Tiburon has held fourteen prior CEO Summits, with the first CEO Summit taking place in July 2001. Tiburon CEO Summits will continue to be held semi-annually. Details of Tiburon CEO Summits VIII-XIV are below; click here for details of earlier Summits.

Tiburon CEO Summit XIV: April 10-11, 2008

Tiburon CEO Summit XIV was held April 10-11 2008 in New York, NY. The Summit started at 7:45am on Thursday, April 10, included a group dinner that night in downtown New York, and finished at 4:00pm on Friday, April 11. Over 100 senior industry executives took two days out of their busy schedules to participate. Chip Roame (Managing Principal, Tiburon Strategic Advisors), Walt Bettinger (President, The Charles Schwab Corporation), Mike Byrum (President, Rydex Investments), Joe Deitch (CEO, Commonwealth Financial Network), John Hailer (CEO, Natixis Global Advisors), Joe Moglia (CEO, TD Ameritrade), John Murphy (CEO, Oppenheimer Funds), Bob Pozen (Chairman, MFS Investment Management), Ron Ryan (CEO, Ryan ALM), & Michael Steinhardt (Chairman, Wisdom Tree Investments) made general session presentations. Three general session panel discussions included a consumers panel, an advisors panel, and a distributors panel.

Attendees

• Chip Roame (Managing Principal, Tiburon Strategic Advisors)
  
• Tim Armour (Board Member, Janus Capital Group)
  
• Chris Armstrong (Executive Vice President, Private Client Group, TD Ameritrade, TD Bank Financial Group)
  
• Chuck Baldiswieler (Group Managing Director, TCW Advisor Group & Private Client Services, Trust Company of the West (TCW), Societe Generale)
  
• Bob Beriault (President, Fiserv Trust Company, Fiserv)
• Brad Bernstein (Partner FT Ventures)
  
• Walt Bettinger (President, The Charles Schwab Corporation)
  
• Steve Bodurtha (Vice Chairman, Global Wealth Management, Private Client Group Products, Merrill Lynch)
• Tom Bradley (President, TD Ameritrade Institutional Services, TD Ameritrade, TD Bank Financial Group)
  
• Derek Bruton (CEO, LPL Affiliated Broker/Dealers, Independent Advisor Services, LPL Financial Services)
  
• Mike Byrum (President, Rydex Investments, Security Benefit Group)
  
• John Cammack (Head, Third-Party Distribution, T. Rowe Price Group)
  
• Sal Capizzi (Chief Sales & Marketing Officer, Dunham & Associates Investment Counsel)
• Frank Campanale (CEO, Advanced Equities Wealth Management, Advanced Equities Corporation)
• Amit Choudhury (Managing Principal, Pinnacle Partners)
  
• Dennis Clark (CEO, Advisor Partners)
  
• Steve Cohen (Managing Director, ProFund Advisors)
• Ron Cordes (Chairman, Asset Mark Investment Services, Genworth Financial Asset Management, Genworth Financial)
  
• Kelly Coughlin (CEO, Global Bridge)
• Trish Cox (Chief Operating Officer, Schwab Institutional, The Charles Schwab Corporation)
  
• Bill Crager (President, Advisory Services, Envestnet Asset Management)
  
• Ben Cukier (Partner, FT Ventures)
  
• Wayne Cutler (Managing Director, Brokerage, Novantas)
• Cliff D'Amato (Matrix Settlement & Clearance Services (MSCS), MG Colorado Holdings
  
• Dick Davies (Senior Managing Director, Defined Contribution, Alliance Bernstein Institutional Investments, Alliance Bernstein, Axa Group)
  
• Chris Davis (President, Money Management Institute)
  
• Joe Deitch (CEO, Commonwealth Financial Network)
  
• Steve Deschenes (Chief Marketing Officer, Retirement Income Group, Mass Mutual Financial Group)
  
• Mike DiGirolamo (Managing Director, Investment Advisors Division, Raymond James Financial Services, Raymond James)
  
• Bob Drake (Chief Operating Officer, US Fiduciary)
  
• Jeffrey Dunham (CEO, Dunham & Associates Investment Counsel)
  
• Mitch Eichen (CEO, The MDE Group)
  
• Martuza Ferdous (President, E Pluribus, Open Finance Network)
  
• Rob Foregger (Chairman, Internet Bank, Personal & Workplace Investing, Fidelity Investments)
  
