CEO Summit XIV Welcome & State of the Financial Services Industry Tiburon CEO Summit XIV New York,...
-
date post
20-Dec-2015 -
Category
Documents
-
view
221 -
download
5
Transcript of CEO Summit XIV Welcome & State of the Financial Services Industry Tiburon CEO Summit XIV New York,...
CEO Summit XIV Welcome &State of the Financial Services Industry
Tiburon CEO Summit XIVNew York, NYApril 10, 2008
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 2
Tiburon CEO Summit XIV – Vision & History
State of the Financial Services Industry
– Recap of the Semi-Annual News: Six Months of Amazing Industry News Stories
– Fundamental Industry Trends: Reinforcing Tiburon Research Findings
Leveraging Tiburon Strategic Advisors
Tiburon CEO Summit XIV – Schedule & Tactics
Outline
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 3
The Vision for Tiburon’s CEO Summits Has Not Changed Since CEO Summit I in 2001 (the M Financial Group Story)
Source: Tiburon Research & Analysis
“The financial services industry lacks a CEO level conference that runs across traditional industry
lines. I have come to realize that CEOs from many segments are dealing with the same issues from different perspectives. I have benefited greatly from hearing these perspectives, and Tiburon’s
clients would as well. My vision is probably most like Allen & Company’s Media Summit, as I
envision all CEOs attendees from just the financial services industry”
Tiburon CEO Summits Vision
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 4
Tiburon CEO Summit Themes
Tiburon’s CEO Summits Have Come to Support Two Key Themes, Including Challenging Conventional Wisdom and Maintaining a Consumer Orientation
Challenging Conventional Wisdom
Maintaining aConsumer Orientation
• Tiburon research leads with skeptical view of industry truths
• General session guest speakers encouraged to discuss the tough issues
• General session panel discussion leaders and break-out session leaders encouraged to stir up true discussion & debate
• Tiburon opening speech leads with consumer wealth
• Three general session panel discussions focus on levels of consumers
Source: Tiburon Research & Analysis
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 5
The Tiburon CEO Summit Planning Committee Deserves Recognition for Helping to Plan & Execute CEO Summit XIV; Thanks!
Source: Tiburon Research & Analysis
Tiburon CEO Summits Planning Committee
•Tom Lydon (Global Trends)•Scott MacKillop (Frontier Asset Management)•Kevin Malone (Greenrock Research)
•Kirk Michie (Triton Pacific)•Skip Schweiss (TD Ameritrade)•Gib Watson (Prima Capital Management)
•Tim Armour (Janus Capital Group)•Dennis Clark (Advisor Partners)•Tif Joyce (Joyce Financial Management)
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 6
Tiburon CEO Summit XIV Includes Nine Terrific Guest Speakers…
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIV Speakers
• John Hailer (CEO, Natixis Global Associates)
• Joe Moglia (CEO, TD Ameritrade)
• John Murphy (CEO, Oppenheimer Funds & Chairman, Investment Company Institute)
• Bob Pozen (Chairman, MFS Investment Management)
• Ron Ryan (CEO, Ryan ALM)
• Michael Steinhardt (Chairman, Wisdom Tree Investments)
• Walt Bettinger (President, The Charles Schwab Corporation)
• Mike Byrum (President, Rydex Investments)
• Joe Deitch (CEO, Commonwealth Financial Network)
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 7
Tiburon CEO Summit XIV Has Fifteen Terrific Sponsors who Made the Move to the Ritz Carlton Hotel Possible; Thank You!
