (Wall - Bill W. Street Journal) • Objective: - Jan Brandstrader - Positive & negative (Barron’s) financial services - Sean Hanna experiences (Investment Wires) - A sense of the real • Objective: world (especially over - Industry trends time) - Help needed from industry executives
Source: Tiburon Research & Analysis 15 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII - Attendee Criteria
Tiburon CEO Summit XVIII Attendee Criteria
Sorry it Was Not This... How You Really Got Here
• Charm Seniority Criteria • Good looks • C Level • Superior intellect or wit • EVP • Etc… • Business Head (Sometimes MDs & SVPs)
Tiburon Client Criteria Although those may all be true … • Client • Cousin Plan • Uncle Plan
Source: Tiburon Research & Analysis 16 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summits – Client Attendees
Tiburon CEO Summits Client Attendees
160
126 119 112 97 90 77 81 67 70 68 58 58
15 19 7 10 11
I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII
Source: Tiburon Research & Analysis 17 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summits Client Attendees – By Prior CEO Summit Attendance
Tiburon CEO Summits Client Attendees By Prior CEO Summit Attendance
50% 51% Repeat 56% 57% Attendees 61% 61%
First Time 50% 49% 44% 43% Attendees 39% 39%
XIII XIV XV XVI XVII XVIII
Source: Tiburon Research & Analysis 18 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Past & Future Speakers Attending
Tiburon CEO Summit XVIII Past & Future Speakers Attending
• Jon Baum (XVII) • Harold Evensky (XIX) • Michael Sapir (IX)
• Jud Bergman (XVI) • Deena Katz (XVII) • Paul Schaeffer (VI)
• Joe Deitch (XIV) • Keith Mitchell (VI) • Allen Thorpe (XX)
• Jeffrey Dunham (XVI) • Scott Powers (XVI) • Steve Wallman (XVII)
Source: Tiburon Research & Analysis 19 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Outline
• Tiburon CEO Summit XVIII Welcome, Brief Introductions, & Agenda Highlights
• The Future of Advice: Top Five Themes from Tiburon Client Project Requests
20 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon Strategic Advisors - Big Five Themes
Tiburon Strategic Advisors Big Five Themes
Significant Consumer (Investor) Changes New Regulatory Regime Accelerating Product & Channel Shifts Return to Tactical Basics Abundant Financial Services Investment Opportunities
Source: Tiburon Research & Analysis 21 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #1: Significant Consumer (Investor) Changes (Page 1)
Significant Consumer (Investor) Changes Issues
$11.5 Trillion of Net Worth Lost in 2008; $2.7 Trillion Regained in 2009 Investable Assets Back Up Substantially But Not Real Estate Values for Many – Have You Been to Las Vegas Lately? Numbers of Affluent Investors Down (Measured Any Way You Want) Consumers Have Retirement Concerns Baby Boomers Were Already Grossly Unprepared About 25% Furthered Delayed Retirements
Source: Tiburon Research & Analysis 22 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #1: Significant Consumer (Investor) Changes (Page 2)
Significant Consumer (Investor) Changes Issues
Consumers are Angry “Bad Guy” Not as Clear as One Would Hope Less Trust of Institutions But Also of Small Firms (All the Next Madoff?) Seek More Involvement & Transparency Looking for Alternatives to How they Did it Before Little Understanding of “the Fiduciary Issue” More Conservative & Risk Adverse Attitudes Reigning in Spending & Deleveraging Increased Savings Rate Lots of Cash on the Sidelines Stable Value Funds Take Lead in Retirement Plans Higher Value on Liquidity
Source: Tiburon Research & Analysis 23 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Consumer Household Net Worth Fell $11.5 Trillion in 2008 to $51.5 Trillion Before Recovering Partially to $54.2 Trillion in 2009
Consumer Households Net Worth ($ Trillions)
$63.0 $63.0 $58.0 $54.2 $52.0 $51.5 $46.0 $42.0 $41.0 $39.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: 3/15/10 Barron’s (Federal Reserve); 3/12/10 San Francisco Chronicle (Federal Reserve); 5/14/09 1st Global Presentation (Batman)(Pete Peterson Foundation); 3/16/09 Wall Street Journal Web Site (Federal Reserve); 3/13/09 San Francisco Chronicle (Federal Reserve); 3/13/09 Wall Street Journal (Federal Reserve); 2/4/09 TD Bank Financial Group Presentation (Drummond) (Federal Reserve); 2/09 Investment Advisor; Tiburon Research & Analysis 24 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Consumer Household Net Worth Increased to $54 Trillion Due to an Increase of $2 Trillion in Investable & Retirement Plan Assets
Consumer Household Net Worth ($ Trillions)
$63 $4 $7 $2 $52 $0 $54
2007 Real Estate Investable & 2008 Real Estate Investable & 2009 Consumer Equity Loss Retirement Consumer Equity Gain Retirement Consumer Household Plan Assets Household Plan Assets Household Net Worth Loss Net Worth Gain Net Worth
Source: 4/8/10 Google Finance; 3/15/10 Barron’s (Federal Reserve); 3/12/10 San Francisco Chronicle (Federal Reserve); 5/14/09 1st Global Presentation (Batman)(Pete Peterson Foundation); 4/09 Boomer Market Advisor (Center for Economic Research); 3/16/09 Wall Street Journal Web Site (Federal Reserve); 3/13/09 San Francisco Chronicle (Federal Reserve); 3/13/09 Wall Street Journal (Federal Reserve); Tiburon Research & Analysis 25 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Consumer Households’ Equity in their Homes Fell to 38% in 2009, the Lowest Level Since Records Have Been Kept
Consumer Household Home Equity
80%
65% 67% 58% 59% 57% 50% 43% 38%
1952 1966 1980 1994 2005 2006 2007 2008 2009
Source: 3/11/10 Federal Reserve Flow of Funds Report; 4/09 Boomer Market Advisor; 3/16/09 Wall Street Journal Web Site (Federal Reserve); 3/13/09 Wall Street Journal (Federal Reserve); Tiburon Research & Analysis 26 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
The Number of Consumer Households with Over $1.0 Million Net Worth Dropped 27% in 2008 But Recovered to 7.8 Million in 2009
Consumer Households With Net Worth of Greater than $1.0 Million (Millions)
9.0 9.2 8.4 7.8 7.5 6.7 6.3 6.0 6.2 6.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: 3/10/10 American Banker (Spectrem Group); 3/9/10 Insurance Newscast (Spectrem); 5/21/09 Wall Street Journal; 5/14/09 1st Global Presentation (Batman) (Spectrem); 3/16/09 Money Management Executive (Spectrem); 3/13/09 American Banker (Spectrem); 3/13/09 Financial Advisor (Spectrem); 3/12/08 Investment News (Spectrem); 2/18/02 Investment News (Spectrem); Tiburon Research & Analysis 27 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ The US Personal Savings Rate Has Been Decreasing in Recent Years, But Increased to 2.9% in 2008, 4.3% in 2009, and 6.0% in Early 2010, as Consumers Have Become More Conservative
US Personal Savings Rate
8.0% 8.0% 8.0% 8.0% 8.0%
7.0% 7.0%
6.0% 6.0%
5.0%
4.3%
3.3% 2.9% 2.4% 2.4% 2.1%
1.3%
0.2% 2005 2006 2007
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2001 2002 2003 2004 2008 2009 2010 -0.4% -0.5% -1.0%
Source: 2/11/10 Money Management Executive (Allianz); 3/9/09 Joyce Financial Management Email (Joyce); 2/10/09 Wall Street Journal (US Bureau of Economic Analysis); 10/16/08 Fortune; 6/07 Fisher Investments Brochure (Thomson Financial); 2/1/2007 MSNBC Web Site; 1/26/05 New York Times (Federal Reserve); 12/30/04 Wall Street Journal; 11/4/04 US Department of Commerce Web Site; 8/1/01 San Francisco Chronicle; Tiburon Research & Analysis 28 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #1: Significant Consumer (Investor) Changes
Significant Consumer (Investor) Changes Suggested Follow-Ups
Ask Abby Cohen About the Economy & Markets Ask Julie Littlechild About Consumer (Investor) Survey Work Attend Julie’s Break-Out Session at Lunch Today (Consumer Satisfaction) “Ask the Consumers” on the Panel Tomorrow (You May be Surprised) Refer Back to Ken Fisher’s “Ask the Plaintiffs’ Lawyers” Panel From Last Fall Ask Meir Statman Next Fall
Source: Tiburon Research & Analysis 29 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #2: New Regulatory Regime (Page 1)
New Regulatory Regime Issues
Health Care Reform Financial Services Reform Systemic Risk (Too Big to Fail) Three-Tier Bank Regulation - >$50 Billion National Banks to Fed; >$50 Billion National Banks to FDIC; & < $50 Billion State Banks to OCC Volcker Rule (Limit Banks in Market Making & Proprietary Trading) -> Return of Glass-Steagall? Consumer Financial Protection Agency (Headache for Banks But BoA Breaks Ranks) Reform of Credit Ratings Agencies Derivatives Regulation Private Fund Manager (PE/VC/HF) Regulation (>$100 Million)
Source: Tiburon Research & Analysis 30 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #2: New Regulatory Regime (Page 2)
New Regulatory Regime Issues
B/D & RIA Harmonization (Fiduciary Issue) One Year Study… [Nothing Needs to be Said] IAA Supports SEC, Says Do Not Weaken Role of Non-Fiduciary Commission Salesman? Others Not Supporting – FSI, Wirehouses, Insurance Agents, Others? And So Much More… Department of Labor -> Retirement Plan Advice for Fees or Third-Parties (Brokers & Insurance Agents Out?) National Insurance Regulation? SEC Registration ($25 to $100 Million)?
Source: Tiburon Research & Analysis 31 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ There Has Also Been Significant Skepticism Regarding Giving More Power to the Government…
Michael Steinhardt View
“When you look at the quality of the people attracted to the Federal Reserve, I do not want them to have any more power”
Michael Steinhardt Tiburon CEO Summit XIV
Source: Tiburon Research & Analysis 32 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #2: New Regulatory Regime
New Regulatory Regime Suggested Follow-Ups
Ask Steve Forbes (After All, He Better Have Had a Plan in 1996 & 2000!) Ask David Tittsworth (Our Regulatory Minded Speaker Tomorrow) Ask Abby Cohen (Especially Global Regulatory Impacts) Ask Steve Wallman (Our Regulatory Minded Speaker Last Fall; Here Today; Former SEC Commissioner) Ask Dale Brown in the Fall (Our Regulatory Minded Speaker Next Time)
Source: Tiburon Research & Analysis 33 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #3A: Accelerating Product Shifts (Page 1)
Accelerating Product Shifts Issues
Mutual Funds: Dead or Alive? 52+ Straight Weeks of Positive Flows But… Large Cap Active Managers as Well as Chronic Underperformers in Trouble Bonds & Bond Mutual Funds… $409 Billion Net Flows in 2009 Temporary or the New Conservative? Money Market Fund Challenges Target Date Mutual Funds – “Experts” Say Failed; Flows Say Something Else… Blessed as Default Option Since 2006 Tiburon Believes Alive & Well
Source: Tiburon Research & Analysis 34 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3A: Accelerating Product Shifts (Page 2)
Accelerating Product Shifts Issues
Indexing Tiburon Predicts to Hit 25% of All AUM ETFs – All Flavors to Take Share Fastest Growing Product Segment Chuck Schwab Called them “the Next Big Thing” Last Fall (Followed by the Schwab Announcement) Big Deal & its Still in its Infancy (Only 6% of Mutual Funds) Fidelity Investments Quick Follow Strategy was Impressive (No Commission iShares) ETF Wraps (Self-Made by RIAs & TAMP Programs) Less Retirement Plan Success (So Far) (Lack of 12b1 Fees & Record Keeping Challenges) Actively Managed ETFs (Grail & the Stampede); Some Investors May Wait for Track Records ETFs… Both Pushing Active Managers to Deliver Better Performance & Causing Costs to Go Lower
Source: Tiburon Research & Analysis 35 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #3A: Accelerating Product Shifts (Page 3)
Accelerating Product Shifts Issues
Non-Correlated Strategies (Hedge Funds) Tiburon Predicts Another 25% of All AUM Funds-of-Hedge Funds Plummeted (Finally!) Liquidity to be Valued (40 Act Products); Key is Hedge Fund Mutual Funds Schwab Custody Fits – Yes or No? Ability to Democratize Other Alternative Investments (e.g., Venture Capital & Private Equity)?
Source: Tiburon Research & Analysis 36 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3A: Accelerating Product Shifts (Page 4)
Accelerating Product Shifts Issues
Guarantees (Power of Insurance Companies) Huge Guaranteed Needs (in Mid-Market) (Recall Jim Weddle Last Fall) Variable Annuities Lost Momentum in 2008- 2009 Salesman Obama (& the DoL) Opportunity is there for Annuity Companies’ to Lose (But Historically they Usually Do Lose) May Only Win Big if Solved in Large Plan Market and/or if Mandated
Source: Tiburon Research & Analysis 37 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Mutual Funds Had a 52 Week Streak of Net Inflows, Topping Out at $54 Billion in Last Month
Mutual Funds Net Flows ($ Billions)
$54 $52 $50 $46 $48 $47 $45 $43 $40 $36 $28 $24
Apr- May June July Aug Sep Oct Nov Dec Jan- Feb Mar 09 10
Source: 4/8/10 Investment Company Institute Web Site; Tiburon Research & Analysis 38 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Bond Mutual Funds Dominated Inflows in 2009, Taking in Over $400 Billion, While Money Market Funds Had Outflows of $300 Billion
Mutual Fund Net Flows By Mutual Fund Type ($ Billions)
Bond Mutual $409 Funds
Equity Mutual $66 Funds
-$300 Money Market Funds
Source: 3/19/10 Wall Street Journal; 3/18/10 Wall Street Journal; Tiburon Research & Analysis 39 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Traditional Long-Only Active High-Fee Investing Strategies May Give Way to Investing in ETFs & Low Cost Mutual Funds, Guaranteed Products, & Hedge Funds & Hedge Fund Like Products
Investment Product Trends
Traditional Indexed ETFs Hedge Funds Long-Only & Low Cost & Hedge Fund Active High Mutual Funds Like Products Fee Investing
Guaranteed Products
Source: 1/26/10 Gemmer Asset Management Conversation (Gemmer); Tiburon Research & Analysis 40 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Exchange Traded Fund Assets Declined from $608 Billion to $578 Billion in 2008 But Rebounded in 2009 to $782 Billion
Exchange Traded Fund Assets ($ Billions)
$782
$608 $578
$410 $300 $210 $140 $80 $91 $100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: 2/22/10 Money Management Executive (Financial Research Corporation); 3/1/09 Research (National Stock Exchange); Tiburon Research & Analysis 41 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Hedge Fund Assets Fell to $1.3 Trillion in 2008 But Recovered to Surpass their 2007 High, Now at $1.9 Trillion
Hedge Fund Assets ($ Trillions) $1.9 $1.7 $1.5 $1.3 $1.1 $0.9 $0.7 $0.6 $0.5
2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: 3/8/10 Money Management Executive; 3/3/10 Money Management Executive; 4/15/09 Zebra Capital Management Presentation (Ibbotson) (HFR; Van Hedge Fund Advisors; Morningstar); 10/14/08 Morningstar Presentation (Mansueto); 3/16/08 Money Management Executive (Invest Hedge); 2/28/09 Financial Times (Invest Hedge); 1/18/08 Hedge Fund Review (Hedge Fund Research); Tiburon Research & Analysis 42 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3A: Accelerating Product Shifts
Accelerating Product Shifts Suggested Follow-Ups
Attend Kirk Michie’s Break-Out Session at Lunch Today (Modern Portfolio Theory; Wealth Family Behaviors) Ask Jud Bergman & Bill Crager; Mike Gianoni (Fee- Accounts Trend Broadly) Ask Ed Bernard & Paul Schaeffer (Mutual Funds & ETFs) Ask Dennis Clark (Indexing) Ask Jonathan Steinberg; Scott Powers, Tony Rochte, & Jim Ross; Ed Bernard; Tom Lydon (ETFs) Recall Steve Lockshin Last Fall (Hedge Funds) Attend Ron Cordes’ Break-Out Session at Lunch Today (Alternative Investments) Ask Mark Yusko in the Fall (Hedge Funds) Ask Chris Blunt & Tom Johnson; Doug Russell (Annuities)
Source: Tiburon Research & Analysis 43 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #3B: Accelerating Channel Shifts (Page 1)
Accelerating Channel Shifts Issues
Self-Serve Concentrated Market 50 Firms But Five Have >80% of Everything Low Margin Business (vis-à-vis Wirehouses) ~40 Basis Points Huge Trade Volumes TD Ameritrade – 370,000 Per Day! Commissions Lowered - TD Ameritrade, E*Trade, & Scottrade Issue? No Commission ETFs Introduced Fidelity Investments – Very Impressive Deal P&L Drivers Advice, Cash Balanced, & the Like E*Trade in Play or Not? (No Profits Since 2007 But… New CEO & Reverse Stock Split)
Source: Tiburon Research & Analysis 44 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3B: Accelerating Channel Shifts (Page 2)
Accelerating Channel Shifts Issues
Financial Advisors Wirehouses Seem Stagnant (Both in Numbers & Strategy) Four Firms & Three Models Try (in Your Mind) to Nominate Someone for the Challenging Conventional Wisdom Award from the Wirehouses Break-Away Brokers History Still Far Overstated (90,000 x 3% = 2,700) Some Big Dollar Wins at Schwab, Fidelity, TD Ameritrade, LPL, High Tower, Etc. Perfect Storm? Projections for ~$200 Billion Outflow in 2010 Increasingly Going to Existing RIA Firms? Anyone Noticed Two Former Wirehouse CEOs Now Betting on Break-Away Brokers?
