Download - FRA Managed Accounts and UMA Summit_2015
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September 28-29, 2015 | NY
The 13th Annual
Managed Accounts &
UMA SummitCapitalize on the Latest
MA/UMA Growth
Opportunities
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ank
You
Thank you for attending the conference!
Financial Research Associates is anaccredited institution and we pride ourselveson the cutting edge presentations delivered at
our conferences. We make every effort tosecure advance copies of these presentations
for your continued review following the closeof the conference.
From time to time due to proprietary concernsor internal legal constraints, speakers are
unable to submit presentations for duplication
and distribution. In this rare case, weencourage you to utilize the contact details
provided in their biography to request a singlecopy of the presentation.
If you have any additional questions or
requests for information beyond what is in thisdocument book, please feel free to contact us at
any time.
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ud
ly
Pres
ents
Financial Research Associates
Proudly Presents
The 13th Annual
Managed Accounts &
UMA Summit
September 28-29, 2015
The Princeton Club | New York, NY
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PresentsThe13th
AnnualManagedAccounts&UMASummit
CapitalizeontheLatestMA/UMAGrowthOpportunities
September28
29,
2015
|The
Princeton
Club,
NYC
DAYONE:Monday,September28,2015
8:008:35 Registration&ContinentalBreakfast
8:358:45 ChairsOpeningRemarks
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
8:459:45 OpeningPanel:PlatformizationoftheIndustry: IntegratingPlatformsandReducingSilos
Moderator:
DanielleVerbrigghe,Reporter
FundFire
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
JasonB.Moore,ManagingDirector,HeadofAdvisoryPrograms
MorganStanleyWealthManagement
AloisPirker,
Research
Director
AiteGroup
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
9:4510:45 GoalBasedInvestments&AlignmentofInterests:ExecutingtheBiggestTrendintheIndustry
JackSharry,ExecutiveVicePresident,StrategicDevelopment
LifeYield,LLC
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
Head
of
Portfolios
&
Models
for
Investment
Management
UBSInvestmentManagement
10:4511:00 MorningBreakSponsoredBy:
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11:0011:45 BenchmarkingAgainstGoalsandPerformance
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
WalterHartford,CFA,SeniorVicePresident,Marketing
RyanLabsAssetManagement
11:4512:30 RepPMandUMAs:Qualifications,Performance,andExpectations
RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms
MorganStanleyWealthManagement
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
RobertFedele,Director,ProductManagement
Fiserv
12:30
1:45
Networking
Luncheon
Sponsored
By:
TrackA:
Marketing&GrowthStrategies
Chairperson
KevinD.Mahn,President&ChiefInvestment
Officer
Hennion&WalshAssetManagement
TrackB:
Technology&Operations
Chairperson
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
1:452:45 RoboAdvisersPartI: Threatening orFullof
Opportunity?
TomSelby,Partner
Marlin&Associates
AloisPirker,ResearchDirector
AiteGroup
RichDion,ExecutiveVicePresident,Strategic
Partnerships
Envestnet
WhatDoesitTaketoAchieveScalability&
Suitability?
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
TomKane,ManagingPrincipal
KaneCarlton,LLC
2:45
3:45
Robo
Advisers
Part
II:Digitizing
Efforts
in
OrdertoReach&EffectivelyOperatewiththe
NextGeneration
GavinSpitzner,President
WealthConsultingPartners,LLC
MatthewR.Kane,Cofounder&ChiefNinja
Hedgeable
OvercomingOperational
Shortcomings
SimonAlgar,Consultant
WealthReports
DougBartels,VicePresident,Wealth
Management
NorthernTrust
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3:454:00
AfternoonBreakSponsoredBy:
4:004:45 BuildingMomentum,CapturingMarket
Share,andEffectiveStrategiestoRetainit
KeithW.Walker,President
FirstCitizensInvestorServices
TakingaCloseLookattheDOLRuleand
ResponsibilitiesanditsImpactonthe
Industry
DanielR.Kleinman,Partner
MorganLewis
&
Bockius
LLP
RichardD.Marshall,Partner
KattenMuchinRosenman
4:455:45 CocktailReceptionImmediatelyFollowing
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DAYTWO:Tuesday,September29,2015
8:008:45 ContinentalBreakfast
8:459:00 ChairsRecapofDayOne
KevinD.Mahn,President&ChiefInvestmentOfficer
Hennion&WalshAssetManagement
ATwoPartAssetFlowDiscussion:
9:0010:00 PartI:SuccessfullyPositioningAlternativeInvestmentsinYourManagedAccount&UMAPlatform
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
RussellTipper,ManagingDirector,ManagedSolutionsGroup
MerrillLynchGlobalWealthManagement
Colin
J.
Healy,
CIMA,
AIF,
Executive
Director,
Head
of
Business
Development,
Global
Investment
Solutions
HighTower
10:0010:45 PartII:WhatisPromptingETFandIndexFundGrowthandWillitContinue?
Moderator:
PaulM.Weisenfeld,Partner
PerellaWeinbergPartnersLP
Panelists:
JohnStreur,PresidentandChiefExecutiveOfficer,
CalvertInvestments
MichelleM.
Fuller,
Vice
President,
ETF
Strategy
PIMCOETFs
10:4511:00 MorningNetworkingBreak
11:0011:45 AdoptionStrategies: ConvertingtheBusinessModeltoaTamporManagedAccountOffering
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
GavinSpitzner,President
WealthConsultingPartners,LLC
11:45
12:30
Achieving
Retirement
Income
Goals
MichaelJones,CFA,ChairmanandChiefInvestmentOfficer
RiverfrontInvestmentGroup,LLC
12:301:45 NetworkingLuncheon
1:452:30 BreakingOutoftheUMHVendorHypetoTangleImplementationStrategies
EricLordi,HeadofCrossPlatformDevelopment
BarclaysWealth
2:30 EndofSummit
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ar
Participants
Dear Conference Participant:
On behalf of Financial Research Associates, I wouldlike to cordially welcome you to this industry event.
Sincerely,
Lori Medlen, PresidentFinancial Research Associates
We have developed this event based on extensiveindustry research, structuring the topics and gatheringtogether the speaker faculty based on feedback fromnumerous industry participants. Our goal is to provideyou with the most up-to-date industry informationpossible, along with top-notch networkingopportunities. Every effort has been made on our partto obtain the speakers presentations to be included inthe PDF link that you have received via email. If aspeakers presentation is not included in the PDF link,
we ask that you contact the speaker directly. If we havefailed to meet your expectations in any way, please letus know by completing the evaluation form providedat this event. Of course, we would like to hear positivefeedback as well!
We appreciate that you have chosen to spend your time
and training dollars with us, and were committed tosatisfying your informational needs. Again, welcome tothis event and thank you for your participation wetruly value your business.
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ditionalQ
uestions
If you have any additional questions orrequests for information beyond what is in thisdocument book, please feel free to contact us at
any time.A link with final speaker presentations will be
forwarded via email approximately
2 weeks after the conference.