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIV Sponsors
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 8
Tiburon CEO Summit XIV Has 150 Registered Attendees, All C-Level Executives & Executive Vice Presidents, and All Executives from Tiburon Client Companies
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIVAttendees
9 11 12 1624
7483 86
7077 75
107
150
108
CEOSummit I
CEOSummit
II
CEOSummit
III
CEOSummit
IV
CEOSummit
V
CEOSummit
VI
CEOSummit
VII
CEOSummit
VIII
CEOSummit
IX
CEOSummit
X
CEOSummit
XI
CEOSummit
XII
CEOSummit
XIII
CEOSummit
XIV
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 9
Tiburon CEO Summit XIV – Vision & History
State of the Financial Services Industry
– Recap of the Semi-Annual News: Six Months of Amazing Industry News Stories
– Fundamental Industry Trends: Reinforcing Tiburon Research Findings
Leveraging Tiburon Strategic Advisors
Tiburon CEO Summit XIV – Schedule & Tactics
Outline
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 10
The Past Six Months Has Brought Dozens of Amazing Financial News Stories (Leaving Aside Eliot Spitzer)
Source: Tiburon Research & Analysis
• Auction Rate Securities Market Collapse
• Money Market Fund Bailouts
• Stock Market Disaster• Senior Executive
Ousters• Wall Street Layoffs• Ratings Agency
Conflicts• Bond Insurers
Confusion• Consumer Mortgage
Defaults & Quasi Bailout
• Housing Values Down, Challenging the Liquefaction
• Financial Services Stocks Down (Even More than Others)
• Presidential (& Congressional Elections) & the Related Spin
• Proposed Regulatory Changes
• Pending Recession
• Sub-Prime Mortgage Write-Offs
• Capital Raising• Sovereign Wealth
Funds• The Bear Stearns
Companies• Societe Generale• Countrywide• Thornburg Mortgage• E*Trade Financial• Private Equity Industry
Collapse• Hedge Fund Troubles
Tiburon Semi-Annual News Review
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 11
The Most Recent Industry Headache of Sub-Prime Mortgages Seems to be Self-Created…
Source: Tiburon Research & Analysis
“The basic premise is that the investment banks create CDOs to buy risky paper, pool
those risks, and then sell those CDOs so that they can then go buy more risky
paper… And we are surprised when this business ultimately blows up?”
Tiburon View
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 12
The Write-Offs Have Been Staggering, Led by those at UBS, Merrill Lynch, & Citigroup
Note: Other write-offs have included Washington Mutual ($5.8 billion), JP Morgan Chase ($5.0 billion), Wachovia Corporation ($4.9 billion), CIBC ($4.1 billion), & Societe Generale ($3.8 billion)
Source: Tiburon Research & Analysis
Sub-Prime Mortgage CrisisWrite-Offs($ Billions)
$6.4
$6.5
$8.2
$9.0
$11.7
$12.4
$23.9
$25.1
$37.1
$6.4Deutsche Bank
Credit Suisse
Credit Agricole
Bank of America
IKD Deutsche
Morgan Stanley
HSBC
Citigroup
Merrill Lynch
UBS
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 13
The Sovereign Wealth Funds Stepped in to Solve Many Capital Issues, with Singapore Leading the Way, Taking Stakes in UBS, Citi, Merrill Lynch, & Barclays
Note: Other sovereign wealth fund investments included China in Bear Stearns ($1.0 billion) and Qatar in Credit Suisse ($0.5 billion)Source: Tiburon Research & Analysis
Sovereign Wealth Fund Investments($ Billions)
$2.0
$3.0
$4.4
$5.0
$5.6
$6.6
$6.8
$7.5
$9.8
$1.5China & Canada (CIBC)
Singapore (Barclays)
China (Barclays)
Singapore (Merrill)
China (Morgan Stanley)
Kuwait (Citi)
Korea & Kuwait (Merrill)
Singapore (Citi)
Abu Dhabi (Citi)
Singapore (UBS)
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 14
And We as a Country Feel the Need to Bail these Folks Out….
Source: Tiburon Research & Analysis
“The damage caused by a default by Bear Stearns could have been extremely difficult to contain. We did what we did because we
felt that it was necessary to sustain the viability of the American financial system”
- Ben Bernanke
Federal Reserve View
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 15
The Individuals Have the Same View, Seeking a Bail Out After their Gambles Went Wrong…
Source: Tiburon Research & Analysis
“How will you make us whole?”
- Bear Stearns Senior Managing DirectorQuestion to JP Morgan’s Jamie Dimon
Bear Stearns View
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 16
We May be Losing Perspective… $4.0 Billion was One of the Smaller Write-Offs…
Source: Tiburon Research & Analysis
“When is a good time to write off $4 billion (Deutsche Bank)? The same day that your
European neighbor (UBS) writes off $19 billion!”
- Wall Street Journal Reporter
Wall Street Journal Comment
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 17
And there Seemed to be a Clear Outcome Involving CEO Heads Rolling Until We Got to HSBC and Morgan Stanley….
Source: Tiburon Research & Analysis
“Am I the only one that noticed that the CEOs of HSBC and Morgan Stanley slipped
through as did every board of directors”
Tiburon View
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 18
Unfortunately, Tiburon’s Belief is that this is Going to Continue to Happen… What is Unclear About the Outcomes that will Result from the Compensation System?
