Professional Documents
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FRA Managed Accounts and UMA Summit - 2015
FRA Managed Accounts and UMA Summit - 2015
FRA Managed Accounts and UMA Summit - 2015
Thank You
Proudly Presents
PresentsThe13thAnnualManagedAccounts&UMASummit
CapitalizeontheLatestMA/UMAGrowthOpportunities
September2829,2015|ThePrincetonClub,NYC
DAYONE:Monday,September28,2015
8:008:35
8:358:45
8:459:45
Registration&ContinentalBreakfast
ChairsOpeningRemarks
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
OpeningPanel:PlatformizationoftheIndustry:IntegratingPlatformsandReducingSilos
9:4510:45
Moderator:
DanielleVerbrigghe,Reporter
FundFire
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
JasonB.Moore,ManagingDirector,HeadofAdvisoryPrograms
MorganStanleyWealthManagement
AloisPirker,ResearchDirector
AiteGroup
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
GoalBasedInvestments&AlignmentofInterests:ExecutingtheBiggestTrendintheIndustry
JackSharry,ExecutiveVicePresident,StrategicDevelopment
LifeYield,LLC
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
10:4511:00
MorningBreakSponsoredBy:
11:0011:45
11:4512:30
12:301:45
1:452:45
2:453:45
BenchmarkingAgainstGoalsandPerformance
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
WalterHartford,CFA,SeniorVicePresident,Marketing
RyanLabsAssetManagement
RepPMandUMAs:Qualifications,Performance,andExpectations
RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms
MorganStanleyWealthManagement
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
RobertFedele,Director,ProductManagement
Fiserv
NetworkingLuncheonSponsoredBy:
TrackA:
Marketing&GrowthStrategies
Chairperson
KevinD.Mahn,President&ChiefInvestment
Officer
Hennion&WalshAssetManagement
RoboAdvisersPartI:Threatening orFullof
Opportunity?
TomSelby,Partner
Marlin&Associates
AloisPirker,ResearchDirector
AiteGroup
RichDion,ExecutiveVicePresident,Strategic
Partnerships
Envestnet
RoboAdvisersPartII:DigitizingEffortsin
OrdertoReach&EffectivelyOperatewiththe
NextGeneration
GavinSpitzner,President
WealthConsultingPartners,LLC
MatthewR.Kane,Cofounder&ChiefNinja
Hedgeable
TrackB:
Technology&Operations
Chairperson
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
WhatDoesitTaketoAchieveScalability&
Suitability?
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
TomKane,ManagingPrincipal
KaneCarlton,LLC
OvercomingOperationalShortcomings
SimonAlgar,Consultant
WealthReports
DougBartels,VicePresident,Wealth
Management
NorthernTrust
3:454:00
4:004:45
4:455:45
AfternoonBreakSponsoredBy:
BuildingMomentum,CapturingMarket
Share,andEffectiveStrategiestoRetainit
KeithW.Walker,President
FirstCitizensInvestorServices
CocktailReceptionImmediatelyFollowing
TakingaCloseLookattheDOLRuleand
ResponsibilitiesanditsImpactonthe
Industry
DanielR.Kleinman,Partner
MorganLewis&BockiusLLP
RichardD.Marshall,Partner
KattenMuchinRosenman
DAYTWO:Tuesday,September29,2015
8:008:45
ContinentalBreakfast
8:459:00
ChairsRecapofDayOne
KevinD.Mahn,President&ChiefInvestmentOfficer
Hennion&WalshAssetManagement
9:0010:00
ATwoPartAssetFlowDiscussion:
PartI:SuccessfullyPositioningAlternativeInvestmentsinYourManagedAccount&UMAPlatform
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
ColinJ.Healy,CIMA,AIF,ExecutiveDirector,HeadofBusinessDevelopment,GlobalInvestmentSolutions
HighTower
10:0010:45
PartII:WhatisPromptingETFandIndexFundGrowthandWillitContinue?
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
JohnStreur,PresidentandChiefExecutiveOfficer,
CalvertInvestments
MichelleM.Fuller,VicePresident,ETFStrategy
PIMCOETFs
10:4511:00
MorningNetworkingBreak
11:0011:45
11:4512:30
AdoptionStrategies:ConvertingtheBusinessModeltoaTamporManagedAccountOffering
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
GavinSpitzner,President
WealthConsultingPartners,LLC
AchievingRetirementIncomeGoals
MichaelJones,CFA,ChairmanandChiefInvestmentOfficer
RiverfrontInvestmentGroup,LLC
12:301:45
NetworkingLuncheon
1:452:30
BreakingOutoftheUMHVendorHypetoTangleImplementationStrategies
EricLordi,HeadofCrossPlatformDevelopment
BarclaysWealth
2:30
EndofSummit
Dear Participants
Additional Questions
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EN-ENV2-FamilyWealthReport-5.5x8.5-Ad-09.15.indd 1
9/11/15 5:14 PM
CoChairsOpeningRemarks
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleadinginstitutionalconsultingfirmforthebankwealth
managementchannel.WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability.Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms(TAMP);andPointSolutionModels.Weprovidenicheexpertiseand
guidanceontopicsincludinghelpincraftingastrategicvisionandtacticalimplementationplan
fororganizationsneedingtomaketimelyandcosteffectivetransitions.
Mr.Ahernsassignmentsareonboththebuysideandthesellsideincludingbanktrust
companies;sovereignfunds;RegisteredInvestmentAdvisers;proprietarybankaffiliated
investmentmanagementprograms;separatelymanagedaccountplatforms(SMA);Overlay
technologyfirms;UnifiedManagedAccountofferings(UMA)andUnifiedManagedHousehold
(UMH)architectures.
Mr.AhernearnedabaccalaureatedegreefromtheUniversityofMassachusettsandanMBA
withaconcentrationinfinancefromUniversityofMaine.PriortofoundingWinslowCapital
Group,LLC,Mr.AhernwasExecutiveVicePresidentandthenCEOofBTIFinancialGroupfrom
itsfoundingasanoperatingsubsidiaryofBarHarborBanksharesuntil2002.Mr.Ahernserved
asPresidentofBTIssubsidiary,registeredinvestmentadviserandwasVicePresidentofthe
BoardofDirectorsofBarHarborBankshares,apubliccompany.PriortoMr.Ahernswork
establishingBTIFinancialGroup,heservedasChiefInvestmentOfficerofBarHarborBanking
andTrustCompanyuntilhispromotionwithinthegreaterBanksharesorganizationtoCEOof
BTIFinancialGroup.PrevioustohisemploymentatBarHarborBankingandTrust(operating
subsidiaryofBarHarborBankshares)hewasPortfolioManageratWinslowAssetManagement
(nocorporaterelationtoWinslowCapitalGroup,LLC)aswellasPortfolioManageratWinslow
AssetManagementssuccessororganization,F.L.Putnam/WinslowInvestmentManagement
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Company(nocorporaterelationtoWinslowCapitalGroup,LLC).Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
Page
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
OpeningPanel:PlatformizationoftheIndustry:IntegratingPlatformsandReducingSilos
Moderator:
DanielleVerbrigghe,Reporter
FundFire
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
JasonB.Moore,ManagingDirector,HeadofAdvisoryPrograms
MorganStanleyWealthManagement
AloisPirker,ResearchDirector
AiteGroup
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
Danielle Verbrigghe
Danielle Verbrigghe is a reporter at FundFire, covering the wealth management industry. She previously wrote about
investment advisory programs for GatekeeperIQ. Danielle has also written about emerging markets securities for
Bloomberg News and local businesses for the Phoenix Business Journal. She has a Masters degree from the Walter
Cronkite School of Journalism and Mass Communication at Arizona State University and a BA in English Literature
from ASU.
Russell W. Tipper is Managing Director, Managed Solutions Group within the Global
Wealth Retirement Solutions team (GWRS), a unit of Merrill Lynch. In this role,
Tipper is Head of the Third Party Discretionary and Client Discretionary Platform
teams with responsiblity for driving the strategic direction and sustaining the day-today business for the Consults, Unified Managed Account, Mutual Fund Advisor,
Merrill Lynch Personal Advisor, Strategic Portfolio Advisor, Managed Account
Services and BlackRock Private Investors programs as well as the services of
Managed, Custom Managed and Personalized with Client Discretion in Merrill Lynch
One.
Prior to joining Merrill Lynch, Tipper was Head of Marketing for the Nationwide
Advisory Services Program with responsibility for managing and implementing
marketing support for all fee-based programs. Previously, he was the product manager
for Putnams Taxable/Tax-Exempt Fixed Income and Global Asset Allocation product
lines with responsibilities to enhance strategic positioning, take advantage of
competitive opportunities and support profitable business mix within the retail sales
organization. During that tenure, Tipper was part of several product development
initiatives for Putnams separately managed accounts, global asset allocation and fixedincome product lines. Tipper has been a member of the investment community since
1997.
Tipper holds a masters degree in finance from Northeastern University and a
bachelors degree in economics from Denison University. He also holds the Certified
Investment Management Analyst designation.
Banc of America Investment Advisers, Inc. is an SEC-registered investment adviser and wholly owned subsidiary
of Bank of America, N.A.
Global Wealth & Investment Management is a division of Bank of America Corporation. Banc of America
Investment Services, Inc. , U.S. Trust, Bank of America Private Wealth Management and Columbia Management
are all affiliates within Global Wealth & Investment Management.
