Media Coverage - 1998-1999

Tiburon executives have been quoted quite extensively throughout the industry and general media. Below is a list and brief synopsis of those articles from 1998-1999 that the Tiburon staff has been able to locate (Tiburon accepts that there are probably hundreds of other quotes circulating). These short summaries are intended to help prospective Tiburon clients, conference planners, and media representatives understand Tiburon's views on a wide variety of issues throughout the financial services industry. The extensive list of Tiburon quotes has required the use of multiple web site pages. Please click on the links below to view older or more recent article summaries.

2016-2017, 2014-2015, 2012-2013, 2010-2011, 2008-2009, 2006-2007, 2004-2005, 2002-2003, 2000-2001, & 1998-1999

Date Publication Article Title & Description
December 13, 1999 Investment News

Memphis Broker Takes Over Planner Consolidator
Wealth Trust has found a majority backer in Morgan Keegan. All full-service brokers want to move into fees. Tiburon quoted saying that the independent fee advisor channel is clearly the customer preferred method today. Morgan Keegan appears to be buying its way in.

December 10, 1999 Saint Louis Business Journal Renaissance Financial's Growth Leads to Building
As Renaissance Financial gets ready to start its sixth year in business, the financial consulting company will make a move into its new $2.5 million, 20,000 square-foot building. Tiburon quoted saying that the industry is growing rapidly.

December 1999 Financial Planning SunAmerica to Offer Succession Financing
With some surveys suggesting that as many as 30% of all financial planners are looking into retiring in the next few years; the potential loss of revenues hasn't been lost on independent broker/dealers. In the next few months, SunAmerica plans to roll out a formal succession program that would provide financing to reps. Tiburon quoted saying that it is a wise move for the independent broker/dealers to solve reps' liquidity issues and keep assets.

November 29, 1999 Investment News Geometry Group Hopes to Play Niche-Market Angles
A little known New York company that provides start up capital for money managers which specialize in niche markets, such as retired airline pilots or rich Europeans, is gearing up for an aggressive expansion with hopes of someday going public. Tiburon quoted saying that the niche marketing strategy is good.  That's a big part of where the industry is headed.

November 1, 1999 Investment News

Planners Picking Stocks Kick Funds in Fundament
There is a growing number of fee-based advisors who have begun to shift some money out of mutual funds in recent years. Tiburon quoted saying that it sees a growing number of planners starting to pick some equities.

November 1999 Investment News

Exchange Traded Funds Set to Explode on Market
Exchange-traded index funds have grown dramatically during the last year and, along with the growth of separate accounts, have played a significant role in the slowing flow of money into mutual funds. The growth of ETFs is occurring in an environment of increased friction between mutual fund companies and active financial advisors. Tiburon quoted saying that most fund companies view active financial advisors as market timers, day traders, or gamblers who trade too frequently. However, the article also utilized Tiburon research to note that active financial advisors now account for 10-20% of all fee-based advisors.

October 28, 1999 Financial Planning Most Planners Overvalue their Businesses
As the wave of consolidation continues, many financial planners have done zero succession planning and have inflated perceptions of the value of their own businesses. The article is a summary of a conference speech given by Tiburon's Managing Principal Chip Roame. The article quotes Tiburon as saying that value is a function of the future, not the past. The biggest reason deals fall through is because planners are not emotionally or financially prepared to sell their businesses.

October 4, 1999 Investment News

Going on Roll to Roll Up Fee-Based Planners
After months of studying the fee-based financial planner market, Canadian financial services company Assante Corp. is finally preparing to unveil a business model that it hopes will encourage advisers to sell. Tiburon quoted suggesting that Assante may succeed as the firm is capitalized, knows the advisor business, and has a technology platform and operations unit in RWB that can create synergies.

October 1999 Registered Representative Seven Deadly Myths
Article defines seven deadly myths about the financial services industry. Tiburon is quoted suggesting that the move from load to no-load is the move to independent advisors. About 60% of Schwab's OneSource business comes from independent advisors.

October 1999 Registered Representative

The Changing Adviser Landscape
Consolidator firms are buying up independent financial advisers and promising to deliver efficiencies and networking support. Article utilizes Tiburon research as background for summarizing the state of the industry.