Source: Tiburon Research & Analysis
“I am afraid that the investment banking compensation system incentivize
executives to take extreme risks (moral hazard). Just think back to the bonuses in the good years; do they give those back?
Then why not take another big risk?”
Tiburon View
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 19
$7.8$8.3
$9.3
$10.4$10.9
$9.6
2002 2003 2004 2005 2006 2007
Consumer Households Real Estate Equity
($ Trillions)
The Bigger Public Policy Issue Here is the Threat to Baby Boomers’ Ability to Retire; Lost Real Estate Equity Will Challenge the Liquefaction….
Source: 12/31/07 Federal Reserve Flow of Funds Report; 3/31/07 Federal Reserve Flow of Funds Report; Tiburon Research & Analysis
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 20
And on the Regulatory Front, the Skeptics are Not So Sure that the Power Should Go to the Federal Reserve…
Source: Tiburon Research & Analysis
“It is like giving a bigger shovel to the guy who dug the hole”
Chairman Chris Dodd View
- Chris DoddChairman, Senate Banking Committee
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 21
Tiburon CEO Summit XIV – Vision & History
State of the Financial Services Industry
– Recap of the Semi-Annual News: Six Months of Amazing Industry News Stories
– Fundamental Industry Trends: Reinforcing Tiburon Research Findings
Leveraging Tiburon Strategic Advisors
Tiburon CEO Summit XIV – Schedule & Tactics
Outline
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 22
#1: Tiburon’s Focus Has Recently Been Based on the Fact that US Households Control Almost Three-Quarters of All Investable Assets, Two-Thirds of that Invested Via Financial Advisors
Investable Assets by Market Segment
Consumer Assets Invested Via
Financial Advisors45%
Consumer Assets Invested Directly
25%
Retirement Plans, Endowments, &
Foundations30%
Source: Tiburon Research & Analysis
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 23
#2: More than Three-Quarters of Baby Boomers Over the Age of 55 Have Less Than $100,000 in Investable Assets…
Source: 2/3/05 New York Times; Tiburon Research & Analysis
Baby Boomers Over Age 55 by Investable Assets
<$100,00079%
>$100,00021%
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 24
$132.4
$184.7$174.9 $174.3
-$34.8
-$96.4-$82.3
Consumer Household Personal Savings($ Billions)
#3: Baby Boomers are Not Saving the Traditional Way…
Source: 3/31/07 Federal Reserve Flow of Funds Report; Tiburon Research & Analysis
2001 2002 2003 2004
2005 2006 2007
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 25
#4: Only 2% of Baby Boomers Will Receive an Inheritance of More than $100,000
Inheritance >$100,000
2%
Inheritance <$100,000
98%
Source: 2/04 Journal of Financial Planning; 8/12/01 US Bancorp Piper Jaffray Web Site (Gallup); 12/00 SunAmerica Brochure; 7/96 Commonwealth Club Newsletter; 2/19/96 US News & World Report; Tiburon Research & Analysis
Baby Boomers by Size of Inheritance
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 26
#5: And Most Underestimate Life Expectancies…
Source: 12/11/06 Investment News; 8/12/01 US Bancorp Piper Jaffray Web Site; 8/12/01 Allstate Brochure; 12/00 SunAmerica Brochure; 7/22/96 Business Week; Tiburon Research & Analysis
100+6%
90-9418%
85-8920%
95-9911%
65-8445%
65 Year Old Person Life Expectancy
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 27
#6: The Solution to the Perceived Savings Crisis is Baby Boomers’ Liquefaction, Including Retirement Plan Rollovers & Small Business Sales
Source: 6/07 Fisher Investments Brochure (Federal Reserve Flow of Funds Report); 3/31/07 Federal Reserve Flow of Funds Report; 1/22/04 McKinsey Quarterly; 5/22/02 Wachovia Presentation (Spectrem; McKinsey & Company); 5/9/02 Wachovia Bank Wealth Management Presentation (Blythe); 5/9/02 Spectrem Presentation (Doe); 8/14/01 Wall Street Journal; 7/01 Registered Rep (Cerulli); 6/19/00 Investment News; Tiburon Research & Analysis
Consumer Households Net Worth($ Trillions)
$56.3
$22.8
$12.2
$27.0
$7.5
InvestableAssets
RetirementPlan Assets
PersonalAssets
Other IlliquidAssets
TotalHousehold
Assets
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 28
#7: Mutual Funds are the Dominant Investment Product… Why all the Confusion and Sensational Reporting & Presentations?