• Mike Gianoni (Executive Vice President, Check Free Investment Services, Check Free Corporation, Fiserv)
  
• David Giunta (CEO, US Distribution, Natixis Global Associates, Natixis, Banque Populaire Group & Caisse D’Epargne Group)
  
• Eric Godes (Chief Operating Officer, Kobren Insight Management, E*Trade Financial)
  
• Charles Goldman (Executive Vice President, Schwab Institutional, The Charles Schwab Corporation)
  
• Craig Gordon (CEO, RBC Dain Correspondent Services, RBC Wealth Management, Royal Bank of Canada)
  
• Chris Grady (President, Retirement Income Business, Genworth Financial)
  
• Steven Graubart (CEO, US Fiduciary)
  
• Larry Greenberg (CEO, Jefferson National Financial)
  
• Keith Gregg (CEO, First Allied Securities, Advanced Equities Financial Corporation)
  
• Doug Grip (Head, Non-US Private Wealth Management, Goldman Sachs International, Goldman Sachs Group)
  
• Matt Grove (Chief Marketing Officer, Jefferson National Financial)
  
• Eve Guernsey (CEO, JP Morgan Asset Management Americas, JP Morgan Chase)
  
• John Hailer (CEO, Natixis Global Asset Management, Natixis, Banque Populaire Group & Caisse D'Epargne Group)
  
• Keith Hartstein (CEO, John Hancock Funds, John Hancock Financial Services, Manulife Financial)
• JoNell Hermanson (President, M Wealth, M Financial Group)
  
• Rich Hughes (Executive Vice President, Portfolio Management Consultants, Envestnet Asset Management)
  
• Bob Huret (Partner, FT Ventures)
  
• Denise Iverson (Chief Financial Officer, Dunham & Associates Investment Counsel)
  
• Bryce James (CEO, Smart Portfolios)
  
• Alistair Jessiman (Managing Director, Wealth Management, Novantas)
  
• David Johnson (Partner, Harpeth Partners)
• Jim Johnson (Partner, Apex Venture Partners)
  
• Tif Joyce (President, Joyce Financial Management)
  
• Stephen Langlois (Executive Vice President, Strategic Planning, LPL Financial Services)
  
• David Lau (Chief Operating Officer, Jefferson National Financial)
  
• Greg Leekley (CEO, Open Finance Network)
  
• Chuck Lewis (CEO, My Vest Corporation)
  
• Tom Lydon (President, Global Trends Investments)
  
• Scott MacKillop (President, Frontier Asset Management)
  
• Larry Maffia (President, ICI Mutual Insurance Group, Investment Company Institute)
  
• Norm Malo (CEO, National Financial Services Corporation, Fidelity Investments)
  
• Kevin Malone (President, Greenrock Research)
  
• Billy McCarter (President, Majesco Mastek, Mastek)
  
• Jim McCool (Executive Vice President, Schwab Corporate & Retirement Services, The Charles Schwab Corporation)
  
• Bill McGovern (CEO, BD Search)
• Chris Meyers (Executive Vice President, Gartmore, Nationwide)
  
• Kirk Michie (Director, Triton Pacific)
  
• Sanjiv Mirchandani (President, Fidelity Personal Investing, Fidelity Investments)
  
• Joe Moglia (CEO, TD Ameritrade, TD Bank Financial Group)
  
• Viggy Mokkarala (Executive Vice President, Envestnet Asset Management)
  
• John Moody (President, Matrix Settlement & Clearance Services (MSCS), MG Colorado Holdings)
  
• Kathryn Morrison (CEO, Sun Star)
  
• John Murphy (CEO, Oppenheimer Funds, Mass Mutual Financial Group)
  
• Jim Nagengast (Chief Operating Officer, Securities America, Ameriprise Financial)
  
• Greg Pacholski (CEO, Albridge Solutions, PNC)
  
• Patrick Pagni (Executive Vice President, Trust Company of the West (TCW), Societe Generale)
  
• John Peluso (President, Wachovia Securities Financial Network, Wachovia Securities, Wachovia Corporation)
  
• Don Phillips (Managing Director, Corporate Strategy, Research, & Communications, Morningstar)
  
• Bob Pozen (Chairman, MFS Investment Management, Sun Life of Canada)
  
• Andy Putterman (CEO, Fortigent, Lydian Trust Company)
  