Source: Tiburon Research & Analysis 45 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #3B: Accelerating Channel Shifts (Page 3)
Accelerating Channel Shifts Issues
Financial Advisors… Independent Broker/Dealers LPL Financial – Public Offering Soon? But… Gunn Allen Blows Up, Insurance Companies (ING, Pacific Life) Unbundle, Regulatory Threats (1099s), Low Average Account Sizes Fee-Based Financial Advisors (RIAs) Schwab Institutional Versus Schwab Retail Many Specific RIA Segments – IAA; AITCO; Multi & Single Family Offices
Source: Tiburon Research & Analysis 46 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3B: Accelerating Channel Shifts (Page 4)
Accelerating Channel Shifts Issues
Institutional Markets DC… Stable Value Funds, CMTFs, ETFs, In Plan Guarantees, & Advice Offerings DB… $2 Trillion Lost; Recall Ron Ryan’s Underfunded Ratios Pitch Several CEO Summits Ago (~85% Now); Asset Liability Matching E&F… Tough 2008-2009 Due to Hedge Fund Bets; Model Not Being Followed? SWFs… Dubai; Greece… International Markets UK Learning – Annuities 75% By Age 75 ETFs Circling the World International Distribution (Asia)
Source: Tiburon Research & Analysis 47 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Perspective is Required Regarding the Rush of Break-Away Brokers…
Financial Advisors By Propensity to Break Away
Break-Away 2%
Retain 98%
Source: Tiburon Research & Analysis 48 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
A $200 Billion Move Would Boost the Independent Advisors Market by 10%
Independent Channel Assets ($ Trillions)
$0.2 $2.2 $2.0
2009 Break-Away Brokers 2010
Source: Tiburon Research & Analysis 49 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Traditional Full-Service Brokerage Firms & Banks are Losing Share to Independent Advisors & Discount Brokers
Investment & Wealth Management Channel Trends
Traditional Full-Service Independent Discount Brokerage Advisors Brokers Firms & Banks
Source: Tiburon Research & Analysis 50 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #3B: Accelerating Channel Shifts (Page 1)
Accelerating Channel Shifts Suggested Follow-Ups
Attend Dennis Clark’s Break-Out Session at Lunch Today (Broad Distribution Trends) Attend Neal Ringquist’s Break-Out Session at Lunch Today (Online Self-Serve Tools) Recall Pete Kight’s Predictions from Last Fall Ask Fred Tomczyk & Skip Schweiss (Discount Brokers, Fee-Based Financial Advisors, Break-Away Brokers, & Retirement Plans) Ask Jim McCool (All the Same) Ask Sanjiv Mirchandani & Gail Graham (All the Same Again) Ask Jud Bergman & Bill Crager; Ron Cordes (Especially Break-Away Brokers and IBDs/RIAs)
Source: Tiburon Research & Analysis 51 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #3B: Accelerating Channel Shifts (Page 2)
Accelerating Channel Shifts Suggested Follow-Ups
Ask Stephen Langlois; Mitch Vigeveno (IBDs & Break- Away Brokers) Ask Mike Gianoni (Banks & More) Ask Chris Blunt & Tom Johnson; Doug Sullivan (Insurance Agents) Ask Dale Brown (IBDs) & Judy Barber (Family Offices) in the Fall “Ask the Brokers” Panel in the Fall Ask Harold Evensky & Deena Katz (Fee-Based Financial Advisor) & Scott Hanson (Independent Rep) Ask Ron Carson (LPL #1) in the Fall Ask Scott Powers (DB Plans) Ask Mark Yusko in the Fall (Endowments & Foundations)
Source: Tiburon Research & Analysis 52 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #4: Return to Tactical Basics (Page 1)
Return to Tactical Basics Issues
FSI/FA Sales & Marketing (Client Service)
Retention #1; Lots of Underserved Clients; But Really Moving?
Clients Aging = Consolidation
Client Referrals > 50%
Target Marketing Advantages – Referrals, Close Rate, Cost to Serve
Newspapers & Magazines Giving Way to the Web
Power of Social Media
Source: Tiburon Research & Analysis 53 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #4: Return to Tactical Basics (Page 2)
Return to Tactical Basics Issues
FSI/FA Staffing & Compensation 325,000 Financial Services Industry Job Losses Compensation Rules for TARP Players How About that Hedge Fund Compensation? Mid-Tier Fee-Based Financial Advisor Lift Out & Organizational Models Good Feet on the Street Still? Employee Morale?
Source: Tiburon Research & Analysis 54 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #4: Return to Tactical Basics (Page 3)
Return to Tactical Basics Issues
FSI/FA Technology & Outsourcing Rapidly Changing Technology - Financial Planning with the Value of Human Capital Envestnet Becoming Dominant Outsourcing Solution Genworth Financial, Fortigent, Dunham & Associates, & Folio Institutional all with Successful Niches But Technology Also Allowing Firms to Capture Economies Without Outsourcing Morningstar Acquiring Rapidly to Dominate the Rating of Everything
Source: Tiburon Research & Analysis 55 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ One Financial Advisor Recognized the Importance of Client Communications
Financial Advisor Comment on Client Communications
“We try to touch all clients 12 to 18 times per year”
Source: 1/26/10 Park Place Wealth Advisors Conversation (Gannett); Tiburon Research & Analysis 56 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Many Financial Advisors Have Even Built their Businesses Around Outsourcing Models
Fee-Based Financial Advisor Outsourcing Comment
“We have outsourced everything from research to compliance to accounting”
– John Krambeer Camden Capital
Source: 9/3/08 Camden Capital Conversation (Krambeer); Tiburon Research & Analysis 57 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #4: Return to Tactical Basics
Return to Tactical Basics Suggested Follow-Ups
FSI/FA Sales & Marketing Attend Julie Littlechild’s Break-Out Session (Client Service Ask Steve Forbes; David Smith; Rich Santos (Media) “Ask the Reporters” Panel Tomorrow (Media) Ask Rich Karlgaard in Fall (Media)
FSI/FA Staffing & Compensation Recall Deena Katz Last Fall Ask Harold Evensky Next Fall Ask Mitch Vigeveno
FSI/FA Technology & Outsourcing Attend Neal Ringquist’s Break-Out Session at Lunch Today (Financial Advisor Technology) Ask Neal Ringquist; Steve Wallman & Greg Vigrass; Jud Bergman & Bill Crager
Source: Tiburon Research & Analysis 58 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #5: Abundant Financial Services Investment Opportunities (Page 1)
Abundant Financial Services Investment Opportunities Issues
FSI M&A Amazing FDIC Assisted Deals for Private Equity Funds Bank of America – Merrill Lynch – So What Really Happened? JP Morgan – Bear Stearns, WaMu, & More Fill-Ins Wells Fargo – Wachovia Corporation Morgan Stanley – Smith Barney Barclays – Lehman & Shopping Further (Diamond) Bank of New York Mellon Buys PNC GIS (Blocks Our NTRS) PNC Re-Emphasizes Retail Banking with Nat City
Source: Tiburon Research & Analysis 59 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #5: Abundant Financial Services Investment Opportunities (Page 2)
Abundant Financial Services Investment Opportunities Issues
FSI M&A AIG Insurance Company Sales – Met Life Insurance Companies Likely to Consolidate Further Two of the Three Insurance Companies – ING & Pac Life – Undid their IBD Acquisitions (AIG is the Keeper?) Black Rock & iShares – Simply Wow! Old Line Mutual Fund Companies -> Van Kampen to Invesco; Columbia to Ameriprise Financial No Deal for E*Trade Financial TD Ameritrade Acquires Think or Swim & Wins Awards Intuit – Mint.Com Morningstar (Seems a New Deal Every Other Week)
Source: Tiburon Research & Analysis 60 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #5: Abundant Financial Services Investment Opportunities (Page 3)
Abundant Financial Services Investment Opportunities Issues
FA M&A RIAs & IBD Reps Aging Significant Succession Planning Issue Coming Employee Economics Do Not Work for Big Firms Fiduciary Network & Focus Financial Partners – Select Big Wins Boston Private Unwinding Lift Outs – Steve Lockshin Last Fall
Source: Tiburon Research & Analysis 61 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Theme #5: Abundant Financial Services Investment Opportunities (Page 4)
Abundant Financial Services Investment Opportunities Issues
FSI Private Equity Lack of Debt
FSI IPOs Dai-ichi & Samsung Life (Watch Asia!) Primerica Financial Engines Envestnet Asset Management Internet Bank LPL Financial???
Source: Tiburon Research & Analysis 62 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Retail Banks Will be the Most Aggressive Acquirers Because they are the Largest Institutions…
Financial Institutions Market Capitalization By Sector
Brokerage & Investment Management Firms 10%
Insurance Companies 25% Banks 65%
Source: 4/7/10 Google Finance; 1/19/09 Bloomberg; 5/08 Merrill Lynch Presentation (Doe); 2/19/07 Barron’s; 5/02 Merrill Lynch Presentation (Doe); 11/22/99 John Hancock Presentation (Schmidt); 1/99 Bank Securities Journal; Tiburon Research & Analysis 63 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Five Financial Services Institutions Collectively Raised $22 Billion, Showing that the IPO Market is Opening Up, Especially in Asia!
Financial Services Institutions Initial Public Offerings ($ Billions)
Dai-ichi Mutual $17.2 Life Insurance
Samsung Life $4.5 Insurance
Primerica $0.3
Financial Engine $0.1
Envestnet Asset $0.1 Management
Source: 4/11/10 Wall Street Journal; 3/31/10 American Banker; 3/26/10 Chicago Business Web Site; 3/20/10 Wall Street Journal; 3/19/10 San Francisco Business Times; 3/16/10 San Francisco Business Times; Tiburon Research & Analysis 64 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Theme #5: Abundant Financial Services Investment Opportunities
Abundant Financial Services Investment Opportunities Suggested Follow-Ups
Ask Fred Tomczyk (FSI M&A) “Ask the Stock Analysts” this Afternoon Ask Liz Nesvold (FA M&A) Ask Jud Bergman & Bill Crager (FSI IPOs) Ask Jeff Maggioncalda in the Fall (FSI IPOs) Coming Soon… Tiburon Semi-Annual CEO Summit Indexes
Source: Tiburon Research & Analysis 65 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon Strategic Advisors - Big Five Themes
Tiburon Strategic Advisors Big Five Themes
Significant Consumer (Investor) Changes New Regulatory Regime Accelerating Product & Channel Shifts Return to Tactical Basics Abundant Financial Services Investment Opportunities
Source: Tiburon Research & Analysis 66 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon Strategic Advisors
Comments
• Focus on corporate-level strategy - Serve senior executives only at financial services companies - Key services: market seminars, market research, & strategy consulting - Served over 300 corporate clients and completed over 1,200 projects since 1998 - Host semi-annual CEO Summits, offer free weekly research releases, and offer free business benchmarking tools for all types of advisors
• Chip Roame background - McKinsey & Company - Charles Schwab & Company - Tiburon since 1998
Source: Tiburon Research & Analysis 67 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 14, 2010
Guest Presenter: Steve Forbes (CEO, Forbes Media)
Steve Forbes has served as CEO of Forbes Media and Forbes Magazine since 1990. Since he assumed his position, Forbes Media has launched several businesses, including Forbes FYI & Forbes Global, the firm's international publication. Mr. Forbes is also Chairman of the company's American Heritage division, publisher of American Heritage magazine and two quarterlies, American Legacy and American Heritage of Invention & Technology.
Prior to assuming his current position at Forbes Media, Mr. Forbes served as chairman of the Board of International Broadcasting for Ronald Reagan, overseeing the operations of Radio Free Europe & Radio Liberty, broadcasting behind the Iron Curtain. He has twice campaigned for the Republican nomination for the presidency of the United States, in 1996 and again in 2000. From 1996 to 1999 Steve Forbes was Honorary Chairman of Americans for Hope, Growth and Opportunity, a grassroots, issues advocacy organization founded to advance pro-growth, pro-freedom and pro-family issues. From December 1993 until June 1996, he served as Chairman of the Board of Directors of Empower America, a political reform organization founded by Jack Kemp, Bill Bennett and Jeane Kirkpatrick. Mr. Forbes is the author of A New Birth of Freedom.
Mr. Forbes earned his BA in history from Princeton in 1970. Steve can be reached at [email protected] or 212-620-2200.
Steve Forbes
Biography & Presentation Topics
• CEO of Forbes Media since 1990 - Campaigned for the Republican nomination for US presidency (twice) • Formerly - Chairman of the Board of International Broadcasting for Radio Free Europe & Radio Liberty • Topics - Operating a multinational media corporation - New regulatory regime - Cornerstones of success
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 14, 2010
Guest Presenter: Fred Tomczyk (CEO, TD Ameritrade)
Fred Tomczyk has served as president and CEO of TD Ameritrade since 2008 and previously served as the company’s chief operating officer. His involvement with the company goes back more than five years as he helped to shape the Ameritrade & TD Waterhouse merger and later served on the board of directors. Today, Mr. Tomczyk oversees the management of the firm and progress made toward its strategic objectives: to maintain a leadership position in the trading business and to continue growing as an asset gatherer.
Prior to assuming his current position, Mr. Tomczyk served as vice chairman of corporate operations for TD Bank Financial Group. Prior to that role, Mr. Tomczyk's positions at TD Bank Financial Group included executive vice president of core banking & wealth management, as well as executive vice president of retail distribution, where he led the branch networks of TD Bank and Canada Trust through the merger to become TD Canada Trust. Prior to joining Canada Trust, Mr. Tomczyk served as CEO of London Life.
Mr. Tomczyk earned his BS in applied economics and business management from Cornell University in 1977 and obtained his chartered accountant designation in 1982. He is a member of Cornell University’s Undergraduate Business Program Advisory Council, a director on the boards of Robarts Research Institute, Meloche Monnex Inc. and Symcor Inc. He is also the senior vice-chairman of the executive committee for the Canadian Bankers Association. Fred can be reached at [email protected] or 201-369-5927.
Fred Tomczyk
Biography & Presentation Topics
• CEO of TD Ameritrade since 2008 • Formerly - TD Bank Financial Group - Canada Trust - London Life • Topics - Long-term growth in difficult economic & market environments - Mergers & acquisitions learnings and opportunities
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 14, 2010
Guest Presenter: Abby Cohen (President, Global Markets Institute, Goldman Sachs Group)
Abby Joseph Cohen is senior investment strategist and president of the Global Markets Institute at Goldman Sachs Group. Ms. Cohen joined Goldman Sachs in 1990, having specialized in quantitative strategy & economics at other major financial firms. She began her career as an economist at the Federal Reserve Board in Washington, DC.
Ms. Cohen’s extracurricular activities focus on education and public policy. She is the chair of the board of trustees of the Jewish Theological Seminary. She also serves as a presidential councillor at Cornell University and on the boards of the Weill Cornell Medical College & the Brookings Institution. She previously served as chair of the board of the Chartered Financial Analyst Institute, from which she received the Distinguished Service Award. Ms. Cohen is an advisor to the investment committees of Cornell University and Major League Baseball. She is on the national board of the Smithsonian Institution and is a member of the Council on Foreign Relations. She is a frequent guest lecturer at several universities & graduate schools of business. Ms. Cohen holds degrees in economics from Cornell University and The George Washington University. She has received three honorary doctorates, including one in engineering. She has been recognized as a leader in US portfolio strategy for more than 15 years, and was previously ranked No. 1 by Institutional Investor magazine and Greenwich Associates. Her career is the subject of a Harvard Business School case study and a Business Week cover story. She has been honored by many groups, including the Financial Women’s Association, New York Stock Exchange, the Wall Street Week Hall of Fame, & leading financial publications.
Abby Cohen
Biography & Presentation Topics
• President of Goldman Sachs Global Markets Institute • Also - Presidential Councillor, Cornell University - Board of Directors, Brookings Institution - Investment Committee, Major League Baseball • Topics - Future of investing - Recent financial services industry events - New regulations
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 14, 2010
Breakout Session I: Incorporating Alternative Investments in Fee-Based Platforms (Facilitated by Ron Cordes from Genworth Financial)
What types of alternative strategies and products are currently being offered by leading TAMP providers and internal broker/dealer fee-based programs? How can product manufacturers align with these providers to build alternative products? Which product structures (i.e., RICs, traditional mutual funds) offer the best potential to expand the distribution of alternatives to a larger client audience?
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Tiburon CEO Summit XVIII April 14, 2010
Breakout Session II: 50,000 Clients Can’t Be Wrong: What Investors Can Teach Us About Running a Business (Facilitated by Julie Littlechild from Advisor Impact)
Hear insight into investor satisfaction, loyalty, & needs and how that will impact your business in future. Julie will share findings from her firm’s latest report which aggregates feedback from more than 50,000 clients on what they need, want, & expect in an advisory relationship, focusing on what has changed in the last two years and what that means for financial advisors, broker/dealers, & custodians. You’ll learn which clients are at risk of defection, what clients value the most, & where there is untapped potential. More importantly, you’ll learn how you can help financial advisors tap into that potential to improve the bottom line.
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Tiburon CEO Summit XVIII April 14, 2010
Breakout Session III: The Growth of Personal Financial Management on the Web: What Can the Wealth Management Industry Learn? (Facilitated by Neal Ringquist from Advisor Software)
Mint.Com has attracted 2.0 million users. Buxfer is tracking $1.9 billion in over 11.9 million transactions. People want something new. What does that mean to investors? An engaging information gathering experience? A sense of community? Control over sharing information? This session will explore how the wealth management industry generally, and financial advisors specifically, can embrace the personal financial management concepts that are engaging investors and apply them to improve the financial advisor-client relationship.
