brokers xpress: a broker/dealer helping independent advisors tiburon research september 1, 2012

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Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Page 1: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

Brokers Xpress:A Broker/Dealer Helping Independent Advisors

Tiburon ResearchSeptember 1, 2012

Page 2: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 22

Brokers Xpress

Source: Tiburon Research & Analysis

• Based in Chicago, IL• 125 employees• 55 rep offices• 95 reps• 22,500 accounts• $1.6 billion assets under administration• $100 million revenues• CEO: Blaine Schwartz• Web site: www.brokersxpress.com

Comments

Page 3: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3

Early Phase

Approximate Dates: XXXX - XXXX

• XXXX: --

XXXX - 2012

Key Steps:

Brokers Xpress was Founded in XXXX and Has Evolved through Three Phases, Including its Early, Middle, & Recent Phases

Middle Phase

Brokers Xpress History

Brokers Xpress

Founded

XXXX 2012

Brokers Xpress TodayRecent

Phase

XXXX - XXXX

• XXXX: Brokers Xpress founded

• XXXX: -- • XXXX: --

Source: Tiburon Research & Analysis

Page 4: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 44

Brokers Xpress was Founded in XXXX

Source: Tiburon Research & Analysis

• Based in Chicago, IL• CEO: Blaine Schwartz

Comments

Page 5: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 55

Brokers Xpress Has 125 Corporate Office Employees, Consistent Since 2001

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

                                   

Brokers Xpress Corporate Office

Employees

125 125 125 125 125

2001 2002 2003 2004 2005

Data is estimated

Page 6: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 66

51 49 4953 55

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers XpressRep Offices

Brokers Xpress Has More Than 50 Rep Offices, Consistent Since 2001

Data is estimated

Page 7: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 77

8985 86

93 95

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps

Brokers Xpress Has 95 Reps, Up Slightly Since 2001

Data is estimated

Page 8: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 88

1.7 1.7 1.7 1.7 1.7

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps Per Office

Brokers Xpress Has Nearly 1.7 Reps Per Office, Consistent Since 2001

Data is estimated

Page 9: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 99

Registered Reps Only

Registered Reps & OSJ Managers

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps

By Role

Brokers Xpress Has One-Quarter of its Reps as OSJ Managers, Consistent Since 2001

25% 25% 25% 25% 25%

75% 75% 75% 75% 75%

2001 2002 2003 2004 2005

Data is estimated

Page 10: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1010

75% 75% 75% 75% 75%

25% 25% 25% 25% 25%

2001 2002 2003 2004 2005

Not Series 7 Licensed Reps

Series 7 Licensed Reps

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps

By Series 7 License

Brokers Xpress Has Three-Quarters of its Reps with Series 7 Licenses, Consistent Since 2001

Data is estimated

Page 11: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1111

9 9 9 910

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps Who Produce More Than $100,000

Brokers Xpress Has Ten Reps that Produce More than $100,000 Per Year, Flat Since 2001

Data is estimated

Page 12: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1212

Reps Producing Less Than $100,000

Reps Producing More Than $100,000

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps

By Production Level

Brokers Xpress Has 10% of its Reps Producing More Than $100,000 Per Year, Which Has Been Consistent Since 2001

10% 10% 10% 10% 10%

90% 90% 90% 90% 90%

2001 2002 2003 2004 2005

Data is estimated

Page 13: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1313

12.7 13.2

16.1

18.6

22.5

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Client Accounts

(Thousands)

Brokers Xpress Has More Than 20,000 Client Accounts, Which Has Grown Steadily Since 2001

Data is estimated

Page 14: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1414

143155

187200

237

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Client Accounts

Per Rep

Brokers Xpress Has More Than 200 Client Accounts Per Rep, Which Has Increased Steadily Since 2001

Data is estimated

Page 15: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1515

$839 $867

$1,118

$1,440

$1,615

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Assets Under Administration

($ Millions)

Brokers Xpress Has More Than $1.5 Billion Assets Under Administration, Up Significantly Since 2001

Data is estimated

Page 16: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1616

$9$10

$13

$15

$17

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Assets Under Administration

Per Rep($ Millions)

Brokers Xpress Has More Than $15 Million Assets Under Administration Per Rep, Up Significantly Since 2001

Data is estimated

Page 17: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1717

$76 $75$79

$93$100

2001 2002 2003 2004 2005

Note: Another source said that Broker Xpress generated $129 million revenues in 2005Source: 12/18/06 Investment News; 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment

News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; Tiburon Research & Analysis

Brokers Xpress Revenues($ Millions)

Brokers Xpress Generates $100 Million in Revenues, Which Has Grown Steadily Since 2001

Page 18: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1818

$854 $882 $919$1,000

$1,053

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Revenues

Per Rep($ Thousands)

Brokers Xpress Generates More Than $1 Million in Revenues Per Rep, Which Has Grown Steadily Since 2001

Page 19: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1919

88% 88% 88% 88% 89%

0% 0% 1% 1% 1%12% 12% 11% 11% 10%

2001 2002 2003 2004 2005

Up-Front & Trailing Commissions Revenues

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Revenues

By Type

Brokers Xpress Generates Nearly All of Its Revenues From Commissions, Which Has Been Consistent Since 2001