Banking products are provided by Bank of America, N.A., Member FDIC.
Investment products:
Banc of America Investment Services, Inc. is a registered broker-dealer, member FINRA and SIPC, and a
nonbank subsidiary of Bank of America, N.A.
Jason B. Moore
Jason is a Managing Director of Morgan Stanley and co-Head of Advisory Solutions and Platforms based
in Wilmington, DE.
Jason joined Morgan Stanley in 1995 as an Associate and served in a variety of roles with increasing
responsibility throughout his first ten years with the Firm. Over the last ten years, Jason has focused
primarily on advisory platform management including the development of Morgan Stanley Wealth
Managements unified managed account program. Jason left Morgan Stanley in 2010 and joined Bank
of America Merrill Lynch as a Managing Director and Head of Third Party Advisory Programs. He
rejoined Morgan Stanley in 2011 as Head of Advisory Platforms and Development. Jason was named a
Managing Director in 2012 and was named the co-Head of Advisory Platforms and Solutions in 2015.
Jason earned a B.S. in Business Administration and an M.B.A from the University of Delaware.
CemEr,Director,CharlesRiverDevelopment
CemleadsCharlesRiversprivatewealthproductmanagementteamandprovidesdirectionandthought
leadershipforwealthmanagementrelatedfunctionality,including,modelingandoptimization.Priorto
joiningCharlesRiver,CemwasaHeadTraderandPortfolioManageratCobblestoneCapitalAdvisors.He
beganhisfinancialservicescareerasaFinancialAnalystforDemirbankA.S.HSBCSecurities.Cemholds
anMBAinFinanceandStatisticsfromRochesterInstituteofTechnologyandisaCFACharterholder.
.
GoalBasedInvestments&AlignmentofInterests:ExecutingtheBiggestTrendintheIndustry
JackSharry,ExecutiveVicePresident,StrategicDevelopment
LifeYield,LLC
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
JackSharry
JackisaprincipalandEVPofStrategicDevelopmentatLifeYieldLLC.
LifeYieldofferssoftwaresolutionstohelpfinancialadvisorsmanageclientinvestmentassetsin
amoretaxefficientmannerbothbeforeandafterretirement,aswellasidentifyingoptimal
SocialSecurityfilingstrategies.LifeYieldssolutionsareusedbymajorfinancialfirmsacrossthe
U.S.toimproveinvestoroutcomesandinachievinglifelonggoals.
Jackhasbeenafinancialindustryinnovatorfornearly30yearsasanexecutiveatMorgan
Stanley,PutnamInvestmentsandPhoenix(nowVirtus)InvestmentPartnersservingasasenior
leaderinsales,marketing,productdevelopmentanddistributionstrategy.WhileatPhoenix,
Jackledateamwhichdevelopedthefirstmultimanagerwholesaledistributionmodelfor
advisoryplatformsandapatentedincomeguaranteeforadvisoryprograms.
JackisChairmanoftheMoneyManagementInstitute's(MMI)GoalsBasedWealth
ManagementCommittee.Heistheauthorofaseriesofresearchpapersonretirementincome,
UnifiedManagedHouseholds(UMH)andGoalsBasedWealthManagement.Jackhasbeen
recognizedasaMMIPioneer,aselectgroupofindustryleadersandwasawardedthe2013
MMIChairmansAwardforthoughtleadership.
Investment Management
Mark D. Sloss
Executive Director, Senior Portfolio Manager
Head of Portfolios & Models for Investment Management
UBS Financial Services Inc.
Mark is Head of Portfolios & Models for UBS Investment Management (IM), a voting member of
IM's investment committees and the Investment Management Research Committee, serves on
the firm's 401(k) investment committee, and consults extensively on portfolio and model
creation for ultra high net worth, family office and institutional clients. As part of his role, he also
drives content and implementation of sustainable and impact investment management
strategies across UBS Wealth Management Americas (WMA). Prior to his present role, Mark
lead Investment Management Research, and before that was responsible for product
development in the private client and institutional advisory businesses at UBS, having initially
joined the firm to head institutional manager research.
Throughout his career he has organized, participated in and spoken at industry events
pertaining to sustainable and impact investing, institutional benchmarking of investment
portfolios, manager research, active and passive portfolio management, private client and
institutional investment in "liquid" alternatives, market research, and retirement account
investing. Among his many activities relating to sustainability, Mark participates in the United
Nations Environmental Programme Finance Initiative North American Task Force on behalf of
WMA, is a member of the UBS Global Sustainability Council, and has been published in the
Journal of Sustainable Finance & Banking and a special report of the Money Management
Institute.
Before joining UBS in 2005, Mark was Director of the Investment Consulting Group and
Secretary to the Investment Committee of New York Life Investment Management (NYLIM).
During his eleven years at NYLIM he was also responsible for enterprise strategic planning and
led due diligence and manager selection for the defined contribution, mutual fund and variable
annuity divisions.
Mark Sloss is a graduate of Northwestern University and holds FINRA Series 7, 63, 66 and 24
designations
9/28/2015
GoalsBasedWealthManagement
ImprovingOutcomesfor
Investors,Advisors&Firms
JackSharry
Principal,LifeYield LLC
Chair,MMIGoalsbased
WealthManagementCommittee
September29,2015
9/28/2015
FirstMMIGBWM
WhitePaper:
October,2014
SignificantInvestmentinGoalsBasedAdvice Why?
ProductAllocation
AssetAllocation
AssetLocation
DynamicWithdrawals
Total
24bps
38bps
52bps
54bps
168bps
Alpha,BetaandNowGamma
IncreaseinIncome:
Upto33%
TaxNeutral
WithLifeYield
IncreaseinLegacy:
Upto45%
TaxNeutral
WithLifeYield
9/28/2015
GoalsBased WealthManagement
Taxable&
QualifiedAccounts
Financial
Plan
Plan
Target
Plan
Monitoring
Investment
Proposal
Location
Optimization
Location
Monitoring
Implement
Accounts
TaxSmart
Withdrawal
Trades
Cash
NextMMIPaper:
October,2015
9/28/2015
SignificantGBWMInvestment Why?
Improvedinvestor,advisor&firmoutcomes
Keycontributors:
Cost
Tax
RiskAdjustedReturns
"Taxesarethebiggestinvestorexpense.
Hearts&Wallets
GBWMKeyElements
PrioritizeGoals
HouseholdAsset
Allocation
Intelligent
Withdrawals
AssetLocation
BigPie>LittlePies
Plan
Implement
Distribute
Manage
Coordinate/Select:
Product,Models
Monitor/Rebalance
9/28/2015
GBWMistheNextBigThing
MMIGBWMStudy:Whatfirmsaresaying
Requirestransformationalchange
Firmsneedhelpconnectingthedots
Tech/Ops/Toolscoordination
Practicemanagement
Regulatory/Complianceissues
DemonstratingROI
WhoisLeadingtheWay?
Solutionsproviders
Broker/Dealers
Wires
MMI
10
9/28/2015
LifeYield:WhatweveLearned
GBWMrequireschange
Advisorsdontlikechange
11
LifeYield:WhatweveLearned
GBWMrequirements:
Incorporatedintoadvisorworkflow
Guardrailsensureadoption&success
Valuemustbequantified
Keytodifferentiation Drivesconsolidation
Integratedimplementation
K.I.S.S./Wholeisgreaterthantheparts
12
9/28/2015
9/28/2015
GoalsBasedWealthManagement
ImprovingOutcomesfor
Investors,Advisors&Firms
JackSharry
Principal,LifeYield LLC
Chair,MMIGoalsbased
WealthManagementCommittee
September29,2015
BenchmarkingAgainstGoalsandPerformance
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
WalterHartford,CFA,SeniorVicePresident,Marketing
RyanLabsAssetManagement
Investment Management
Mark D. Sloss
Executive Director, Senior Portfolio Manager
Head of Portfolios & Models for Investment Management
UBS Financial Services Inc.
Mark is Head of Portfolios & Models for UBS Investment Management (IM), a voting member of
IM's investment committees and the Investment Management Research Committee, serves on
the firm's 401(k) investment committee, and consults extensively on portfolio and model
creation for ultra high net worth, family office and institutional clients. As part of his role, he also
drives content and implementation of sustainable and impact investment management
strategies across UBS Wealth Management Americas (WMA). Prior to his present role, Mark
lead Investment Management Research, and before that was responsible for product
development in the private client and institutional advisory businesses at UBS, having initially
joined the firm to head institutional manager research.
Throughout his career he has organized, participated in and spoken at industry events
pertaining to sustainable and impact investing, institutional benchmarking of investment
portfolios, manager research, active and passive portfolio management, private client and
institutional investment in "liquid" alternatives, market research, and retirement account
investing. Among his many activities relating to sustainability, Mark participates in the United
Nations Environmental Programme Finance Initiative North American Task Force on behalf of
WMA, is a member of the UBS Global Sustainability Council, and has been published in the
Journal of Sustainable Finance & Banking and a special report of the Money Management
Institute.
Before joining UBS in 2005, Mark was Director of the Investment Consulting Group and
Secretary to the Investment Committee of New York Life Investment Management (NYLIM).
During his eleven years at NYLIM he was also responsible for enterprise strategic planning and
led due diligence and manager selection for the defined contribution, mutual fund and variable
annuity divisions.