• Alan Reid (CEO, Forward Management)
  
• Brian Reid (Chief Economist, Investment Company Institute)
  
• Neal Ringquist (President, Advisor Software)
  
• Chuck Robinson (CEO, Robinson Retirement Resources)
  
• Tony Rochte (Senior Managing Director, Intermediary Business, State Street Global Advisors, State Street Corporation)
  
• John Rooney (Managing Principal, Commonwealth Financial Network)
  
• Ron Ryan (CEO, Ryan ALM)
  
• Neeraj Sahai (Global Business Head, Securities & Fund Services, Global Transaction Services, Corporate & Investment Banking, Citigroup)
  
• Michael Sapir (CEO, ProFund Advisors)
  
• Elaine Sarsynski (Executive Vice President, Retirement Resources, Mass Mutual Financial Group)
  
• Ken Schapiro (President, Condor Capital Management)
• Christina Schatz (Senior Portfolio Manager, Wealth Management, Smith Barney, Citigroup)
  
• Bob Schulman (Chairman, Tremont Group Holdings, Mass Mutual Financial Group)
  
• Ray Sclafani (President, Client Wise)
  
• Skip Schweiss (Chief Operating Officer, TD Ameritrade Trust Company, TD Ameritrade, TD Bank Financial Group)
  
• Beth Segers (Managing Director, Market Planning & Development, Putnam Investments, Power Corporation of Canada)
• Alan Seigerman (Chief Operating Officer, ReFlow Management, Forward Management))
  
• Jamie Shepherdson (President, Axa Distributors, Axa Group)
  
• Dave Short (Chairman, American Funds Distributors, Capital Group Companies)
  
• David Smilow (Chairman, Jefferson National Financial)
  
• David Smith (Group Publisher, Financial Advisor & Private Wealth Magazines, Charter Financial Publishing Network)
  
• Mike Smith (CEO, New York Bankers Association, American Bankers Association)
  
• Frank Speno (Senior Managing Director, US Service & Sales, Alliance Bernstein, Axa Group)
  
• Al Steele (CEO, Bellatore)
  
• Anne Steer (Executive Vice President, Relationship Management, National Financial Services Corporation, Fidelity Investments)
  
• Michael Steinhardt (Chairman, Wisdom Tree Investments)
  
• Jonathan Thomas (CEO, American Century Investments, JP Morgan Chase)
  
• Allen Thorpe (Managing Director, Hellman & Friedman)
  
• Mark Tibergien (CEO, Pershing Advisor Solutions, Pershing, The Bank of New York Mellon Corporation)
  
• Frank Trotter (President, Ever Bank Direct, Ever Bank Financial)
  
• John Tyers (Senior Managing Director, Broker/Dealer Clearing & Investment Advisor Services, The Bear Stearns Companies)
  
• Enrique Vasquez (CEO, Genworth Financial Investment Services, Genworth Financial)
  
• Carl Verboncoeur (CEO, Rydex Investments, Security Benefit Group)
  
• Gib Watson (CEO, Prima Capital Management, Prima Capital Holding, MG Colorado Holdings)
  
• John Watts (Chairman Emeritus, Fischer, Francis, Trees, & Watts, BNP Paribas Asset Management, BNP Paribas)
  
• Scott Welch (Senior Managing Director, Investment Research & Strategy, Fortigent, Lydian Trust Company)
  
• Leo Wells (CEO, Wells Real Estate Funds)
  
• George Wilbanks (Managing Director, Asset & Wealth Management Practice, Russell Reynolds Associates)
  
• Mike Wilson (Executive Vice President, Strategic Growth Group, State Street Global Advisors, State Street Corporation)
  
• Wayne Withrow (Executive Vice President, Advisor Network, SEI Investments)
• Kurt Wolfgruber (President, Oppenheimer Funds, Mass Mutual Financial Group)
  
• Neil Wolfson (President, Wilmington Trust Investment Management, Wilmington Trust)
  

Media Representatives List

Select media representatives are permitted to attend Tiburon's CEO Summits. The media representatives for CEO Summit XIV included:

• Bob Huebscher (CEO, Advisor Perspectives)
  
• John Wasik (Columnist, Personal Finance, Bloomberg News, Bloomberg)
  
• Evan Simonoff (Editorial Director, Financial Advisor Magazine, Charter Financial Publishing Network)
  