Fee-Accounts Revenues

Hourly & Other Revenues

Page 20: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2020

9.06%8.65%

7.06%6.46% 6.19%

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Return on Assets

Brokers Xpress Generates More Than 6.0% Return on Assets, Which is Down From 9.0% in 2001

Page 21: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2121

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Net Income($ Millions)

Brokers Xpress Earns $..., … Since 2001

Page 22: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2222

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Long-Term Debt

($ Millions)

Brokers Xpress Has $… in Long-Term Debt, … Since 2001

Page 23: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2323

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Shareholders Equity

($ Millions)

Brokers Xpress Has $… in Shareholders’ Equity

Page 24: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2424

$1 $1 $1 $1 $1

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Net Excess Capital

($ Millions)

Brokers Xpress Has $1 Million Net Excess Capital, Which Has Remained Unchanged Since 2001

Data is estimated

Page 25: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2525

Mutual Funds40%

Annuities30%

Fee-Accounts20%

Individual Securities, Insurance, Limited

Partnerships, & Other Products

10%

Brokers Xpress’ Reps Invest Client Assets in a Wide Variety of Products, Including …

Brokers Xpress Client Assets By Product Type

Source: Tiburon Research & Analysis

Page 26: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2626

4% 4% 4% 4%15%

0% 0% 0% 0%

0%

0% 0% 0% 0%

0%

96% 96% 96% 96%85%

2001 2002 2003 2004 2005

Mutual Funds

Fee-Accounts

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Revenues

By Product Type

Brokers Xpress Generates Less than One-Fifth of its Revenues from Mutual Funds and Fee-Accounts; Nearly All of the Firm’s Revenues are Generated From Individual Securities, Insurance, Limited Partnerships, & Other Products

Annuities

Individual Securities, Insurance, Limited

Partnerships, & Other Products

Page 27: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2727

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Mutual Fund Family Relationships

Brokers Xpress Offers Mutual Funds From … Mutual Fund Families

Page 28: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2828

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Mutual Fund Offerings

Brokers Xpress Offers … Mutual Funds

Page 29: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2929

Brokers Xpress Offers … Proprietary Mutual Funds

Source: Tiburon Research & Analysis

• --

Comments

Page 30: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3030

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Mutual Fund

Assets($ Billions)

Brokers Xpress Has $… in Mutual Fund Assets

Page 31: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3131

$3 $3 $3 $4

$15

2001 2002 2003 2004 2005

Brokers Xpress Has $15 Million in Mutual Fund Sales, Which Have Increased Sharply Recently

Brokers Xpress Mutual Fund

Revenues($ Millions)

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Page 32: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3232

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Variable & Fixed Annuity Provider

Relationships

Brokers Xpress Has Relationships with … Variable & Fixed Annuity Providers

Page 33: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3333

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Variable & Fixed Annuity

Offerings

Brokers Xpress Offers … Variable & Fixed Annuities

Page 34: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3434

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Variable & Fixed Annuity

Assets($ Billions)

Brokers Xpress Has $… in Variable & Fixed Annuity Assets

Page 35: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3535

Brokers Xpress Offers … Proprietary Variable & Fixed Annuities

Source: Tiburon Research & Analysis

• --

Comments

Page 36: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3636

Brokers Xpress Does Not Generate Any of Its Revenues From Variable & Fixed Annuity Sales

                                   

Brokers Xpress Variable & Fixed Annuity

Revenues($ Millions)

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Page 37: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3737

2001 2002 2003 2004 2005

Source: Tiburon Research & Analysis

Brokers Xpress Fee-Accounts

Brokers Xpress Has … Fee-Accounts

Page 38: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3838

$36$40

$49

$61

$83

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Fee-Account

Assets($ Millions)

Brokers Xpress Has More Than $80 Million in Fee-Account Assets, Which Has Grown Steadily Since 2001

Page 39: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3939

Brokers Xpress Has $1 Million in Fee-Accounts Sales, Which is Up Significantly Since 2001

                                   

Brokers Xpress Fee-Accounts

Revenues($ Millions)

$0.1 $0.1

$1.0 $1.0 $1.0

2001 2002 2003 2004 2005

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Page 40: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4040

29% 29% 29% 29% 29%

71% 71% 71% 71% 71%

2001 2002 2003 2004 2005

Do Not Utilize Fee-Accounts

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps By Utilization of Fee-Accounts

Brokers Xpress Has More than One-Quarter of its Reps Utilizing Fee-Accounts, Which Has Remained Unchanged Since 2001

Utilize Fee-Accounts

Page 41: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4141

Brokers Xpress Fee-Account Programs …

--

Brokers XpressFee-Account Programs

-- --

• SMA

• UMA

• FBBA

-- --

• BW • MFWA

Brokers Xpress Fee-Account Programs

Source: Tiburon Research & Analysis

--

• MSP

Page 42: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4242

Brokers Xpress Offers … Separately Managed Account Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 43: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4343

Brokers Xpress Offers … Multiple Style Portfolio Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 44: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4444

Brokers Xpress Offers … Unified Managed Account Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 45: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4545

Brokers Xpress Offers … Mutual Fund Wrap Account Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 46: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4646

Brokers Xpress Offers … Broker Wrap Account Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 47: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4747