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Tiburon CEO Summit XVIII April 14, 2010
Breakout Session IV: Delivering a Differentiated Wealth Management Experience (Facilitated by Dennis Clark from Advisor Partners)
In the aftermath of the financial collapse of 2008-2009 and the highly publicized frauds & scandals, the business of wealth management has had to deal with a number of important pressures. Many of the large national firms with vaunted brands find themselves having to digest a series of mergers & acquisitions while others are experiencing defections of their most valuable advisory teams. Many smaller firms are having to make the case why they are not the next Madoff and many others are challenged to deliver an upgrade in advice and service levels for the same, if not lower, fee schedules. This session will allow the participants to discuss strategies needed to successfully compete in serving high-net-worth clients. Who will be winners in the new environment and why? What has changed and what has remained the same in executing a business plan?
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Tiburon CEO Summit XVIII April 14, 2010
Breakout Session V: Updating Modern Portfolio Theory & Static Asset Allocation with Endowment Style Models (Facilitated by Kirk Michie from Triton Pacific)
Is the old long-only strategic asset allocation model broken? Is it a cyclical problem or a secular issue? Should financial advisors include alternative asset classes? Which ones? What constitutes alternative? Why don’t financial advisors more aggressively move toward successful endowment- style models? Can institutional alternatives like venture capital & private equity be democratized? How can financial advisors incorporate them? Does regulation matter in adding alternatives? Can investment choices differentiate practices for marketing? These questions and more will be discussed here.
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Tiburon CEO Summit XVIII April 14, 2010
Guest Presenter: Jim McCool (Executive Vice President, The Charles Schwab Corporation)
Jim McCool has served as executive vice president of The Charles Schwab Corporation since 2006. Mr. McCool currently oversees Schwab's Institutional Services business with combined assets under management of $850 billion, serving independent investment advisors, corporate clients, & their employees. Schwab Institutional Services provides custodial, operational, practice management, & trading support for more than 6,000 independent investment advisory firms that serve 1.9 million individual clients with $590 billion assets under management Schwab Institutional also provides corporate retirement and brokerage services, either directly to companies or through third party administrators. These services include employer-sponsored retirement plans, stock plans, & corporate brokerage services, in addition to recordkeeping, trustee, & custodial services. Mr. McCool also oversees Schwab’s investment-only sales and mutual fund clearing businesses.
Prior to The Charles Schwab Corporation, Mr. McCool began his career in the retirement plan servicing industry in 1984 and helped establish The Hampton Company, which became a wholly owned subsidiary of The Charles Schwab Corporation in 1995.
Mr. McCool earned his BS in Business Administration from the University of Akron. He is active in government affairs on issues of regulatory reform affecting defined contribution plans and has provided expert testimony at SEC hearings on the retirement plan industry. Jim can be reached at [email protected] or 415-667-9603.
Jim McCool
Biography & Presentation Topics
• Executive Vice President of The Charles Schwab Corporation since 2006 • Formerly - The Hampton Company • Topics - Independent financial advisors & retirement plans - Changing landscape for financial advisors - New challenges in the 401K industry - Shifts in products & client focus
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 14, 2010
Guest Presenter: Jonathan Steinberg (CEO, Wisdom Tree Investments)
Jonathan Steinberg has served as CEO of Wisdom Tree Investments since 2004. He is responsible for the overall management of the firm, including overseeing the company’s strategic growth initiatives. Wisdom Tree is an innovative exchange traded fund sponsor and asset manager with equity and currency income ETFs covering the domestic, developed, & emerging markets.
Prior to establishing Wisdom Tree, Mr. Steinberg founded and served as CEO of Individual Investor Group. From 1998 to 2004, he held the role of editor-in- chief of Individual Investor and Ticker magazines. Prior to those endeavors, Mr. Steinberg was a mergers & acquisitions analyst at The Bear Stearns Companies.
Mr. Steinberg attended University of Pennsylvania’s Wharton School. Jonathan can be reached at [email protected] or 212-918-4775.
Jonathan Steinberg
Biography & Presentation Topics
• CEO of Wisdom Tree Investments since 2004 • Formerly - CEO, Individual Investor Group - Editor-in-Chief, Individual Investor & Ticker Magazines - The Bear Stearns Companies • Topics - Exchange traded funds experience & future
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ WisdomTree Tiburon CEO Summit XVIII April 14, 2010
Jonathan Steinberg Chief Executive Officer
Today’s agenda
WisdomTree – Corporate overview
ETFs – The future of the asset management industry – Case for ETFs: superior investor experience
ETF Industry developments and growth drivers – ETF Growth versus Mutual Funds
Page 2
1 WisdomTree overview
An entrepreneurial growth …with veteran management team company… Board of Directors and advisors: Launched first ETFs in 2006 –Chairman, Michael Steinhardt , hedge fund legend Today runs 43 ETFs with approx. $7.5 –Senior Advisor, Professor Jeremy Siegel , billion in total assets* Wharton Professor of Finance –Senior Advisor, Arthur Levitt , former SEC 8th largest ETF sponsor in the U.S. chairman
WSDT has market cap of aprox. $400M * Management and operations –President & COO former iShares CFO and Pioneer of fundamentally weighted equity Head of iShares Europe ETFs and Industry’s first ’40 Act Currency –Deputy General Counsel former iShares Income ETFs with Dreyfus Senior Counsel –Director of Product Development former ProFunds Head of product development –Director of Institutional Sales & Trading former Head of Bear Stearns & BNP Paribas ETF trading desks –Director of Operations former Director of Operations at UBS *As of 4/9/2010
Page 3
ETFs are a better technology
Page 4
2 ETFs make for a better investor experience
Actively Managed Separately Mutual Managed Hedge ETFs Funds Accounts Funds
Minumum Investment No Yes Yes Yes
Sales Load No Yes No No
Transparency Daily Bi-annual Daily No
Liquidity Intraday End of day End of day Infrequent
Tax Efficiency Very No Somewhat No
Limit Orders Yes No No No
Short Sales Yes No No No
Average Expense Ratio* 0.30% or less 1.44% 1.25% to 2.7% 2/20
*Reflects avg. expense ratio for domestic equity funds Source: Morningstar, Barron’s, WisdomTree
Page 5
ETFs are now competing in virtually every space
ETF Industry AUM
2009 New Entrants Alternative Schwab Index IQ 2009 Pimco Active equities Recent Filings 2008 Grail Russell EM Goldman Currencies JP Morgan WisdomTree Eaton Vance Legg Mason 2006 John Hancock Fundamental Weighting $782 2006 WisdomTree Billion Leverage/ Inverse 2005 Proshares Developed 2004 Currencies 2001 Gold Rydex SSgA 2000 Fixed Country Income 1993 Funds iShares SPDRs iShares SSgA
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Page 6
3 ETFs are growing at expense of traditional products
Total Assets 2004-2009 Compound Growth Rate
$13T
$11T $11T 28% $10T $10T
$10 Trillion Opportunity For ETFs 6%
$782B $299B $ 407B $581B $535B
2005 2006 2007 2008 2009 Mutual Funds ETFs
Mutual Funds ETFs Source: Investment Company Institute, Strategic Insight Simfund MF database Page 7
Conclusion
ETFs Will continue to be one of the fastest-growing segments of asset management industry What others have praised as a remarkable success is actually just the beginning
WisdomTree Built recognized brand and sizeable footprint in just 4 years Strong traction in fast-growing segment of asset management industry Only pure play, publicly traded ETF business
Page 8
4 WisdomTree Tiburon CEO Summit XVIII April 14, 2010
Jonathan Steinberg Chief Executive Officer
5 Tiburon CEO Summit XVIII – Ask the Stock Analysts Panel
Ask the Stock Analysts Panel
Gerard Cassidy Jeff Davis Jefferson Harralson Rich Repetto
RBC Capital Guggenheim Keefe, Bruyette & Sandler, O’Neil, & Firm Markets Partners Woods Company
Banks Banks Banks Coverage (Primarily Smaller & (Primarily Smaller & Insurance (Primary Larger) Mid-Size) Mid-Size)
Key Industry ------Trends
Predicted ------Winners
Other Industry ------Predictions Tiburon CEO Summit XVIII
Day #2 Opening Presentation New York, NY April 15, 2010
Outline
• Tiburon Strategic Advisors
• Tiburon CEO Summits
• Day #1 Recap
• Tiburon Q&A
• Day #2 Kick-Off
1 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon Strategic Advisors
Tiburon Strategic Advisors
• Focus on corporate-level strategy - Serve senior executives only at financial services companies - Key services: strategy consulting, market research, & market seminars - Served over 300 corporate clients and completed over 1,200 projects since 1998 - Publish series of 62 off-the-shelf research reports ($5K each; $25K for access to all reports for all employees for a year) - Host semi-annual Tiburon CEO Summits
• Chip Roame background - McKinsey & Company - The Charles Schwab Corporation - Tiburon since 1998 (12 years)
Source: Tiburon Research & Analysis 2 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon Strategic Advisors - Core Business Services
Tiburon Strategic Advisors Core Business Services
Advisory Board Roles
Market Research & Strategy Consulting Projects
Market Seminars & Conference Speeches
Research Reports & Research Report Access Program
Source: Tiburon Research & Analysis 3 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Strategy Consulting Business
Strategy Consulting Business Issues
Management (Strategy) Consulting… Shifting From Process to Content-Rich Model Big Management Consulting Firms… Profits Depressed Stock Analyst Settlement – What Happened? Investment Consultants – Bound to be Wrong Eventually Ratings Agencies – Ridiculous Business (Unaddressed Conflicts of Interest)
Source: Tiburon Research & Analysis 4 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon Strategic Advisors - Opportunities
Tiburon Strategic Advisors Opportunities
Research Report Market Seminars & Tiburon Access Program Conference Speeches Expansion Team
• Personalized packaging • Board Meetings • Elevator the coming soon => table of • Senior Management entrepreneur contents, key findings, Offsites • Fulfill the excess executive summaries, • Management Meetings project flow full reports, Power Point • Conference Speeches • Leverage the research slides • Top Producer Trips • Lead Tiburon to the • Suggestion => Sign up • Training Programs next level & require all employees • Etc. • Mail my checks to to use as a library (it will Hawaii (Just Kidding) force them to think more clearly)
Source: Tiburon Research & Analysis 5 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Outline
• Tiburon Strategic Advisors
• Tiburon CEO Summits
• Day #1 Recap
• Tiburon Q&A
• Day #2 Kick-Off
6 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XIX – Guest Speakers
Tiburon CEO Summit XIX Guest Speakers (October 6-7, 2010 * Ritz Carlton Hotel * San Francisco, CA)
• Judy Barber (Family • Rich Karlgaard • Jeff Maggioncalda Money Consultants) (Forbes Media) (Financial Engines)
• Dale Brown (Financial • Harold Evensky • Meir Statman (Santa Services Institute) (Evensky & Katz) Clara University)
• Ron Carson (Carson • Mark Yusko (Hatteras Wealth Management) Investment Partners)
Note: Tiburon CEO Summit XX is scheduled for April 13-14, 2011 in New York, NY; speakers will include Charles Brandes (Brandes Investment Partners), Ric Edelman (Edelman Financial Services), Ed Finn (Barron’s), Allen Thorpe (Hellman & Friedman), & others to be announced soon Source: Tiburon Research & Analysis 7 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XIX - Second Annual Tiburon Awards
Tiburon CEO Summit XIX Second Annual Tiburon Awards
Consumers Award Challenging Award
Past Past Chuck Schwab Ken Fisher
Top Ten Others Top Ten Others • Jack Bogel • Mike • Bill Hambrecht • Jamie Dimon • Joe Mansueto Shannahan • Larry Fink • Rupert Murdoch • Don Phillips • Jim Weddle • John Bachman • Blake Grossman • Harry • Sallie • Pete Kight • Lee Kranefuss Markoplos Krawcheck • David Booth • Greg Johnson • Suze Orman • Brian Rogers • Bob Diamond • John Gunn • Bob Pozen • Pete Kight • Bob Reynolds • Elliot Weissbluth • Scott Cook • Bill Harris • Rob Arnott • Scott Hanson • Ned Johnson • Deena Katz • Chuck Schwab • Tom James • Harold Evensky • Bill Sharpe • Jim Riepe
Source: Tiburon Research & Analysis 8 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summits – Help Needed
Tiburon CEO Summits Help Needed
Award Recipient Guest Speaker Sponsors Group Nominations Nominations Additions
• Nominate award • Nominate household • Need even more recipients name guest speakers, partners to take this - Maintaining a especially if you have event to even the next focus on consumer a connection (your level needs firm’s CEO, key • Join the CEO Summit - Challenging industry leaders) sponsors group conventional • Suggest it to others wisdom
Source: Tiburon Research & Analysis 9 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Outline
• Tiburon Strategic Advisors
• Tiburon CEO Summits
• Day #1 Recap
• Tiburon Q&A
• Day #2 Kick-Off
10 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 1)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Chip Roame Steve Forbes Fred Tomczyk (Tiburon) (Forbes Media) (TD Ameritrade)
• -- • -- • --
Source: Tiburon Research & Analysis 11 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 2)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Abby Cohen Jim McCool Break-Out Sessions (Goldman Sachs Group) (Charles Schwab)
• -- • -- • --
Source: Tiburon Research & Analysis 12 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 3)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Jonathan Steinberg Ask the Stock Analysts Group Dinner (Wisdom Tree)
• -- • -- • --
Source: Tiburon Research & Analysis 13 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Outline
• Tiburon Strategic Advisors
• Tiburon CEO Summits
• Day #1 Recap
• Tiburon Q&A
• Day #2 Kick-Off
14 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII - Tiburon Q&A (Page 1)
Tiburon CEO Summit XVIII Tiburon Q&A
Issue #1 Issue #2 Issue #3
• -- • -- • --
Source: Tiburon Research & Analysis 15 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII - Tiburon Q&A (Page 2)
Tiburon CEO Summit XVIII Tiburon Q&A
Issue #4 Issue #5 Issue #6
• -- • -- • --
Source: Tiburon Research & Analysis 16 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Outline
• Tiburon Strategic Advisors
• Tiburon CEO Summits
• Day #1 Recap
• Tiburon Q&A
• Day #2 Kick-Off
17 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 1)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
David Tittsworth Day One Recap & Ed Bernard (Investment Adviser Day Two Kick-Off (T. Rowe Price Group) Association)
• Tiburon Strategic • Vice Chairman of T. Rowe • Executive Director of Advisors Price Group since 2006 Investment Adviser • Tiburon CEO Summits • Also Association since 1996 • Day #1 Recap - Chairman, Board of • Formerly • Tiburon Q&A Governors, - Counsel, US House • Day #2 Kick-Off Investment Company Committees & Sub- Institute Committees • Topics - Partner, Chambers, - Competing in the new Conlon, & Hartwell economy • Topics - Maintaining a client - Pillars of US focus regulatory reform - Simplified product - Next steps under offerings consideration by regulators
Source: Tiburon Research & Analysis 18 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII – Guest Speakers & Other Sessions (Page 2)
Tiburon CEO Summit XVIII Guest Speakers & Other Sessions
Formal Ask the Reporters Ask the Consumers CEO Summit Closing
• Formal closing • Facilitator: • Facilitator: • Tiburon CEO Summit XIX - Jeff Dunham (Dunham - Chip Roame reminder & Associates) • Panelists: • Feedback forms! • Panelists: - Mark A. • Welcome to media - Ruthie Ackerman - Matt S. representatives (American Banker) - David T. - Shelly Banjo (Wall - Bill W. Street Journal) • Objective: - Jan Brandstrader - Positive & negative (Barron’s) financial services - Sean Hanna experiences (Investment Wires) - A sense of the real • Objective: world (especially over - Industry trends time) - Help needed from industry executives
Source: Tiburon Research & Analysis 19 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon Strategic Advisors
Comments
• Focus on corporate-level strategy - Serve senior executives only at financial services companies - Key services: market seminars, market research, & strategy consulting - Served over 300 corporate clients and completed over 1,200 projects since 1998 - Host semi-annual CEO Summits, offer free weekly research releases, and offer free business benchmarking tools for all types of advisors
• Chip Roame background - McKinsey & Company - Charles Schwab & Company - Tiburon since 1998
Source: Tiburon Research & Analysis 20 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™
Tiburon CEO Summit XVIII April 15, 2010
Guest Presenter: Ed Bernard (Vice Chairman, T. Rowe Price Group)
Ed Bernard has served as vice chairman of the board of directors of T. Rowe Price Group since 2007, is a member of the firm's management committee, & chairman of the T. Rowe Price Mutual Funds. He oversees the firm's distribution, client service, technology, operations, & communications activities.
Mr. Bernard has over 20 years of experience in the investment management industry, all of which have been with T. Rowe Price Group. In addition to his responsibilities at T. Rowe Price Group, he serves as chairman of the board of governors of the Investment Company Institute, the national trade association for the mutual fund industry. Prior to joining T. Rowe Price, Mr. Bernard worked for a large direct marketing company.
Mr. Bernard earned his BA from Brown University and his MBA from New York University. Ed can be reached at [email protected] or 410-345-2000.
Ed Bernard
Biography & Presentation Topics
• Vice Chairman of T. Rowe Price Group since 2006 • Also - Chairman, Board of Governors, Investment Company Institute • Topics - Competing in the new economy - Maintaining a client focus - Simplified product offerings
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Creating Differentiated Value in a Crowded Market Ed Bernard, Vice Chairman, T. Rowe Price Group
T. Rowe Price, Invest With Confidence and the Bighorn Sheep logo is a registered trademark of T. Rowe Price Group, Inc. Copyright 2010. T. Rowe Price. All rights reserved. Topics for Discussion
Retirement Income Trends point to the need for focus Solutions require simplicity
ETFs Raise the bar for active managers to add competitive value
Creating Value: Picking Your Spots in a Competitive Market Constraints and competition in the value delivery chain have “game-changing” impact.