Denise LateefuddinFinancial ResearchAssociates
8430 Rea Rd Suite BCharlotte NC 28277
704-341-2387 Office704-341-2641 Fax
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nference
Sponsors
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For more information about Envestnet and the capabilities of the platform,
visitwww.envestnet.com.
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CoChairsOpeningRemarks
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleading
institutional
consulting
firm
for
the
bank
wealth
managementchannel. WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability. Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms
(TAMP);
and
Point
Solution
Models.
We
provide
niche
expertise
and
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
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
P a g e
1
Company(nocorporaterelationtoWinslowCapitalGroup,LLC). Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
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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
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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 Literaturefrom ASU.
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Russell W. Tipper, CIMADirector, Managed Solutions GroupMerrill Lynch
Banc of America Investment Advisers, Inc. is an SEC-registered investment adviser and wholly owned subsidiaryof Bank of America, N.A.
Global Wealth & Investment Management is a division of Bank of America Corporation. Banc of AmericaInvestment 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:
Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed
Banc of America Investment Services, Inc. is a registered broker-dealer, member FINRA and SIPC, and anonbank subsidiar of Bank of America, N.A.
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-to-
day 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 developmentinitiatives for Putnams separately managed accounts, global asset allocation and fixed-
income 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.
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Jason B. Moore
Jason is a Managing Director of Morgan Stanley and co-Head of Advisory Solutions and Platforms based
in Wilmington, DE.
Jason oined Morgan Stanley in !""# as an Associate and served in a variety of roles $it% increasing
res&onsibility t%roug%out %is first ten years $it% t%e 'irm. (ver t%e last ten years, Jason %as focused
&rimarily on advisory &latform management including t%e develo&ment of Morgan Stanley Wealt%
Management)s unified managed account &rogram. Jason left Morgan Stanley in *+!+ and oined an
of America Merrill ync% as a Managing Director and Head of /%ird Party Advisory Programs. He
reoined Morgan Stanley in *+!! as Head of Advisory Platforms and Develo&ment. Jason $as named a
Managing Director in *+!* and $as named t%e co-Head of Advisory Platforms and Solutions in *+!#.
Jason earned a .S. in usiness Administration and an M..A from t%e 0niversity of Dela$are.
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CemEr,Director,CharlesRiverDevelopment
CemleadsCharlesRiversprivatewealthproductmanagementteamandprovidesdirectionandthought
leadershipforwealthmanagementrelatedfunctionality,including,modelingandoptimization.Priorto
joiningCharlesRiver,CemwasaHeadTraderandPortfolioManageratCobblestoneCapitalAdvisors.He
beganhis
financial
services
career
as
aFinancial
Analyst
for
Demirbank
A.S.
HSBC
Securities.
Cem
holds
anMBAinFinanceandStatisticsfromRochesterInstituteofTechnologyandisaCFACharterholder.
.
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GoalBasedInvestments&AlignmentofInterests:ExecutingtheBiggestTrendintheIndustry
JackSharry,ExecutiveVicePresident,StrategicDevelopment
LifeYield,LLC
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
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JackSharry
JackisaprincipalandEVPofStrategicDevelopmentatLifeYieldLLC.
LifeYieldofferssoftwaresolutionstohelpfinancialadvisorsmanageclientinvestmentassetsin
amoretaxefficientmannerbothbeforeandafterretirement,aswellasidentifyingoptimal
SocialSecurityfilingstrategies.LifeYieldssolutionsareusedbymajorfinancialfirmsacrossthe
U.S.toimproveinvestoroutcomesandinachievinglifelonggoals.
Jackhas
been
afinancial
industry
innovator
for
nearly
30
years
as
an
executive
at
Morgan
Stanley,PutnamInvestmentsandPhoenix(nowVirtus)InvestmentPartnersservingasasenior
leaderinsales,marketing,productdevelopmentanddistributionstrategy. WhileatPhoenix,
Jackledateamwhichdevelopedthefirstmultimanagerwholesaledistributionmodelfor
advisoryplatformsandapatentedincomeguaranteeforadvisoryprograms.
JackisChairmanoftheMoneyManagementInstitute's(MMI)GoalsBasedWealth
ManagementCommittee. Heistheauthorofaseriesofresearchpapersonretirementincome,
UnifiedManagedHouseholds(UMH)andGoalsBasedWealthManagement. Jackhasbeen
recognizedasaMMIPioneer,aselectgroupofindustryleadersandwasawardedthe2013
MMIChairmansAwardforthoughtleadership.
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Investment Management
Mark D. Sloss
Executive Director, Senior Portfolio Manager
Head of Portfol ios & Models for Investment ManagementUBS Financial Services Inc.
Mark is Head of Portfolios & Models for UBS Investment Management (IM), a voting member ofIM's investment committees and the Investment Management Research Committee, serves onthe firm's 401(k) investment committee, and consults extensively on portfolio and modelcreation for ultra high net worth, family office and institutional clients. As part of his role, he alsodrives content and implementation of sustainable and impact investment managementstrategies across UBS Wealth Management Americas (WMA). Prior to his present role, Marklead Investment Management Research, and before that was responsible for productdevelopment 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 eventspertaining to sustainable and impact investing, institutional benchmarking of investmentportfolios, manager research, active and passive portfolio management, private client andinstitutional investment in "liquid" alternatives, market research, and retirement accountinvesting. Among his many activities relating to sustainability, Mark participates in the UnitedNations Environmental Programme Finance Initiative North American Task Force on behalf ofWMA, is a member of the UBS Global Sustainability Council, and has been published in theJournal of Sustainable Finance & Banking and a special report of the Money ManagementInstitute.
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 andled due diligence and manager selection for the defined contribution, mutual fund and variableannuity divisions.
Mark Sloss is a graduate of Northwestern University and holds FINRA Series 7, 63, 66 and 24designations
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9/28/
September29,2015
GoalsBasedWealthManagement
ImprovingOutcomes
for
Investors,Advisors&Firms
Chair,MMIGoalsbased
WealthManagementCommittee
JackSharryPrincipal,LifeYield LLC
2
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9/28/
3
FirstMMIGBWM
WhitePaper:October,2014
IncreaseinIncome:
Upto33%
TaxNeutra l WithLifeYield
Increasein
Legacy:
Upto45%
TaxN eutr al W it hLifeYield
ProductAllocation 24bps
AssetAllocation 38bps
AssetLocation 52bps
DynamicWithdrawals 54bps
Total 168
bps
Alpha,BetaandNowGamma
4
SignificantInvestment
in
Goals
Based
Advice
Why?
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9/28/
Financial
Plan
Plan
Monitoring
Taxable&
QualifiedAccounts
Trades
Plan
Target
Location
Monitoring
Cash
TaxSmart
Withdrawal
Location
Optimization
GoalsBased WealthManagement
Investment
Proposal
Implement
Accounts
6
NextMMIPaper:
October,2015
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9/28/
Improvedinvestor,
advisor
&
firm
outcomes
Keycontributors:
Cost
Tax
RiskAdjustedReturns
"Taxesarethebiggestinvestorexpense.
Hearts
&
Wallets
7
SignificantGBWMInvestment Why?