Brokers Xpress Offers … Fee-Based Brokerage Account Programs

• --

Comments

Source: Tiburon Research & Analysis

Page 48: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4848

Brokers Xpress Provides Guidelines for Discounting on Its … Program …

Brokers Xpress … Program Discounting Guidelines

Account Value Maximum Fee Minimum Fee

$0 - $250,000 -- --

$250,000 - $500,000 -- --

$500,000 - $1,000,000 -- --

$1,000,000 - $2,000,000 -- --

$2,000,000-$5,000,000 -- --

> $5,000,000 -- --

Source: Tiburon Research & Analysis

Create grid for each applicable fee-account

program;be sure to understand if

pricing is blended or cliff pricing

Page 49: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4949

Brokers Xpress RIA Policy …

• --

Comments

Source: Tiburon Research & Analysis

Page 50: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5050

100% 100% 100% 100% 100%

0% 0% 0% 0% 0%

2001 2002 2003 2004 2005

Do Not Provide Services Through Own RIA

Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis

Brokers Xpress Reps

By Propensity to Provide Services Through Their Own RIA

Brokers Xpress Has all of its Reps Provide Services Through Their Own Registered Investment Advisor, Which Has Been Consistent Since 2001

Provide Services Through Own RIA

Page 51: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5151

Stocks

• --

Brokers XpressIndividual Securities Offerings

Brokers Xpress Offers … Selection of Individual Securities

Bonds

• --

Source: Tiburon Research & Analysis

Page 52: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5252

Brokers Xpress Clears Through Goldman Sachs

• --

Comments

Source: Tiburon Research & Analysis

Page 53: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5353

Brokers Xpress Has … IPO Access

• --

Comments

Source: Tiburon Research & Analysis

Page 54: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5454

Brokers Xpress Offers … Individual Securities Research

• --

Comments

Source: Tiburon Research & Analysis

Page 55: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5555

Brokers Xpress Offers … Mutual Funds Research

• --

Comments

Source: Tiburon Research & Analysis

Page 56: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5656

Brokers Xpress Individual Securities Commission Schedule …

• --

Comments

Source: Tiburon Research & Analysis

Page 57: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5757

Term Life

• --

Brokers XpressLife Insurance Offerings

Fixed, Whole, or Traditional Life

• --

Fixed Universal Life

• --

Variable Life

• --

Variable Universal Life

• --

Brokers Xpress Offers … Life Insurance Offerings, Including …

Source: Tiburon Research & Analysis

Page 58: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5858

Term Life

• --

Brokers XpressProprietary Life Insurance Offerings

Fixed, Whole, or Traditional Life

• --

Fixed Universal Life

• --

Variable Life

• --

Variable Universal Life

• --

Brokers Xpress Offers … Proprietary Life Insurance Offerings, Including …

Source: Tiburon Research & Analysis

Page 59: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5959

Brokers Xpress Has … Policies Regarding Outside Direct Insurance Sales

• --

Comments

Source: Tiburon Research & Analysis

Page 60: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6060

Brokers Xpress Offers … Long-Term Care & Disability Insurance

• --

Disability Insurance

Source: Tiburon Research & Analysis

• --

Long-Term Care Insurance

Brokers XpressLong-Term Care & Disability Insurance Offerings

Page 61: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6161

Hedge Funds & Managed Futures

• --

Venture Capital & Private Equity

• --

Real Estate

• --

Other Alternative Investments

• --

Brokers Xpress Alternative Investments

Brokers Xpress Has Expanded Its Alternative Investments Offerings to Include …

Source: Tiburon Research & Analysis

Page 62: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6262

UITs

• --

Limited Partnerships

• --

CDs

• --

Other Products

• --

Brokers Xpress Other Products & Services

Brokers Xpress Also Offers … Other Products & Services (Page 1)

Source: Tiburon Research & Analysis

Page 63: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6363

Property & Casualty Insurance

• --

Banking Services

• --

Personal Trust Services

• --

Financial Planning Services

• --

Brokers Xpress Other Products & Services

Brokers Xpress Other Products & Services (Page 2)

Source: Tiburon Research & Analysis

Page 64: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6464

Brokers Xpress’ Payout Grid for Mutual Funds, Annuities, Life & Other Insurance Products, Individual Securities, Alternative Investments, and Other Products & Services …

Brokers Xpress Payout Grid

Rep Production Rep Payout

$0 - $50,000 80%

$50,000 - $100,000 85%

$100,0000 - $250,000 88%

$250,000 - $500,000 90%

$500,000 - $1,000,000 92%

>$1,000,000 94%

Source: Tiburon Research & Analysis

Page 65: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6565

Brokers Xpress’ Fee-Account Administration Fees …

• --

Comments

Source: Tiburon Research & Analysis

Page 66: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6666

Annuities

• --

Individual Securities

• --

Fee-Accounts

• --

Mutual Funds

• --

Brokers Xpress Transaction Fees and/or Ticket Charges

Brokers Xpress’ Transaction Fees and/or Ticket Charges …

Source: Tiburon Research & Analysis

Page 67: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6767

Monthly Administration

• --

Brokers Xpress’ Rep Fees Include …

Licensing & Renewal

• --

E&O or Bond

• --

Education & Training

• --

Technology

• --

Other Fees

• --

Brokers XpressRep Fees

Source: Tiburon Research & Analysis

Page 68: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6868

Brokers Xpress’ Customer Service …

• --

Comments

Source: Tiburon Research & Analysis

Page 69: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6969

Licensing

• --

New Accounts

• --

Account Transfers

• --

Legal & Compliance

• --

Brokers XpressOperations Departments

Brokers Xpress’ Operations Departments Include … (Page 1)