T. Rowe Price’s Approach
2 Retirement Income: Who Are We Trying to Serve?
Percent of Aggregate Income of Individuals Age 65 or Older Who Did Not Work, 1975 and 2006
14 19 15 19 30 31
66 69
86 81 86 81 70 69
33 31
1975 2006 1975 2006 1975 2006 1975 2006 Lowest Income Quartile Quartile 2 Quartile 3 Highest Income Quartile
Social Security Pension, Asset, and Other Income Source: ICI 3 Keep it Simple . . .
Deductible Contributions to IRA’s
38.2 37.8 ($ Billions) 35.4 32.1 Conditional eligibility 28.3 - Income limits - Availability of plan at work “Universal” Increased IRA eligibility 14.1 11.9 10.8 9.9 9 8.7 8.7 9.5 8.5 8.4 8.3 8.6 8.2 7.9 7.5 7.4 4.8 3.4
2 3 6 7 0 1 4 5 8 9 2 81 8 8 85 8 8 89 9 9 93 9 9 97 9 9 01 0 9 9 9 9 9 9 9 9 9 9 0 0 1980 1 1 19 1984 1 1 19 1988 1 1 19 1992 1 1 19 1996 1 1 19 2000 2 2
Simplicity created a boom, complexity led immediately to a bust!
Substantial portion who dropped out in 1987 were still eligible.
4 . . . No, I Mean REALLY Simple
Retirement Assets in Target Risk and Target Date Funds 140
31
76 64 63 15 36 26 109
21 48 40 7 13 38 14 11
2002 2005 2008
Target -Risk Funds: “What Risk Level? ” Employer DC Plans Individual Retirement Accounts
Target -Date Funds: “How Old Are You? ” Employer DC Plans Individual Retirement Accounts
5 And Don’t Take Your Eye Off Accumulation
U.S. Population 45 – 64 and 65+ 200,000
180,000
160,000
140,000
120,000 65+ 100,000 45-64 80,000
60,000
40,000
20,000
- 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Source: UN Population Division – World Population Prospects, 2008 Revision 6 ETF’s: Here’s What Drives Headlines
ETF Assets
$800
$600
$400
$200
$0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
7 Sources: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg Here’s the Relevant Context
25%
20%
15%
10%
5% Index Fund + ETF Market Share Market ETF + Fund Index
0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Index Mutual Funds + ETFs Index Mutual Funds
Source: Strategic Insight 8 A “Product Line Extension”
Here to stay – significant new vehicle
Less relevant (so far) for retirement accounts Enough revenue to support broad distribution? Impact: More evolutionary than revolutionary
The vehicle itself is evolving
Passive: New impetus in passive-active tug-of-war Transparent Active: Limited to “no-fault” strategies Non-Transparent Active: If it happens, net opportunity for successful active managers.
ETFs have raised the stakes. . . Active managers must add value
9 A Great Business (Still) Gets Tougher
1980 – 2000: The Good Old Days Dramatic expansion of market for managed assets Ample revenue growth to sustain managers and distributors
2000 – 2010: Shaping a new, more challenging reality Challenging markets, reduced growth rates, greater competition Greater differentiation - winners and losers And . . .
10 End Cost to Clients Has Been Driven Down The National Full Service Brokerage Firms 1 Their Fees and Composite Mutual Fund Expense Ratios 2 1985, 2000, 2008 and 2009
1Morgan Stanley Smith Barney, Wells Fargo, Merrill Lynch and UBS. 2Mutual fund expense ratios are asset-weighted and exclude 12B-1 fees.
1985 2000 2008 2009 After 2009 Using Revenue Sharing ETF’s
Sources: Empirical Research Partners Estimates. Securities Industry and Financial Markets Association, ICI , Merrill Lynch 11 Pick Your Spots – And Create Value
Sources of Revenue Potential Uses of Revenue
AUM/ Investing Advisory Fees Passive Active Capabilities Talent $ $$$ Sustainability
Distribution 12b-1 Fees/ Loads? Revenue Sharing Value-Add
Profits?
12 T. Rowe Price Approach
Low Cost
High Value
Source: Lipper 13 T. Rowe Price: Creating Long-Term Value
Core Objectives
Attract, develop, and retain talent. Talented Collaborating People Maintain collaborative environment.
Combine talent, culture, process, and systems to create value for clients and the firm. To Create Value
Successfully nurturing this virtuous cycle of value creation is the core driver of our long-term success.
14 T. Rowe Price Strategy to Achieve Long-Term Objectives
Focus: Superior investment management and related services
Discipline: We view growth strategically Protect client interests first Create career opportunity to attract and retain talent
Balance: Diversified investment offerings and distribution Not overly reliant on any one area Broad career opportunity set to attract/retain talent
Continuous Investment: Strengthen organizational capabilities Attract and retain top professional talent in all types of markets Sustain and expand core strategic capabilities
15 Evolution of T. Rowe Price Model Aligns Well
Evolution of T. Rowe Price Evolution of Intermediary Distribution Industry Distribution
Most Distribution Leverage Least Distribution Leverage
Gatekeeper-Centric Gatekeeper + Gatekeeper + Producer-Centric Sales Support Producer (Load)
Gatekeeper Wrap IODC Mutual Fund Wrap Load Funds
Bank Trust Insurer VA
Gatekeeper influence is ascendant
T. Rowe Price formula shows promise Consistently strong performance + low TER + leveraged value-add
16 Summary
Retirement income trends exemplify to the need for clarity and focus.
ETFs raise the bar for adding competitive value.
Both Retirement Income and ETFs raise challenges and opportunities, but neither is fundamentally a game-changer.
Constraints and competition in the value delivery chain have more “game- changing” potential. • Need for focus: Where to allocate resources to create competitive advantage • Passive: All about price (and thus cost structure and scale) • Active: Sustained performance trumps all. Higher revenue enables other value-add activities. • Non investment activities (e.g., sales) must add legitimate value.
Time to place your bets!
17 18
Tiburon CEO Summit XVIII April 15, 2010
Guest Presenter: David Tittsworth (Executive Director, Investment Adviser Institute)
David Tittsworth has served as executive director of the Investment Adviser Association since 1996. He is responsible for the management of the non-profit organization dedicated to serving & representing the interests of SEC-registered investment advisory firms. Based in Washington, DC, his firm engages in numerous advocacy, compliance, & educational services on behalf of its membership.
Prior to assuming his current position, Mr. Tittsworth served as counsel of the house committee on energy & commerce. Prior to that he was a partner at government relations firm Chambers, Conlon, & Hartwell. Mr. Tittsworth has served in Washington, DC, almost continuously, since 1987, including stints on the house budget committee and as senior counsel to the house subcomittee on transportation, trade, & hazardous materials.
Mr. Tittsworth earned his BA from University of Kansas in 1975 and his JD from University of Kansas School of Law in 1978. David can be reached at [email protected] or 202-293-4222.
David Tittsworth
Biography & Presentation Topics
• Executive Director of Investment Adviser Association since 1996 • Formerly - Counsel, US House Committee & Sub- Committees - Partner, Chambers, Conlon, & Hartwell • Topics - Pillars of US regulatory reform - Next steps under consideration by regulators
Source: Tiburon Research & Analysis 0 10.04.14 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Regulatory Reform
Key Issues for Investment Management Firms April 15, 2010
David G. Tittsworth Executive Director Investment Adviser Association
www.investmentadviser.org
Investment Adviser Association • Formerly the Investment Counsel Association of America • Non-profit organization that represents the interests of SEC-registered advisory firms • Focus: Investment Advisers Act of 1940 • Advocacy: Capitol Hill, SEC, DOL, state securities agencies & international regulators • Membership: About 500 investment management firms that collectively manage more than $9 trillion (US) for individual and institutional clients • www.investmentadviser.org
www.investmentadviser.org
1 Pillars of U.S. Regulatory Reform
• Systemic risk regulation • Consumer Financial Protection Agency • Reform credit rating agencies • Regulation of derivatives • Regulation of private fund managers • Executive compensation
www.investmentadviser.org
Status of Reg Reform Legislation • House passed HR 4173 on Dec. 3, 2009 – 223-202 (no Republican support)
• Senate Banking Committee passed Dodd bill on March 22, 2010 – Party line vote (13-10)
• Next step – vote by full Senate
www.investmentadviser.org
2 Reg Reform: Investment Adviser Issues
• “Harmonization” of broker-dealer and investment adviser laws & regulations – Fiduciary duty issues
• Adequacy of SEC resources – Self-regulatory organization (SRO) issues
www.investmentadviser.org
“Harmonization” – Background
“Treasury recommends statutory changes to harmonize the regulation and oversight of broker- dealers and investment advisers offering similar services to retail investors….In that vein, Treasury also believes that self-regulation of the investment advisory industry should enhance investor protection and be more cost-effective than direct SEC regulation…Thus, in effectuating this statutory harmonization, Treasury recommends that investment advisers be subject to a self-regulatory regime similar to that of broker-dealers.”
• Blueprint for a Modernized Financial Regulatory Structure (March 31, 2008)
www.investmentadviser.org
3 “Harmonization” of BD/IA Regulation
"Securities professionals, regardless of what their business card says, should be subject to the same standard of conduct, the same licensing and qualification requirements, the same disclosure obligations, the same regulatory and recordkeeping standards and a robust examination and oversight schedule.“
SEC Chairman Mary Schapiro (Dec. 3, 2009)
www.investmentadviser.org
“Harmonization” of BD/IA Regulation
• There is a need for “enhanced regulatory consistency” between brokers and advisers, especially with respect to “licensing, advertising, sales practice, and disclosure.”
FINRA CEO Richard Ketchum (Mar. 26, 2009)
www.investmentadviser.org
4 Fiduciary Duty • Administration proposal (June 2009): Brokers that provide investment advice should be subject to same fiduciary standard as investment advisers • Broker and insurance concerns about fiduciary duty: – Commissions – Proprietary products – “Limited” advice
www.investmentadviser.org
IAA Positions re: “Harmonization”
• Fundamental differences exist between most brokers (“sell side”) and most investment advisers (“buy side”) • Imposing broker-dealer rules on advisers does not make sense (BDs are moving into advisory profession) • Do not weaken or water down Advisers Act fiduciary duty • Advisers Act fiduciary duty should be extended to brokers and others who provide investment advice
www.investmentadviser.org
5 “Harmonization” – Status of Legislation
• House bill directs SEC to issue rules on fiduciary duty (“personalized investment advice” to “retail customers”); permits rules on other “harmonization” issues: disclosure, sales practices, conflicts of interest, and compensation schemes • Senate bill requires SEC to study fiduciary duty and SRO issues
www.investmentadviser.org
SEC Resources
• Growth in investment advisory profession has raised concerns about whether SEC has sufficient resources to oversee IAs • Potential options – Increase SEC’s annual appropriation – “Self-funding” (dedicated revenue stream) – User fees for investment advisers – Increase $25 million threshold for SEC jurisdiction – Self-regulatory organization (SRO) for advisers
www.investmentadviser.org
6 SEC-Registered Investment Advisers by AUM (April 2009)
Number of SEC-Registered Investment Advisers by AUM Category
12,000
10,000
8,000
6,000
4,000 Number of Advisers Number of
2,000
0 2001 2002 2003 2004 2005 2006 2007 2008 2009 All Advisers 7,322 7,581 7,852 8,302 8,614 10,290 10,446 11,030 11,257 ≥100b 45 52 48 52 56 62 75 82 61 50-<100b 35 37 39 46 51 65 77 90 65 10-<50b 231 237 221 250 285 334 367 409 346 5-<10b 190 203 199 206 211 237 284 327 301 1-<5b 705 708 727 828 915 1,149 1,173 1,235 1,096 100m-<1b 2,297 2,480 2,474 2,747 2,993 3,812 3,904 4,096 3,780 25-<100m 2,381 2,875 3,020 3,036 3,068 3,492 3,489 3,720 4,259 <25m 1,438 989 1,124 1,137 1,035 1,139 1,077 1,071 1,349 www.investmentadviser.org
Self-Regulatory Organization (SRO) for Investment Advisers • FINRA actively lobbying to expand its turf to investment advisers
“FINRA is uniquely positioned from a regulatory standpoint to build an oversight program for investment advisers quickly and efficiently.”
FINRA CEO Richard Ketchum Mar. 26, 2009
www.investmentadviser.org
7 SRO for Investment Advisers
“I … believe that all financial professionals should be required to be members of one or more self- regulatory organizations that are empowered with both enforcement and standard-setting authority.” SEC Commissioner Elisse Walter May 5, 2009
www.investmentadviser.org
IAA Positions re: SRO/FINRA
• SRO for advisers is unnecessary and adds extra layer of bureaucracy and cost • Inherent conflict of interest • IAA opposes FINRA as adviser SRO: lack of transparency, lack of accountability, track record, costs, bias favoring broker-dealer model • Better alternatives: (1) give SEC adequate resources; and (2) improve SEC inspection program
www.investmentadviser.org
8 Next Steps… • Full Senate consideration of Dodd bill
• Resolve differences between House and Senate bills
• Implementation by SEC
• Stay tuned…
www.investmentadviser.org
Contact Information
David Tittsworth Executive Director Investment Adviser Association [email protected] 202.293.4222
www.investmentadviser.org
9 Regulatory Reform
Key Issues for Investment Management Firms April 15, 2010
David G. Tittsworth Executive Director Investment Adviser Association
www.investmentadviser.org Investment Adviser Association • Formerly the Investment Counsel Association of America • Non-profit organization that represents the interests of SEC-registered advisory firms • Focus: Investment Advisers Act of 1940 • Advocacy: Capitol Hill, SEC, DOL, state securities agencies & international regulators • Membership: About 500 investment management firms that collectively manage more than $9 trillion (US) for individual and institutional clients • www.investmentadviser.org
www.investmentadviser.org Pillars of U.S. Regulatory Reform
• Systemic risk regulation • Consumer Financial Protection Agency • Reform credit rating agencies • Regulation of derivatives • Regulation of private fund managers • Executive compensation
www.investmentadviser.org Status of Reg Reform Legislation • House passed HR 4173 on Dec. 3, 2009 – 223-202 (no Republican support)
• Senate Banking Committee passed Dodd bill on March 22, 2010 – Party line vote (13-10)
• Next step – vote by full Senate
www.investmentadviser.org Reg Reform: Investment Adviser Issues
• “Harmonization” of broker-dealer and investment adviser laws & regulations – Fiduciary duty issues
• Adequacy of SEC resources – Self-regulatory organization (SRO) issues
www.investmentadviser.org “Harmonization” – Background
“Treasury recommends statutory changes to harmonize the regulation and oversight of broker- dealers and investment advisers offering similar services to retail investors….In that vein, Treasury also believes that self-regulation of the investment advisory industry should enhance investor protection and be more cost-effective than direct SEC regulation…Thus, in effectuating this statutory harmonization, Treasury recommends that investment advisers be subject to a self-regulatory regime similar to that of broker-dealers.”
• Blueprint for a Modernized Financial Regulatory Structure (March 31, 2008)
www.investmentadviser.org “Harmonization” of BD/IA Regulation
"Securities professionals, regardless of what their business card says, should be subject to the same standard of conduct, the same licensing and qualification requirements, the same disclosure obligations, the same regulatory and recordkeeping standards and a robust examination and oversight schedule.“
SEC Chairman Mary Schapiro (Dec. 3, 2009)
www.investmentadviser.org “Harmonization” of BD/IA Regulation
• There is a need for “enhanced regulatory consistency” between brokers and advisers, especially with respect to “licensing, advertising, sales practice, and disclosure.”
FINRA CEO Richard Ketchum (Mar. 26, 2009)
www.investmentadviser.org Fiduciary Duty • Administration proposal (June 2009): Brokers that provide investment advice should be subject to same fiduciary standard as investment advisers • Broker and insurance concerns about fiduciary duty: – Commissions – Proprietary products – “Limited” advice
www.investmentadviser.org IAA Positions re: “Harmonization”
• Fundamental differences exist between most brokers (“sell side”) and most investment advisers (“buy side”) • Imposing broker-dealer rules on advisers does not make sense (BDs are moving into advisory profession) • Do not weaken or water down Advisers Act fiduciary duty • Advisers Act fiduciary duty should be extended to brokers and others who provide investment advice
www.investmentadviser.org “Harmonization” – Status of Legislation
• House bill directs SEC to issue rules on fiduciary duty (“personalized investment advice” to “retail customers”); permits rules on other “harmonization” issues: disclosure, sales practices, conflicts of interest, and compensation schemes • Senate bill requires SEC to study fiduciary duty and SRO issues
www.investmentadviser.org SEC Resources
• Growth in investment advisory profession has raised concerns about whether SEC has sufficient resources to oversee IAs • Potential options – Increase SEC’s annual appropriation – “Self-funding” (dedicated revenue stream) – User fees for investment advisers – Increase $25 million threshold for SEC jurisdiction – Self-regulatory organization (SRO) for advisers
www.investmentadviser.org SEC-Registered Investment Advisers by AUM (April 2009)
Number of SEC-Registered Investment Advisers by AUM Category
12,000
10,000
8,000
6,000
4,000 Number of Advisers Number of
2,000
0 2001 2002 2003 2004 2005 2006 2007 2008 2009
All Advisers 7,322 7,581 7,852 8,302 8,614 10,290 10,446 11,030 11,257 ≥100b 45 52 48 52 56 62 75 82 61 50-<100b 35 37 39 46 51 65 77 90 65 10-<50b 231 237 221 250 285 334 367 409 346 5-<10b 190 203 199 206 211 237 284 327 301 1-<5b 705 708 727 828 915 1,149 1,173 1,235 1,096 100m-<1b 2,297 2,480 2,474 2,747 2,993 3,812 3,904 4,096 3,780 25-<100m 2,381 2,875 3,020 3,036 3,068 3,492 3,489 3,720 4,259 <25m 1,438 989 1,124 1,137 1,035 1,139 1,077 1,071 1,349 www.investmentadviser.org Self-Regulatory Organization (SRO) for Investment Advisers • FINRA actively lobbying to expand its turf to investment advisers
“FINRA is uniquely positioned from a regulatory standpoint to build an oversight program for investment advisers quickly and efficiently.”