• Jim Wiandt (CEO, Index Publications, Charter Financial Publishing Network)
  
• Stacy-Marie Ishmael (Reporter, Financial Times Group)
  
• Chris Sandlund (Executive Editor, FundFire & Ignites, Money-Media, Financial Times Group)
  
• Tom Stabile (Senior Reporter, Fund Fire, Money-Media , Financial Times Group)
  
• Bob Veres (Editor, Inside Information)
  
• Jacob Daniels (Reporter, Fund Action, Institutional Investor)
• Julie Segal (Senior Writer, Institutional Investor)
  
• Lori Pizzani (Editor, Lori’s Stories)
  
• Susan Craig (Reporter, The Wall Street Journal, Dow Jones & Company, News Corporation)
  
• Diya Gullapalli (Reporter, Money & Investing Section, The Wall Street Journal, Dow Jones & Company, New Corporation)
  
• Jane Kim (Reporter, The Wall Street Journal, Dow Jones & Company, News Corporation)
  
• Kristen McNamara (Reporter, Dow Jones Newswires, Dow Jones & Company, New Corporation)
  
• Leslie Norton (Asia Editor, Barron’s, Dow Jones & Company, News Corporation)
  
• Leslie Scism (News Editor, Journal Reports, The Wall Street Journal, Dow Jones & Company, News Corporation)
  
• Kristen French (Managing Editor, Registered Rep, Penton Business Media)
  
• Marion Asnes (Editor-in-Chief, Financial Planning Magazine, Source Media)
• Pam Black (Editor-in-Chief, Bank Investment, Source Media)
  
• Carol Curtis (Special Reports Editor, Securities Industry News, Source Media)
  
• Fran McMorris (Editor-in-Chief, On Wall Street, Source Media)
  
• Richard Koreto (Editor-in-Chief, Wealth Manager & Advising Boomers, Highline Media, Summit Business Media, Wind Point Partners)
  
• Janet Levaux (Managing Editor, Research, Highline Media, Summit Business Media, Wind Point Partners)
  
• Nancy Mandell (Managing Editor, Wealth Manager, Highline Media, Summit Business Media, Wind Point Partners)

Opening Keynote Presentation: Chip Roame (Managing Principal, Tiburon Strategic Advisors)

US households control almost three-quarters of all investable assets, more than half invested via financial advisors
Three-quarters of baby boomers over the age of 55 have less than $100,000 in investable assets and the consumer households' savings rate continues to hit new all time lows
Baby boomers have not saved in the traditional way, with many assuming they would liquefy the equity in their houses, but declining house values may now challenge this strategy
The median value of baby boomers' inheritance is only $48,000; very few receive more than $100,000
The savings crisis is further driven by the risk of baby boomers living too long, with estimates that more than half of 65 year olds will reach age 85 and over one-third will reach 90; amongst 65 year old couples, there is a 50% chance that one (or both) will live another twenty-five years
Consumer households have almost $23 trillion of investable assets, $35 trillion of financial assets, and $70 trillion of total assets, with an important distinction between the high dollar average and the much lower median amounts
Hence, the solution to the perceived savings crisis will be baby boomers' liquefaction of their retirement plan assets, personal assets, and other illiquid assets, such as the rollover of 401k plan balances, the sale of houses, and the sale of private businesses

Close to 400,000 financial advisors are in the market, including about equal numbers of wirehouse & other employee brokers (92,000), life & property & casualty insurance agents (87,000), bank brokers & trust officers (82,000), and independent reps (also 82,000)
Wirehouse and retail banks continue to dominate control of consumer investable assets (31% and 27% respectfully) but independent advisors continue to outgrow the competition (18% assets growth rate for fee-only financial advisors and 14% for independent reps)
Fidelity Investments recently surpassed Merrill Lynch as the largest financial services firm when ranked by client assets, and Schwab will also surpass Merrill Lynch at current growth rates in the next year, further evidencing the growth in new channels (discount brokerage, fee-only financial advisors, and independent reps)
Mr. Roame also pointed to an important international trend for product companies, noting that non-US mutual funds assets under management have surpassed those of US mutual funds