Source: Tiburon Research & Analysis

Page 70: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7070

Trading

• --

Commissions

• --

Statements

• --

--

• --

Brokers XpressOperations Departments

Brokers Xpress’ Operations Departments (Page 2)

Source: Tiburon Research & Analysis

Page 71: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Mutual Funds

• --

Annuities

• --

Fee-Accounts

• --

Life & Other Insurance Products

• --

Brokers XpressProduct Support

Brokers Xpress’ Product Support Includes … (Page 1)

Source: Tiburon Research & Analysis

Page 72: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Alternative Investments

• --

Financial Planning

• --

Insurance Planning

• --

Tax Planning

• --

Brokers XpressProduct Support

Brokers Xpress’ Product Support (Page 2)

Source: Tiburon Research & Analysis

Page 73: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Ads

• --

Newsletters

• --

Brochures

• --

Direct Mailings

• --

Brokers XpressSales & Marketing Support

Brokers Xpress’ Sales & Marketing Support Includes … (Page 1)

Source: Tiburon Research & Analysis

Page 74: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7474

Conference Presentations

• --

Web Site Building

• --

Client Referral Programs

• --

--

• --

Brokers XpressSales & Marketing Support

Brokers Xpress’ Sales & Marketing Support (Page 2)

Source: Tiburon Research & Analysis

Page 75: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Start-Up

• --

Brokers XpressBusiness Building Support

Marketing

• --

Staffing & Compensation

• --

Benchmarking

• --

Succession Planning

• --

Brokers Xpress’ Business Building Support Includes …

Source: Tiburon Research & Analysis

Page 76: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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New Client Sales

• --

Brokers XpressTechnology Offerings

Calculators

• --

Financial Planning

• --

Asset Allocation

• --

Stock Quotes

• --

Brokers Xpress’ Technology Offerings Include … (Page 1)

Source: Tiburon Research & Analysis

Page 77: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Data & Research Services

• --

Brokers XpressTechnology Offerings

Prospectuses & Applications

• --

Order Entry

• --

Portfolio Management

• --

Client Account Viewing

• --

Brokers Xpress’ Technology Offerings (Page 2)

Source: Tiburon Research & Analysis

Page 78: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7878

Statements

• --

Brokers XpressTechnology Offerings

Quarterly Client Reviews

• --

Contact Management

• --

--

• --

--

• --

Brokers Xpress’ Technology Offerings (Page 3)

Source: Tiburon Research & Analysis

Page 79: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Source: Tiburon Research & Analysis

Top Producers’ Trips Annual Conferences Regional Meetings

Brokers XpressTop Producers’ Trips, Annual Conferences, & Regional Meetings

Brokers Xpress Has Top Producers’ Trips, Annual Conferences, & Regional Meetings

• -- • -- • --

Page 80: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 8080

Brokers Xpress Has Online Training & Other Self-Study Offerings.

• --

Other Self-Study Offerings

Source: Tiburon Research & Analysis

• --

Online Training

Brokers XpressOnline Training & Other Self-Study Offerings

Page 81: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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Brokers Xpress Web Site is Organized into Four Sections, Including Ready to Switch?, The bX Advantage, Our Platform, & Powerful Tools

Brokers Xpress Web Site

Source: 5/24/12 Brokers Xpress Web Site; Tiburon Research & Analysis

Brokers XpressWeb Site

Ready to Switch? Our Platform Powerful ToolsThe bX Advantage

Page 82: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 8282

Brokers Xpress is Led by Blaine Schwartz

Brokers Xpress Organizational Chart

--

Blaine SchwartzCEO

----

Source: Tiburon Research & Analysis

Page 83: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 83

Brokers Xpress is Owned by …

• --

Comments

Source: Tiburon Research & Analysis

Page 84: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 84

US Fiduciary

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• Formed though 2004 merger of Post Oak Capital, Vista Analytics, and West Hills

• Based in Sugar Land, TX• $800 million under management• Consults on an additional $1.2 billion in assets• CEO: Steven Graubart• Web Site: www.usfiduciary.com

CommentsUnbundle

Page 85: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 85

Early Phase

Approximate Dates: XXXX - XXXX

• XXXX: --

XXXX - 2012

Key Steps:

US Fiduciary was Founded in XXXX and Has Evolved Through Three Phases, Including its Early, Acquisition, & Recent Phases

Acquisition Phase

US Fiduciary History

US Fiduciar

y Founde

d

XXXX 2012

US Fiduciary TodayRecent Phase

XXXX - XXXX

• XXXX: US Fiduciary founded

• 1996: Acquired Post Oak Capital

• 1997: Acquired Vista Analytics

• 1998: Acquired West Hills

• XXXX: --

Source: Tiburon Research & Analysis

Page 86: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary Received Only a Small $2.5 Million Initial Capital Infusion in 2004 from a Core Group of Friends & Family Investors

Source: 11/30/04 US Fiduciary Conversation (Graubart); Tiburon Research & Analysis

• Raised capital to fund the operations of the combined entities

• Tapped into a small pool of friends & family though Steven Graubart’s existing relationships