FINRA CEO Richard Ketchum Mar. 26, 2009
www.investmentadviser.org SRO for Investment Advisers
“I … believe that all financial professionals should be required to be members of one or more self- regulatory organizations that are empowered with both enforcement and standard-setting authority.” SEC Commissioner Elisse Walter May 5, 2009
www.investmentadviser.org IAA Positions re: SRO/FINRA
• SRO for advisers is unnecessary and adds extra layer of bureaucracy and cost • Inherent conflict of interest • IAA opposes FINRA as adviser SRO: lack of transparency, lack of accountability, track record, costs, bias favoring broker-dealer model • Better alternatives: (1) give SEC adequate resources; and (2) improve SEC inspection program
www.investmentadviser.org Next Steps… • Full Senate consideration of Dodd bill
• Resolve differences between House and Senate bills
• Implementation by SEC
• Stay tuned…
www.investmentadviser.org Contact Information
David Tittsworth Executive Director Investment Adviser Association [email protected] 202.293.4222
www.investmentadviser.org Tiburon CEO Summit XVIII – Formal CEO Summit Closing
Tiburon CEO Summit XVIII Formal CEO Summit Closing
Tiburon CEO Summit Welcome to Media Formal Closing Feedback Forms! XIX Reminder Representatives
• -- • -- • -- • --
Source: Tiburon Research & Analysis 0 10.04.15 – Tiburon CEO Summit XVIII © Tiburon Strategic Advisors, LLC™ Tiburon CEO Summit XVIII – Ask the Reporters Panel
Ask the Reporters Panel
Ruthie Shelly Jan Sean Hanna Ackerman Banjo Brandstrader
Wall Street Publication American Banker Barron’s Investment Wires Journal
Coverage ------
Key Industry ------Trends Following
Help Needed from Industry ------Participants Tiburon CEO Summit XVIII - Ask the Consumers Panel
Ask the Consumers Panel
Mark A. Matt S. David T. Bill W.
Occupation Propane Law Consultant Real Estate
Friend of Friend of a Friend of Friend of Tiburon Connection Colleague of Friend of Jeff Cusack Ben Cukier Ben Cukier Chip Roame
Financial Services ------Firm(s) Utilized
Good Past Experiences ------
Bad Past Experiences ------
Tiburon Strategic Advisors
Research-Based Strategy Consulting Services for Financial Services Firms
Tiburon Strategic Advisors Tiburon Strategic Advisors was formed in 1998 to offer market research, strategy consulting, & other related services to all types of financial institutions and investment managers. The firm has served over 300 corporate clients and completed over 1,200 projects since its founding, and today, its knowledge base includes mutual fund distribution, separately managed account programs, alternative investments, wealth management, insurance products, banking services, the fee- based financial advisor market, the CPA firm market, the family office market, & various international markets. Three of Tiburon's core clientele groups are the CEOs and other senior executives of large US financial institutions faced with difficult strategic decisions, leading executives of foreign financial institutions trying to understand and/or enter the US markets, and a long list of venture capital & private equity firms, and investment banks, making investments in, and executing transactions in, areas where Tiburon has developed proprietary insights.
Tiburon Consulting Team The Tiburon consulting team brings a balance of industry knowledge, consulting skills, research aptitude, & industry experience to all client projects.
Managing Principal Charles ("Chip") Roame is the managing principal of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the brokerage, investments, wealth management, banking, & insurance markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research, he may be the most frequently demanded conference speaker, giving 75+ speeches each year. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets. Click here for Mr. Roame’s full biography. Tiburon’s Managing Principal
Chip Roame Consulting Staff Tiburon's consulting staff is comprised of a core group of research associates & support professionals. Tiburon's research associates are critical to the development of research reports and the completion of client assignments; they are also frequently tapped by the media and conference planners. And in order to best serve its clients, Tiburon research associates also rotate through its marketing department, taking turns sharing the firm's research with its clients & prospects, and acting as the front-line of contact with the firm. Click here to read more about Tiburon’s consulting staff.
Executive Program Members In addition to its full-time consulting staff, Tiburon also has three established Executive Programs called its CEOs-in-Residence, Financial Advisor Roundtable, & Consulting Fellows. Tiburon established these three Tiburon’s Executive Program members catch up at a recent programs to add additional senior level industry Tiburon CEO Summit in San Francisco, CA experience to its clients. Click here to read more about Tiburon’s executive programs.
Tiburon CEO Summits Tiburon Tools
Tiburon has hosted a series of unique semi-annual CEO Tiburon sponsors a set of thirteen free web-based business Summits for its executive-level clients since 2001. Tiburon’s benchmarking tools for various types of financial advisors. CEO Summits provide a unique opportunity for a select cross- Each tool allows some group of financial advisors the ability industry group of senior executives to discuss a broad swath to benchmark their business operations. Tiburon provides of issues regarding the future of the brokerage, investments, these tools free to practitioners as a goodwill gesture and to advice, & wealth management businesses. Click here to learn collect aggregate data for its own use. Click here to learn more about Tiburon’s tools. more about Tiburon’s CEO Summits.
Tiburon Client Services Tiburon services include market seminars, market research, strategy consulting, venture consulting, mergers & acquisitions advice, and retainers, board roles, & executive counseling. Click here to learn more about Tiburon’s client services.
Market Seminars Tiburon delivers semi-customized industry overview presentations covering a wide variety of market and product segments within the brokerage & investment management marketplace. Market seminars are ideal for clients who need a quick and yet in-depth understanding of the overall brokerage & investment management markets or any particular segment(s) of these markets. Specifically, Tiburon executives have been engaged by many firms to deliver presentations and lead brainstorming sessions with boards of directors, senior management teams, venture capital teams, & entrepreneurial groups. This is a great way to kick-off management committee or board meetings. Some Tiburon clients then develop their own strategies; others engage Tiburon for further research and strategy work. These sessions also provide substantial data and analysis for developing business plans. Click here for more information on Tiburon's market seminars.
Market Research Tiburon utilizes a rigorous research-based method in helping its clients to develop leading-edge business strategies, and as a result, many other Tiburon clients have engaged the firm to complete market research assignments. Market research projects are customized to explore each client's specific area of interest, and can include internal capabilities assessments, competitor & market analysis, and client research. Research projects typically take four-to-eight weeks to complete. Click here for more information on Tiburon's market research services.
Strategy Consulting Strategy consulting is the foundation of what is delivered at Tiburon Strategic Advisors. Tiburon believes that it has developed processes specifically to help financial institutions develop leading-edge business strategies. As a result, Tiburon has been engaged to lead a wide variety of strategic projects for a broad spectrum of product and service providers in the financial services industry. Tiburon's core capabilities are building on a firm's strengths, assessing its opportunities, & recommending specific product and market strategies. Tiburon's strategy consulting process is based on its in-depth market knowledge and extensive customized research conducted on behalf of its clients. Strategy consulting projects typically take two-to-three months to complete. Click here for more information on Tiburon's strategy consulting services.
Other Tiburon Services As a natural outgrowth of Tiburon's core services and research-based approach, Tiburon has been able to help clients in areas such as venture consulting and mergers & acquisitions advice, and to establish business relationships that allow Tiburon to play an on-going role in its clients' businesses such as retainers, board roles, & executive counseling.
Tiburon Research Reports & Tiburon Conference Speeches Research Report Access Program
Tiburon has created a series of research reports to help Tiburon executives have given hundreds of speeches to both educate its clients in a low-cost way on a wide variety of financial industry executives and financial advisors. Common topics in the brokerage, investments, private banking, & audiences for Tiburon speakers include board meetings, wealth management markets. At the suggestion of numerous executive offsites, employee meetings, national & regional Tiburon clients, Tiburon created a client service allowing trade group meetings, financial advisor annual conferences, unlimited access to all of its research reports for an entire financial advisor top producers trips, financial advisor regional calendar year via the online Tiburon Library for only $25,000. forums, & financial advisor due diligence trips. Click here to Click here to learn more about Tiburon’s research reports & learn more about Tiburon conference speeches. research access program.
Tiburon Industry Knowledge
Product & Service Market & Distribution Channel Tactical Issues Strategic Conclusions Key Driving Factors Reports Reports Reports Reports Reports
Summary Report Summary Report Summary Report Summary Report Summary Report Key Driving Factors € Product & Services Markets & Distribution Channels € Winning Tactics € Financial Services Industry Investment Opportunities Wealth Reports Financial Products Reports Direct Distribution Financial Services Institutions Tactics Channels Reports Reports Strategic Conclusions Reports Consumer Wealth € Cash Investments Online Tools & Advice € FSI Target Markets € Financial Service Industry Firm Institutional Markets € Bank Deposits Valuations € Online Brokerage € FSI Sales & Marketing € Money Market Funds € Financial Services Industry Venture Online Banking & Mortgages € FSI Staffing & Compensation Current Events Reports € Individual Securities & Capital Capital Opportunities Markets Online Insurance € FSI Firm Cultures Current Events € Financial Services Industry Private € € World Political Events Equity Capital Markets FSI Technology Equity Opportunities € Financial Advisor € € World Disasters NYSE Listed Equities FSI Industry Networking Financial Services Industry Mergers € Channels Reports & Acquisitions Economy & Markets NASDAQ (OTC) Listed Equities € Retail Banks Financial Advisors Tactics Reports Corporate Scandals Fixed Income Capital Markets € Strategic Thinking Reports € Corporate Bonds Full-Service Brokerage Firms FA Target Markets Financial Services Industry Stumbles € € Discount Brokerage Firms € FA Sales & Marketing Consulting Industry Presidential & Congressional Government Bonds € Strategy Frameworks Elections € Agency Bonds Independent Reps € FA Staffing & Compensation Regulatory Environment € Municipal Bonds Fee-Based Financial Advisors (RIAs) € FA Firm Cultures € Initial Public Offerings (IPOs) Other Financial Advisors € FA Technology € Mutual Funds Insurance Agents € FA Industry Networking € Fee-Accounts Life Insurance Agents € FA Mergers & Acquisitions € ETFs & Indexing Property & Casualty Insurance Agents € Hedge Funds Financial Advisor Benchmarking & Best CPA Firms Practices Reports € Venture Capital & Private Equity Estate Attorneys € FA Benchmarking & Best Practices € Real Estate Real Estate Agents € Broker Benchmarking & Best € Wine Investments Practices Mortgage Brokers € Other Financial Alternative € Bank Broker Benchmarking & Best Upscale Channels Investments Practices € Private Banks Other Non-Financial Alternative € Private Banker Benchmarking & Best Investments Investment Banks Practices Securities Underwriting € Independent Rep Benchmarking & Best Practices Wealth Management Services Reports Mergers & Acquisitions Advisory € € Fee-Based Financial Advisor (RIA) Aggregation & Financial Planning Institutional Sales Advisory € Benchmarking & Best Practices 529 Plans Separate Account Managers € Life Insurance Agent Benchmarking € Insurance Products Investment Consultants & Best Practices € Health Care Insurance Sports Agents & Entertainment € Third-Party Administrator € Disability Insurance Business Managers Benchmarking & Best Practices € Long-Term Care Insurance Family Offices € Property & Casualty Insurance Agent Benchmarking & Best Practices € Property & Casualty Insurance Processing Firms € Tax Pro Benchmarking & Best € Annuities & Other Retirement Income Transfer Agents Practices Products Institutional Custodians € Estate Attorney Benchmarking & € Life Insurance Fund Accountants Best Practices € Private Banking Services Clearing Brokers € Real Estate Agent Benchmarking & € Credit Cards Prime Brokers Best Practices € € Mortgages & Home Equity Loans Family Office Benchmarking & Best € Practices Specialized Lending Institutional Channels Reports € Hedge Fund Manager Benchmarking € Corporate & Industrial Lending € Workplace Investing & Best Practices € Estate Planning & Charitable Giving € Defined Contribution Plans € FA Profiles € Family Office Services € Defined Benefit Plans € Endowments & Foundations € Corporate Cash & Treasury Services € Sovereign Wealth Funds & Other Foreign Investors
International Markets Reports € English Speaking Countries Markets € Europe, Middle East, & Africa € Asia Pacific € Latin America € Offshore Markets
Tiburon CEO Summit XVIII April 14-15, 2010
Tiburon Managing Principal
Charles ("Chip") Roame
Charles ("Chip") Roame is the Managing Principal of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the brokerage, investments, banking, & insurance markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research, he may be the most frequently demanded conference speaker. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets.
At Tiburon, Mr. Roame has responsibility for all of the firm's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses - mutual funds, exchange traded funds, separately managed accounts, hedge funds & other alternative investments, financial planning, wealth management services, life insurance, annuities, family office services, online financial services, and the growing independent advisor markets. He has also taken a substantial interest in financial services industry venture capital & private equity opportunities and investment banking transactions. At Tiburon, Mr. Roame has led over 1,200 client engagements for over 300 corporate clients since 1998.
Mr. Roame is now intending to refocus some of his time to serve on a few Tiburon client company boards. In the past, he has served on a variety of boards, including those for start-up venture Prima Capital Holdings and the SA Funds. Mr. Roame’s ability to add value to financial services company boards comes from the breadth and depth of his strategic, product, and distribution experiences at Tiburon, and in his previous roles at The Charles Schwab Corporation and McKinsey & Company. He is a native of Detroit and a graduate of the University of Michigan (MBA) and now lives in Belvedere, CA, less than a mile from the firm's main office. Chip can be reached at [email protected] or 415-789-2541.
Tiburon CEO Summit XVIII April 14-15, 2010
Tiburon CEO Summit XVIII Select Tiburon Staff & CEO Summit Helper Profiles
Tiburon Strategic Advisors Tiburon's CEO Summits are made possible by the contributions of several members of Tiburon’s valued consulting staff. Their year-round efforts to deliver strong client work in the form of research reports, market seminars, & strategy consulting projects are specifically focused every six months on the firm’s CEO Summit. We intend to offer Tiburon clients a unique forum to gather & discuss industry developments.
Please bring to our attention any feedback you have that might improve the client & CEO Summit attendee experience. Thanks.
Tudor Jones Business & Marketing Associate
Tudor Jones has served as business & marketing associate at Tiburon since August of 2008, having transferred to the department after initially joining Tiburon as a research associate earlier in that same year. He has since served the firm in various capacities, including leading several CEO Summit initiatives, assisting in the refinement of Tiburon’s research report writing process, assisting in the refinement of Tiburon’s business plan, & facilitating numerous Tiburon operational processes. Mr. Jones brought with him consulting & financial services experience, having been previously employed at Price Waterhouse Coopers in London, United Kingdom, where he was part of a pharmaceuticals group in 2000 that identified the trend towards increased budget allocation to marketing.
Prior to joining Tiburon, Mr. Jones was an account executive at Lenders National Group, a boutique private lending group in Marin County, CA. Prior to that, he was an account executive at SRI, a boutique private lending group in San Francisco, CA. Prior to that, he was a consulting associate at Price Waterhouse Coopers in London, United Kingdom.
Mr. Jones received his BA in English Literature from the University of California at Los Angeles. Tudor is a native of, and currently resides in, the town of Tiburon. He can be reached at [email protected] or 415-789-2557.
Pablo Perez Senior Research Manager
Pablo Perez joined Tiburon as a research manager in 2007, was promoted to the role of senior research manager in 2008, left the firm for personal reasons later in 2008, and then rejoined the firm as a senior research manager in 2010. At Tiburon, Mr. Perez' responsibilities include publishing research reports and conducting research on behalf of Tiburon clients.
Prior to joining Tiburon, Mr. Perez was employed at the Goldman Sachs Group as an analyst tracking the technology industry.
Mr. Perez received BA in Mathematical Economics from Claremont Colleges - Pitzer College and his MS in Finance from the University of San Francisco. Pablo is a native of, and currently resides in, San Francisco. He can be reached at [email protected] or 415-789-2556.
Brian Cotter Web Master
Brian Cotter joined Tiburon as a business & marketing manager in 2005, was promoted to the role of senior business & marketing manager in 2007, left the firm for personal reasons in 2008, and rejoined the firm as web master in 2010. At Tiburon, Mr. Cotter's responsibilities are to enhance the firm's web site and related technology initiatives.
Prior to joining Tiburon, Mr. Cotter worked in both marketing and administration.
Mr. Cotter earned his BA in Economics from Princeton University in 2000. Brian is a native of Buffalo, NY and currently lives in the San Francisco Bay Area. Brian can be reached at [email protected].
Sarah Sage Office Administrator
Sarah Sage joined Tiburon as office administrator in 2004. At Tiburon, Ms. Sage's responsibilities are to assist clients, conference planners, & media members in leveraging Tiburon's research materials.
Prior to joining Tiburon, Ms. Sage worked in both marketing and administration.
Sarah received her BA in Comparative Literature from Stanford in 2004. Ms. Sage is a native of London, England and currently lives in the San Francisco Bay Area. Sarah can be reached at [email protected] and 415-789-2540.