October 1999 Registered Representative

Schwab to Recommend Stocks
In June 1999, David Pottruck, Charles Schwab & Co. co-CEO, stated that the firm would be offering individual stock recommendations within a year. Tiburon quoted saying that it can envision Schwab distributing factual information and historical data on stocks.  For many years Schwab has been looking more like Merrill Lynch, giving more help, advice, and tools.

August 30, 1999 Investment News

Schwab Aims to be Full of Beancounters
Charles Schwab & Co. is trying to build investment management interest, one group of accountants at a time. Starting in October, Schwab will sponsor "how to" seminars in Illinois where accountants are keen to handle assets. Tiburon research quoted suggesting that one-third of the nation's 60,000 CPA firms are contemplating the introduction of investment management services.

July 19, 1999 Investment News Buyout Binge Craps Out as Big Talkers Eat Words: Money Holding Things Up; Independence Also Figures
If industry buzz is a barometer, you'd think companies are buying up small independent money managers and financial advisors every day. But, many of these firms now admit they still haven't obtained the financing needed to back their ventures. Tiburon quoted as saying that there needs to be some logical synergy in the offer, such as cutting costs by eliminating redundant administration systems or boosting revenues by pairing a financial planner with an accountant or attorney and making cross-referrals.

June 28, 1999 Investment News At the Bell
A handful of financial planners who have formed an alliance to seek more clout with mutual fund supermarkets and other vendors is starting a membership drive. Tiburon Strategic Advisors headed the group's recruiting efforts focusing on firms that oversee at least $100 million.

May/June 1999 Financial Advisory Practice

Who is Buying Financial Advisory Practices?
There has never been such a flurry of interest in ownership, succession, and valuation as has occurred in the past year. The flurry seems to show a fair amount of motion and increasingly movement. Article notes that there are two firms especially well-positioned to serve this market: The first is Tiburon.

May 1999 Financial Planning Returned to Sender
To prevent good referrals from going bad, make sure that both you and your client know what you are getting into. Tiburon quoted saying that advisors need to spend more time educating their own clients about what makes them good clients and what types of referrals would be best served by working with them.

May 1999 Registered Representative Fee Fixation
Wall Street is fixated on fees, but the fee business is often misunderstood because of the lack of a consistent definition in industry. Tiburon is quoted saying that it considers fee revenue as coming from assets under management - 12b1s and C shares, nondiscretionary fee accounts, wrap-fee programs, and other advisory relationships.

March 15, 1999 Investment News

World Revolves Around Retail, So TCW Puts Galileo on Shelves
TCW Group, a heavyweight asset manager for pension funds, is the latest to expand its business to retail investors throughout the increasingly crowded financial advisor market. Tiburon quoted saying that institutional players entering the field of high-net-worth investors are doing well and are joining one of the fastest growing channels.

February 1, 1999 Registered Representative

The NASD’s Power Grab
The NASD is worried that brokers are playing a game of "regulatory arbitrage" - giving up their securities licenses to become investment advisors and thereby sidestepping strict SRO oversight for lax advisor supervision. Tiburon quoted saying that the fee-based advisor segment is growing by 36% per year and an estimated 1,800 new fee-based advisors went into business in 1996, and this high growth rate is expected to continue.

January 4, 1999 Investment News Classic Plan: Target Advisors to Wealthy
Nashville firm Wealth Trust obtained backing from soft-drink bottling centimillionaire Summerfield Johnston Jr. of Atlanta. Wealth Trust plans to buy up firms that manage securities in separate accounts for wealthy investors. Tiburon quoted saying that while more than 20 outfits have hung out shingles over the last 18 months as would-be acquirers of fee-based financial advisors, Tiburon data shows only 31 sales or mergers of such managers from 1995 through 1997.

November 1998 Financial Planning

Fees Versus Commissions: A Bear Market Showdown
There’s a Definite Trend Out There Toward Fees, But Does it Make Any Difference to Your Bottom Line? Many brokers who have shifted away from commissions over the past decade have indeed built a substantial base of assets and are doing quite well. But, how does the profitability compare? Fee-based pricing hasn't been tested by a sustained correction or a bear market, until now. Tiburon quoted as saying that fees at times can be more profitable for brokers if they calculate the time they put into working with a client. A broker may only have to meet with a client once a year and still collect a 1% fee. Tiburon suggests that we'll see unhappy people moving between fee-based brokers and commission-based brokers as they look for new help.