• Management retained 70% ownership• The acquisitions were structured utilizing earn

outs rather than up front cash• Intend to raise additional capital in 2005 to fund

expansion and provide additional working capital

Comments

Page 87: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 87

US Fiduciary Was Formed by Merging Post Oak Capital, Vista Analytics, and West Hills to Create a Far More Complete Company

US Fiduciary Acquisitions

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• Founded 1997• Based in Sugar Land,

TX• $500 million AUM• Acquired in 2004

- Paid on earn-out- --

Vista Analytics

• Founded in 1998• Based in Chicago, IL• $300 million AUM• Acquired in 2004

- Paid on earn-out- --

West Hills

• Founded in 1996• Based in Houston, TX• Investment consulting

firm• CEO: Donald Graubart

(father of Steven Graubart)

• Acquired in 2004- Paid on earn-out- --

Post Oak Capital

Page 88: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 88

US Fiduciary has $800 Million Under Management

$800

2002 2003 2004

US Fiduciary Assets Under Management

($ Millions)

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

Page 89: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary

-- -- ---- --

US Fiduciary Businesses

US Fiduciary Has a Number of Businesses

Source: Tiburon Research & Analysis

Page 90: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 90

US Fiduciary’s $800 Million in Assets are Two-Thirds in Separately Managed Accounts

US Fiduciary Assets Under Management

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

Page 91: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 91

US Fiduciary also Consults on an Additional $1.2 Billion

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

$1.2

2002 2003 2004

US Fiduciary Assets Under Administration

($ Billions)

Page 92: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary Now Has Three Core Businesses

• Serves third-party broker/dealers with fee-account offerings

• 90% of current business

TAMP

• Two businesses acquired are part of broader strategy

- Post Oak- West Hills

(proprietary assets)• Not core focus

Wholly-Owned Advisor Business

• Model similar to Powell Johnson, Cap Trust, and Lockwood

• Future focus of the firm

Fee Oriented Independent Broker/Dealer

US Fiduciary Businesses

Note: All of US Fiduciary’s operations are to be branded as US FiduciarySource: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

Page 93: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary’s Primary Business is a Turnkey Asset Management Program

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• --

Comments

Page 94: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary is Integrating its Vista Analytics and West Hills Product Offerings

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• --

Comments

Page 95: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 95

US Fiduciary’s Planned Business Strategy Involves Transitioning from Predominantly a Turnkey Asset Management Program to an Organization Built Predominantly Around High-End Fee Oriented Independent Brokers

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• --

Comments

Page 96: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary Plans to Acquire Breakaway Brokers from Wirehouses

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• --

Comments

Page 97: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary’s Strategy Focuses on Evolving from a Turnkey Asset Management Program to a High-End Fee Oriented Brokerage Firm

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• Near-term goal of developing product offerings that would entice established brokers away from the wirehouses

• One component of strategy is offering brokers access to a broader range of investment products (e.g., hedge funds, fund of funds, and other alternative investments)

• The strategy is not predicated on capturing large numbers of breakaway brokers

• Bringing first breakaway broker on board in 2005• Smith Barney broker with $100 million book of

business

Comments

Page 98: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 98

US Fiduciary’s Goal is to Evolve to Shift Its Business Mix to Focus on High-End Fee-Oriented Independent Brokers

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

US Fiduciary Business Composition

90%

50%

10%

10%

50%

90%

2004 Mid-Term Goal Ultimate Goal

High-EndFee-Oriented

Brokers

Turnkey AssetManagement

Program Clients

Page 99: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary Has a Small but Growing Client Base, Primarily Centered Around Its Turnkey Asset Management Program Business

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; 3/31/03 Investment News; 9/02 Registered Rep; 8/26/02 Investment News; 7/2/01 Trivium Research; Tiburon Research & Analysis

• Addison Avenue (Hewlett Packard Credit Union)

• Centaurus Financial • H. Beck (Capital

Financial Group)• NEXT Financial Group• Pro Equities• Stephens & Company• Sterne, Agee, & Leach• Walnut Street (formerly

Nathan & Lewis)

TAMP

• Post Oak Capital• West Hills Asset

Management

Wholly-Owned Advisory Business

• New ex-Smith Barney broker

Fee-Oriented IndependentBroker/Dealer

US Fiduciary Clients

Page 100: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary’s Four Larger Outside Clients Include H. Beck, NEXT Financial, Pro Equities, and Walnut Street

Source: 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

Selected US Fiduciary Clients

Pro Equities

• Founded in 1986• Based in Birmingham,

AL• Subsidiary of Protective

Life• Over 1,000 registered

representatives• Web Site:

www.proequities.com

NEXT FinancialGroup

• Founded in 2001• Based in Houston, TX• Over 500 registered

representatives• President: Jeff Auld• Web Site:

www.nextfinancial.com

H. Beck(Capital Financial

Group)

• Founded in 1954• Based in Rockville, MD• H. Beck is the securities

arm of Capital Financial Group

• Over 400 registered representatives

• Web Site: www.cfginc.com

Walnut Street(Nathan & Lewis)

Founded in 1985 Based in New York, NY Formed through merger

of Nathan & Lewis and Walnut Street Securities

Subsidiary of MetLife Over 2,200 registered

representatives Web Site:

www.walnutstreet.com

Not Tiburon format

Page 101: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary is Led by its CEO Steven Graubart