Tiburon CEO Summit Helpers Tiburon's CEO Summits could not be planned without a lot of help from many others. The Tiburon CEO Summit helpers invest dozens of hours into securing guest speakers & sponsors, nominating & confirming attendees, & facilitating & writing-up sessions. Tiburon is grateful for their help.
Tom Lydon Global Trends Investments
Tom Lydon is president of Global Trends Investments, an investment advisory firm specializing in the creation of customized portfolios for high-net-worth individuals. Tom also manages a popular blog called ETF Trends.
Mr. Lydon has been involved in money management for twenty years. He began his career with Fidelity Investments and was a founding member of The Charles Schwab Corporation’s Institutional Advisory Board (at the time that Tiburon’s Managing Principal Chip Roame was at Schwab). Mr. Lydon serves on the boards of directors for US Global Investors, Rydex Capital Partners, and is board chairman of the Make-A-Wish Foundation of Orange County & the Inland Empire. Mr. Lydon is a founding member of The Skip Viragh Award, until recently presented annually to a company or individual who offers a new and innovative service, benefit, or product that positively impacts the financial advisor community and its clients. He participates in the Orange County Register Finance & Economic Panel, writes for Bottom Line Personal, and is a regular contributor to major print, radio, and television media. Mr. Lydon's popular seminar, How to Manage a Million Dollar Portfolio, has been attended by thousands of investors around the country.
Mr. Lydon joined Tiburon's Financial Advisor Roundtable in 2000 and plays a key role in leading this group, previously serving on its three person advisory board. Tom also joined Tiburon's CEO Sumimit Planning Committee in 2005. He also has assisted the firm in venture capital raising activities for Tiburon clients and by leveraging Tiburon's research, Mr. Lydon is also an excellent conference speaker and market seminar participant on "An Initial Overview of the Mutual Funds Industry", "ETFs & Indexing: The Movement Toward Market Linked Products", "A Comprehensive Overview of the Business Models & Best Practices of Fee-Based Financial Advisors", and "Trends in Succession Planning, Firm Valuations, & the Growing Acquisition Market for Financial Advisors." Tom resides in Huntington Beach, CA and can be reached directly at [email protected] or 949-794-0070.
Kirk Michie Triton Pacific Securities
Kirk Michie is president of Triton Pacific Securities. He directs the firm’s capital markets activities, including fund raising, investor relations, & marketing communications. In addition to being a member of Triton Pacific Capital Partners’ investment committee, he is also the firm’s primary linkage to the investor community. Having held several key positions in the early growth & development of asset and wealth management organizations Kirk has been an early change agent and advocate of more comprehensive & forward looking approaches to the delivery of financial services to wealth individuals and family offices. An early adopter of social media, Kirk has a substantial web presence via Linked In, Twitter, & substantial numbers of print & electronic media references around the topic. Additionally, Michie is a frequent speaker at investment and family office conferences on the subjects of integration of alternatives into traditional portfolios, benefits of private equity investing for individuals, endowment style investing for individuals, the future of financial services, & the integration of social media into marketing communications for investment advisors.
Prior to joining Triton Pacific, Kirk led the development of the Private Clients division at Kayne Anderson Rudnick, and went on to run one of Wells Fargo Corporation’s brokerage division’s largest regional sales forces. In client facing roles, Michie worked with wealthy investors and families at Alliance Bernstein, Bessemer Trust, Merrill Lynch, and Swiss Bank Corporation.
Mr. Michie received his BS from University of Southern California. Kirk was a long time Tiburon FA Roundtable member and has been a frequent Tiburon CEO Summit contributor. Kirk can be reached directly at [email protected] or 310-300-0846.
Marie Swift Impact Communications Tiburon Fellow
Marie Swift is president of Impact Communications, a full-service public relations & marketing communications firm serving a select group of independent financial advisors and allied institutions. Impact Communications has two service lines - one for independent financial advisors and one for the institutions that support them. Clients include Portfolio Solutions, Smart 401K, Securities America, American Financial Network, Iron Point Capital, Focus Point Solutions, Wealth Counsel, Advisor Impact, Lee Eisenberg, Mark Magnacca, Sudden Money Institute, Garrett Planning Network, Kinder Institute of Life Planning, Purposeful Planning, FinaMetrica, Money Coaching Institute, The Enrichment Group, and many more. Marie also serves as a coach for Sourcemedia’s Advisor Max and is frequently quoted in or published by industry magazines such as Financial Planning, Research, Financial Advisor, Investment Advisor, Transitions, Advisor Today and Morningstar Advisor. Ms. Swift is a popular speaker at industry events, including multiple appearances at FPA national and regional events, NAPFA, Lockwood University and the NFL Players Association (Financial Advisor Program). Marie is the co-author of Just Give Me the Answer$: Expert Advisors Address Your Most Pressing Financial Questions and contributed the marketing chapter to Garrett’s Guide to Financial Planning.
Prior to establishing her own firm in 1993, she served as director of corporate communications for Worldwide Investment Network in Irvine, California, where she helped FNIC’s then top producer attain & maintain that title for five consecutive years. She managed a staff of twenty that supported two dozen successful registered representatives, estate planners, & wealth managers.
Ms. Swift joined Tiburon’s Fellows program in 2007 to introduce her clients to the benefits of Tiburon's research & consulting services, and to offer assistance to Tiburon's clients in the areas of public relations, targeted media placement, & marketing communications. By leveraging Tiburon's research, Ms. Swift is an excellent conference speaker and market seminar participant on topics such as Financial Services Industry Sales & Marketing and Financial Advisor Sales & Marketing. Marie resides in Leawood, KS and can be reached directly at [email protected] or 800-974-7753.
Mitch Vigeveno Turning Point Tiburon Fellow
Mitch Vigeveno is the CEO of Turning Point, based in Clearwater, FL, which was founded in 1994 to provide recruiting, executive search, & consulting services to the financial services industry. Turning Point specializes in two areas: helping financial services firms find the best executive & management personnel to support their client bases and helping brokers & financial planners find the best broker/dealers for their needs. Turning Point works on a national basis and specializes in placing high quality professionals with broker/dealers, insurance companies, banks, and registered investment advisory firms. Previous assignments have included CEOs, chief operations officers, chief marketing officers, regional sales directors, chief compliance officers, actuaries, wholesalers, & a variety of customer service management personnel.
Mr. Vigeveno has over 25 years of experience in financial services on both the insurance and securities sides of the business.
Mr. Vigeveno joined Tiburon’s Fellows program in 2001 to introduce his clients to the benefits of Tiburon's research & consulting services, and to offer assistance to Tiburon's broker/dealer clients as well as financial advisors, financial planners, & brokers in their search for a mutual fit. Mr. Vigeveno worked collaboratively with Tiburon on a competitive analysis research project regarding the offerings of independent broker/dealers. He has written for, and been quoted in, several industry publications including Financial Planning Magazine, Ticker, Registered Representative, Investment Advisor Magazine, Investment News, and On Wall Street. Mr. Vigeveno has also been a speaker at several FPA and IMCA conferences. In addition, Mr. Vigeveno has been active as an officer, director, & member of the Tampa Bay Chapter of the Financial Planning Association since 1984. Turning Point is a member of the National Association of Personnel Services (NAPS), The National Banking & Financial Services Network, and the Top Echelon Recruiting Network. By leveraging Tiburon's research, Mr. Vigeveno is an excellent conference speaker and market seminar participant on topics such as Independent Reps & Independent Broker/Dealers and Independent Broker/Dealers Benchmarking & Best Practices. Mitch resides in Clearwater, FL and can be reached directly at [email protected] or 727- 725-8876 or via Turning Point's web site at www.TPISearch.Com.
Tiburon CEO Summit XVIII April 14-15, 2010
Tiburon CEO Summit XVIII Sponsors
Due to the incredible demand from a large number of its executive-level clients to attend its CEO Summits, Tiburon now holds its CEO Summits at the Ritz Carlton Hotels in New York, NY & San Francisco, CA. Several long-time Tiburon clients also sponsor the events, including Advisor Impact, Advisor Software, Charles Schwab Institutional, Dunham & Associates, Envestnet Asset Management, Ever Bank Financial, Fidelity Investments, Fiserv Investment Services, Folio Institutional, Genworth Financial Wealth Management, LPL Financial, Mass Mutual Financial Group, New York Life, ReFlow, Silver Lane Advisors, State Street Global Advisors, & TD Ameritrade Institutional. Tiburon recognizes this commitment of financial support for Tiburon CEO Summit XVIII and is grateful for this assistance.
Advisor Impact
Advisor Impact helps financial advisors and accountants to maximize profitability & productivity in their businesses. The firm provides research, training, & tools to help firms and individual financial advisors evaluate & improve client profitability – all in the context of delivering an outstanding client experience.
The company's flagship program is its Client Audit, which is an outsourced client feedback program. It helps financial advisors and accountants enhance loyalty & increase client revenue by gathering ongoing feedback from clients and turning that data into a clear action plan, while providing the support & tools to help leverage those results. The business is built on studies of top producing financial advisors on a regular basis, both independently and on behalf of broker/dealers. The database of feedback from clients on what they need, want, & expect in relationships with financial advisors is what informs all of the firm’s programs.
Advisor Impact is represented at Tiburon CEO Summit XVIII by Julie Littlechild. Julie can be reached at [email protected] or 416-489-8460 or via Advisor Impact’s web site at www.AdvisorImpact.Com.
Advisor Software
Advisor Software’s institutional heritage is at the core of its founding and product development strategy. Andrew Rudd, the CEO of Advisor Software, is also the former CEO of Barra, a company which led the market in portfolio risk management and was eventually acquired by Morgan Stanley Capital International. Advisor Software leverages institutional-caliber analytics, enabling financial advisors to create insightful actionable investment plans to help investors achieve their goals.
Through relationships with financial institutions such as TD Ameritrade Institutional & Schwab Institutional, Advisor Software’s applications are available to over 8,000 independent advisors. In addition, Advisor Software’s intelligent wealth management solutions are used by nearly 30,000 financial advisors who are clients of a wide-variety of financial institutions. These include ETF asset managers and several global asset management firms, including Barclays Global Investors, State Street Global Advisors, Russell Investments, First Trust Portfolios, & Power Shares Capital Management.
Advisor Software is represented at Tiburon CEO Summit XVIII by Dennis Clark & Neal Ringquist. Dennis can be reached at [email protected] or 415-477-9977. Neal can be reached at [email protected] or 925-444-1350. Both can also be reached via Advisor Software’s web site at www.AdvisorSoftware.Com.
Charles Schwab Institutional
The Charles Schwab Corporation provides securities brokerage and financial services to individual investors and independent investment advisors who work with them.
Schwab Institutional provides custodial, operational, & trading support for independent fee-based investment advisors. Schwab Institutional focuses on providing independent advisors with the platform, products, programs, & resources that they need to serve their clients and grow their businesses efficiently and effectively. Schwab Institutional provides a comprehensive range of innovative trading, custody, & client services to help financial advisors provide investment management to individuals, families, & institutions.
The Charles Schwab Corporation & Schwab Institutional are represented at Tiburon CEO Summit XVIII by Jim McCool & Kim Wright-Violich. Jim can be reached at [email protected] or 330-908-4210. Kim can be reached at Kim.Wright- [email protected] or 415-636-9101. Both can also be reached via The Charles Schwab Corporation’s web site at www.Schwab.Com.
Dunham & Associates
Dunham & Associates offers a family of 11 sub-advised mutual funds that operate on performance-based advisory fees, also commonly known as fulcrum fees, and feature objectives ranging from capital preservation to aggressive growth.
The Dunham Funds are available individually or as part of a turnkey asset management program. As an independent affiliate, Dunham Trust Company offers traditional trust services including asset protection, administration, probate services, succession planning, & charitable giving.
Dunham & Associates and the Dunham Funds are represented at Tiburon CEO Summit XVIII by Sal Capizzi & Jeffrey Dunham. Sal can be reached at [email protected] or 858-964-0500. Jeffrey can be reached at [email protected] or 858-964-0500. Both can also be reached via Dunham & Associates’ web site at www.Dunham.Com.
Envestnet Asset Management
Envestnet Asset Management delivers separately managed accounts, mutual funds, & alternative investments to independent financial advisors. Envestnet’s investment offerings are supported by a proprietary technology platform that delivers customized financial advisor web sites, consolidated views, & comprehensive reporting abilities to the nation’s independent investment advisory firms.
Envestnet is headquartered in Chicago with offices in Denver, Los Angeles, New York, Silicon Valley, & internationally. Envestnet has more than $38 billion in assets under management and administration with over 400,000 investor accounts.
Envestnet is represented at Tiburon CEO Summit XVIII by Mike Apker, Jud Bergman, Bill Crager, Viggy Mokkarala, & Babu Sividasan. Mike can be reached at [email protected] or 650-279-9626; Jud can be reached at [email protected] or 312-827-2800; Bill can be reached at [email protected] or 212-642-7440; Viggy can be reached at [email protected] or 408-962-7845; & Babu can be reached at [email protected] or 510-209-8691. All can also be reached via Envestnet Asset Management’s web site at www.Envestnet.Com.
Ever Bank Financial
Ever Bank Financial is a family of companies providing products & services across the financial services spectrum, including direct to consumer services, financial advisor services, wholesale lending, vendor financing, and mortgage operations & servicing.
Ever Bank Direct operates nationally in consumer direct lending across the United States with over $6.3 billion in deposits. Ever Bank’s community banking division is currently expanding. The firm’s advisor services provide financial planning firms and investment professionals the opportunity to offer mortgage & banking services to clients. Available in all 50 states, this is a unique service in the financial services industry. Ever Bank’s Tygris Vendor Finance provides product financing & leasing solutions nationwide to business customers in the healthcare, office equipment, & technology markets. Ever Bank’s Ever Home Mortgage Company provides mortgage loan servicing and sub- servicing on loans with principal balances in excess of $40 billion. As a result of its broad portfolio of businesses, Ever Bank has developed core expertise in providing outsourcing services for other firms.
Ever Bank is represented at Tiburon CEO Summit XVIII by John Surface & Frank Trotter. John can be reached at [email protected] or 904-281-6127. Frank can be reached at [email protected] or 314-951-1600. Both can also be reached via Ever Bank Financial’s web site at www.EverBank.Com.
Fidelity Investments
Fidelity Investments is an international provider of financial services & investment resources that help individuals & institutions meet their financial objectives.
Once known primarily as a mutual fund company, Fidelity has adapted & evolved over the years to meet the changing needs of its customers. Today, that evolution is reflected in its menu of products & services. In addition to more than 300 Fidelity mutual funds, the firm also offers discount brokerage services, retirement services, estate planning, wealth management, securities execution & clearance, and life insurance.
Fidelity Investments is represented at Tiburon CEO Summit XVIII by Scott Couto, Gail Graham, Sarah Libbey, & Sanjiv Mirchandani. Scott can be reached at [email protected] or 617-392-0905; Gail can be reached at [email protected] or 617-563-3336; Sarah can be reached at [email protected] or 617-563-7000; & Sanjiv can be reached at [email protected] or 617-563-7520. All can also be reached via Fidelity’s web site at www.Fidelity.Com.
Fiserv Investment Services
Fiserv provides financial electronic commerce services & products globally. Fiserv Electronic Commerce solutions enable thousands of financial services providers and billers to offer bill-pay online, via phone or in person through retail outlets. Fiserv Software develops markets & supports payment processing solutions that are used by financial institutions to process more than two-thirds of the 14 billion Automated Clearing House transactions in the United States and supports reconciliation, exception management, risk management, transaction process management, corporate actions processing, & compliance within thousands of organizations worldwide.
Fiserv Investment Services provides a broad range of investment management solutions and outsourced services to hundreds of financial services organizations, which manage about $1.8 trillion in assets.
Fiserv and Fiserv Investment Services are represented at Tiburon CEO Summit XVIII by Pete Crenier, Mike Gianoni, & Cheryl Nash. Pete can be reached at [email protected] or 201-369-3566; Mike can be reached at [email protected] or 201-748-3224; & Cheryl can be reached at [email protected] or 201-748-3289. All can also be reached via Fiserv’s web site at www.Fiserv.Com.
Folio Institutional
Foliofn was founded in 1998 by Steven Wallman, a former commissioner of the United States Securities & Exchange Commission who was widely recognized during his tenure for advocacy efforts on behalf of individual investors. He left the Securities & Exchange Commission to develop a new way to satisfy those needs — an online brokerage which would enable people to invest in their choice of a number of diversified baskets of securities called Folios, instead of buying into a mutual fund, and to invest and monitor their investments in a way never before possible in the pre- cyberspace. Foliofn delivers a comprehensive, fully integrated investment solution to financial professionals and institutions through Folio Institutional by consolidating brokerage, custody, trading, performance reporting, & compliance services in one simple-to-use platform. The result is streamlined, scalable delivery of customized investment portfolios, asset allocations, & model management services.
Foliofn & Folio Institutional are represented at Tiburon CEO Summit XVIII by Greg Vigrass & Steve Wallman. Greg can be reached at [email protected] or 703-245-4867 and Steve can be reached at [email protected]. Both can also be reached via Folio Institutional’s web site at www.Foliofn.Com.
Genworth Financial Wealth Management
Genworth Financial is a publicly traded global financial security company with more than $100 billion in assets and a presence in more than 25 countries. The firm is recognized in Standard & Poor's 500 index of leading US companies and is ranked in the Fortune 500.
Genworth Financial works with its distribution partners to help people at key stages in their life through a wide-array of innovative products & financial services. From protecting & growing retirement income, to creating security through life, long term care, & Medicare supplement insurance, to wealth management offerings & financial advisory services, to providing a safer, more secure path to homeownership, Genworth provides a comprehensive array of financial security solutions.