Mark Sloss is a graduate of Northwestern University and holds FINRA Series 7, 63, 66 and 24
designations
RepPMandUMAs:Qualifications,Performance,andExpectations
RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms
MorganStanleyWealthManagement
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
RobertFedele,Director,ProductManagement
Fiserv
Richard V. Slater
Morgan Stanley
Executive Director
Director: Portfolio Management Group and Consulting Group Advisor Programs
Rich is the Director of the Portfolio Management Group and Consulting Group Advisor
programs. He is responsible for the daily management of Morgan Stanleys FA directed
advisory programs. Richs previous roles include managing national business
development for the FA Discretionary programs and creating Consulting Groups
Advisory Development Initiative. Rich began his career as a financial advisor in New
Jersey and later joined Smith Barney in 1998. Rich holds a BA Economics from
Muhlenberg College (Allentown, PA) and has been certified in Conflict Management and
Mediation from Kent State University.
CemEr,Director,CharlesRiverDevelopment
CemleadsCharlesRiversprivatewealthproductmanagementteamandprovidesdirectionandthought
leadershipforwealthmanagementrelatedfunctionality,including,modelingandoptimization.Priorto
joiningCharlesRiver,CemwasaHeadTraderandPortfolioManageratCobblestoneCapitalAdvisors.He
beganhisfinancialservicescareerasaFinancialAnalystforDemirbankA.S.HSBCSecurities.Cemholds
anMBAinFinanceandStatisticsfromRochesterInstituteofTechnologyandisaCFACharterholder.
.
BobFedele
Director,ProductManagement
InvestmentServices
Fiserv
BobFedeleistheDirector,ProductManagement,andInvestmentServices,atFiserv,Inc.
(NASDAQ:FISV).Bobleadstheteamthatsupportsourwealthmanagementsolutions
includingPortfolioManagement,Trading,ModelPortfolios,FinancialAdviceManagement
andGlobalPortfolioAccounting.
PriortohispromotiontoDirectorin2015,asProductStrategistforAdvisorSolutions,was
instrumentalinthecreationandrolloutoftheUnifiedWealthPlatformfordiscretionary
financialadvisors.Bobalsoservedinvariousaccountandrelationshipmanagementroles
beforejoiningProductManagement.
BobstudiedInternationalBusinessatFordhamUniversityandheldoperationsandtrading
positionsatJPMorgan,ExcoNoonanandCSFBpriortojoiningCheckFree,nowpartof
Fiservin2001.HeisafrequentpresenteratFiservconferencesandFinancialAdvisor
seminarsforFiservclients.
TrackA:
Marketing&GrowthStrategies
Chairperson
KevinD.Mahn,President&ChiefInvestmentOfficer
Hennion&WalshAssetManagement
RoboAdvisersPartI:ThreateningorFullofOpportunity?
TomSelby,Partner
Marlin&Associates
AloisPirker,ResearchDirector
AiteGroup
RichDion,ExecutiveVicePresident,StrategicPartnerships
Envestnet
Tom Selby is a Partner at Marlin & Associates, an investment bank focused on advising
information technology companies, with a primary focus on advising financial
technology companies. He spent the first 14 years of his career in the information
technology arena in a variety of technical / operating roles and as an entrepreneur,
sales and marketing roles, and worked with SunGard for close to a decade, primarily in
transaction advisory roles focused on helping his division acquire firms in verticals
including brokerage, trading, wealth, and insurance.
Richard K. Dion
Executive Vice President
Richard Dion is Executive Vice President and Head of Strategic Partnerships at Envestnet Asset Management. Prior
to joining Envestnet, Mr. Dion was President of Placemark Investments, Inc. where he was responsible for the firms
core business activities, including business development, product management, platform services and technology
services. Mr. Dion has over 30 years experience in financial services, much of it garnered at Fidelity Investments
where he worked in a variety of senior sales and product development roles. Prior to joining Placemark, Mr. Dion was
Chief Executive Officer of Oberon Financial Technology, a fee-based technology services firm subsequently acquired
by Envestnet in 2005. Mr. Dion holds a B.A. from the University of New Hampshire.
Strategic Players
completed
transactions
with
Betterment, FIS, Markit, Morningstar,
SS&C, Sungard, Thomson Reuters
Transactions
completed
parties in 26 countries
involving
Advised
on
more
than
200
successfully completed transactions
Strong PE / VC Relationships
Financial Technology
Deal of the Year
Middle Market
Information
Technology Deal of the
Year
Middle Market
International / Cross
Border Deal of the Year
Middle Market
International Financial
Services Deal of the
Year
Source: JP Nicols
Transaction
Announced Target
Acquirer / Investor
04/15/15
23
02/17/15
60
40
50
64
01/20/15
10/28/14
10/27/14
Value ($m m )
04/14/14
28
04/01/14
32
04/01/14
DAG Ventures; Greylock Partners; Index Automated investment service enabling users to invest in
Ventures; Ribbit Capital; The
continually rebalanced portfolios of index funds at low
Social+Capital Partnership
cost.
35
25
280
300
20
18
250
200
14
15
10
6
3
4
14
159
11
94
150
100
4
50
26
43
Millions Invested
# Companies
Transaction
Announced Target
Acquirer / Investor
Value ($m m )
09/04/15
08/26/15
05/26/15
na
04/23/15
na
03/25/15
250
02/26/15
02/11/15
250
na
175
HHs With
$3.5+mm
Total
Fully/Partially Retired
Mega-Millionaires
$87
$2,047
$1,588
$3,722
Silent Generation
Age 70 to 79
$803
$2,424
$2,165
$5,392
$3,572
$1,433
$3,765
$8,770
$312
$1,495
$5,351
$13
$444
$3,112
Total = $6,229
Total = $9,457
Leading-Edge Boomers
Age 60 to 69
Trailing-Edge Boomers
Age 51 to 59
*Large amount of wealth transferred
$3,544
Not Retired
Silent Generation
Age 80 or older
Gen X and Y
Age 50 or below
$2,655
Total = $10,661
Total=$26Tn
Firms that focus on deliberate strategies and effectively implement their plans will be in the position to capture a large base of assets. Firms
that fail to act run the risk of losing assets at an accelerating rate - Accenture
As the flow of wealth is shifting from asset gathering to asset distribution, the need for comprehensive solutions will
increase, making NeoXams offerings even more relevant to the industry
Sources: LIMRA analysis of Survey of Consumer
Finance data, Federal Reserve Board, 2010,
Accenture
$ Per
Portfolio
Full Service
Wealth
$1.0 M
(XX Trillions)
Hybrid Models
$0.2 M
Robo
(<20Bn)
# of
portfolios
Wealth Managers
Increasingly
Launching Their Own
Platforms
Robo cost of client acquisition is high relative to near term revenue potential. Only a few Robos will
reach sufficient scale to survive
Buyers will likely be full service providers, looking to adopt a hybrid model. Robos typically wont be
buyers as they wont wish to meld different philosophies
Wealth management firms have accelerated the adoption of SaaS-based solutions to help advisors
leverage web-based tools in a more cost-effective and time-efficient manner.
Timely and easy access to information is essential to build customer trust and loyalty. Insufficient
client reporting capabilities is cited as a key driver to client attrition
Full service platforms will build or acquire missing technology pieces to provide complete solution
The Robos are primarily answering the call of the smaller AUM time starved early investors
Generational transfer of wealth in the order of $30T will occur over 20 years, allowing plenty of time
to adapt and thrive. Fees alone will not drive assets to Robo platforms.
Full Service firms will find methods to answer Millenials tech hungry needs, some will do so by
partnering with Robos who increasingly are open to providing B2B2C type offerings
Transfer of wealth drives significant issues around planning, tax implications, and other advice
Robos not able to handle
Hybrid models will evolve with advice and automation balanced to the satisfaction of the investor
Technology will facilitate hands on advisors handling more clients with smaller portfolios, while still
maintaining profitability
Founded in 2002, Marlin & Associates Holding LLC is a boutique investment banking and
strategic advisory firm specializing in acquisitions and divestitures of U.S. and international
middle-market firms that provide technology, digital information and healthcare-related
products, technology and services.
M&A's professionals have advised on over 200 successfully completed transactions in the
financial technology and information services sector. The firm has been named "Middle
Market Investment Banking Firm of the Year," received numerous "Deal of the Year
awards, and was recognized for leading two Deals of the Decade.
10
10/7/2015
Panel:RoboadvisorsPartI
ThreateningorFullofOpportunity?
PresentedatFRAs13thAnnualManagedAccounts&UMASummit
September28th,2015
AloisPirker
ResearchDirector
Page 1
Page1
2014AiteGroupLLC.
WealthManagementMarketUpdate
Marketstructurechanges
duetoM&A
Elevatedmobilityofclients
andadvisors
Profitabilitypressuredueto
lowinterestratesand
transactionvolumes
Businessmodelchanges
Bankingproducts
Fullservicefirms
embracethedirect
model
Regulationsdrivefinancial
servicesfirmsfrom
productfocusedto
consumercentric
Client Assets and Number of Financial Advisors Across U.S. Wealth Management
Industry Segments, 2014
Client assets
(In US$ billions)
'12 to '13
'13 to '14
$6,553
Wirehouse
Self-clearing
retail brokerage
(non-wirehouses)
5.7%
$3,267
15.4%
9.5%
7.6%
11.6%
23.0%
15.0%
18.2%
11.9%
56,985
$2,817
Fully disclosed
retail brokerage
139,100
$2,687
Independent RIAs
12.7%
54,295
59,422
$3,759
14,495
Client assets (total=US$19.1 trillion)
Number of financial advisors (total=324,297)
Source:NewRealitiesinWealthManagement:TrainKeptaRollin,
AiteGroup,July2015
Page2
2014AiteGroupLLC.