Steven GraubartCEO

PresidentUS Fiduciary Services

(TAMP)

PresidentUS Fiduciary Advisors

(RIA)

Austin PageCOO

Cindy BurnetteCFO

US Fiduciary Organizational Chart

US Fiduciary Securities

(Broker/Dealer)

Note: Steven Graubart was previously a Director of Post Oak Capital and held numerous roles in the portfolio companies of venture capital firm Sterling Capital including leading a franchise business in Baltimore; Scott MacKillop was previously President of Trivium Consulting and President of Portfolio Management Consultants, which was sold to Envestnet; Elliott Weissbluth previously led business development at CRA Rogers Casey; Austin Page co-founded Vista Analytics and was a Vice President for Paul L. Comstock; Donald Graubart founded Post Oak Capital and was previously a Partner at Kidder Peabody; Steve Billimack previously supervised due diligence for EVEREN Securities.

Source: 11/30/04 US Fiduciary Conversation (Graubart); Tiburon Research & Analysis

Elliott Weissbluth &

Scott MacKillop both left

Donald Graubart &

Steve Billmack?

Page 102: Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012

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US Fiduciary’s Advisory Board Members Bring Experience in Financial Services, Growth Capital, and Investments

Source: 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis

• Founder of Post Oak Capital

• Experience in investment consulting

• Former partner at Kidder Peabody & Company

• Former member of Senior Management Advisory Committee at UBS Financial Services

Donald Graubart

• Founder of Geometry Group

- Investment banking company

- $1.5 billion assets under management

• Former managing director at Morgan Stanley

James Lewis

• CEO of CapRock Communications

• Founder of Genesis Park private equity fund

• Formerly President of a division of First Data Corporation

Peter Shaper

• CEO of Constellation Energy Group

• Former Chairman of Deutsche Bank Alex Brown and Global Head of Investment Banking

• Director of Capital One and Gap

Mayo Shattuck

• Active investor in the field of meat proteins

• Formerly a Group President of Food Brands America

• Previously ran a $900 million revenue per year meat importing and processing company

Benjamin Warren

US Fiduciary Advisory Board

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US Fiduciary’s Management Owns Almost Three-Quarters of the Firm

US Fiduciary Capitalization

Source: 11/30/04 US Fiduciary Meeting (Graubart); Tiburon Research & Analysis

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US Fiduciary’s Business is Vista Analytics

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; 10/24/02 Vista Email (Skaggs); 10/21/02 Vista Email (Skaggs); 9/02 Registered Rep; 8/26/02 Investment News; 10/15/01 Vista Letter (Ridout); 7/17/01 Vista Analytics Conversation (Ridout); 7/2/01 Investment News; 7/2/01 Trivium Consulting Research; 6/1/01 Vista Email (Ridout); Tiburon Research & Analysis

• Founded 1997• Based in Sugar Land, TX• $800 million AUM• Provider of back office solutions and managed account

programs for financial advisors and broker/dealers• Focuses on consulting and separately managed

accounts• 14 employees• Searching for regional sales manager and research

analyst• Limited sales team; seek to work with the advisory

services department of independent broker/dealers• US Fiduciary is in the process of integrating and

rebranding all of Vista Analytics programs• Named to Houston 100 fastest growing private

companies• Web Site: www.vistaanalytics.com

CommentsNeeds to blend

in

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US Fiduciary’s Vista Analytics Fee-Account Programs Include its Core Separately Managed Account Program Plus an MSP Program and a Mutual Fund Wrap

Core Select

Fee-Accounts Business

iMAP

• Separately managed accounts

• Multiple style portfolio

Source: 11/29/04 Vista Analytics Web Site; Tiburon Research & Analysis

Vista Analytics Fee-Accounts Business

ConsultsProgram

• Custom fee accounts consulting

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US Fiduciary’s Vista Offers a Separately Managed Account Product Called iMAP

Source: 11/29/04 Vista Analytics Web Site; 9/02 Registered Rep; 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis

• Traditional separately managed account program• 60 managers• 100 products• $100,000 account minimum• Provides client profiling and risk tolerance tools• Advisors can create custom client portfolios or

utilize Vista Analytics model portfolios• Automates administrative functions such as

account set up, transfers, and distributions• Creates quarterly performance reports• Vista consolidates the multi-party billing process• Documentation is private labeled for advisors

Comments

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US Fiduciary’s Vista’s iMAP Program Costs About 1.00% Before the Advisor and Custodial Charge

Source: 5/15/01 Vista Brochure; Tiburon Research & Analysis

Vista iMAP Pricing Estimates

Money Manager Fee

Vista Fee

Fee Before FA & Custodian

Low Average High

16 bps 50 bps 60 bps

15 bps 45 bps 50 bps

31 bps 95 bps 110 bps

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US Fiduciary’s Vista Also Offers Hedge Funds

Source: 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis

• --

Comments

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US Fiduciary’s Vista Introduced a Multiple Style Portfolio Called Core Select in 2002

Source: 11/29/04 Vista Analytics Web Site; 11/14/02 Vista Email (Skaggs); 10/24/02 Vista Email (Waller); Tiburon Research & Analysis

• Traditional multiple style portfolio program• Vista is overlay manager• $100,000 minimum• Serves as the equity component of a clients’

portfolio• Best utilized in conjunction with an overall asset

allocation strategy

Comments

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US Fiduciary’s Vista’s Consults Program Allows Advisors to Individually Select Components from Vista’s Range of Services