Source: 3/05 ICI Web Site; 7/19/04 Barron’s; 4/04 Research (MMI); 12/15/03 Investment News (Cerulli); 7/03 Ticker; 5/27/02 Merrill Lynch Presentation (Cerulli) (Doe); 10/01 Investment Consulting News; 7/13/01 Cerulli Presentation (Strategic Insight) (Cerulli); 7/11/01 RunMoney Conversation (Jorgensen); 7/2/01 RunMoney Quarterly Report; 7/01 Financial Advisor; 6/25/01 Investment News; 4/01 AIM Brochure (Cerulli); Tiburon Research & Analysis
Leading Investment ProductsAssets Under Management
($ Billions)
$460 $720
$1,743 $1,800 $1,900
$3,000
$10,800
ExchangeTradedFunds
SeparatelyManagedAccounts
VentureCapital &PrivateEquity
Annuities HedgeFunds
LifeInsurance
(Cash Value)
MutualFunds
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 29
$8 $12 $15$26
$44
$70
$104
$150
2000 2001 2002 2003 2004 2005 2006 2007
Source: 1/23/07 Wall Street Journal (ICI); 1/07 Financial Advisor (FRC); Tiburon Research & Analysis
Target Date (Lifecycle) Mutual FundsAssets Under Management
($ Billions)
#8: The Target Date (Lifecycle) Mutual Funds Market is Booming… Tiburon May Stand Alone in Reality…
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 30
#9: Packaged Fee-Account Assets Have Grown Substantially Over the Past Eight Years to Over $1.5 Trillion; Gatekeepers Now Rule!
Source: 8/23/05 Fund Fire; 8/12/05 Mutual Fund Daily; 5/25/04 Money Management Executive (FRC); 4/04 Research (MMI); 2/10/04 MMI Press Release; 12/15/03 Investment News (Cerulli); 12/15/03 FRA Conference Brochure; 3/27/03 Wealth Management Letter; 3/10/03 American Banker; 9/30/02 IIR Conference Brochure (Cerulli); 9/23/02 Investment News; 8/7/02 Wealth Management Letter; 6/02 Ticker; Tiburon Research & Analysis
Packaged Fee-Account Assets($ Billions)
$82 $115 $117 $120$180
$235$356
$452
$662$769 $800
$927
$1,081
$1,208
$1,500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 31
#10: Exchange Traded Funds are the Most Significant Product Development Since Mutual Funds in the 1940s
Source: 1/8/07 Investment News (SSGA); 1/23/06 Ignites Email (ICI); 1/18/06 Dow Jones Email (Ryan); 12/19/05 Rydex Investments Brochure (ICI); 11/30/05 ICI Web Site;11/9/05 Morgan Stanley Analyst Report; 10/24/05 Investment News; 10/05 Research; 9/12/05 New Millennium Advisors Presentation (Carty) (ICI); 8/29/05 Investment News (ICI); 8/05 Morgan Stanley Analyst Report (Bloomberg); 7/12/05 IIR Conference Brochure; Tiburon Research & Analysis
Exchange Traded Fund Assets($ Billions)
$1 $7 $20 $36$70 $83
$102
$151
$226
$290
$407
$578$608
1993 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 32
#11: US Hedge Funds Assets Under Management Have Grown Significantly to Almost $2 Trillion But are Sputtering
US Hedge FundsAssets Under Management
($ Billions)
Source: 1/18/08 Hedge Fund Review (Hedge Fund Research); 7/31/07 Bloomberg Web Site (Bhaktavatsalam); 3/21/07 American Banker Online (Hedge Fund Net) ; 3/19/07 Investment News; 3/6/06 Business Week (Hedge Fund Research); 12/5/05 Money Management Executive (Hedge Fund Research); 10/15/05 Financial Times; 6/8/05 Wall Street Journal; 1/5/05 Wall Street Journal (Hennessee); Tiburon Research & Analysis
$55$200
$435$500
$600$750
$980
$1,530
$1,900 $1,870 $1,900
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 33
#12: For the Vast Majority of Consumer Households, the Twin Retirement Challenges Revolve Around Health Care & Retirement Income
Source: Tiburon Research & Analysis
Consumer Household Retirement Challenges
Retirement Income
• Annuities• Reverse mortgages• Other ideas to tap into home values• Government intervention?