10/7/2015
RespondingtoaNeedfor
LowcostFiduciaryService
Traditionalfirmshavefocused
onHNWandadvisorled
serviceandlessonscaling
adviceanddigitalservice
Wealthsegment
Highnet
worth
Startupsseeopportunityto
addressunderservedsegments
withlowcostprofessionalservice
deliveredatscalethroughintuitive
andautomateddigitalprocesses
Online
brokerage
doit
yourself
Mass
affluent
FA/
Brokerage
(customized,
Morethan
100bpsfee)
Private
bank/
trust
FocusonHNW
LittlefocusonGenX/Y
Expandingservices
Movingtofiduciary
Maintaininghigh,
bundledfee
Mass
affluent
Digitaladvisors
(semipersonalized,
Mass
freeto100bps)
Technology-driven service
retail
Page3
Advisor-led Service
2014AiteGroupLLC.
Massaffluentfocusedfirmswillfeelthecompetitivepressurefromdigital
advicemodelsmostandwilladoptthemodelatdifferentspeeds
Thesefirmswillbeunabletojustifyhigherinvestmentfeesforadvisorswhoprovide
investmentadviceprimarilyanddeliverstandardportfolios
Onlinebrokerswillmasterthedigitaladvicemodelfirstasitisanaturalfit
Insurancebrokerdealerhavestartedacquiringdigitaladvicestartups
Retailbankswillshiftfromanadvisorbasedtoadigitalmodeleventually
HNWfocusedfirmsarelessthreatenedbydigitaladvicemodelsbutwillhave
toconsideranumberofaspects
ValuepropositionintheHNWisdifferentasthefeescoverindependentandholistic
advicethatisseparatefromproductfulfillment
But,minimuminvestmentamountsandfeelevelsnowhavenewfloors
Independentadvisorsmaytakeadvantageofthesenewlowcostplatforms(institutional
offers)foraportionoftheirclientswhichwillputfeepressureonwireheouse FAs
Firmsmusthelpfinancialadvisorsarticulatetheirvaluebeyondproductorportfolio
propositions
Page4
2014AiteGroupLLC.
10/7/2015
WealthManagementvs.DigitalAdvice
Business model
features
1.
2.
3.
4.
1.
2.
3.
4.
5.
6.
Product
Advisor-delivered service
Advisor owns client relationship
Advisor sets service schedule
Digital channels provide limited
value
Complex presentation of products
and fees
High fees, high costs
Commission-based transitioning to
sophisticated fee-based model
High-end: SMA / UMA / Rep as PM
Low-end: Mutual Fund Wrap
5.
6.
Multi-channel service
Firm owns client relationship
Advisors when needed
Digital channels deliver products,
services, and value-add content
Simple presentation of products
and fees
Low fees and low-cost execution
Fees
0 to 100 bps
Technology
Client
Engagement
Managed
account/
RIAmodel
Products
Digitalinvestmentmanagersandbrokers
Page5
RebalanceIRA
FutureAdvisor
SigFig
Betterment
Covestor
Hedgeable
HedgeCoVest
SchwabIntelligent
Portfolios(2015)
Wealthfront
Blooom(D2C plans)
AdvisorConnexion(Foliofn)
BalanceFinancial
Blueleaf
eMoneyAdvisor
GuideFinancial
Invessence
NestEgg(Vanare)
Oranj
ScivantageSqope
Trizic
UpsideAdvisor(ENVESTNET)
WealthAccess
EdelmanOnline
eSavant
FirstPointFinancial
MainSt.Advisor
PersonalCapital
VanguardPAS
Wela
XY PlanningNetwork
Bicycle Financial
NextCapital(forthcoming)
Brokerage
account
Digitaladviceproviders
AssetBuilder
Liftoff(Ritholtz)
StrongholdFinancial
TradeKingAdvisors
TrustEgg
WiseBanyan
2014AiteGroupLLC.
Kapitall
RobinhoodMarkets
MotifInvesting
Recommenda
tions
FinancialGuard
Jemstep
Noproducts
offered/
recommended
FlexScore
iQuantify
CircleBlack
(forthcoming)
Assets in
specific account
Assets for
retirement
LearnVest
Allinvestmentassets
(asaggregatedbyclient)
Allassetsandliabilities
Scopeofadvice/service
Source:AiteGroup
D2Cservice
D2Cand
institutionaloffer
Page6
Technologyproviderto
advisors/institutions
Advisorispartof
theoffer
2014AiteGroupLLC.
10/7/2015
Traditionalfirmshaveto
shifttowardsdigitalclient
engagementwhile
integratingtheadvisorinto
theprocess
Highnet
worth
Mobileand
webwealth
mgttools
Digitalinitiativesofwealth
managementfirmsfocuson:
Advisor/clientcollaboration
(facetofaceanddigital)
Supportingricher/more
holisticdialogthrough
advisortoolsandcontent
(e.g.MerrillClear)
Processautomation(e.g.
onboarding,datagathering)
Integration
Private
bank/
trust
FA/
Brokerage
Mass
affluent
Online
brokerage
doit
yourself
Mass
affluent
FocusonHNW
Littlefocuson
GenX/Y
Expandingservices
Movingtofiduciary
Maintaininghigh,
bundledfee
IncumbentversionsofDigital
Advisor(differentmodels)
Mass
retail
Advisor-led Service
Technology-driven service
Page7
2014AiteGroupLLC.
Capabilities
Firmexamples
Purpose
DigitalEngagementSolutions
Prospectfocused
Advisorswhowantto
acquireclientsdigitally
Clientservicefocused
Advisorswhowantto
service clientsdigitally
Advisor Websites
AdvisorProducts
EmeraldConnect
FMGSuite
Jemstep
Riskalyze
Advisorwebsitesandleadgenerationtools
Onlineaccountopening(somefirms)
Clientportalw/aggregation
Advisor alerts/suggestedadvice
Advice/planningtools(some)
Portfolioanalytics/reporting
Vault
Document sharing
LighttofullCRM/bookanalysis
Blueleaf
CircleBlack
eMoneyAdvisor
Guide Financial
Marstone
Oranj
WealthAccess
DigitalAdvisorSolutions
PMplatform
Advisorswhowantamore
automatedportfolio
managementplatformwith
onlineonboardingandan
integratedprospecting
website
FolioInstitutional
MotifAdvisor(theme
based portfolios)
NestEgg Wealth
Trizic
PMservice(TAMPlike)
Advisorslookingforan
investmentmanagement
service(TAMPlikeservice)
forlowbalanceclientsor
clientschildren
BettermentInstitutional
SchwabIntelligent
Portfolios
UpsideAdvisor
(ENVESTNET)
Marstone
Basicwebsite
Questionnaires
Onlineaccountopening
Portfoliomanagement(capabilitiesvary)
Portfolioreporting
Aggregation/planning(some)
LighttofullCRM
Page8
2014AiteGroupLLC.
10/7/2015
WhatdoesthismeanfortraditionalWMFirms?
Whiledigitaladvicestrategyforthemassaffluentisachoice,
richdigitalclientengagementfortheHNWisbecomingamust!
Providingavalueadddigitalexperienceenrichedthrough
insightful/personalizedcontentandselfservicetools
Differentiatingdigitalservicebasedonclientsegmentand
behaviorisrecommendedtodeliverpersonalizedandrelevant
digitalservice
Behavioralsegmentationoftheclientbaseisrecommended
Adjustclientengagementlayerinresponsetoclientbehavior
Robustclientdatalayerisrequiredforagileclientengagement
(Thebetterthedatalayerthemorerobusttheengagement!)
Financialadvisorsneedtobeabletoarticulatetheirvalue
propositionoutsideofaproductcontext
Embracinggoalsbasedwealthmanagementisaperfectfull
serviceandclientcentricresponse
Page9
2014AiteGroupLLC.
Aite Group:Partner,Advisor,Catalyst
Aite(pronouncedeyetay)Groupisanindependentresearchand
advisoryfirmfocusedonbusiness,technology,andregulatoryissues
andtheirimpactonthefinancialservicesindustry.
AloisPirker
ResearchDirector
apirker@aitegroup.com
+1.617.338.6071
www.aitegroup.com
Page10
2014AiteGroupLLC.
9/16/2015
AdvisorNow
RichardK.Dion|ExecutiveVicePresident|StrategicPartnerships
2015Envestnet,Inc.Allrightsreserved.ForNationalFinancialuseonly.
EnvestnetataGlance
Foundedin1999
IPOJuly2010(NYSE:ENV)
Empowersover42,000advisorstoachievehigherstandardsinportfolioandpracticemanagement
Morethan3.0millioninvestoraccounts1
Supportsover$792billionofassets1
$258billioninAUM/A
Fullfiduciarysupportfor$76billioninAUM
$13.8billioninYTD6/30/15netflows($50billioninnetflowsinfullyear2014)
Morethan1,000pointsofplatformcustomization
Over1,400employeesinChicago(headquarters),NewYork,Boston,Dallas,Denver,Raleigh,Landis(NC),
Seattle,St.Louis,Sunnyvale(CA),Tucson,andTrivandrum,India
Providingendtoendsolutionsthatunifyandfortifythewealthmanagementprocess
Note:DataasofJune30,2015.