Source: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis

• Permits advisors to customize a program for their clients’ individual needs

• Allows for a-la-carte selection from Vista’s range of products and services

• Priced on a flat fee structure, rather than percent of assets

Comments

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US Fiduciary’s Vista Had Previously Considered Developing a Mutual Fund Wrap Account

Source: 7/17/01 Vista Analytics Conversation (Ridout); 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis

• Expert Comments• “Going to develop model portfolios”• “Can offer Dimensional Fund Advisors through

Schwab”

Comments

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US Fiduciary’s Vista Promotes its Five Step Investment Process

Source: 5/15/01 Vista Brochure; Tiburon Research & Analysis

Client Profiling Asset AllocationManager

Selection & Access

Account Implementation

Portfolio Monitoring &

Ongoing Administration

Vista Five Step Investment Process

• Provides assistance to financial advisors in determining clients’ risk and return profile

• Builds foundation of portfolios using MPT

• Assists financial advisors in manager selection through concentrated diversification

• Assists financial advisors by coordinating the efforts of all partners in implementing the investment portfolio

• Provides quarterly in-depth analysis on client portfolios

KeySteps

Start End

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US Fiduciary’s Vista’s Investment Policy Centers Around Concentrated Diversification

Source: 10/21/02 Vista Email (Skaggs); 5/15/01 Vista Brochure; Tiburon Research & Analysis

• Believes that most investors have over-diversified• Believes in the combination of various

concentrated style specific managers• Most easily applied with separately managed

accounts

Comments

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US Fiduciary’s Vista is a Start-Up on CheckFree APL

Source: 7/31/01 Citigroup Conversation (Waller); Tiburon Research & Analysis

• --

Comments

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US Fiduciary’s Vista Horizons 401(k) Program Consists of Four Separate Portfolios Each Designed with Different Goals

Source: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis

• Offers four portfolios known as the Horizon Accounts

• Each portfolio constructed with a specific goal ranging from income to long-term growth

Comments

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US Fiduciary’s Vista Sends Out a Quarterly Newsletter

Source: 10/15/02 Vista Email (Skaggs); Tiburon Research & Analysis

• --

Comments

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US Fiduciary’s Vista is Continuing the Development of Phase III of its Online Proposal System

Note: The following information can be used to access Vista’s “proposal special:” user id: Vistatemp; password: specialSource: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis

• Developing Phase III of its online proposal system• Once completed would allow advisors the ability

to construct their own portfolios including the funds and managers they select

• Proposals provided at 35 basis points

Comments

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US Fiduciary’s Vista Analytics is Led by…

Will Abbott --

Managing Partner

Emily Skaggs --

Source: 1/16/03 Vista Email (Skaggs); 10/24/02 Vista Email (Skaggs); Tiburon Research & Analysis

Vista Analytics Organizational Chart

Update or delete

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US Fiduciary’s Vista Analytics Received Good Market Feedback…

Source: 8/16/01 AdvisorPort Conversation (DeAngelis); 8/8/01 Schwab Conversation (Turner); 8/8/01 Creating Equity Group Conversation (Bowen); 7/31/01 Citigroup Conversation (Waller); 7/17/01 Prima Capital Conversation (Watson); 7/17/01 Vista Analytics Conversation (Rideout); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis

Good Organization• “Profitable”• “Prudent business men”• “Not overspending in technology”

Good Offer• “Customize everything we do”• “Lot of flexibility in offering”• “Willing to build a platform, provide web sites, etc.”• “Can offer unbundled package for RIA or IBD”• “Private labeled”• “If the client just wants our billing and support, that’s ok”• “Can provide terrific technology”• “Willing to review managers off the beaten path”• “Do it all – performance reports, help advisors generate very nice

proposals”• “Like the whole package”• “Not shy in serving smaller accounts”• “Willing to unbundle”• “Builds around Charles Schwab”• “Also has a Pershing relationship”• “Plans to add Fidelity and Datalynx”

Comments

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…But Some Comment That Vista Isn’t Well Known

Source: 8/16/01 AdvisorPort Conversation (DeAngelis); 8/8/01 Schwab Conversation (Turner); 8/8/01 Creating Equity Group Conversation (Bowen); 7/31/01 Citigroup Conversation (Waller); 7/17/01 Prima Capital Conversation (Watson); 7/17/01 Vista Analytics Conversation (Rideout); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis

Not Well Known/Small Shop• “They are a quiet shop”• “Not big and not growing”• “Source of their funds is unclear”• “They have about $1 billion in assets”

Problems With Manager List• “Managers not good”• “All managers based in Texas”• “Limited managers”

Other Comments• “Soliciting independent broker/dealers to let us help”• “Used to receive lots of Charles Schwab referrals”• “Wirehouse reps call us after they try to do it themselves”• “Don’t have a platform of mutual funds”• “Don’t have pre-selected mutual funds or established portfolios”• “Highly expensive; 40bps”• “Not sophisticated portfolio generation system”• “Owners deeply involved in the business”• “Not looking to make dollars via additional services”• “Focuses on the independent broker/dealers which don’t need extensive

training”• “Willing to compete on fees”