8
GBWMKey
Elements
Coordinate/Select:Product,Models
Monitor/Rebalance
IntelligentWithdrawals
AssetLocation
BigPie>LittlePies
PrioritizeGoals
HouseholdAssetAllocation
Plan Implement
ManageDistribute
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9/28/
MMIGBWM
Study:
What
firms
are
saying
Requirestransformationalchange
Firmsneedhelpconnectingthedots
Tech/Ops/Toolscoordination
Practicemanagement
Regulatory/Complianceissues
DemonstratingROI
9
GBWMistheNextBigThing
Solutionsproviders
Broker/Dealers
Wires MMI
10
Whois
Leading
the
Way?
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9/28/
GBWMrequireschange
Advisorsdontlikechange
11
LifeYield: WhatweveLearned
GBWMrequirements:
Incorporatedintoadvisorworkflow
Guardrailsensureadoption&success
Valuemustbequantified
Keytodifferentiation Drivesconsolidation
Integratedimplementation
K.I.S.S./Wholeis
greater
than
the
parts
12
LifeYield:
Whatweve
Learned
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9/28/
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9/28/
September29,2015
GoalsBasedWealthManagement
ImprovingOutcomes
for
Investors,Advisors&Firms
Chair,MMIGoalsbased
WealthManagementCommittee
JackSharryPrincipal,LifeYield LLC
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BenchmarkingAgainstGoalsandPerformance
MarkD.Sloss,ExecutiveDirector,SeniorPortfolioManager
HeadofPortfolios&ModelsforInvestmentManagement
UBSInvestmentManagement
WalterHartford,CFA,SeniorVicePresident,Marketing
RyanLabsAssetManagement
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Investment Management
Mark D. Sloss
Executive Director, Senior Portfolio Manager
Head of Portfol ios & Models for Investment ManagementUBS Financial Services Inc.
Mark is Head of Portfolios & Models for UBS Investment Management (IM), a voting member ofIM's investment committees and the Investment Management Research Committee, serves onthe firm's 401(k) investment committee, and consults extensively on portfolio and modelcreation for ultra high net worth, family office and institutional clients. As part of his role, he alsodrives content and implementation of sustainable and impact investment managementstrategies across UBS Wealth Management Americas (WMA). Prior to his present role, Marklead Investment Management Research, and before that was responsible for productdevelopment 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 eventspertaining to sustainable and impact investing, institutional benchmarking of investmentportfolios, manager research, active and passive portfolio management, private client andinstitutional investment in "liquid" alternatives, market research, and retirement accountinvesting. Among his many activities relating to sustainability, Mark participates in the UnitedNations Environmental Programme Finance Initiative North American Task Force on behalf ofWMA, is a member of the UBS Global Sustainability Council, and has been published in theJournal of Sustainable Finance & Banking and a special report of the Money ManagementInstitute.
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 andled due diligence and manager selection for the defined contribution, mutual fund and variableannuity divisions.
Mark Sloss is a graduate of Northwestern University and holds FINRA Series 7, 63, 66 and 24designations
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RepPMandUMAs:Qualifications,Performance,andExpectations
RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms
MorganStanleyWealthManagement
CemEr,CFA,Director,ProductManagement
CharlesRiverDevelopment
RobertFedele,Director,ProductManagement
Fiserv
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Richard V. SlaterMorgan Stanley
Executive Director
Director: Portfolio Management Group and Consulting Group Advisor Programs
Rich is the Director of the Portfolio Management Group and Consulting Group Advisorprograms. 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.
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CemEr,Director,CharlesRiverDevelopment
CemleadsCharlesRiversprivatewealthproductmanagementteamandprovidesdirectionandthought
leadershipforwealthmanagementrelatedfunctionality,including,modelingandoptimization.Priorto
joiningCharlesRiver,CemwasaHeadTraderandPortfolioManageratCobblestoneCapitalAdvisors.He
beganhis
financial
services
career
as
aFinancial
Analyst
for
Demirbank
A.S.
HSBC
Securities.
Cem
holds
anMBAinFinanceandStatisticsfromRochesterInstituteofTechnologyandisaCFACharterholder.
.
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Bob
FedeleDirector,ProductManagement
InvestmentServices
Fiserv
BobFedeleistheDirector,ProductManagement,andInvestmentServices,atFiserv,Inc.
(NASDAQ:FISV).Bobleadstheteamthatsupportsourwealthmanagementsolutions
includingPortfolioManagement,Trading,ModelPortfolios,FinancialAdviceManagement
andGlobalPortfolioAccounting.
PriortohispromotiontoDirectorin2015,asProductStrategistforAdvisorSolutions,was
instrumentalinthecreationandrolloutoftheUnifiedWealthPlatformfordiscretionary
financial
advisors.
Bob
also
served
in
various
account
and
relationship
management
roles
before
joining
Product
Management.
BobstudiedInternationalBusinessatFordhamUniversityandheldoperationsandtrading
positionsatJPMorgan,ExcoNoonanandCSFBpriortojoiningCheckFree,nowpartof
Fiserv
in
2001.He
is
a
frequent
presenter
at
Fiserv
conferences
and
Financial
Advisor
seminarsforFiservclients.
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TrackA:
Marketing&GrowthStrategies
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Chairperson
KevinD.Mahn,President&ChiefInvestmentOfficer
Hennion&WalshAssetManagement
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Kevin D. Mahn joined Parsippany, NJ based Hennion & Walsh as a Managing
Director in 2004. Currently serving as the President and Chief Investment Officer
(CIO) of Hennion & Walsh Asset Management, Mr. Mahn is responsible for all of
the Wealth and Asset Management products and services offered at the Firm
including fee-based money management and the various portfolio strategies
within the SmartTrust series of Unit Investment Trusts (UITs). Mr. Mahn was
also the former portfolio manager of the SmartGrowthMutual Funds.
Mr. Mahn is the author of the quarterly ETF and CEF Insights newsletter as well
as one of the co-authors of the book, Exchange Traded Funds: Conceptual and
Practical Investment Approaches, 2009 Riskbooks. Mr. Mahn is a member ofthe Forbes Investor team and a frequent contributor to the Forbes Intelligent
Investing and Advisor Intelligence blogs as well as the Seeking Alpha website.
Prior to Hennion & Walsh, Mr. Mahn was a Senior Vice President at Lehman
Brothers where he held several senior management positions, including CAO of
the High Net Worth Product and Services group within Lehmans Wealth and
Asset Management division as well as COO of Lehman Brothers Bank, during his
eleven year tenure with the Firm.
Mr. Mahn received his Bachelor's degree in Business Administration from
Muhlenberg College and his M.B.A. in Finance from Fairleigh Dickinson University.
Mr. Mahn has also served as an adjunct professor at Fairleigh Dickinson University
within the Department of Economics, Finance and International Business.
Mr. Mahn was the recipient of the 2009 Institutional Investor Rising Stars of
Mutual Funds Award. Mr. Mahn is also the Co-Chair of the NICSA UIT Industry
Committee and received an MVP award from NICSA for his leadership of the UIT
committee.