1 includesaccounts/assetsundermanagement,administration,andlicensingarrangements.
2015Envestnet,Inc.Allrightsreserved.Forhomeofficeandadvisoruseonly.
9/16/2015
TheNextgenerationBusinessModel
BlendingTraditionalwithDigital
ClientEngagement
InvestmentPortfolios
ScopeofAdvisory
Services
GoalsbasedPlanning
Business Model
Integration
Traditional
Digital
(advisorless)
(advisorcentric)
Packaged
Customized
(mutual funds&ETFs)
(individual securities)
Impersonal
HighlyPersonal
Household/Multi
custodiallevel
Accountlevel
Horizontal
Vertical
(acrossmultiplehostaccounting
systems)
(singlehostaccountingsystem)
CurrentDigitalOfferings
2015Envestnet,Inc.Allrightsreserved.Forhomeofficeandadvisoruseonly.
AdvisorNow
Wearebringingtheinnovativecapabilitiesofourrecentacquisitionstogetherwith
ourexistingcorecapabilitiestodeliverthenextgenerationofinvestorexperience.
CoreEnvestnetCapabilities
ADVISORNOW
Proposal
Gention
Client Onboarding
Research
Investmt
Product
Access
Portfolio
Rebalance
Trading
Tax
Mgmt.
Portfolio
Accountg
Investmt
Access
Rebalance
Service
request
software
Billing
Account
Billing
Aggregn
Reporting
Document
Vault
Account
Aggregn
Financial
Planning
Account
Opening
Client
onboarding
Client
Service
Reporting
2015Envestnet,Inc.Allrightsreserved.Forhomeofficeandadvisoruseonly.
9/16/2015
Disclosure
The information contained in this document is for general guidance only. While we have made every attempt to ensure
that the information contained herein has been obtained from reliable sources, Envestnet is not responsible for any
errors or omissions, or for the results obtained from the use of this information. All information is provided as is, with
no guarantee of completeness, accuracy or timeliness, and without warranty of any kind, express or implied, including,
but not limited to warranties of performance and risk management. Envestnet reserves the right to add to, change, or
eliminate any of the services listed herein.
FORHOMEOFFICEANDADVISORUSEONLY
2015Envestnet,Inc.Allrightsreserved.
2015Envestnet,Inc.Allrightsreserved.Forhomeofficeandadvisoruseonly.
RoboAdvisersPartII:DigitizingEffortsinOrdertoReach&EffectivelyOperatewiththeNextGeneration
GavinSpitzner,President
WealthConsultingPartners,LLC
MatthewR.Kane,Cofounder&ChiefNinja
Hedgeable
Gavin Spitzner
President of Wealth Consulting Partners, LLC
Gavin Spitzner is President of Wealth Consulting Partners, a boutique consultancy that advises
Financial Institutions and their Providers on how to leverage technology and best practices in
Portfolio Management, Goals-Based and Digital Advice to improve the
client experience and drive topline revenue and bottomline business
results.
Gavin has more than 25 years of experience working in and
consulting to Fortune 500 companies with a breadth of experience
encompassing strategic consulting, business development, process
reengineering, product development, digital strategy, marketing and
professional development. He has partnered with numerous top 25
U.S. and Global banks and broker-dealers to develop and implement
innovative investment management platform solutions leveraging modern technology and
processes to improve business performance.
More information can be found on Gavins corporate website at wealthconsultingpartners.com.
Matt also advises early stage startups through his firm Morefield Partners. Before starting
Hedgeable he was an associate at multi-billion dollar fund seeded by SAC capital called Sailfish
Capital Partners.
Born and raised in the Northeast section of Philadelphia, and educated entirely in the
Philadelphia public school system, Matthew now lives in New York City. He graduated with
distinction from Penn State University with a B.S. in Finance and was one of the first graduates
of the Engineering Entrepreneurship program.
About Hedgeable
Hedgeable is the first private bank built for millennials. It was founded in 2009 in response to the
unprecedented losses seen during the financial crisis when Americans who didnt have $10
million to invest with the most sophisticated managers suffered the most. Hedgeables mission is
to offer "Goldman Sachs for the rest of us", a high net worth style wealth management platform
made accessible to everyone online at a low cost. The company has been featured in publications
such as Time, Bloomberg BusinessWeek, The Wall Street Journal, and Barrons.
10/7/2015
782,000
10/7/2015
MatthewKane,CoFounderand
ChiefNinja
GavinSpitzner,President
Wealth Consulting Partners, LLC
Wealth Management Strategy,
Design and Deployment
10/7/2015
$
Vanguard Personal Advisor Services
$
$
10/7/2015
Augmented Advice
10/7/2015
10/7/2015
Anger
Ignore It
10/7/2015
Happy?
14
10/7/2015
EvolvingBank WealthManagementMetrics
15
16
10/7/2015
17
Frictionless
Experience
Low-Cost
GoalBased
and
Holistic
Transparency
18
10/7/2015
Tax-Optimization Personal
Financial
Management
Account
Aggregation
Financial
Planning
Automated
investment
management
Vault
Reporting
Online Account
Opening
With portfolio
management and
trading becoming
commoditized at 25-50
basis points, the
spotlight is on advisors
to demonstrate the
incremental value of
human advice
20
10
10/7/2015
Q&A
EvolvingBank WealthManagementMetrics
22
11
BuildingMomentum,CapturingMarketShare,andEffectiveStrategiestoRetainit
KeithW.Walker,President
FirstCitizensInvestorServices
KEITH WALKER
President
First Citizens Investor Services, Inc.
Keith Walker joined First Citizens Investor Services (FCIS), a subsidiary of First Citizens Bank, in
2004 as a Regional Sales Manager. Currently serving as President of the Raleigh, N.C.-based firm, his
responsibilities include oversight of a growing regional bank broker dealer with 44 registered
advisors and almost $5 billion in assets under management. Since 2004, FCIS revenues have
doubled, growing from approximately $16 million to a projected $32 million for 2015. In 2007,
BISA presented FCIS with the coveted Award of Excellence for Regional Institution Program of the
Year.
During his time with the firm, Walker has played an integral role in the growth of the Fee Based
Managed Account Program at FCIS, which has grown assets under management from $75 million to
its current size of $560 million. More importantly, the revenue produced by the program has grown
from 9 percent of total firm revenue, to its current total of approximately 26 percent.
He is currently leading the firm through an important strategic merger with First Citizens Securities
of South Carolina, which will result in a combined firm with 62 Financial Advisors, $7.5 billion in
assets and $45 million in annual revenues.
Prior to joining First Citizens Investor Services, Walker held various positions, including advisor and
management roles with BB&T Investment Services and as a Financial Advisor with FCIS and
Edward Jones. Before starting his Financial Services Industry career in 1995, Walker was a college
basketball coach for eight years, drawing extensively on those same coaching principles to lead his
management team and sales force. He holds a bachelors degree in science from Mars Hill
University.
September 2015
First Citizens Wealth Management is a joint marketing mark of First-Citizens Bank & Trust Company, Member FDIC, Equal Housing
Lender; First Citizens Investor Services, Inc., Member FINRA/SIPC, an SEC-registered broker-dealer and investment advisor; and
First Citizens Asset Management, Inc., an SEC-registered investment advisor.
TrackB:
Technology&Operations
Chairperson
PaulG.Ahern,ManagingPrincipalWinslow
CapitalGroup,LLC
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleadinginstitutionalconsultingfirmforthebankwealth
managementchannel.WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability.Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms(TAMP);andPointSolutionModels.Weprovidenicheexpertiseand
guidanceontopicsincludinghelpincraftingastrategicvisionandtacticalimplementationplan
fororganizationsneedingtomaketimelyandcosteffectivetransitions.
Mr.Ahernsassignmentsareonboththebuysideandthesellsideincludingbanktrust
companies;sovereignfunds;RegisteredInvestmentAdvisers;proprietarybankaffiliated
investmentmanagementprograms;separatelymanagedaccountplatforms(SMA);Overlay
technologyfirms;UnifiedManagedAccountofferings(UMA)andUnifiedManagedHousehold
(UMH)architectures.
Mr.AhernearnedabaccalaureatedegreefromtheUniversityofMassachusettsandanMBA
withaconcentrationinfinancefromUniversityofMaine.PriortofoundingWinslowCapital
Group,LLC,Mr.AhernwasExecutiveVicePresidentandthenCEOofBTIFinancialGroupfrom
itsfoundingasanoperatingsubsidiaryofBarHarborBanksharesuntil2002.Mr.Ahernserved
asPresidentofBTIssubsidiary,registeredinvestmentadviserandwasVicePresidentofthe
BoardofDirectorsofBarHarborBankshares,apubliccompany.PriortoMr.Ahernswork
establishingBTIFinancialGroup,heservedasChiefInvestmentOfficerofBarHarborBanking
andTrustCompanyuntilhispromotionwithinthegreaterBanksharesorganizationtoCEOof
BTIFinancialGroup.PrevioustohisemploymentatBarHarborBankingandTrust(operating
subsidiaryofBarHarborBankshares)hewasPortfolioManageratWinslowAssetManagement
(nocorporaterelationtoWinslowCapitalGroup,LLC)aswellasPortfolioManageratWinslow
AssetManagementssuccessororganization,F.L.Putnam/WinslowInvestmentManagement
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Company(nocorporaterelationtoWinslowCapitalGroup,LLC).Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
Page
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
WhatDoesitTaketoAchieveScalability&Suitability?
