FRA Managed Accounts and UMA Summit_2015

7/24/2019 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


HeadofPortfolios&ModelsforInvestmentManagement


WalterHartford,CFA,SeniorVicePresident,Marketing

RyanLabsAssetManagement

11:4512:30 RepPMandUMAs:Qualifications,Performance,andExpectations

RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms




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



1:452:45 RoboAdvisersPartI: Threatening orFullof

Opportunity?

TomSelby,Partner

Marlin&Associates

AloisPirker,ResearchDirector

AiteGroup

RichDion,ExecutiveVicePresident,Strategic

Partnerships

Envestnet

WhatDoesitTaketoAchieveScalability&

Suitability?



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


ATwoPartAssetFlowDiscussion:

9:0010:00 PartI:SuccessfullyPositioningAlternativeInvestmentsinYourManagedAccount&UMAPlatform

Moderator:

PaulM.Weisenfeld,Partner

PerellaWeinbergPartnersLP

Panelists:



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





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

[email protected]


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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




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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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P a g e

1

Company(nocorporaterelationtoWinslowCapitalGroup,LLC). Mr.Ahernbeganhis

investmentcareerasaFinancialConsultantwithMerrillLynch.


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OpeningPanel:PlatformizationoftheIndustry: IntegratingPlatformsandReducingSilos

Moderator:

DanielleVerbrigghe,Reporter

FundFire

Panelists:



JasonB.Moore,ManagingDirector,HeadofAdvisoryPrograms



AiteGroup




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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





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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




WalterHartford,CFA,SeniorVicePresident,Marketing

RyanLabsAssetManagement


35/152


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


36/152


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RepPMandUMAs:Qualifications,Performance,andExpectations

RichardSlater,ExecutiveDirector,HeadofFAandClientDiscretionaryAdvisoryPrograms




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



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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


AiteGroup

Rich

Dion,

ExecutiveVicePresident,StrategicPartnerships

Envestnet


45/152

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.


49/152

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


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


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


51/152

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$



52/152

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


About Marlin & Associates


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


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


55/152

10/7/20


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


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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10/7/20


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


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


57/152

10/7/20


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


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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10/7/20


WhatdoesthismeanfortraditionalWMFirms?

Whiledigitaladvicestrategyforthemassaffluentisachoice,richdigitalclientengagementfortheHNWisbecomingamust!

Providingavalueadddigitalexperienceenrichedthroughinsightful/personalizedcontentandselfservicetools

Differentiatingdigitalservicebasedonclientsegmentandbehaviorisrecommendedtodeliverpersonalizedandrelevantdigitalservice Behavioralsegmentationoftheclientbaseisrecommended Adjustclientengagementlayerinresponsetoclientbehavior

Robustclientdatalayerisrequiredforagileclientengagement(Thebetterthedatalayerthemorerobusttheengagement!)

Financialadvisorsneedtobeabletoarticulatetheirvalue

proposition

outside

of

a

product

context Embracinggoalsbasedwealthmanagementisaperfectfullserviceandclientcentricresponse


Aite Group:Partner,

Advisor,

Catalyst

Aite(pronouncedeyetay)Groupisanindependentresearchand

advisoryfirmfocusedonbusiness,technology,andregulatoryissues

andtheirimpactonthefinancialservicesindustry.

AloisPirker

ResearchDirector

[email protected]

+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


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


61/152

9/16


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



MatthewR.Kane,Cofounder&ChiefNinja

Hedgeable


63/152

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.


64/152

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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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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Attack of the Robos

Vanguard Personal Advisor Services

Attack of the Robos

Vanguard Personal Advisor Services

$

$$


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Attack of the Robos

Augmented Advice


69/152

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Attack of the Robot Unicorns

Responses from Traditional Advisors

Fear and Anxiety


70/152

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Anger


Ignore It


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Happy?

14

How Robos Are Changing the GameEvolvingBank WealthManagementMetricsTheyre more objective and client-centric than you


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15

How Robos Are Changing the GameEvolvingBank WealthManagementMetrics

Theyre cheaper than you

16


Theyre easier to work with than you


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17


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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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


76/152

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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WhatDoesitTaketoAchieveScalability&Suitability?



TomKane,ManagingPrincipal

KaneCarlton,LLC


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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

[email protected]

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


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

FRA Managed Accounts and UMA Summit_2015

Documents

Transcript of FRA Managed Accounts and UMA Summit_2015