Interviews with, as well as byline articles and insights from, Mr. Mahn have
appeared in/on CBS News, Fox News, CNBC, Fox Business News, Wall Street
Journal, Investors Business Daily, Bloomberg.com, Fortune, Forbes, Business
Week, New York Times, Wall Street Week, CNNMoney.com, Investment Advisor
Magazine, SmartMoney, The Star-Ledger, The Daily Record, Reuters, Fund Action,
The Street.com, CNBC.com, Fox Business.com, Dow Jones Newswires,
MarketWatch, Ignites, Money Management Executive, Daily Finance, Wall Street
Transcript, Registered Rep., Financial Planning, , Risk Magazine, ETF Radar
Magazine, Structured Products Daily, Financial Times and Investment News.
Hennion & Walsh
2001 Route 46, Waterview PlazaParsippany, NJ 07054
P: (973) 299-8989 / F: (973) [email protected]
Visit our blog @http://www.hennionandwalsh.com/blogs/index.html
Securities Offered through Hennion & Walsh, Inc. Member: FINRA SIPC
mailto:[email protected]:[email protected]://www.hennionandwalsh.com/blogs/index.htmlhttp://www.hennionandwalsh.com/blogs/index.htmlhttp://www.hennionandwalsh.com/blogs/index.htmlhttp://www.hennionandwalsh.com/blogs/index.htmlmailto:[email protected] -
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RoboAdvisersPartI: ThreateningorFullofOpportunity?
TomSelby,Partner
Marlin&Associates
AloisPirker,ResearchDirector
AiteGroup
Rich
Dion,
ExecutiveVicePresident,StrategicPartnerships
Envestnet
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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.
Tom is a native Canadian, and an engineer by training, having graduated from
University of Toronto with a Bachelors of Applied Science in Engineering. He is based in
Toronto, where he lives with his wife and 3 young children.
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Richard K. Dion
Executive Vice President
Richard Dion is Executive Vice President and Head of Strategic Partnerships at Envestnet Asset Management. Priorto joining Envestnet, Mr. Dion was President of Placemark Investments, Inc. where he was responsible for the firmscore business activities, including business development, product management, platform services and technologyservices. 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 wasChief Executive Officer of Oberon Financial Technology, a fee-based technology services firm subsequently acquiredby Envestnet in 2005. Mr. Dion holds a B.A. from the University of New Hampshire.
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Robo Advisors Sept 28
1Proprietary & Confidential
Deep Domain Expertise
Marlin & Associates Knows Financial Technology
Boutique InvestmentBanking Firm
of the Year
- The M&A Advisor
Two transactions named
Deals of the Decade
- The M&A Advisor
Middle Market FinancialServices Turnaround
Deal of the Year
- The M&A Advisor
Middle MarketInternational Financial
Services Deal of theYear
- The M&A Advisor
Middle MarketInformation
Technology Deal of theYear
- The M&A Advisor
Middle MarketInternational / Cross
Border Deal of the Year
- The M&A Advisor
Financial TechnologyDeal of the Year
- Global M&A Network
Financial Services Dealof the Year
-ACG Champions
Award
Best Software FocusedFinancial & Strategic
Advis ory
- Wealth & Finance
International
2Proprietary & Confidential
Partners with operating experience insenior roles at f inancial technologycompanies
Deep relevant expertise as an advisor completed transactions withBetterment, FIS, Markit, Morningstar,SS&C, Sungard, Thomson Reuters
Locations: New York (Headquarters),San Francisco, Washington DC, andToronto
Experienced Marlin Team
Database of over 23,000 contacts frommore than 13,000 different companies
Transact ions completed involvingparties in 26 countries
Advised on more than 200successfully completed transactions
Technology Enabled Services
Capital Markets Technology
Wealth Management Technology
Core Banking Technology
Risk & Analytics Software
Expansive Domain Coverage
Broad Industry Recognition Strong PE / VC Relationships
Strategic Players
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Changes In The Wealth Management Industry Are AcceleratingIn Parallel With New Technologies
3Proprietary & Confidential
1.0: Early 20th Century 1995
Traditional Brokerage Model
2.0: 1996 2010
Online Brokerage / Wealth
3.0: 2010 Present
Wealth Management 3.0
Heavily reliant on human capital foraccount management
Online primary method of accountmanagement
Mobile apps are common for accountmanagement
High cost of investing; commissioncharges were hundreds of dollars
per annum
Commission charges were typically a flatfee per trade
Low management/commission fees
Difficult to maintain as investors requiredto manage their own wealth
Limited access to research and otherprofessional services
Sophisticated techniques such as tax-loss harvesting 260+ portfolio
management apps for mobile/tablet
Automated solution means all research,due diligence and balancing completed
by the broker
Wealth managed by specialists
Reliance on personal relationship withwealth manager for information
25% US households own mutual funds
1,243 funds with $371Bn total net assets
340k US cellphone subscribers - 1985
46% US households own mutual funds
7,707 funds with $15Tn total net assets
300mm US cellphone subscribers - 2010
Source: JP Nicols
Notable Funding Activity In The Wealth Advisor Space
4
Date Transaction
An no unc ed Targ et Acq ui re r / In ves to r Targ et Bus ine ss Des cr ipt io n Valu e ($m m )
04/15/15
e.ventures; Garland Capital Group; Great
Oaks Venture Capital; Greyc roft
Partners; Math Venture Partners; Sound
Ventures
Online platform that enables individual investors to invest
loose change in several preconfigured portfolios.23$
02/17/15
Bessemer Venture Partners; Francisco
Partners; Menlo Ventures; Northw estern
Mutual Capital
Operates an online platform for investment advisory,
retirement planning, and brokerage services.60$
01/20/15Owns and operates an online portal enabling investors to
invest based on ideas or themes.40$
10/28/14
BBVA Ventures; Corsair Capital;
CrossLink Capital; Institutional Venture
Partners; United Services Automobile
Association; Venrock
Online platform empow ering individuals to manage their
financial planning to meet investment and retirement goals.50$
10/27/14
DAG Ventures; Dragoneer InvestmentGroup; Greylock Partners; Index
Ventures; Ribbit Capital; Spark Capital
Partners; The Social+Capital Partnership
Automated investment service enabling users to invest in
continually rebalanced portfolios of index funds at low
cost.
64$
04/14/14Accel Partners; American Express
Ventures; Northw estern Mutual Capital
Seeks to make financial planning more accessible by
off ering users online investment tools and customized
financial plans, as w ell as access to a financial planner.
28$
04/01/14
Anthemis Group; Bessemer Venture
Partners; Citi Ventures; Globespan
Capital Partners; Menlo Ventures;
Northw estern Mutual Capital
Operates an online platform for investment advisory,
retirement planning, and brokerage services.32$
04/01/14
DAG Ventures; Greylock Partners; Index
Ventures; Ribbit Capital; The
Social+Capital Partnership
Automated investment service enabling users to invest in
continually rebalanced portfolios of index funds at low
cost.