On a more tactical level, Mr. Roame noted it is worth understanding the model of the largest independent financial advisor, Fisher Investments, with over $43 billion assets under management: nearly everything that Fisher Investments does (eg, marketing, staffing, compensation, etc) is outside of the norm
As competition heats up, Mr. Roame said that the game will increasingly be won through marketing. Mr. Roame argued that client retention and consolidation is now more critical as baby boomers liquefy their wealth
Returning to his case example, Mr. Roame noted that Fisher Investments is not only the largest but also the fastest growing independent financial advisor, utilizing a well refined direct mail machine as well as other substantial marketing efforts to gather assets and spending over $50 million per year on advertising, but with a 97% retention rate Fisher Investments also doesn't lose the assets collected

Strategic Conclusions

Institutional level mergers & acquisitions were booming but have slowed dramatically in 2008 due to the credit crisis
There is also a substantial bifurcation happening in all businesses (e.g., banking, brokerage, mutual funds), with Mr. Roame utilizing the asset management business as an example, where a handful of firms (e.g. American Funds, Vanguard, Fidelity Investments) exceed $1 trillion assets under management, but 84% of all mutual fund companies manage less than $10 billion
Mr. Roame noted that several companies have utilized target marketing to successfully grow their companies, including Hanson McClain Retirement Network, CMS Companies, & Clearly Gull at a financial advisor level, and both Rydex and DFA at the institutional level
Finally Mr. Roame cautioned all of the CEO attendees that in order to keep a proper perspective it is important to not confuse high growth percentages with dollar growth rates. The fastest growing products and channels may get the most news but it is all relative to the dollar amount from which they are starting. For instance he pointed out that in dollar terms full-service brokers are outgrowing fee-based financial advisors and mutual funds are outgrowing separately managed accounts

Tiburon Strategic Advisors

After concluding his opening remarks on the State of the Industry, Mr. Roame took a few minutes to discuss Tiburon. In updating the group of clients on Tiburon's activities, Mr. Roame noted that:

• Tiburon has positioned itself uniquely as a research based strategy consulting firm for financial services firms
  • Tiburon manages its research in terms of Power Point pages created and added to it's expanding library of knowledge, including mutual funds distribution, separately managed account programs, alternative investments, wealth management services, insurance products, banking services, the fee-only financial advisor market, the CPA firm market, the family office market, and various international markets
• Mr. Roame suggested that all clients buy its Research Report RetainerTiburon's core business market research & strategy consulting services. The firm executes projects from a top down perspective, working closely with its clients top executives
  • While only serving financial services clients, Tiburon's clients also include technology companies that serve financial services companies, other consulting firms in need of financial services industry research, venture capital & private equity firms investing in financial services companies, and governments, trade groups, & conference companies. Mr. Roame presents at dozens of board meetings each year
  • Tiburon delivers its research & strategy consulting services in three primary ways, including its popular research reports & research report retainer program, one day market seminars & conference speeches, and its core service in customized market research & strategy consulting projects

Tiburon CEO Summit XIV - Schedule & Tactics

After offering up that broad synopsis and introduction to Tiburon's client services, Mr. Roame introduced the nine guest speakers grouped into three sections, including Public Policy, Products, & Management. Mr. Roame then gave a brief overview of what he expected each speaker would address:

Public Policy

	Tiburon Managing Principal Chip Roame with Tiburon CEO Summit XIV Guest Speaker John Murphy (CEO, Oppenheimer Funds)

• Walt Bettinger (President, The Charles Schwab
• Corporation) will address the dramatic evolution around the responsibility of making financial decisions transferring from large institutions to individuals and the implications for the industry. More specifically, what the responsibilities are within the industry to help individuals, especially in the second through fourth quartile.
• John Murphy (CEO, Oppenheimer Funds) will address how traditional mutual fund companies compete in an increasingly global market.
• Bob Pozen (Chairman, MFS Investment Management) will address several issues surrounding sovereign wealth funds, including the source & size of sovereign wealth funds, their impact on capital markets, security & political concerns, disclosure & stability concerns, and protectionism & reciprocity.
• Ron Ryan (CEO, Ryan ALM) will address the pension crisis and the need to align assets to specific liabilities. Mr. Ryan will also discuss portable alpha and the proper LDI strategy and cover liability beta & liability alpha.

Products

• Mike Byrum (President, Rydex Investments), will address the evolution of Rydex and the collective competencies with Security Benefit Group. Mr. Byrum will also address Rydex's forward looking perspective and solving the retirement income challenge.
• Michael Steinhardt (Chairman, Wisdom Tree Investments) will address both the history and current state of the hedge fund industry. He will also discuss his career and why he closed his firm in 1995 and why he later accepted the chairman position at Wisdom Tree Investments.