Health Care
• Cost up twice as fast as overall costs
• Employer coverage down
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 34
Life and P&C Insurace Agents
(87,609)23%
Bank Brokers & Trust Officers
(82,729)22%
Independent Reps (82,306)
22%
Wirehouse, Other National, Regional, &
Boutique Brokers (92,648)
23%
Partners at Fee-Only Financial Advisor
Firms (30,024)8%
Discount Broker & Mutual Fund
Company Reps (6,951)
2%
Financial Advisors By Market
#13: Close to 400,000 Financial Advisors are in the Market; the Numbers of Brokers, Insurance Agents, Bankers, & Independent Reps are Each About the Same
Source: 7/25/05 Forbes; 6/05 Research; 2/21/05 Money Management; 2/04 Registered Representative; 11/24/03 Cerulli Edge; 2/9/00 Prima Capital Meeting (Watson); 1/00 Prima FA, CPA, & FO Interviews; 12/10/99 Prima Capital Conversation (McColl); Tiburon Research & Analysis
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 35
#14: But Independent Advisors Collectively Continue to Outgrow the Competition…
Client Assets Annual Growth Rate by Market(1995 - 2007)
Source: 7/19/04 Federal Reserve Bulletin; 12/97 Securities Industry Yearbook; 7/22/97 American Banker; 5/12/97 Pensions & Investments; 3/97 Federal Reserve Bulletin; 12/96 ACLI Life Insurance Factbook; 11/95 Best’s Review; Tiburon Research & Analysis
18%
14%
11%9%
3%2%
Fee-OnlyFinancial Advisors
Independent Reps Discount Brokers& Mutual Fund
Companies Direct
Wirehouses,Regional, &
Boutique Brokers
Retail Banks &Bank Trust
Officers
Life and P&CInsurance
Companies
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 36
Source: Tiburon Research & Analysis
#15: Fidelity Investments Has Become the Largest Financial Services Firm and Soon Schwab Will Move into Second Place, Signaling the Growth of New Business Models
Financial Services Firmsby Client Assets Under Administration
($ Trillions)
$1.1
$1.4
$1.5
$1.6
$1.0Bank of America
Citi
The CharlesSchwab
Corporation
Merrill Lynch
FidelityInvestments
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 37
Global Mutual Funds Assets Under Management By Product Type
#16: For Product Companies, it is Worth Noting that Non-US Mutual Funds Assets Under Management Have Surpassed those of US Mutual Funds
Source: 4/3/08 ICI Web Site; 11/07 ICI Web Site; 5/28/07 Strategic Insight Email (Nachmany); Tiburon Research & Analysis
58% 59% 60% 56% 53% 50% 50% 48% 44%
42% 41% 40% 44% 47% 50% 50% 52% 56%
1999 2000 2001 2002 2003 2004 2005 2006 2007
US Mutual Funds
Non-US Mutual Funds
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 38
$2 $3 $5 $6$10 $12
$20$25
$27$32
$43
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: 7/26/07 Fisher Investments Meeting (Ornani); 7/19/07 San Francisco Chronicle; 7/18/07 Fisher Investments Web Site; 7/18/07 Fisher Investment Email (Ornani); 7/18/07 Wikipedia Web Site; 7/16/07 San Francisco Chronicle; 7/15/07 Bob Veres Newsletter; 6/20/07 Wall Street Journal; 7/27/06 Fisher Investments Meeting (Ornani); 6/14/06 Fisher Investments Email (Ryan); 4/21/06 Fisher Investments Email (Fisher); Tiburon Research & Analysis
Fisher Investments Assets Under Management($ Billions)
#17: And for Financial Advisors, it is Worth Understanding the Model of the Fastest Growing Independent Financial Advisor
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 39
204 250 241289 335
802
681
809870
787
923996
1985 1986 1987 1988 1989 2001 2002 2003 2004 2005 2006 2007
Financial Services Industry Mergers & Acquisitions
#18: At an Institutional Level, Mergers & Acquisitions were Booming But Have Slowed Dramatically in 2008 Due to the Credit Crisis
Source: 1/20/08 Thomson Financial Analysis; 4/91 McKinsey Quarterly; Tiburon Research & Analysis
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 40
Source: Tiburon Research & Analysis
#19: Management Theories can Often be Applied at Various Levels throughout the Financial Services Industry
Tiburon Strategic Thoughts
Confusing % & $Target Marketing
• Full-service brokers versus RIAs
• Mutual funds versus separate accounts
• Hanson McClain Retirement Network
• CMS Companies• Clearly Gull• Rydex• Pro Funds• DFA
Bifurcation
• Retail banks• Full-service brokers• Mutual funds• Financial advisors
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 41
#20: Tiburon Summary Conclusions….