35$
Proprietary & Confidential
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Funding Activity in Market Very Strong, But Pace Slowing Down
5
1443
26
94
280
159
3 34 4
6
14
18
11
0
50
100
150
200
250
300
0
5
10
15
20
25
Millions Invested # Companies
Source: TracxnRobo-Advisors Report,Aug 2015 Proprietary & Confidential
2015 On Track forFlat or Slightly
Down from 2014
The Pace of Acquisitions In The Robo-Advisor Space Expected to Pick up Speed
6
Source: S&P Capital IQ, Marlin &
Associates Research
Date Transaction
An no unc ed Targ et Acq ui re r / In ves to r Targ et Bus ine ss Des cr ipt io n Valu e ($m m )
09/04/15Enables w ealth advisors to provide services through an
intuitive online platform.na
08/26/15Offers personalized and data-driven recommendations to
optimize clients' investment portf olios.175$
05/26/15Scans and analyzes f inancial transactions to help users
make investing decisions.na
04/23/15Operates an online investment marketplace providing trade
sharing solutions and services for individual investors.na
03/25/15
Seeks to make financial planning more accessible by
off ering users online investment tools and customized
financial plans, as w ell as access to a financial planner.
250$
02/26/15Helps w ealth advisors manage accounts ef ficiently and
cost-effectively.3$
02/11/15Provides w eb-based w ealth management tools, serving
both advisors and their clients.250$
Proprietary & Confidential
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A Generational Wealth Transfer In the Order Of $30Tn Is Underway
Sources: LIMRA analysis of Survey of ConsumerFinance data, Federal Reserve Board, 2010,
Accenture7Proprietary & Confidential
Total = $10,661 Total = $6,229 Total = $9,457
Trailing-Edge BoomersAge 51 t o 59
Gen X and YAge 50 o r bel ow
Leading-Edge BoomersAge 60 t o 69
Silent GenerationAge 70 t o 79
Silent GenerationAge 80 o r o lder
$444
$1,495
$3,765
$2,165
$1,588$87
$803
$3,572
$3,544
$2,655 $13
$312
$1,433
$2,424
$2,047
$30TrillionOver20Years
Firms that focus on deliberate strategies and effectively implement their plans will be in the position to capture a large base of assets. Firmsthat fail to act run the risk of losing assets at an accelerating rate - Accenture
*Large amount of wealth transferredover the next several decades
$3,722
$5,392
$8,770
$5,351
$3,112
Total
Not Retired Ful ly/Part ial ly Reti red Mega-Mi l lionaires
Total=$26Tn
Households With Assets
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Robo Advisors Are A Wake Up Call To Traditional Wealth Management
9
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 timeto 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 bypartnering with Robos who increasingly are open to providing B2B2C type offerings
It is Not Only AboutFees
Wealth management firms have accelerated the adoption of SaaS-based solutions to help advisorsleverage 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. Insufficientclient 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
Wealth ManagersIncreasingly
Launching Their OwnPlatforms
Robo cost of client acquisition is high relative to near term revenue potential. Only a few Robos willreach sufficient scale to survive
Buyers will likely be full service providers, looking to adopt a hybrid model. Robos typically wont bebuyers as they wont wish to meld different philosophies
Robo Funding SlowingDown fueling likely
Consolidation
Transfer of wealth drives significant issues around planning, tax implications, and other adviceRobos 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 stillmaintaining profitability
Hybrid Models WillEvolve
Proprietary & Confidential
About Marlin & Associates
10Proprietary & Confidential
New York | Washington, DC | San Francisco | Toronto
Founded in 2002, Marlin & Associates Holding LLC is a boutique investment banking andstrategic advisory firm specializing in acquisitions and divestitures of U.S. and internationalmiddle-market firms that provide technology, digital information and healthcare-relatedproducts, technology and services.
M&A's professionals have advised on over 200 successfully completed transactions in thefinancial technology and information services sector. The firm has been named "MiddleMarket Investment Banking Firm of the Year," received numerous "Deal of the Year
awards, and was recognized for leading two Deals of the Decade.
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10/7/20
2014AiteGroupLLC.Page1
Page 1
Panel:RoboadvisorsPartI
ThreateningorFullofOpportunity?
PresentedatFRAs13thAnnualManagedAccounts&UMASummit
September28th,2015
AloisPirkerResearchDirector
2014AiteGroupLLC.Page2
14,495
59,422
139,100
56,985
54,295
$3,759
$2,687
$2,817
$3,267
$6,553
Discount and onlinebrokerage
Independent RIAs
Fully disclosedretail brokerage
Self-clearingretail brokerage
(non-wirehouses)
Wirehouse
Client Assets and Number of Financi al Advisors Acro ss U.S. Wealth ManagementIndustry Segments, 2014
(In US$ billions)
Client assets (total=US$19.1 trillion)
Number of financial advisors (total=324,297)
Client assets
'12to '13
12.7%
15.4%
7.6%
23.0%
18.2%
'13 to '14
11.9%
15.0%
11.6%
9.5%
5.7%
WealthManagement
Market
Update
Source:NewRealitiesinWealthManagement: TrainKeptaRollin,
AiteGroup,July2015
Marketstructurechanges
duetoM&A
Elevatedmobilityofclients
andadvisors
Profitabilitypressuredueto
lowinterestratesand
transactionvolumes
Businessmodelchanges
Bankingproducts
Fullservicefirms
embracethedirect
model Regulationsdrivefinancial
servicesfirmsfrom
productfocusedto
consumercentric
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2014AiteGroupLLC.Page3
RespondingtoaNeedfor
LowcostFiduciaryService
Private
bank/
trustFA/
Brokerage
(customized,
Morethan
100bpsfee)
Mass
retail
Mass
affluent
Highnet
worth
Wealthsegment
Technology-driven service Advisor-led Service
Online
brokerage
doit
yourself
FocusonHNW
LittlefocusonGenX/Y
Expandingservices
Movingtofiduciary
Maintaininghigh,
bundledfee
Digitaladvisors
(semipersonalized,
freeto100bps)
Mass
affluent
Traditional firmshavefocused
onHNWandadvisorled
serviceandlessonscaling
adviceanddigitalservice
Startupsseeopportunityto
addressunderservedsegments
withlowcostprofessionalservice
deliveredatscalethroughintuitive
andautomateddigitalprocesses
2014AiteGroupLLC.Page4
Impact on the WM Industry
Massaffluentfocusedfirmswillfeelthecompetitivepressurefromdigitaladvicemodelsmostandwilladoptthemodelatdifferentspeeds Thesefirmswillbeunabletojustifyhigherinvestmentfeesforadvisorswhoprovide
investmentadviceprimarilyanddeliverstandardportfolios
Onlinebrokerswillmasterthedigitaladvicemodelfirstasitisanaturalfit Insurancebrokerdealerhavestartedacquiringdigitaladvicestartups Retailbankswillshiftfromanadvisorbasedtoadigitalmodeleventually
HNWfocusedfirmsarelessthreatenedbydigitaladvicemodelsbutwillhavetoconsideranumberofaspects ValuepropositionintheHNWisdifferentasthefeescoverindependentandholistic
advicethatisseparatefromproductfulfillment
But,minimuminvestmentamountsandfeelevelsnowhavenewfloors Independentadvisorsmaytakeadvantageofthesenewlowcostplatforms(institutional
offers)for
aportion
of
their
clients
which
will
put
fee
pressure
on
wireheouse FAs
Firmsmusthelpfinancialadvisorsarticulatetheirvaluebeyondproductorportfoliopropositions
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2014AiteGroupLLC.Page5
WealthManagementvs.DigitalAdvice
Traditional Wealth Management Digital Advice / Robo Advisor
Business modelfeatures
1. Advisor-delivered service2. Advisor owns client relationship
3. Advisor sets service schedule
4. Digital channels provide limited
value
5. Complex presentation of products
and fees
6. High fees, high costs
1. Multi-channel service2. Firm owns client relationship
3. Advisors when needed
4. Digital channels deliver products,
services, and value-add content
5. Simple presentation of products
and fees
6. Low fees and low-cost execution
Product Commission-based transitioning to
sophisticated fee-based model
High-end: SMA / UMA / Rep as PM
Low-end: Mutual Fund Wrap
ETF Wrap is the norm with some
players offering:
- daily tax-loss harvesting
- proprietary products
- thematic investing
- replicating trades of hedge funds.