Comments

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US Fiduciary’s Vista Analytics Initially Grew at a Strong Pace Following its Founding in 1997 but Growth Slowed Prior to Being Acquired by US Fiduciary

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; Tiburon Research & Analysis

• In 2002, Vista Analytics placed 27th on the Houston 100 of fast growing companies

• The Houston 100 is an annual ranking of private businesses by the University of Houston Small Business Development Center and the Houston Business Journal

Comments

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US Fiduciary’s Business is West Hills

Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 West Hills Web Site; 7/2/01 Trivium Consulting Research; 7/01 Investment Advisor; Tiburon Research & Analysis

• Founded in 1998• Based in Chicago, IL• Comprised of:• West Hills Asset Management• --• West Hills Institutional• --• Utilizes no-load mutual funds• President: Steven Billimack• 12 employees• Offers both separately managed accounts and

mutual fund TAMPs• US Fiduciary is in the process of integrating and

rebranding all of West Hills programs • Web Site: www.westhills.com

CommentsNeeds to blend

in

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US Fiduciary’s West Hills Fee-Accounts Programs are Centered Around Separately Managed Accounts and a Mutual Fund Wrap Program

--

Fee-Accounts Business

Select Strategic Portfolios

• Separately managed account

• Mutual fund wrap account

Source: Tiburon Research & Analysis

West Hills Fee-Accounts Business

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US Fiduciary’s West Hills Offers a Mutual Fund Wrap Account Which is its Core Offering

Source: 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis

• Traditional mutual fund wrap account• Mutual funds used dependent on custodian• Seems to be primary product offer• Executive comments• “We specialize in managing portfolios of no-load

mutual funds and in providing access to separately managed accounts”

• “We search for established and emerging money managers with great track records and sensible consistent Investment styles”

Comments

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US Fiduciary’s West Hills Offers Mutual Fund Profiles Co-Branded With Morningstar

Source: 12/5/01 Trivium Consulting Presentation (MacKillop); Tiburon Research & Analysis

• --

Comments

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US Fiduciary’s West Hills Offers a Separately Managed Account Program Called Select Strategic Portfolios

Source: 1/6/03 Fund Marketing Alert; 10/01 Investment Advisor; 7/2/01 Trivium Consulting Research; 7/01 Investment Advisor; Tiburon Research & Analysis

• Traditional separately managed account program• 14 managers• Century Capital Management• 23 products• $100,000 account minimum

Comments

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US Fiduciary’s West Hills Has a Proprietary Reporting Software Called Portfolio Forum

Source: 12/5/01 Trivium Consulting Presentation (MacKillop); 7/01 Investment Advisor; 4/01 Investment Advisor; Tiburon Research & Analysis

• Allows financial advisor to generate professional reports tailored to each client

• Web site allows financial advisors to view daily portfolio values and comprehensive performance reports

• Recently released a feature that allows advisors to look at performance over any time period they designate

• Offers many types of reports

Comments

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US Fiduciary’s West Hills Allows Advisors to Access Client Accounts Daily Through the Web and Obtain Consolidated Client Account Information

Source: 4/01 Investment Advisor; Tiburon Research & Analysis

• Consolidated client account information available includes not only positions and transactions but also cost basis, gain-loss, cash flow, and asset allocation information

Comments

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US Fiduciary’s West Hills Has a Streamlined Executive Team and Taps into a Broader Investment Committee Made Up of Executives from Parent US Fiduciary

Note: West Hills was founded by John Mansueto who passed away in 2003Source: 11/29/04 West Hills Web Site; 10/1/02 IIR Conference Chairman Notes; 9/30/02 IIR Conference Brochure; 7/2/01 Trivium Consulting Research; Tiburon

Research & Analysis

Steven Billimack President

Quan DomalecznyPortfolio Analyst

West Hills Organizational Chart & Investment Committee

Steven GraubartCEO US Fiduciary

Elliott WeissbluthPresident USFA

Mary CampionCIO USFS

Scott MacKillopPresident USFS

Austin PageCOO US Fiduciary

Donald GraubartCEO Post Oak

Capital Advisors

Jennifer SchneiderResearch

Manager USFS

Eugene LeeResearch Analyst

USFS

InvestmentCommittee

Not Tiburon format

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US Fiduciary’s West Hills is Perceived to Have Some Competitive Advantages But Not Necessarily Collecting a Lot of Assets

Source: 8/16/01 Greenrock Conversation (Malone); 8/8/01 Creating Equity Group Conversation (Bowen); 7/26/01 RunMoney Conversation (MacIntyre); 7/17/01 Prima Capital Conversation (Watson); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis

Good Organization With Strong Offer• “Cool technology”• “Good separate account and mutual fund presence”• “Good fee schedule”• “Heavy technology thinkers”• “Close to the makings of a good business plan”• “Huge advertising budget; two page ad in every publication”• “Must be well capitalized”

Some Issues• “Trouble hiring people; one man band”• “Small shop in number of people”• “Got a young guy doing research on managers”• “Not produced assets”• “Don’t see training & education in the circles in their ads”

Not Well Known• “Never come up against them”

Comments

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131

Source: Tiburon Research & Analysis

Tiburon Strategic Advisors

• Focus on corporate-level strategy- Serve senior executives only at financial

services companies- Key services: market seminars, market

research, & strategy consulting - Served over 350 corporate clients and

completed over 1,500 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

Comments