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
TomKane,ManagingPrincipal
KaneCarlton,LLC
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleadinginstitutionalconsultingfirmforthebankwealth
managementchannel.WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability.Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms(TAMP);andPointSolutionModels.Weprovidenicheexpertiseand
guidanceontopicsincludinghelpincraftingastrategicvisionandtacticalimplementationplan
fororganizationsneedingtomaketimelyandcosteffectivetransitions.
Mr.Ahernsassignmentsareonboththebuysideandthesellsideincludingbanktrust
companies;sovereignfunds;RegisteredInvestmentAdvisers;proprietarybankaffiliated
investmentmanagementprograms;separatelymanagedaccountplatforms(SMA);Overlay
technologyfirms;UnifiedManagedAccountofferings(UMA)andUnifiedManagedHousehold
(UMH)architectures.
Mr.AhernearnedabaccalaureatedegreefromtheUniversityofMassachusettsandanMBA
withaconcentrationinfinancefromUniversityofMaine.PriortofoundingWinslowCapital
Group,LLC,Mr.AhernwasExecutiveVicePresidentandthenCEOofBTIFinancialGroupfrom
itsfoundingasanoperatingsubsidiaryofBarHarborBanksharesuntil2002.Mr.Ahernserved
asPresidentofBTIssubsidiary,registeredinvestmentadviserandwasVicePresidentofthe
BoardofDirectorsofBarHarborBankshares,apubliccompany.PriortoMr.Ahernswork
establishingBTIFinancialGroup,heservedasChiefInvestmentOfficerofBarHarborBanking
andTrustCompanyuntilhispromotionwithinthegreaterBanksharesorganizationtoCEOof
BTIFinancialGroup.PrevioustohisemploymentatBarHarborBankingandTrust(operating
subsidiaryofBarHarborBankshares)hewasPortfolioManageratWinslowAssetManagement
(nocorporaterelationtoWinslowCapitalGroup,LLC)aswellasPortfolioManageratWinslow
AssetManagementssuccessororganization,F.L.Putnam/WinslowInvestmentManagement
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Company(nocorporaterelationtoWinslowCapitalGroup,LLC).Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
Page
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Thomas
C.
Kane
Founder
and
Chief
Transformation
Strategist
KaneCarlton,
LLC
Tom
has
35
years
of
financial
services
experience
specializing
in
helping
clients
review
and
revise
business
models
for
the
distribution
of
wealth
management
services.
His
focus
is
optimizing
results
for
financial
institutions,
family
offices,
RIAs,
Hybrids
and
vendors
supporting
wealth
managers.
He
helps
executive
managers
make
informed
decisions
by
providing
them
with
research,
competitive
intelligence,
best
practices
and
innovative,
objective
solutions
to
reduce
costs,
increase
profits
and
gain
competitive
advantage.
A
few
of
the
services
Tom
provides
are:
OvercomingOperationalShortcomings
SimonAlgar,Consultant
WealthReports
DougBartels,VicePresident,WealthManagement
NorthernTrust
Simon Algar is the principal of wealth-reports, a boutique management consulting firm. Simon has over
twenty years of capital markets experience and provides operating model definition, business
transformation consulting and associated implementation support services to mid-large wealth managers
and the technology and consulting firms that support them. Representative clients include AssetMark, the
Capital Group, Comerica, Envestnet, E&Y, Fidelity, PNC, T. Rowe Price, US Bank and Wells Fargo.
Earlier in his career Simon was a business strategist with SunGard. Simon joined SunGard from an IT
product company that he founded, grew and then recreated as a SunGard business. Prior experience
was gained as a Product Manager with Chase and Citibank and as a tax accountant with Deloitte &
Touche. Originally from the UK, Simon holds degrees in Scots Law from Edinburgh and Strathclyde
Universities and an MBA from Thunderbird.
TakingaCloseLookattheDOLRuleandResponsibilitiesanditsImpactontheIndustry
DanielR.Kleinman,Partner
MorganLewis&BockiusLLP
RichardD.Marshall,Partner
KattenMuchinRosenman
DANIEL R. KLEINMAN
PARTNER
dkleinman@morganlewis.com
Washington, DC
Phone +1.202.739.5143
Fax +1.202.739.3001
Daniel R. Kleinman advises businesses on the duciary responsibilities provisions (Title I) of the
Employee Retirement Income Security Act (ERISA). He also counsels these clients on related tax,
corporate, and securities laws in connection with the structuring and marketing of investment
products (including private equity and hedge funds) and nancial services to employee benets
plans. Additionally, Daniel handles issues related to the regulation of broker-dealers and
investment advisers under US federal and state securities laws.
ADMISSIONS
District of Columbia
New Jersey
Pennsylvania
EDUCATION
Georgetown University Law Center, 2002, LL.M.
New York University, 1992, B.S.
Pennsylvania State University, Dickinson School of Law, 1997, J.D.
SECTORS
Financial Services
Technology
SERVICES
Securities and Corporate Governance
Mergers & Acquisitions
Investment Management
Private Equity
ERISA/Employee Benets Litigation
ERISA Fiduciary Duty
REGIONS
North America
9/24/2015
What Happened?
October 22, 2010
Department of Labor (DOL) proposes Redefinition of Fiduciary
2013
GAO issues Rollover Report
Frontline report The Retirement Gamble
9/24/2015
How does this rule change litigation risks for providing services to IRAs
and ERISA plans?
What compliance and operational issues do the best interest standard
and other requirements raise?
How do the rules change for current ERISA/IRA fiduciaries?
9/24/2015
Rulemaking Timeline
Final rule to be effective 60 days after publication in Federal Register
Requirements of final rule become applicable 8 months after
publication in Federal Register (with potential exceptions)
Timeline may change due to
Comments
Litigation
Congressional actions
Elections
Funds registered under 1940 Act are exempt from plan assets rules
Collective funds may be plan assets if a single plan invests
Insurance company separate accounts may be plan assets if a single plan invests
Other funds may be plan assets if they dont qualify as VCOC/REOC, and plans exceed 25%
test
9/24/2015
Proposed rule
Increases activities that would result in fiduciary status
Provides limited exceptions and exemptions
Imposes a contractual impartial conduct standards including duty to act in
clients best interests that would apply as a condition of a new exemption
Changes exemptions fiduciaries currently rely on
How all types of investment products and services are sold to ERISA plans and IRAs
How all types of investment products and services are sold to intermediaries that
become fiduciaries under the rule
Disclosures provided to small plan fiduciaries, plan participants, and IRAs
New proposed exemption would require extensive (some may say onerous and unworkable)
disclosure of investment-related compensation paid to financial institutions and their individual
representatives
9/24/2015
Overview of Proposal
1. Revised definition of investment advice fiduciary
a.
b.
b.
Affiliated brokerage
b.
c.
Insurance products
d.
Agency transactions
e.
Underwriting
f.
Margin loans
Also a fiduciary if you say you are one and do any of the activities above.
10
9/24/2015
May permit, for example, an asset manager to recommend funds in a sales pitch to
an institutional client without becoming a fiduciary to the client
11
12
9/24/2015
13
Amendments to PTE 84-24 (Insurance Agents and Brokers and Mutual Fund
Principal Underwriters) would revoke relief for transactions involving variable
annuity contracts and other annuity contracts that constitute securities
under federal securities laws and mutual fund shares (relief moved to Best
Interest Contract exemption)
Amendments to PTE 77-4 would impose best interest standard
14
9/24/2015
15
16
9/24/2015
17
OPEN DISCUSSION
Questions and Answers (maybe).
18
9/24/2015
ASIA
Almaty
Astana
Beijing
Singapore
Tokyo
EUROPE
Brussels
Frankfurt
London
Moscow
Paris
MIDDLE EAST
Dubai
NORTH AMERICA
Boston
Chicago
Dallas
Harrisburg
Hartford
Houston
Los Angeles
Miami
New York
Orange County
Philadelphia
Pittsburgh
Princeton
San Francisco
Santa Monica
Silicon Valley
Washington, DC
Wilmington
19
THANK
YOU
This material is provided as a general informational service to clients and friends of Morgan, Lewis & Bockius LLP. It does not constitute, and should not be
construed as, legal advice on any specific matter, nor does it create an attorney-client relationship. You should not act or refrain from acting on the basis of this
information. This material may be considered Attorney Advertising in some states. Any prior results discussed in the material do not guarantee similar outcomes.
Links provided from outside sources are subject to expiration or change.
2015 Morgan, Lewis & Bockius LLP. All Rights Reserved.
20
10
CoChairsRecap
KevinD.Mahn,President&ChiefInvestmentOfficer
Hennion&WalshAssetManagement
ATwoPartAssetFlowDiscussion
PartI:SuccessfullyPositioningAlternativeInvestmentsinYourManagedAccount&UMAPlatform
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
ColinJ.Healy,CIMA,AIF,ExecutiveDirector,HeadofBusinessDevelopment,GlobalInvestmentSolutions
HighTower
Mr. Weisenfeld is a Partner in the Asset Management business at Perella Weinberg Partners
where he oversees expansion of the Firms intermediary channel efforts. In his most recent role
at Morgan Stanley as a Managing Director and Director of Mutual Funds and ETFs, Mr.