Fees > 100 bps (even MF Wrap) 0 to 100 bps
Technology Built for advisors and to cover
maximum regulatory complexity
Built for client first and allows for
advisor/client collaboration
Client
Engagement
Client engagement is largely left to
financial advisor
Client-value driven with great focus
on self-service advice tools and
value-add content
2014AiteGroupLLC.Page6
Assets inspecific account
Assets forretirement
Noproducts
offered/
recommended
Recommendations
Brokerage
account
AssetBuilder
Liftoff(Ritholtz)
Stronghold Financial
TradeKingAdvisors
TrustEgg
WiseBanyan
RebalanceIRA FutureAdvisor
SigFig
AdvisorConnexion(Foliofn)
BalanceFinancial
Blueleaf
eMoneyAdvisor
GuideFinancial
Invessence
NestEgg(Vanare)
Oranj
ScivantageSqope
Trizic
UpsideAdvisor(ENVESTNET)
WealthAccess
Betterment
Covestor
Hedgeable
HedgeCoVest
SchwabIntelligent
Portfolios (2015)
Wealthfront
Blooom(D2C plans)
EdelmanOnline
eSavant
FirstPointFinancial
MainSt.Advisor
PersonalCapital
VanguardPAS
Wela
XY PlanningNetwork
Bicycle Financial
NextCapital (forthcoming)
Kapitall
Robinhood Markets
MotifInvesting
FinancialGuard
JemstepFlexScore
iQuantify
CircleBlack
(forthcoming)
LearnVest
Allinvestmentassets
(asaggregatedbyclient)
Allassetsandliabilities
Managed
account/
RIAmodel
Scopeofadvice/service
Products
Advisorispartof
theofferD2Cservice
Technologyproviderto
advisors/institutions
Digitalinvestmentmanagersandbrokers
Digitaladviceprovi
ders
D2Cand
institutionaloffer
Source:AiteGroup
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2014AiteGroupLLC.Page7
Transitioning to Digital WealthManagement
Private
bank/
trustFA/
Brokerage
Mass
retail
Mass
affluent
Highnet
worth
Wealthsegment
Technology-driven service Advisor-led Service
Online
brokeragedoit
yourself
Mass
affluent
Incumbent
versions
of
Digital
Advisor(differentmodels)
Mobileand
webwealth
mgttools Integration
Traditional firmshaveto
shifttowardsdigitalclient
engagement while
integratingtheadvisorinto
theprocess
Digitalinitiativesofwealth
managementfirmsfocuson:
Advisor/clientcollaboration
(facetofaceanddigital)
Supportingricher/more
holisticdialogthrough
advisortoolsandcontent
(e.g.MerrillClear)
Processautomation
(e.g.
onboarding,datagathering)
FocusonHNW
Littlefocuson
GenX/Y
Expandingservices
Movingtofiduciary
Maintaininghigh,
bundledfee
2014AiteGroupLLC.Page8
DigitalEngagementSolutions DigitalAdvisorSolutions
Purpose
Prospectfocused
Advisorswhowanttoacquireclientsdigitally
Clientservicefocused
Advisorswhowanttoserviceclientsdigitally
PM platform
Advisorswhowantamoreautomatedportfoliomanagementplatformwithonlineonboardingandanintegratedprospectingwebsite
PMservice(TAMPlike)
Advisorslookingforaninvestmentmanagementservice(TAMPlikeservice)forlowbalanceclientsorclientschildren
Firm
examples
Advisor Websites
AdvisorProducts
EmeraldConnect
FMGSuite
Jemstep
Riskalyze
Blueleaf
CircleBlack
eMoneyAdvisor
Guide Financial
Marstone
Oranj
WealthAccess
FolioInstitutional
MotifAdvisor(themebased portfolios)
NestEgg Wealth
Trizic
BettermentInstitutional
SchwabIntelligentPortfolios
UpsideAdvisor(ENVESTNET)
Marstone
Capabilities
Advisorwebsitesandleadgenerationtools
Onlineaccountopening(somefirms)
Clientportalw/aggregation
Advisor alerts/suggestedadvice
Advice/planningtools(some)
Portfolioanalytics/reporting
Vault
Document sharing
LighttofullCRM/bookanalysis
Basicwebsite
Questionnaires
Onlineaccountopening
Portfoliomanagement(capabilitiesvary)
Portfolioreporting
Aggregation/planning(some)
LighttofullCRM
FinTech Providers Emerge to Support
Advisors Digital Offices
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2014AiteGroupLLC.Page9
WhatdoesthismeanfortraditionalWMFirms?
Whiledigitaladvicestrategyforthemassaffluentisachoice,richdigitalclientengagementfortheHNWisbecomingamust!
Providingavalueadddigitalexperienceenrichedthroughinsightful/personalizedcontentandselfservicetools
Differentiatingdigitalservicebasedonclientsegmentandbehaviorisrecommendedtodeliverpersonalizedandrelevantdigitalservice Behavioralsegmentationoftheclientbaseisrecommended Adjustclientengagementlayerinresponsetoclientbehavior
Robustclientdatalayerisrequiredforagileclientengagement(Thebetterthedatalayerthemorerobusttheengagement!)
Financialadvisorsneedtobeabletoarticulatetheirvalue
proposition
outside
of
a
product
context Embracinggoalsbasedwealthmanagementisaperfectfullserviceandclientcentricresponse
2014AiteGroupLLC.Page10
Aite Group:Partner,
Advisor,
Catalyst
Aite(pronouncedeyetay)Groupisanindependentresearchand
advisoryfirmfocusedonbusiness,technology,andregulatoryissues
andtheirimpactonthefinancialservicesindustry.
AloisPirker
ResearchDirector
+1.617.338.6071
www.aitegroup.com
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9/16
2015Envestnet,Inc.Allrightsreserved. ForNational Financialuseonly.
AdvisorNow
RichardK.