Genworth Financial is represented at Tiburon CEO Summit XVIII by Ron Cordes. Ron can be reached at [email protected] or 925-521-2282 or via Genworth Financial Wealth Management’s web site at www.Genworth.Com.
LPL Financial
LPL Financial was founded to help entrepreneurial financial advisors establish successful businesses through which they could offer truly independent financial guidance and advice. LPL Financial is an independent broker/dealer supporting more than 11,000 financial advisors nationwide and also acts as an enabling partner to a broad range of banks and credit unions, as well as broker/dealers at leading financial services companies.
As a diversified financial services company, LPL serves three distinct customer groups: Independent Advisor Services meets the needs of advisors at every stage of their careers; Institution Services focuses on the needs of banks and credit unions; & Custom Clearing Services works with leading financial services companies, enabling each to stay focused on their core areas of expertise. LPL Financial is headquartered in Boston, Charlotte, and San Diego.
LPL Financial is represented at Tiburon CEO Summit XVIII by Jon Eaton, Gary Gallagher, Stephen Langlois, Robert Moore, Bob Oros, Chad Perry, & Esther Stearns. Jon can be reached at [email protected] or 858-909-6209; Gary can be reached at Gary Gallagher or 617-897-4208; Stephen can be reached at [email protected] or 617-897-4393; Robert can be reached at [email protected] or 858-909-6676; Bob can be reached at [email protected] or 248-393-0724; Chad can be reached at [email protected] or 617-897-4330; & Esther can be reached at [email protected] or 858-909- 6163. All can also be reached via LPL Financial’s web site at www.LPL.Com.
Mass Mutual Financial Group
Mass Mutual Financial Group, founded in 1851, is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, MA, with major affiliates including Babson Capital Management, Barings, CM Life Insurance Company, Cornerstone Real Estate Advisors, First Mercantile, Mass Mutual Asset Finance, Mass Mutual International, Mass Mutual Investors Services, Oppenheimer Funds, & The Mass Mutual Trust Company.
Oppenheimer Funds offer a broad range of products and services to individuals, corporations and institutions, including mutual funds, separately managed accounts, institutional-management services, hedge fund products, qualified retirement plans and subadvisory investment-management services. These products are distributed around the world in partnership with the MassMutual Financial Group companies and through other financial services firms.
Mass Mutual Financial Group is represented at Tiburon CEO Summit XVIII by Doug Russell & Marty Willis. Doug can be reached at [email protected] or 413- 744-4600. Marty can be reached at [email protected] or 212-323-0325. Both can be reached via Mass Mutual Financial Group’s web site at www.MassMutual.Com.
New York Life
New York Life, including its subsidiaries, is a Fortune 100 company, with over $280 billion in assets under management and over $12 billion in operating revenues. The firm has offices throughout the United States and internationally in Argentina, China, Hong Kong, India, Mexico, South Korea, Taiwan, & Thailand. As a mutual insurance company, New York Life is operated & maintained for the benefit of its policy owners. Clients include the Air Line Pilots Association, American College of Surgeons, New York Bar Association, & The American Institute of Architects.
On the insurance side, New York Life and its subsidiaries offer traditional life insurance & annuities. On the investment side, New York Life’s subsidiaries provide institutional asset management & trust services. The firm offers a wide variety of securities products & services, including institutional & retail mutual funds and 401K products, through its NYLIFE Securities subsidiary. Throughout its 160 year history, New York Life has built a reputation for integrity & financial strength.
New York Life is represented at Tiburon CEO Summit XVIII by Chris Blunt, Matt Grove, & Tom Johnson. Chris can be reached at [email protected] or 212-576- 6993; Matt can be reached at [email protected] or 212-576-3302; & Tom can be reached at [email protected] or 212-576-6586. All can also be reached via Natixis’ web site at www.Natixis.Com.
ReFlow
ReFlow provides 1940 Act mutual funds and UCITS with the tools to improve performance by managing the impacts & volatility of shareholder flow. The firm’s solutions offer continuous, everyday access to liquidity that funds can draw upon to meet redemptions and manage cash positions.
ReFlow’s Toolkit enhances short & long-term performance by enabling funds to carry out investment strategies unhindered by daily liquidity requirements. This minimizes flow- induced trading and the associated transaction & opportunity costs. It also eliminates cash drag and tracking error while large net inflows are being put to work. All this combines to lower capital gains distributions to shareholders. By using ReFlow services, funds can measurably improve performance, often achieving cumulative gains sizable enough to boost fund rankings. To date, ReFlow’s Toolkit has been approved by the boards of 24 mutual fund families, representing more than $388 billion in assets, for use by 473 funds. To date, ReFlow has provided more than $2.9 billion in capital in over 2,400 transactions.
ReFlow is represented at Tiburon CEO Summit XVIII by Jeff Cusack & Paul Schaeffer. Jeff can be reached at [email protected] or 415-869-6350. Paul can be reached at [email protected] or 415-869-6304, or via ReFlow’s web site at www.ReFlow.Com.
Silver Lane Advisors
Silver Lane Advisors is a mergers & acquisitions investment bank and strategy consulting firm serving the financial services industry. The firm’s principals have completed hundreds of projects over the past 18 years, providing confidential strategic advice to independent firms within the investment & wealth management industries and larger diversified financial services institutions assessing platform alternatives.
Silver Lane Advisors’ mission is to structure long-lasting partnerships and maximize franchise value, serving a very limited number of clients at any given time. In most engagements, the firm is called upon to either form an actionable plan for near-term corporate growth or to unlock shareholder liquidity for the owners of substantial, privately-held financial services institutions. Specifically, the firm focuses on mergers & acquisitions, divestitures & sale transactions, recapitalizations, strategic alliances, valuations, equity transition programs, due diligence, special committee and fairness opinion assignments, & market entry strategies.
Silver Lane Advisors is represented at Tiburon CEO Summit XVIII by Erika Cramer & Liz Nesvold. Erika can be reached at [email protected] or 212-883-9401. Liz can be reached at [email protected] or 212-883-9401. Both can also be reached via Silver Lane Advisors’ web site at www.SilverLane.Com.
State Street Global Advisors
State Street Corporation provides financial services to institutional investors, including investment servicing, investment management, & investment research & trading. With $15.3 trillion in assets under custody and $2.0 trillion in assets under management, State Street operates in 26 countries and more than 100 geographic markets worldwide.
State Street Global Advisors provides disciplined systematic investment strategies for customers of every size and investment objective. State Street Global Advisors offers integrated solutions & trading services to customers who wish to outsource aspects of their investment management programs.
State Street Corporation & State Street Global Advisors are represented at Tiburon CEO Summit XVIII by Jamie Kase, Scott Powers, Tony Rochte, & Jim Ross. Jamie can be reached at [email protected] or 617-786-3000; Scott can be reached at [email protected] or 617-664-6069; Tony can be reached at [email protected] or 617-664-2966; & Jim can be reached at [email protected] or 617-664-2043. All can also be reached via State Street Global Advisors’ web site at www.StateStreet.Com.
TD Ameritrade Institutional
TD Ameritrade is an online brokerage firm, based in Omaha, NE serving active traders, investment advisors, & long-term investors by providing a variety of brokerage services, ranging from traditional discount trading to advanced products.
TD Ameritrade Institutional Services provides comprehensive brokerage and custody services to more than 4,000 fee-based financial advisors and their clients. The firm's advanced technology platform allows financial advisors to run their practices efficiently while optimizing time with clients. TD Ameritrade Institutional also provides a robust offering of products, programs, & services designed to help financial advisors build their businesses, and at the same time help their clients reach their financial goals.
TD Ameritrade & TD Ameritrade Institutional are represented at Tiburon CEO Summit XVIII by Skip Schweiss & Fred Tomczyk. Skip can be reached at [email protected] or 303-294-5853. Fred can be reached at [email protected] or 201-369-5927. Both can also be reached via TD Ameritrade's web site at www.TDAmeritrade.Com.
Ed Bernard Abby Cohen Steve Forbes Jim McCool Chip Roame Jonathan Steinberg David Tittsworth Fred Tomczyk Tiburon CEO Summit XVIII was held April 14-15, 2010 in New York, NY at the Ritz Carlton Hotel Tiburon would like to thank the seven terri c guest speakers Tiburon also thanks several long-time clients who made the event possible, including: for their dynamic presentations: Advisor Impact Folio Institutional Ed Bernard, Vice Chairman, T. Rowe Price Group Advisor Software Genworth Financial Wealth Management Abby Cohen, President, Global Markets Institute, Goldman Sachs Group Charles Schwab Institutional LPL Financial Steve Forbes, CEO, Forbes Media Dunham & Associates Mass Mutual Financial Group Jim McCool, Executive Vice President, The Charles Schwab Corporation Envestnet Asset Management New York Life Jonathan Steinberg, CEO, Wisdom Tree Investments Ever Bank Financial ReFlow David Tittsworth, Executive Director, Investment Advisor Association Fidelity Investments Silver Lane Advisors Fred Tomczyk, CEO, TD Ameritrade Fiserv Investment Services State Street Global Advisors TD Ameritrade Institutional
And of course, Tiburon extends a special thanks to all of its C-level executive client attendees for their participation at the recent Tiburon CEO Summit XVIII: Chip Roame (Managing Principal, Tiburon Strategic Advisors), Rick Adler (CEO, Convergent Capital Management), Adam Antoniades (CEO, First Allied), Chuck Baldiswieler (CEO, TCW Funds, TCW Group), Keith Banks (Head, US Trust, Columbia Management, & Alternative Investments, Bank of America Corporation), Tony Batman (CEO, 1st Global Capital Corporation), Michael Bell (CEO, Curian Capital), Mark Benson (President, Banc of America Investments), Ed Bernard (Vice Chairman, T. Rowe Price Group), Philip Blancato (President, Ladenburg Thalman Asset Management), Chris Blunt (Executive Vice President, New York Life Insurance Company), Stephanie Bogan (CEO, Quantuvis Consulting), John Cammack (Chairman, Mutual Fund Education Alliance), Frank Campanale (CEO, Advanced Equities Wealth Management), Sal Capizzi (Chief Sales & Marketing Offi cer, Dunham & Associates Investment Counsel), Amit Choudhury (Managing Principal, Pinnacle Partners Systems), Peter Cieszko (President, Fidelity Investments Institutional Services Company), John Clendening (Executive Vice President, The Charles Schwab Corporation), Mike Clinton (Chief Operating Offi cer, Loring Ward Group), Frank Coates (CEO, Coates Analytics), Beth Cobert (Director, McKinsey & Company), Abby Cohen (President, Global Markets Institute, Goldman Sachs Group), Chris Collins (Head, Finance Sales Operations, The Wall Street Journal), Jenn Connelly (President, JCPR), Ron Cordes (Co-Chairman, Genworth Financial Wealth Management), Scott Couto (Head, Product Management, Fidelity Investments Institutional Services Company), Bill Crager (President, Envestnet Asset Management), Erika Cramer (Partner, Silver Lane Advisers), Peter Crenier (Head, Business Development, Investment Services, Fiserv Corporation), Ben Cukier (Partner, FTV Capital), Wayne Cutler (Managing Director, Novantas), Pete D’Arrigo (Chief Financial Offi cer, Envestnet Asset Management), Dick Davies (Senior Managing Director, Alliance Bernstein), Jeffrey Dunham (CEO, Dunham & Associates Investment Counsel), Steve Dunlap (Chief Operating Offi cer, Pershing Managed Account Solutions), Mike Durbin (President, Institutional Wealth Services, Fidelity Investments), Mitch Eichen (CEO, The MDE Group), Randy Epright (Chief Operating Offi cer, AIG Advisor Group), Mark Faircloth (Vice Chairman, Rates & Foreign Exchange, TD Securities), Ed Farrell (Controller, Alliance Bernstein), Steve Forbes (CEO, Forbes Media), Rich Franchella (Senior Managing Director, RBC Wealth Management), Rich Gershen (Head, Wealth Management, City National Corporation), Mike Gianoni (President, Fiserv Investment Services), Phillip Gillespie (General Counsel, State Street Global Advisors), Craig Gordon (President, RBC Correspondent Services), Gail Graham (Executive Vice President, Marketing, Fidelity InstitutionalThank Wealth Services), Dan Greenshields (President, Share Builder Securities you, Corporation), Bob Greer (Executive Vice President, PIMCO), John Grogan (CEO, Northwestern Mutual Wealth Management Company), Matt Grove (Head, RIA Business, New York Life), Jim Hale (Founding Partner, FTV Capital), Scott Hanson (Co-CEO, Hanson McClain), AJ Harper (President, PNC Managed Investments), Clare Hart (President, Enterprise Media Group, Dow Jones & Company), Keith Hartstein (CEO, John Hancock Funds), Pete Hess (President, Advent Software), Richard Hoey (Chief Economist, The Bank of New York Mellon Corporation), Dwight Jacobsen (Executive Vice President, The Dreyfus Corporation), Jerome Jacques (Co-Head, Americas, Fixed Income, Currencies, & Commodities, Societe Generale), Bryce James (President, Smart Portfolios), Alistair Jessiman (Managing Director, Novantas), Tom Johnson (Head, Business Development, Retirement Income Security Products, New York Life), Deena Katz (Chairman, Evensky & Katz), Mark Katzelnick (Chief Operations Offi cer, Fidelity Institutional Products Group), Jeff Lancaster (Principal, Bingham, Osborn, & Scarborough), Stephen Langlois (Executive Vice President, LPL Investment Holdings), Mike Latham (Head, iShares Americas, Intermediary Investor Business, Barclays Global Investors), Bruce Lavine (President, Wisdom Tree Investments), Chuck Lewis (CEO, My Vest Corporation & Personal Capital Corporation), Sarah Libbey (President, Fidelity Charitable Gift Fund), Julie Littlechild (CEO, Advisor Impact), Jeff Lovell (Chairman, Lovell Minnick Partners), Larry Maffi a (President, ICI Mutual Insurance Group), Adam Malamed (Chief Operating Offi cer, Ladenburg Thalmann & Company), Pete Martin (Managing Director, Alpha Simplex), JC Massar (Chairman, Capital International Asset Management), Blaine Maxfi eld (President, Wealth Station, Sungard), Jim McCool (Executive Vice President, The Charles Schwab Corporation), Tom McManus (Chief Investment Offi cer, Wells Fargo Advisors), Jim McNamara (CEO, Goldman Sachs Mutual Funds), Jerry Miller (CEO, Van Kampen Investments), Jim Minnick (President, Lovell Minnick Partners), Sanjiv Mirchandani (President, National Financial Services), Viggy Mokkarala (Executive Vice President,see Envestnet Asset Management), Robert Mooreyou (Chief Financial Offi cer, LPL Investment Holdings),in Ed Morrison (Chief OperatingOctober Offi cer, Albridge Solutions), Amit Muni (Chief Financial Offi cer, Wisdom Tree Investments), Jim Nagengast (President, Securities America), Cheryl Nash (Global Head, Product Strategy, Investment Services, Fiserv Corporation), Liz Nesvold (Managing Partner, Silver Lane Advisers), Mike Niedermeyer (Executive Vice President, Wells Fargo Corporation), Christine Nigro (President, Axa Advisors), Harry O’Mealia (CEO, Legg Mason Investment Counsel), Bob Oros (Executive Vice President, LPL Investment Holdings), Greg Pacholski (CEO, Albridge Solutions), Patrick Pagni (Executive Vice President, Trust Company of the West), John Peluso (President, Wachovia Securities Financial Network, Wells Fargo Corporation), Don Phillips (Managing Director, Corporate Strategy, Research, & Communications, Morningstar), Marty Pompadur (CEO, Russian Outdoor Advertising Business, News Corporation), Scott Powers (CEO, State Street Global Advisors), Georganne Proctor (Chief Financial Offi cer, TIAA-CREF), Andy Putterman (CEO, Fortigent), George Riedel (Head, Intermediary Distribution, T. Rowe Price Group), Neal Ringquist (President, Advisor Software), Tony Rochte (Senior Managing Director, State Street Global Advisors), Nick Roe (Head, Global Prime Finance & Services, Citigroup), Jake Rohn (Executive Vice President, Albridge Solutions), Jim Ross (President, SSGA Funds Management), Doug Russell (Head, Strategy & Planning, Mass Mutual Financial Group), Bill Salus (Chief Business Development Offi cer, PNC Global Investment Servicing), Ken Schapiro (President, Condor Capital Management), Matt Schiffman (Head, Retail - Americas, Legg Mason), Skip Schweiss (President, TD Ameritrade Trust Company), Jim Seuffert (CEO, Pershing Managed Account Solutions), Luciano Siracusano (Chief Investment Strategist, Wisdom Tree Investments), Babu Sivadasan (Executive Vice President, Envestnet Asset Management), David Smith (Group Publisher, Charter Financial Publishing Network), Jonathan Steinberg (CEO, Wisdom Tree Investments), Eric Teal (Chief Investment Offi cer, First Citizens Banc Shares), Allen Thorpe (Managing Director, Hellman & Friedman), David Tittsworth (Executive Director, Investment Adviserin Association), Fred TomczykSan (CEO, TD Ameritrade), John Towle (Chief Marketing Francisco! Offi cer, Cole Real Estate Investments), Enrique Vasquez (CEO, Genworth Financial Investment Services), Mitch Vigeveno (CEO, Turning Point), Greg Vigrass (President, Folio Institutional), Gib Watson (CEO, Prima Capital Management), Leo Wells (CEO, Wells Real Estate Funds), Michael Winnick (Head, Strategic Partnerships & US Intermediary Distribution, Russell Investment Group), Emmett Wright (Chief Investment Offi cer, Northwestern Mutual Wealth Management Company), Bill Yun (President, Franklin Templeton Institutional), Peter Ziemba (General Counsel, Wisdom Tree Investments)
Tiburon also thanks the twenty- ve long-time clients who made the event possible by sponsoring, including: ‘Time for Something Real ’ at the Wirehouses, Says Industry Consultant Page 1 of 2
Article
‘Time for Something Real’ at the Wirehouses, Says Industry Consultant Tiburon Strategic Advisors' Chip Roame shares his views on what BofA Merrill, Morgan Stanley Smith Barney, Wells Fargo - Wachovia and UBS need to do to win more clients and more advisors.