Weisenfeld oversaw a number investment products business units, including open-end domestic
and offshore mutual funds, ETFs, money market funds and 529 plans. Mr. Weisenfeld was
awarded Institutional Investors 2010 Rising Star of Mutual Funds. Prior to Morgan Stanley,
Mr. Weisenfeld was a Managing Director and the COO for Citigroup Global Wealth
Managements Investment Products business unit. In this role he directed strategy for the Mutual
Funds, Insurance, Annuities, UIT and Alternative Investments businesses. Earlier in his career,
Mr. Weisenfeld was the Director of Alternative Investments for Smith Barney. Mr. Weisenfeld
received his Bachelor of Science from Cornell University and a Juris Doctor from Benjamin N.
Cardozo School of Law.
Russell W. Tipper is Managing Director, Managed Solutions Group within the Global
Wealth Retirement Solutions team (GWRS), a unit of Merrill Lynch. In this role,
Tipper is Head of the Third Party Discretionary and Client Discretionary Platform
teams with responsiblity for driving the strategic direction and sustaining the day-today business for the Consults, Unified Managed Account, Mutual Fund Advisor,
Merrill Lynch Personal Advisor, Strategic Portfolio Advisor, Managed Account
Services and BlackRock Private Investors programs as well as the services of
Managed, Custom Managed and Personalized with Client Discretion in Merrill Lynch
One.
Prior to joining Merrill Lynch, Tipper was Head of Marketing for the Nationwide
Advisory Services Program with responsibility for managing and implementing
marketing support for all fee-based programs. Previously, he was the product manager
for Putnams Taxable/Tax-Exempt Fixed Income and Global Asset Allocation product
lines with responsibilities to enhance strategic positioning, take advantage of
competitive opportunities and support profitable business mix within the retail sales
organization. During that tenure, Tipper was part of several product development
initiatives for Putnams separately managed accounts, global asset allocation and fixedincome product lines. Tipper has been a member of the investment community since
1997.
Tipper holds a masters degree in finance from Northeastern University and a
bachelors degree in economics from Denison University. He also holds the Certified
Investment Management Analyst designation.
Banc of America Investment Advisers, Inc. is an SEC-registered investment adviser and wholly owned subsidiary
of Bank of America, N.A.
Global Wealth & Investment Management is a division of Bank of America Corporation. Banc of America
Investment Services, Inc. , U.S. Trust, Bank of America Private Wealth Management and Columbia Management
are all affiliates within Global Wealth & Investment Management.
Banking products are provided by Bank of America, N.A., Member FDIC.
Investment products:
Banc of America Investment Services, Inc. is a registered broker-dealer, member FINRA and SIPC, and a
nonbank subsidiary of Bank of America, N.A.
ColinJ.Healy,CIMA,AIF
ExecutiveDirector,HeadofBusinessDevelopment
GlobalInvestmentSolutions,HighTower
ColinHealybringsmorethan13yearsofwealthmanagementandconsultingexperiencetoHighTower.
PriortojoiningGlobalInvestmentSolutions,Mr.HealywasaManagingDirectorandPartnerat
HighTowerwithLyonWealthManagementinSanFrancisco,CA.BeforejoiningHighTowerhespent7
yearsatMorganStanleyasaSeniorConsultantandFinancialAdvisorintheGlobalWealthManagement
division.
Mr.HealyholdsaBS/MBAdegree,withhonors,infinancialanalysisandcorporatefinancefromthe
JacobsSchoolofManagementattheStateUniversityofNewYorkatBuffalo.HeisaCertified
InvestmentsManagementAnalyst,AccreditedInvestmentFiduciaryandaleveltwocandidateforthe
CharteredAlternativeInvestmentAnalystdesignation.HeholdsFINRASeries7,66&31licenses.
PartII:WhatisPromptingETFandIndexFundGrowthandWillitContinue?
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
JohnStreur,PresidentandChiefExecutiveOfficer,
CalvertInvestments
MichelleM.Fuller,VicePresident,ETFStrategy
PIMCOETFs
Mr. Weisenfeld is a Partner in the Asset Management business at Perella Weinberg Partners
where he oversees expansion of the Firms intermediary channel efforts. In his most recent role
at Morgan Stanley as a Managing Director and Director of Mutual Funds and ETFs, Mr.
Weisenfeld oversaw a number investment products business units, including open-end domestic
and offshore mutual funds, ETFs, money market funds and 529 plans. Mr. Weisenfeld was
awarded Institutional Investors 2010 Rising Star of Mutual Funds. Prior to Morgan Stanley,
Mr. Weisenfeld was a Managing Director and the COO for Citigroup Global Wealth
Managements Investment Products business unit. In this role he directed strategy for the Mutual
Funds, Insurance, Annuities, UIT and Alternative Investments businesses. Earlier in his career,
Mr. Weisenfeld was the Director of Alternative Investments for Smith Barney. Mr. Weisenfeld
received his Bachelor of Science from Cornell University and a Juris Doctor from Benjamin N.
Cardozo School of Law.
John Streur
President and Chief Executive Officer of Calvert Investments, Inc.
John Streur is President and Chief Executive Officer of Calvert Investments, Inc., a $13 billion
investment management firm that specializes in responsible and sustainable investing across
global capital markets. Calvert serves all types of investors through its family of mutual funds
and separate accounts. John is also President and a Trustee of the Calvert Funds and a Director of
Calvert Foundation and member of its Executive Committee.
Mr. Streur began to focus his energy exclusively on responsible and sustainable investing in
2012, as President, Director and Principal of Portfolio 21, a boutique investment management
firm specializing in global environmental investing. Previously, John spent 20 years at Managers
Investment Group LLC (and its predecessor), a firm he co-founded and where he served as
President, CEO and Chair of the Investment Committee. John was also President and Trustee of
the firms fund family, Managers Funds and Managers AMG Funds. Managers Investment
Group LLC grew to over $30 billion in assets under management and offered investment
strategies across global equity, debt and derivative markets. John has managed socially
responsible investments at the request of institutional clients, including public funds, religious
institutions, and college and university endowments since 1991.
Mr. Streur is a graduate of the University of Wisconsin (Bachelor of Science, College of
Agriculture and Life Sciences), where he also competed nationally and internationally as a
member of the University's Rowing Team and as a member of the United States National
Rowing Team. He and his wife Mary have four adult children.
Updated3/18/15
Highresolutionheadshotavailableuponrequest.
Michelle M. Fuller
Ms. Fuller is a vice president and ETF strategist in the global wealth management group. She is
responsible for ETF business development with RIAs, ETF Strategists, Asset Managers, Bank
Trusts and Hedge Funds in the Northeast. Additionally, Michelle manages ETF home office
relationships with broker dealers across the country. Prior to joining PIMCO in 2012, she held
various roles at State Street Global Advisors/SPDR ETFs, including senior national accounts
manager, sales desk manager and internal sales consultant. Ms. Fuller began her career at
UBS as a wealth management associate. She has 13 years of investment and financial services
experience and holds a bachelor's degree in marketing and international business from Penn
State University. Additionally, she earned the Certified Investment Management Analyst (CIMA)
designation through the Wharton School of the University of Pennsylvania.
AdoptionStrategies:ConvertingtheBusinessModeltoaTamporManagedAccountOffering
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
GavinSpitzner,President
WealthConsultingPartners,LLC
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleadinginstitutionalconsultingfirmforthebankwealth
managementchannel.WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability.Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms(TAMP);andPointSolutionModels.Weprovidenicheexpertiseand
guidanceontopicsincludinghelpincraftingastrategicvisionandtacticalimplementationplan
fororganizationsneedingtomaketimelyandcosteffectivetransitions.
Mr.Ahernsassignmentsareonboththebuysideandthesellsideincludingbanktrust
companies;sovereignfunds;RegisteredInvestmentAdvisers;proprietarybankaffiliated
investmentmanagementprograms;separatelymanagedaccountplatforms(SMA);Overlay
technologyfirms;UnifiedManagedAccountofferings(UMA)andUnifiedManagedHousehold
(UMH)architectures.
Mr.AhernearnedabaccalaureatedegreefromtheUniversityofMassachusettsandanMBA
withaconcentrationinfinancefromUniversityofMaine.PriortofoundingWinslowCapital
Group,LLC,Mr.AhernwasExecutiveVicePresidentandthenCEOofBTIFinancialGroupfrom
itsfoundingasanoperatingsubsidiaryofBarHarborBanksharesuntil2002.Mr.Ahernserved
asPresidentofBTIssubsidiary,registeredinvestmentadviserandwasVicePresidentofthe
BoardofDirectorsofBarHarborBankshares,apubliccompany.PriortoMr.Ahernswork
establishingBTIFinancialGroup,heservedasChiefInvestmentOfficerofBarHarborBanking
andTrustCompanyuntilhispromotionwithinthegreaterBanksharesorganizationtoCEOof
BTIFinancialGroup.PrevioustohisemploymentatBarHarborBankingandTrust(operating
subsidiaryofBarHarborBankshares)hewasPortfolioManageratWinslowAssetManagement
(nocorporaterelationtoWinslowCapitalGroup,LLC)aswellasPortfolioManageratWinslow
AssetManagementssuccessororganization,F.L.Putnam/WinslowInvestmentManagement
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Company(nocorporaterelationtoWinslowCapitalGroup,LLC).Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
Page
WinslowCapitalGroup,LLC2012AllRightsReservedwww.winslowcapitalgroup.com
Telephone:207.632.0215
EMail:pahern@winslowcapitalgroup.com
Gavin Spitzner
President of Wealth Consulting Partners, LLC
Gavin Spitzner is President of Wealth Consulting Partners, a boutique consultancy that advises
Financial Institutions and their Providers on how to leverage technology and best practices in
Portfolio Management, Goals-Based and Digital Advice to improve the
client experience and drive topline revenue and bottomline business
results.