Dion
|Executive
Vice
President
|Strategic
Partnerships
2015Envestnet,Inc.Allrightsreserved. Forhomeofficeandadvisor useonly.
Envestnet
at
a
Glance
2
Foundedin1999
IPOJuly2010(NYSE:ENV)
Empowersover42,000advisorstoachievehigherstandardsinportfolioandpracticemanagement
Morethan3.0millioninvestoraccounts1
Supportsover$792billionofassets1
$258billioninAUM/A
Fullfiduciarysupportfor$76billioninAUM
$13.8billioninYTD6/30/15netflows($50billioninnetflowsinfullyear2014)
More
than
1,000
points
of
platform
customization
Over1,400employeesinChicago(headquarters),NewYork,Boston,Dallas,Denver,Raleigh,Landis(NC),Seattle,St.Louis,Sunnyvale(CA),Tucson,andTrivandrum,India
2
Providingendtoendsolutionsthatunifyandfortifythewealthmanagementprocess
Note: DataasofJune30,2015.
1 includesaccounts/assetsundermanagement,administration,andlicensingarrangements.
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9/16
2015Envestnet,Inc.Allrightsreserved. Forhomeofficeandadvisor useonly.
TheNextgenerationBusinessModelBlendingTraditionalwithDigital
ClientEngagement Digital(advisorless)
Traditional(advisorcentric)
InvestmentPortfolios Packaged(mutual funds&ETFs)
Customized(individual securities)
ScopeofAdvisory
Services Impersonal Highly Personal
GoalsbasedPlanning Accountlevel Household/Multi
custodiallevel
Business Model
IntegrationVertical
(singlehostaccountingsystem)
Horizontal(acrossmultiplehostaccounting
systems)
CurrentDigitalOfferings
3
2015Envestnet,Inc.Allrightsreserved. Forhomeofficeandadvisoruseonly.
Advisor
Now
Wearebringingtheinnovativecapabilitiesofourrecentacquisitionstogetherwith
ourexistingcorecapabilitiestodeliverthenextgenerationofinvestorexperience.
Research Account
Opening
Investmt
Access Rebalance Client
Service
Document
VaultAccou nt
Aggreg n
Financial
Planning
Report-
ing
Portfolio
Rebalance
Investmt
Product
Access
TaxMgmt.
Client On-
boarding
BillingService
request
software
Portfolio
Accoun tg
Billing
Trading
Accou nt
Aggreg n
Proposal
Gention
Report-
ing
CoreEnvestnetCapabilities ADVISORNOW
4
Client
on-
boarding
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9/16
2015Envestnet,Inc.Allrightsreserved. Forhomeofficeandadvisor useonly.
5
Disclosure
The information contained in this document is for general guidance only. While we have made every attempt to ensurethat 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.
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RoboAdvisersPartII:DigitizingEffortsinOrdertoReach&EffectivelyOperatewiththeNextGeneration
GavinSpitzner,President
WealthConsultingPartners,LLC
MatthewR.Kane,Cofounder&ChiefNinja
Hedgeable
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Gavin SpitznerPresident of Wealth Consulting Partners, LLC
Gavin Spitzner is President of Wealth Consulting Partners, a boutique consultancy that advisesFinancial Institutions and their Providers on how to leverage technology and best practices inPortfolio Management, Goals-Based and Digital Advice to improve theclient experience and drive topline revenue and bottomline businessresults.
Gavin has more than 25 years of experience working in andconsulting to Fortune 500 companies with a breadth of experienceencompassing strategic consulting, business development, processreengineering, product development, digital strategy, marketing andprofessional development. He has partnered with numerous top 25U.S. and Global banks and broker-dealers to develop and implement
innovative investment management platform solutions leveraging modern technology andprocesses to improve business performance.
More information can be found on Gavins corporate website at wealthconsultingpartners.com.
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Matthew Kane Bio
Matthew is the co-founder and chief ninja of Hedgeable, a venture backed private banking
startup he started with his twin brother Mike with less than $100 in his bank account out of his
apartment when he was 24. Matt uses all of his covert product, strategy, and design ninja skills tosilently take down an industry of sleeping giants ripe for disruption. Some of the industry firsts
in the digital wealth space Matthew has been responsible for include:
- The first to offer tactical, risk managed accounts
- The first to offer bitcoin investing as an asset class
- The first to offer venture investing as an asset class
- The first to offer impact and socially responsible portfolios
- The first gamified wealth management platform
- The first rewards based loyalty program
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.
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10/7/20
782,000
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10/7/20
GavinSpitzner,President
Wealth Consulting Partners, LLC
September 28, 2015
13thAnnual UMA & Managed Accounts Summit
MatthewKane,CoFounderand
ChiefNinja
Wealth Management Strategy,
Design and Deployment
Attack of the Robos
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10/7/20
Attack of the Robos
Vanguard Personal Advisor Services
Attack of the Robos
Vanguard Personal Advisor Services
$
$$
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10/7/20
Attack of the Robos
Augmented Advice
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10/7/20
Attack of the Robot Unicorns
Responses from Traditional Advisors
Fear and Anxiety
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10/7/20
Responses from Traditional Advisors
Anger
Responses from Traditional Advisors
Ignore It
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10/7/20
Responses from Traditional Advisors
Happy?
14
How Robos Are Changing the GameEvolvingBank WealthManagementMetricsTheyre more objective and client-centric than you
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10/7/20
15
How Robos Are Changing the GameEvolvingBank WealthManagementMetrics
Theyre cheaper than you
16
How Robos Are Changing the GameEvolvingBank WealthManagementMetrics
Theyre easier to work with than you
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10/7/20
17
How Robos Are Changing the GameEvolvingBank WealthManagementMetrics
Theyre cooler than you
Modern Advisor executive
18
Whats Appealing to the Next Generation?EvolvingBank WealthManagementMetrics
Transparency
Low-Cost
FrictionlessExperience
Goal-BasedandHolistic
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10/7/20
19
Whats Appealing to the Next Generation?EvolvingBank WealthManagementMetrics
Goals-BasedAdvice
Tax-Optimization PersonalFinancialManagement
AccountAggregat ion
FinancialPlanning
Automatedinvestmentmanagement
Vault Reporting Online AccountOpening
Only Way Firm Can Deliver That Is
Both Scalable and Personalized isThrough Technology
20
Implications for Traditional Advice Providers
With portfolio
management and
trading becoming
commoditized at 25-50
basis points, the
spotlight is on advisors
to demonstrate theincremental value of
human advice
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10/7/20
Digital Advice Case Study: Hedgeable
22
Q&AEvolvingBank WealthManagementMetrics
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BuildingMomentum,CapturingMarketShare,andEffectiveStrategiestoRetainit
KeithW.Walker,President
FirstCitizensInvestorServices
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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.
KEITH WALKER
PresidentFirst Citizens Investor Services, Inc.
Keith Walker joined First Citizens Investor Services (FCIS), a subsidiary of First Citizens Bank, in2004 as a Regional Sales Manager. Currently serving as President of the Raleigh, N.C.-based firm, hisresponsibilities include oversight of a growing regional bank broker dealer with 44 registeredadvisors and almost $5 billion in assets under management. Since 2004, FCIS revenues havedoubled, 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 theYear.