BY JANET P. LEVAUX Published in the 11/1/2009 Issue of Research Magazine.
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Tiburon Strategic Advisors, led by Chip Roame, just wrapped up its 17th semi-annual Tiburon CEO Summit in mid-October in San Francisco. (It will host its 18th semi-annual event in April 2010 in New York).
This year, rather than give an overview on industry trends, Roame’s group recognized two industry players as part of its inaugural Tiburon CEO Summit Awards. After the event, the consultant spoke with Research about these awards and trends affecting the wirehouse firms today.
Why did Tiburon start giving awards? Awards given at the conference were based on two themes that I’ve held close to my heart for a while and have tried to promote at the CEO summits since the beginning.
The awards were based on the logic I believed in when I started Tiburon more than 10 years ago: the brokerage and investments industry, going back 100 years or more, has a history of building products and selling them. The history is not based on interviewing consumers to see what they want that most addresses their needs.
This summit focuses on consumers, includes a consumer panel and strives to get everyone in the industry focused on consumers and their needs. The award to Charles Schwab says that the company focuses on consumers, that it does lots of research and builds consumer-friendly products.
The award to Ken Fisher recognized his challenging of conventional wisdom. This industry can get caught up in myths, theories or data sets. I try to challenge such theories and so does Ken. Everything he does shouldn’t work according to conventional wisdom, like his mailings, his 1-800-numbers and his use of professional sales staff.
What do you make of the so-called movement of brokers from the wirehouses (or the captive model) over to the independent model? The wirehouses have 90,000-plus brokers. A big flow of them could be, say, 10 percent or 9,000. But that is not what is happening today. We saw about roughly 650 go independent in 2008, or about 1 percent.
Of course, recipients of this 1 percent are very pleased. It’s a great trend for them.
But this doesn’t mean that every wirehouse broker is going independent. Yes, some big, successful brokers are going independent. It is not decimating the wirehouses; that is taking it too far.
Can leaders like Sallie Krawcheck at Merrill, and perhaps Bob McCann at UBS, rebuild the wirehouse brands? They have certain capabilities, skill sets, brands and other qualities that could allow them to win right now. To say that the wirehouse model or the captive model is the future is taking it too far, I’d say.
But they do have a great brand and a lot of productive brokers who, frankly, don’t want to go independent. They have a lot working for them.
Culturally, though, they are getting it all wrong. They are trying to maintain control and haven’t grasped yet that consumers are free agents, and brokers are, too. So, if you create the best environment for those brokers and their clients, you will win.
The vast majority of brokers do not want to go independent. Again, if you can create the right environment for them, you will win.
Leaders like Sallie Krawcheck and Bob McCann can still win. They can retain all their brokers, grow their firms and be fabulously successful wirehouses.
But will they? I need to see some proof that someone actually gets this (i.e., the need to create the right environment for both brokers and clients). I don’t see anyone doing so right now. I see them maintaining the old ways. And the old way is gone; it’s time to move on.
The reason there is a flow away from the wirehouses is that they don’t get this, and that’s been the case for a decade or so. Thus, the independent channel has emerged because of this.
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Still, it doesn’t mean the new leaders don’t have a chance. They do. But they have to do more than make pronouncements. It’s time to do something real.
Is this the situation for the four remaining wirehouses? This is generally true for all four wirehouse firms, Merrill Lynch, UBS, Wells Fargo and Morgan Stanley.
Now, Morgan Stanley has done some interesting things, by lifting out the Smith Barney business and betting on James Gorman. This sends the message that, “We are the home for brokers who want to work in an investment-banking setting.”
This is not necessarily enough, but it is admirable and clearly says who they are.
What are the major issues or trends that will affect the future of the wirehouses? The first is does this flow to independence gain momentum? In other words, for the wirehouses, the question to ask is, are those advisors and assets that you’ve lost influencing a whole generation, a whole group that looks up to those going independent?
Your problem is not that the there are a few horses out of the stable but that these horses are being watched by all the ponies.
Second, are the wirehouses done sorting themselves out culturally? Are they settled? If not, they need to be settled in a few months, not a few years. If a firm feels like it’s in play, then you have to wonder. That’s like walking on eggshells for an advisor.
Third, will any of them really innovate? For instance, will they make themselves fully transparent to their clients and will they be seamless in giving advisors a truly independent option. I believe that regardless of what the SEC says, for instance, all brokers should be treated as fiduciaries. Will any of the firms take this step before they are required to? If I were an advisor, I’d be impressed by the firm that takes the bold step towards consumer orientation.
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Charles Schwab and Ken Fisher Share Spotlight, Receive Awards at Tiburon CEO Summit XVII
NEW YORK, Nov. 19 /PRNewswire/ -- Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, recently awarded its inaugural Tiburon CEO Summit Awards to Charles Schwab (Chairman, The Charles Schwab Corporation) & Ken Fisher (CEO, Fisher Investments). This release highlights some of the key points made by both award recipients.
Tiburon's CEO Summits are built around two key themes:
Maintaining a focus on consumer needs Challenging conventional wisdom
In the spirit of recognizing leaders in the financial services industry who have excelled at applying one or both of these concepts, Tiburon awarded its inaugural Tiburon CEO Summit Awards. Charles Schwab (Chairman, The Charles Schwab Corporation) received Tiburon's award for Maintaining a Focus on Consumer Needs. Ken Fisher (CEO, Fisher Investments) received Tiburon's award for Challenging Conventional Wisdom. Tiburon believes that maintaining a focus on consumer needs and challenging conventional wisdom are two of the keys to success in the rapidly evolving financial services industry. These awards were presented at Tiburon CEO Summit XVII on October 7, 2009:
Charles Schwab (Chairman, The Charles Schwab Corporation) - Tiburon's Maintaining a Focus on Consumer Needs Award
Charles Schwab started the well-known San Francisco based brokerage firm that goes by his name in the early 1970s. Subsequently, Mr. Schwab has served as chairman of The Charles Schwab Corporation since incorporation of the firm in 1986. He also served as CEO or co-CEO from 1986 to 2008. Today, The Charles Schwab Corporation is one of the nation's leading providers of financial services, with 12,000 employees, more than 300 branches nationwide, approximately 10 million client accounts, & $1.2 trillion in client assets.
Mr. Schwab is the author of several books, was named chairman of the President's Advisory Council on Financial Literacy in 2008, and, along with his wife Helen, is the co-founder & chairman of the Charles & Helen Schwab Foundation, a nonprofit organization that focuses on helping children with learning disabilities and supporting low income families through initiatives in poverty prevention, homelessness, & substance abuse.
Mr. Schwab was presented Tiburon's Maintaining a Focus on Consumer Needs award because of the numerous consumer -centric innovations of The Charles Schwab Corporation, including its discount
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brokerage, telephone -based services, branches, web based trading, mutual fund supermarket, and its custodial, operational, & trading support services for independent fee-based financial advisors.
Mr. Schwab sat down with Tiburon managing principal Chip Roame to discuss some of the factors that have contributed to his success as well as to discuss some of his opinions about the state of the financial services industry. Some of the highlights are included:
When Mr. Roame asked how Mr. Schwab has been able to maintain a focus on consumer needs while also consistently introducing innovations to the industry, Mr. Schwab said that timing is everything. He went on to say that it is important not only to be in the right place at the right time, but to recognize and then act on opportunities as they present themselves. One of Mr. Schwab's key points was that he has always asked himself how a given situation will affect the common guy, and that this consideration, more than any other, caused him to rethink what a customer was and to reclassify customers as clients. Mr. Schwab referred to ETFs as Schwab's next big initiative.
When Mr. Roame asked about Mr. Schwab's insights into what might lead the recovery of the financial services industry, Mr. Schwab said that the basic fundamental values of middle America - family, saving, & college education - are still the leading factors in considering how to reach clients. He also went on to acknowledge the debate over how to move forward ideologically, and said that in any case, the financial services industry must evolve to inherently embrace high ethical standards.
When an audience member asked how Mr. Schwab has been able to consistently generate ideas that work, Mr. Schwab talked about the value of testing - starting small market and moving bigger as successful testing warranted. He specifically mentioned that he has oftentimes considered his own needs when considering the needs of the masses. In one case, as Mr. Schwab preferred no-load mutual funds in his IRA account, this may have led to the genesis of the mutual fund marketplace at The Charles Schwab Corporation.
Ken Fisher (CEO, Fisher Investments) - Tiburon's Challenging Conventional Wisdom Award
Ken Fisher has been CEO of Fisher Investments since founding the firm in 1979. His firm is the largest direct marketer in asset management and depending on one's definition, the largest fee-based financial advisor. Today, Fisher Investments has 950 employees, 85 professional sales people, tens of thousands of clients, and more than $30 billion assets under management.
Mr. Fisher's theoretical work in the early 1970s yielded a tool known as the price-to-sales ratio, now a core element of financial curriculum. Mr. Fisher is also known for his Portfolio Strategy financial investment column featured monthly in Forbes magazine, where his 25-year tenure makes him the fourth longest-running columnist in the magazine's 92-year history. His recent research, published in professional & scholarly journals, focuses on behavioral finance.
Mr. Fisher was presented Tiburon's Challenging Conventional Wisdom award because in almost every facet of his business he has challenged the trends of others, including his use of direct mail, web based advertising, & infomercials; the use of dedicated sales people and a separate dedicated service organization; aversion to hiring graduates of big name universities; telephone based service model; and well defined job descriptions with unparalleled levels of specialization of labor.
Mr. Fisher sat down with Tiburon managing principal Chip Roame to discuss some of the factors that have contributed to his success as well as to discuss some of Mr. Fisher's opinions about the state of the financial services industry. Some of the highlights are included:
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When Mr. Roame asked how Mr. Fisher has been able to challenge conventional wisdom, Mr. Fisher said that there are two ways to think about the question - internally & externally. Mr. Fisher said that externally, his only real contribution has been the price-to-sales ratio work that he did in prior decades, but that internally, at Fisher Investments, he continues to challenge conventional wisdom daily, saying that he prefers never-yet-done-practices over best-practices.
When Mr. Roame asked about Mr. Fisher's insights into what might lead the recovery of the financial services industry, Mr. Fisher said that financial services professionals must lead with innovations that are good for consumers. He also said it is vital that the industry monitor itself, that there always be a sense of Am I Doing the Right Thing? driving any decision that is made.
When an audience member asked how Mr. Fisher maintains very high client retention at Fisher Investments despite the firm's unusual sales-oriented structure, Mr. Fisher explained the value of binding both employees & clients to his firm. In binding employees to his firm, Mr. Fisher discussed the necessity of each employee having a breadth & depth of experience in order for promotion. In binding clients to his firm, Mr. Fisher discussed the importance of frequent client interactions and specifically about managing client expectations. He said that both considerations are important to maintaining a robust business.
Tiburon CEO Summit XVII was held on October 7-8, 2009 at the Ritz Carlton Hotel in San Francisco, CA. Tiburon CEO Summit XVIII will be held April 14-15, 2010 at the Ritz Carlton Hotel in New York, NY. To learn more about this unique forum for debate & networking among financial services CEOs, go to www.TiburonAdvisors.com , or if you are a qualified Tiburon client and would like to attend the upcoming Tiburon CEO Summit XVIII, please contact Tiburon Managing Principal Chip Roame directly. Contact information can be found at www.TiburonAdvisors.com .
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Tiburon CEO Summit XIV: Chip Roame: “The News is Noise” April 15, 2008
Tiburon Strategic Advisors held its CEO Summit XIV conference on April 11-12. This event attracts approximately 150 attendees, most of whom are CEOs or senior operating officers from mutual fund, financial advisory, brokerage and custodial firms. It was held in New York for the first time, after being held in prior years in San Francisco.
Chip Roame, Tiburon’s Managing Principal, delivered the opening keynote presentation, and offered Tiburon’s assessment of important events and trends in the financial services industry:
• Roame characterized the significant events of the last year, including sub- prime write-offs, Bear Stearns, sovereign wealth funds, Wall Street layoffs, and the collapse of the private equity industry as “noise.” The significant, lasting event of the prior year is the impact of declining real estate values on baby boomer liquefaction and retirement strategies.
• The decline in housing prices presents a significant challenge to the way in which baby boomers have “saved” for retirement. Baby boomers have saved for their retirements by assuming that they would liquefy the equity in their houses, and declining home values demonstrates that “this strategy is not working any more,” says Roame.
• Only 21% of baby boomers over age 55 have investable assets greater than $100,000. Consumer household personal savings has been negative for the last three years (-$34.8Bn in 2005, -$96.4Bn in 2006, and -$82.3Bn in 2007), after having been in excess of $130Bn for the four years starting in 2001. Only 2% of baby boomers will inherit greater than $100,000.
• The challenge facing baby boomers is compounded by increasing life expectancy. The average American lives to 77.5 but, as Roame notes “this really doesn’t matter – what matters is when you retire.” The life expectancy of someone reaching age 65 is now 87, and this is the metric against which the retirement industry must plan.
• For 90% of the households, health care and retirement savings are the twin challenges,” says Roame, adding “only 10% of households are focused on charitable giving.”
© Copyright 2008, Advisor Perspectives, Inc. All rights reserved.
• “The next wave of investors is the retiring baby boomers, and many will not have investment experience,” says Roame, adding “they may be uninformed and will be influenced by brand names.” The challenge for the independent industry is to achieve differentiation against the wirehouse and commercial banking segments.
• Roame predicted continued, significant sub-prime-related write-offs from the financial services industry, and cited flawed compensation systems as an underlying cause. Roame said, “I am afraid the investment banking compensation system incents executives to take extreme risks (moral hazard). Just think back to the bonuses in the good years; do they give those back? Then why not take another big risk?”
• The total amount of investable assets held by consumer households is now $22.8 trillion, of which $13 trillion is held in retirement accounts. Since this represents the market size of the financial services industry, Roame notes that no single player has significant market share. Financial services is a fragmented industry, and even the largest players have market shares less than 2%.
• The mutual fund industry, with assets close to $11 trillion, dwarfs all other investment products. “The mutual fund industry will be here for a long time,” says Roame, in response to those that forecast its demise. Although some products, such as ETFs, are experiencing significant growth in percentage terms, they are a long way from catching the mutual fund industry in absolute terms. The inflexion point for mutual fund growth was when they penetrated 401(k) accounts, and it will take a development of similar magnitude to accelerate the ETF markets.
• Roame is a “naysayer” on target date funds. He believes these funds are being misused, as retirees are holding additional funds (primarily equity funds), resulting in sub-optimal overall asset allocations. He said target date funds “are a nice idea, but they are not being used correctly.”
• Packaged fee accounts have grown substantially over the past eight years, to $1.5 trillion in assets. Roame forecasts these becoming increasingly popular as baby boomers retire and liquefy their assets into these accounts.
• Roame pegged the U.S. hedge fund industry at $1.9 trillion, larger than the ETF and SMA markets combined. “Hedge funds are by far the most profitable segment of the industry, making more than the rest of the
© Copyright 2008, Advisor Perspectives, Inc. All rights reserved.
industry added together,” says Roame, although this was qualified by the fact that much of this profit is in the form of carried interest.
• There are approximately 400,000 financial advisors in the U.S. today, divided roughly equally across four segments: 22% are independent reps, 22% are bank brokers and trust officers, 23% are wirehouse and brokerage representatives, and 23% are life and property & casualty agents. Only 8% (30,024) are partners at fee-only financial advisory firms, although this segment has had the highest growth rate in AUM (18% annually over the last 12 years) of any channel. The final 2% are discount broker and mutual fund representatives. There are no significant flows, when measured by numbers of people, between these channels. However, when measured by AUM, there may be significant flows from captive to independent and fee-only channels, as those reps that do move may bring with them disproportionately larger assets.
• The advisory business is highly competitive, particularly with respect to the larger and more profitable accounts. 400,000 advisors are competing for the business of approximately 117 million households (an average of 300 households per advisor). These households have average investable assets of $210,000, but the median investable assets are only $8,100. Advisors are competing for the business of only the top 10% or 20% of households, or between 10 and 30 million households, which works out to only 50 accounts per advisor.
We will provide additional coverage of the Tiburon conference in next week’s issue.
Our Analysis
Roame’s characterization of the past year’s events as “noise,” with effects limited to the liquefaction of baby boomer retirement assets, understates the scope of the sub-prime crisis. Roame’s assessment will be correct if there are no further significant declines in housing prices, the equity markets have already discounted most of the bad news, and we undergo an eight month recession, similar to the prior two recessions. However, as we have noted in prior analyses , we believe the sub-prime crisis has the potential to be far more extensive than prior crises faced by the US markets, and we are not convinced future bad news (which Roame agrees is forthcoming) is fully discounted by the markets. Housing prices could decline by another 30% (see graph on this page ) and evidence from other countries (see our article on this subject) suggests a two- or three-year recession. A prolonged recession, combined with current low interest rates and further declines in housing prices and equity markets, will
© Copyright 2008, Advisor Perspectives, Inc. All rights reserved.
affect more than just baby boomer retirement assets. Retirees at or near the de- accumulation phase will see an immediate impact, and Gen-x and Gen-y investors will suffer significant erosion in their retirement assets. This is more than just “noise.”
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