Source: Tiburon Research & Analysis
Tiburon Summary Conclusions
Context SettingInvestment &
Financial Advice
News Noise• Investment bank
write-offs• Ratings agencies• Bond insurers• Sovereign wealth
funds• Eliot Spitzer
Fundamental Trends• Savings crisis• Liquefaction• Long lives
Investment Advice• Mutual funds• Fee-accounts &
unified managed accounts (gatekeepers)
• Polarization
Wealth Management• Health care• Retirement
income• Estate planning• Charitable giving
Markets & Distribution Channels
• Fidelity & Schwab becoming #1 & #2
• International markets now surpass US markets
Financial Advisors
Fisher Investments• Advertising• Client retention• Asking for
incremental funds• Clear
accountability & metrics
Everyone Else• Should be…
segment marketing & asking for client referrals
• Actually…
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 42
Tiburon Q&A….
Source: Tiburon Research & Analysis
Q&A
Tiburon Q&A
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 43
Tiburon CEO Summit XIV – Vision & History
State of the Financial Services Industry
– Recap of the Semi-Annual News: Six Months of Amazing Industry News Stories
– Fundamental Industry Trends: Reinforcing Tiburon Research Findings
Leveraging Tiburon Strategic Advisors
Tiburon CEO Summit XIV – Schedule & Tactics
Outline
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 44
Tiburon Value Proposition….
Source: Tiburon Research & Analysis
“Research-based strategy consulting for financial services
firms”
Tiburon Value Proposition
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 45
Source: Tiburon Research & Analysis
Tiburon Delivers Research & Strategy Consulting Services, Packaged in Three Primary Ways, Including Reports, Seminars, & Projects
Tiburon Core Business Services
Research Reports & Retainer
Market Seminars & Conference Speeches
Market Research &
Strategy Consulting
Projects
Core Research
Engine
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 46
Tiburon CEO Summit XIV – Vision & History
State of the Financial Services Industry
– Recap of the Semi-Annual News: Six Months of Amazing Industry News Stories
– Fundamental Industry Trends: Reinforcing Tiburon Research Findings
Leveraging Tiburon Strategic Advisors
Tiburon CEO Summit XIV – Schedule & Tactics
Outline
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 47
Tiburon CEO Summit XIV Includes Nine Terrific Guest Speakers…
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIV Speakers
• Michael Steinhardt (Chairman, Wisdom Tree Investments)
• John Murphy (CEO, Oppenheimer Funds & Chairman Investment Company Institute)
• Mike Byrum (President, Rydex Investments)
• John Hailer (CEO, Natixis Global Associates)
• Joe Deitch (CEO, Commonwealth Financial Network)
• Joe Moglia (CEO, TD Ameritrade)
• Walt Bettinger (President, The Charles Schwab Corporation)
• Ron Ryan (CEO, Ryan ALM)
• Bob Pozen (Chairman, MFS Investment Management)
Public Policy Products Management
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 48
We Also Have a Thoughtful Set of Three General Session Panel Discussions, Shining the Light on Clients…
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIVGeneral Session Panel Discussions
Ask the Distributors(Tim Armour)
• Financial advisor product needs?
• Distributor access strategies?
• Financial advisor wholesaling strategies?
Ask the Consumers(Tif Joyce)
• Needs from financial advisors?
• Needs from financial institutions?
• Why so many self-serve consumers?
Ask the Advisors(Dennis Clark)
• Evolving product use (or not)?
• Sales & marketing strategies or lack thereof?
• Technology use or lack thereof?
• Views re succession planning?
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 49
And Finally, the Tiburon CEO Summit Schedule is Designed to Foster Discussion Time…
Source: Tiburon Research & Analysis
Tiburon CEO Summit XIV Discussion Time
Lunches & Dinners
• Last night• Today’s lunch• Tonight!• Tomorrow’s lunch• Tomorrow night
Thirty Minute BreaksFriday Afternoon
Break-Out Sessions
• Retirement Income Products
• Separately Managed Accounts
• Registered Investment Advisors
• Goal is to share views with other attendees
• Even disagree with me; that’s fine…
08.04.10 – Tiburon CEO Summit XIV © Tiburon Strategic Advisors, LLC™ 50
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 300 corporate clients and
completed over 1,000 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