During his time with the firm, Walker has played an integral role in the growth of the Fee BasedManaged Account Program at FCIS, which has grown assets under management from $75 million toits current size of $560 million. More importantly, the revenue produced by the program has grownfrom 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 Securitiesof South Carolina, which will result in a combined firm with 62 Financial Advisors, $7.5 billion inassets and $45 million in annual revenues.
Prior to joining First Citizens Investor Services, Walker held various positions, including advisor andmanagement 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 collegebasketball coach for eight years, drawing extensively on those same coaching principles to lead hismanagement team and sales force. He holds a bachelors degree in science from Mars HillUniversity.
September 2015
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TrackB:
Technology&Operations
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Chairperson
PaulG.Ahern,ManagingPrincipal Winslow
CapitalGroup,LLC
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleading
institutional
consulting
firm
for
the
bank
wealth
managementchannel. WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability. Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms
(TAMP);
and
Point
Solution
Models.
We
provide
niche
expertise
and
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
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
P a g e
1
Company(nocorporaterelationtoWinslowCapitalGroup,LLC). Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
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WhatDoesitTaketoAchieveScalability&Suitability?
PaulG.Ahern,ManagingPrincipal
WinslowCapitalGroup,LLC
TomKane,ManagingPrincipal
KaneCarlton,LLC
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
ProfessionalBiography
PaulG.AhernisthefoundingprincipalofWinslowCapitalGroup,LLC
(winslowcapitalgroup.com),aleading
institutional
consulting
firm
for
the
bank
wealth
managementchannel. WinslowCapitalGroup,LLCprovidesnicheexpertiseforbanksandtheir
affiliatesseekingtoachieveefficiencyandsustainableprofitability. Mr.Ahernhas30yearsof
experienceasahandsonpractitionerinbothabanktrustenvironment,andwithinRegistered
InvestmentAdvisers,thelast12yearasaleadingconsultanttobankswealthdivisionsandtheir
affiliates.
WinslowCapitalGroup,LLChelpsinstitutionalclientsmaketherightdecisiononvendor
selection;integrationofaffiliatedbusinesslines;streamliningsystemsofrecord;custody;
internalandexternalreporting;implementation&adoption;howtouseTurnKeyAsset
ManagementPlatforms
(TAMP);
and
Point
Solution
Models.
We
provide
niche
expertise
and
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
-
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WinslowCapitalGroup,LLC2012 AllRightsReserved www.winslowcapitalgroup.com
Telephone: 207.632.0215 EMail: [email protected]
P a g e
1
Company(nocorporaterelationtoWinslowCapitalGroup,LLC). Mr.Ahernbeganhis
investmentcareerasaFinancialConsultantwithMerrillLynch.
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A''#0.&7.#/> W?SEM> ?&*$#/9 X&$+' Y./&/0.&1 @/'7.7;7.#/'Z V3+0;7.2+' &/9 7%+ [#,7%
H&B#7&> I#;7% H&B#7&> O.//+'#7&> [+8 \#,B &/9 J.,6./.& R&/B+,' A''#0.&7.#/' #/ 8&*'
7# .$4,#2+ 7%+ 01.+/7 +34+,.+/0+> #,6&/.5&7.#/&1 +--.0.+/0.+' &/9 4,#-.7' :* $#9+,/.5./6
7%+., 8+&17% $&/&6+$+/7 #--+,./6
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OvercomingOperationalShortcomings
SimonAlgar,Consultant
WealthReports
DougBartels,VicePresident,WealthManagement
NorthernTrust
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Simon Algar is the principal of wealth-reports, a boutique management consulting firm. Simon has overtwenty years of capital markets experience and provides operating model definition, businesstransformation consulting and associated implementation support services to mid-large wealth managersand the technology and consulting firms that support them. Representative clients include AssetMark, theCapital 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 ITproduct company that he founded, grew and then recreated as a SunGard business. Prior experiencewas 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 StrathclydeUniversities and an MBA from Thunderbird.
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Doug Bartels, CFA | Vice President | Wealth Management
Functioning as a product manager responsible for overall management, leadership andoversight in the development and implementation of new and enhanced trust productsfocused around the emerging wealth management segments up through high net worth
individuals.
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TakingaCloseLookattheDOLRuleandResponsibilitiesanditsImpactontheIndustry
DanielR.Kleinman,Partner
MorganLewis&BockiusLLP
RichardD.Marshall,Partner
KattenMuchinRosenman
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ADMISSIONS
EDUCATION
SECTORS
SERVICES
DANIEL R. KLEINMANPARTNER
Washington, DC Phone +1.202.739.5143 Fax +1.202.739.3001
1111 Pennsylvania Ave. NW \\ Washington, DC 20004-2541 \\ United States
Daniel R. Kleinman advises businesses on the fiduciary 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 financial services to employee benefits
plans. Additionally, Daniel handles issues related to the regulation of broker-dealers and
investment advisers under US federal and state securities laws.
District of Columbia
New Jersey
Pennsylvania
Georgetown University Law Center, 2002, LL.M.
New York University, 1992, B.S.
Pennsylvania State University, Dickinson School of Law, 1997, J.D.
Financial Services
Technology
Securities and Corporate Governance
Mergers & Acquisitions
Investment Management
Private Equity
ERISA/Employee Benefits Litigation
ERISA Fiduciary Duty
http://morganlewis.com/services/securities-and-corporate-governancehttp://morganlewis.com/sectors/technologyhttp://morganlewis.com/locations/washington-dchttp://morganlewis.com/services/erisa-fiduciary-dutyhttp://morganlewis.com/services/erisaemployee-benefits-litigationhttp://morganlewis.com/services/private-equityhttp://morganlewis.com/services/investment-managementhttp://morganlewis.com/services/mergers-acquisitionshttp://morganlewis.com/services/securities-and-corporate-governancehttp://morganlewis.com/sectors/technologyhttp://morganlewis.com/sectors/financial-serviceshttp://morganlewis.com/locations/washington-dcmailto:%[email protected] -
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REGIONS
North America
http://morganlewis.com/regions/north-america -
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9/24/20
2015 Morgan, Lewis & Bockius LLP
DEPARTMENT OF LABOR FIDUCIARYRULE PROPOSAL
FINANCIAL RESEARCH ASSOCIATES LLC
MANAGED ACCOUNTS & UMA SUMMIT
Daniel R. Kleinman
September 28, 2015
What Happened?
October 22, 2010
Department of Labor (DOL) proposes Redefinition of Fiduciary
September 19, 2011
DOL announces intention to withdraw proposal
2013
GAO issues Rollover Report
Frontline report The Retirement Gamble
February 23, 2015
President Obama announces support for DOLs reproposal of ConflictedAdvice Rule
Rule sent to Office of Management and Budget for review
2
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9/24/20
What Happened? (Contd)
April 14, 2015 DOL publishes new proposed definition of fiduciary and exemption package
July 21, 2015