Gavin has more than 25 years of experience working in and
consulting to Fortune 500 companies with a breadth of experience
encompassing strategic consulting, business development, process
reengineering, product development, digital strategy, marketing and
professional development. He has partnered with numerous top 25
U.S. and Global banks and broker-dealers to develop and implement
innovative investment management platform solutions leveraging modern technology and
processes to improve business performance.
More information can be found on Gavins corporate website at wealthconsultingpartners.com.
10/7/2015
PaulG.Ahern,ManagingPrincipal
GavinSpitzner,President
Wealth Consulting Partners, LLC
Wealth Management Strategy,
Design and Deployment
Adopting What?
UMH
Rep-As-PM
Passive
Alts
Robo/ Digital
Platform
Consolidation
Converting all
Business? Just for
new biz? Changing
client portfolios or just
adopting new tech?
Goals-Based
Investing
Repricing
Goals-Based
Performance
Measurement
Overlay Tech
Retirement
Income
Tax-Efficiency
Role
Evolution
Value Prop
Evolution
Technology
End-to-End?
Point Solutions?
- Trading
- Rebalancing?
- Prop Gen?
- Reporting?
10/7/2015
10/7/2015
10/7/2015
10/7/2015
Provider
Works streams
Product
Mgmt
PMO
PMs
Trust
Officers
Legal
Compliance
Ops
Tech
Steering
Comm
PMO
Config
Product
Mgmt
Data
Training
Conv
Mgr
Mgr/ Ops
RM
C, I
NA
NA
NA
C, I
C, I
C, I
Research,
Diligence,
Assembly
C, I
C, I
NA
C, I
C, I
C, I
Profiling and
Planning
C, I
C, I
C, I
C, I
C, I
Proposal-Ing
and Practice
Management
C, I
C, I
C, I
C,I
C, I
C, I
NA
C, I
Implement
Investing
C, I
C,I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C,I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C, I
C,I
NA
NA
NA
C, I
C, I
C, I
C, I
C, I
NA
C,I
C,I
NA
NA
NA
C,I
Legal
Investment
Operations
and Service
Client and
Advisory
Reporting
Compliance
Infrastructure
Training
Responsible
Whoisresponsiblefortheexecutionofthetask?
C Consulted
WhoaretheSMEstobeconsulted?
Accountable
I Informed
Whoneedstobeupdatedon
progress?
Q&A
EvolvingBank WealthManagementMetrics
10
AchievingRetirementIncomeGoals
MichaelJones,CFA,ChairmanandChiefInvestmentOfficer
RiverfrontInvestmentGroup,LLC
SEPARATE ACCOUNTS
MUTUAL FUNDS
ETF PORTFOLIOS
10/7/2015
RIVERFRONT OVERVIEW
10/7/2015
RiverFronts Price Matters discipline compares inflation-adjusted current prices relative to their long-term trend to help
identify extremes in valuation.
BOTTOM LINE:
BABY BOOMER RETIREMENT
SOLUTIONS SHOULD NOT LOOK LIKE
THOSE OF THEIR PARENTS.
10/7/2015
10.0
8.0
6.0
4.0
2.0
0.0
10/7/2015
Income!
10.0
TBills
10YearTreasury
LargeCapStocks
8.0
6.0
4.0
2.0
0.0
Source: Calculated based on data from CRSP 1925 US Indices Database 2014 Center for Research in Security Prices (CRSP), Booth School of
Business, The University of Chicago; Robert Shiller; RiverFront Investment Group; Past performance is no guarantee of future results. Please see the
end of this presentation for important disclosure information.
10/7/2015
Compliance
Conflicts of interest
Stock options + investment banks = buybacks
Utilities, REITs, and MLPs illustrate that paying dividends
doesnt necessarily sacrifice capital gains.
10
10/7/2015
11
DISCLOSURES
Information on charts from CRSP: Calculated based on data from CRSP 1925 US Indices Database 2014 Center for
Research in Security Prices (CRSP), Booth School of Business, The University of Chicago. Large Cap Universes used in
the chart is defined by CRSP based on market capitalization.
Used as a source for cap-based portfolio research appearing in publications, and by practitioners for benchmarking,
the CRSP Cap-Based Portfolio Indices Product data tracks micro, small, mid- and large-cap stocks on monthly and
quarterly frequencies. This product is used to track and analyze performance differentials between size-relative
portfolios.
CRSP ranks all NYSE companies by market capitalization and divides them into ten equally populated portfolios.
Alternext and NASDAQ stocks are then placed into the deciles determined by the NYSE breakpoints, based on market
capitalization. The series of 10 indices are identified as CRSP 1 through CRSP 10, where CRSP 10 has the largest
population and smallest market-capitalization. CRSP portfolios 1-2 represent large cap stocks, portfolios 3-5 represent
mid-caps and portfolios 6-10 represent small caps.
12
Data from Robert Shiller used in this presentation are discussed in two books by Robert Shiller -- Irrational Exuberance
(Princeton University Press 2000, Broadway Books 2001, 2nd ed., 2005) and Market Volatility (Cambridge, MA: MIT
Press, 1989). This data set consists of monthly stock price, dividends, and earnings data and the consumer price index
(to allow conversion to real values), all starting January 1871. For further information about Robert Shillers
methodology, please visit www.econ.yale.edu/~shiller/
RiverFronts Price Matters discipline compares inflation-adjusted current prices relative to their long-term trend to
help identify extremes in valuation.
Exchange Traded Funds (ETFs) are sold by prospectus. Please consider the investment objectives, risk, charges
and expenses carefully before investing. The prospectus and summary prospectus, which contains this and
other information, can be obtained by calling your financial advisor. Read it carefully before you invest.
RiverFront Investment Group, LLC, is an investment advisor registered with the Securities Exchange Commission under
the Investment Advisors Act of 1940. The company manages a variety of portfolios utilizing stocks, bonds, and
exchange-traded funds (ETFs). Any discussion of the individual securities that comprise the portfolios is provided for
informational purposes only and should not be deemed as a recommendation to buy or sell any individual security
mentioned. Opinions expressed are current as of the date shown and are subject to change. They are not intended as
investment recommendations.
10/7/2015
PRINCIPAL RISKS
13
Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and investors
share in the appreciation. However, if it goes bankrupt, or performs poorly, investors can lose their entire initial
investment (i.e., the stock price can go to zero). Bonds represent a loan made by an investor to a corporation or
government. As such, the investor gets a guaranteed interest rate for a specific period of time and expects to get
their original investment back at the end of that time period, along with the interest earned. Investment risk is
repayment of the principal (amount invested). In the event of a bankruptcy or other corporate disruption, bonds are
senior to stocks. Investors should be aware of these differences prior to investing.
Master Limited Partnership (MLP) investing includes risks such as equity- and commodity-like volatility. Also,
distribution payouts sometimes include the return of principal and, in these instances, references to these payouts as
"dividends" or "yields" may be inaccurate and may overstate the profitability/success of the MLP. Additionally, there
are potentially complex and adverse tax consequences associated with investing in MLPs. This is largely dependent on
how the MLPs are structured and the vehicle used to invest in the MLPs. It is strongly recommended that an investor
consider and understand these characteristics of MLPs and consult with a financial and tax professional prior
to investment.
Real Estate Investment Trusts (REITs) investing entails special risks, including credit risk, interest rate fluctuations
and the impact of varied economic conditions.
ETFs are subject to substantially the same risks as those associated with the direct ownership of the securities
comprising the index on which the ETF is based. Additionally, the value of the investment will fluctuate in response
to the performance of the underlying index. ETFs typically incur fees that are separate from those fees charged by
RiverFront. Therefore, investments in ETFs will result in the layering of expenses.
Fixed Income Securities' value generally declines in a rising interest rate environment.
High-yield securities (including junk bonds) are subject to greater risk of loss of principal and interest, including
default risk, than higher-rated securities.
BreakingOutoftheUMHVendorHypetoTangleImplementationStrategies
EricLordi,HeadofCrossPlatformDevelopment
BarclaysWealth
Eric B. Lordi is the Head of Cross Platform Development for Barclays Wealth Americas.
He is responsible for architecting the portfolio of strategic initiatives supporting the
provision of Advice to wealth management clients. Much of his role consists of
simplifying the highly complex, by focusing on one fundamental principle: deliver the
best experience for Clients and Advisors that serve them. Prior to joining Barclays in
2014, he worked for Merrill Lynch, as Head of Merrill Lynch One strategy and business
development, and executed on consolidating multiple investment advisory products
into one single platform. He has been in the industry for 17 plus years, in a variety of
strategic roles, and started out as a lawyer (but dont hold that against him). When he
can find free time, he plays in a band, and has written and sold a screenplay. He
currently resides in New Jersey, where he grew up, with his wife Kimberly, three children,
and a beagle.