November 1998 Banking Strategies Prudence and Panic
Bank mutual funds must work harder... [Further Summary Coming Soon]

November 1998 Registered Representative The Future is Fees
This cover story features Chip Roame, Managing Principal of Tiburon Strategic Advisors in Tiburon, CA. Roame, a Schwab alumnus believes that Schwab's advisor services is a "booming model" for the future of the full-service industry and that the future is in fees.

October 29, 1998 On Wall Street

Many Brokers Who Have Shifted Away From Commissions Over the Past Decade Have Indeed Built a Substantial Base of Assets and Are Doing Quite Well
[Summary Coming Soon]

August 31, 1998 Investment News Q&A: Lynn Hopewell – The Average Person’s in No Position to Know How to Invest Completely
The article profiles Lynn Hopewell, one of the nation's most prominent advisors and a leader in the industry. Tiburon quoted saying that Hopewell's success is partly attributable to his systematic process for assessing client satisfaction by engaging third parties to conduct research as he knows that clients can be reluctant to make negative comments directly to their planners.

August 3, 1998 Investment News

H&R Block to Tackle Advice Field
H&R Block quietly has registered as an investment advisor and has set up prototype financial planning shops in three Ohio cities and one in Nashville, TN. Tiburon quoted saying that the middle-market is actually a good segment to go after for investment advice today mostly due to emergence of 401k plans. Focusing on consumer needs and offering consistent service will be key to success.

August 1, 1998 Financial Planning

Give ‘Em What They Want: You Can Beat the Competition by Better Understanding Client Buying Behaviors
Article written by Tiburon's Managing Principal Chip Roame. Profiles the competitive landscape for the financial services industry and specifically how to segment the financial advisor & investment manager market. Concludes with the three keys for being a successful advisor which starts with studying the buying behaviors of one's clients.

August 1998 Senior Consultant Marketing: The Independent Fee-Based Financial Advisor Industry: What is it, Where is it Going, and Why Might You Want to go Along?
The article is authored by Tiburon's Managing Principal Chip Roame and profiles the competitive landscape of the independent financial advisor segment, its trends, and the issues being faced today.

July 1998 Investment Advisor Top Heavy: Will Third-Party Management Boost up or Weigh Down Your Portfolio Returns?
Growth in turnkey asset management programs (TAMPs) has soared over the past few years. Tiburon quoted saying the popularity of these third-party money management programs can be attributed to several factors, including the tendency for former wirehouse brokers and CPAs to set up independent practices as financial advisors and that these professionals are not accustomed to picking stocks or funds on their own, making them prime candidates for TAMP services.

July 1998 Financial Planning

Money in Motion: Roughly 76% of Private Client Assets are With Brokers or Retail Banks
[Summary Coming Soon]

May 25, 1998 Investment News

Efficiency Versus Independence; Stalemate in Adviser Acquisitions
A fragmented legion of independent financial advisors controls a growing share of the retail investment business. Meanwhile, an increasing cadre of larger financial services companies is on the prowl to buy these firms. Tiburon quoted saying that bigger financial institutions are looking for recurring revenues such as those that financial planners bring in, and therefore consolidation will be inevitable. The article further quotes Tiburon as saying that not a lot of activity has occurred yet, but predicts that over the next five years it will increase.

May 1998 Bank Investment Marketing

The Next Target
[Summary Coming Soon]

April 1998 Financial Planning

Great Expectations: Looking for More Assets to Manage, Some Banks...
[Summary Coming Soon]


LINKS TO ARCHIVES FOR THE YEARS

2016-2017, 2014-2015, 2012-2013, 2010-2011, 2008-2009, 2006-2007, 2004-2005, 2002-2003, 2000-2001, & 1998-1999

The extensive list of Tiburon quotes has required the use of multiple web site pages. Please click on the links above to view older or more recent article summaries.