Management

• Joe Deitch (CEO, Commonwealth Financial Network) will address keys to successful management, specifically theory versus practice.
• John Hailer (CEO, Natixis Global Associates) will address global opportunities through deeper partnerships and innovative products. He will also review the rethinking of business models with a look at organizing towards innovation.
• Joe Moglia (CEO, TD Ameritrade) will address the impact of several key industry trends, including the growth of discount brokerage, the emergence of independent financial advisors, and the importance of capturing IRA rollovers. Mr. Moglia will also address TD Ameritrade's commitment to improving technology and operations and enhancing customer service.

Guest Presentations

Aside from Mr. Roame's opening keynote presentation, nine guest presentations anchored the CEO Summit agenda:

Walt Bettinger (President, The Charles Schwab Corporation)

	CEO Summit XIV Guest Speaker Walt Bettinger (President, The Charles Schwab Corporation)

Walt Bettinger is President of The Charles Schwab Corporation and oversees the strategy, development, & delivery of a full range of brokerage, investment, & banking services to Schwab's primary business units, including Schwab Investor Services, Schwab Institutional, Schwab Corporate & Retirement Services, and Schwab Investor Development. He leads the company's domestic and international field branch network with primary offices in more than 300 locations and also has ultimate responsibility for client service centers in Orlando, Cleveland, Indianapolis, Denver, Phoenix, Austin, Reno, & San Francisco. He also has responsibility for support services, including all operations and technology capabilities within the firm, supporting 7.0 million client brokerage accounts, 5,000 independent financial advisors, and thousands of corporate retirement plans, representing $1.5 trillion in client assets.

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Mr. Bettinger addressed the dramatic evolution around the transfer of financial decision making responsibility from large institutions to individuals, and the implications for the industry. Mr. Bettinger made the following points:

Mr. Bettinger outlined several financial challenges, including evaporating traditional pensions, projected social security & medicare bankruptcies, rising health care costs, decreasing personal savings rates, & expanding retirement years, all leading to a retirement income challenge especially for the lower quartiles of the population

Mr. Bettinger next addressed potential for improving financial fitness. Mr. Bettinger started by dismissing some potential answers, including the internet, annuities, and government intervention. Mr. Bettinger stated that, “technology will play a role as tool, not as a solution; we still need counsel and have people-to-people interactions”

John Cammack (Head, Third-Party Distribution, T. Rowe Price Group) asked how he envisioned getting a low cost 401k plan to retail. Mr. Bettinger responded that the government could boost participation a little but answer needs to come from this room as businesses need to develop new creative models to server all quartiles.

Mr. Bettinger talked about how The Charles Schwab Corporation has succeeded with its client focus saying that, “if your business isn’t about people, you won’t succeed in business. We run for-profit companies but we have to do it with people as a priority. Asking how much money can I make is not what has made me successful and that’s not why I got into the business.” The Charles Schwab Corporation goes further down stream than many companies but they need to find ways to go even further.
Mr. Bettinger then led a discussion on financial literacy. Steve Deschenes (Chief Marketing Officer, Retirement Income Group, Mass Mutual Financial Group) stated that, “financial literacy is low, with the average household having more debt than assets and these households are not going to become clients.” Mr. Bettinger responded that financial literacy needs to be part of the core curriculum at a young age to help future clients stay out of debt.

Mr. Bettinger ended by answering a question from Viggy Mokkarala (Executive Vice President, Envestnet Asset Management), who asked about tangible steps that the industry should take, saying that, “initial steps are being taken right now in talking about it at the Tiburon CEO Summit instead of discussing other topics”

Mike Byrum (President, Rydex Investments)

	CEO Summit XIV Guest Speaker Mike Byrum (President, Rydex Investments)

Mike Byrum is President of Rydex Investments and oversees the firm's portfolio management, research, and trading. Mr. Byrum is also the chairman of the Rydex Investment Strategy Committee, which determines investment policy for all Rydex products. Mr. Byrum oversees all Rydex business lines, including mutual funds, exchange traded funds, and the firm's broker/dealer, Rydex Financial Services. In addition, he is instrumental in product development and management across the firm. Mr. Byrum leads the alternatives strategies development team at Rydex, which seeks to conceptualize and shape new alternative strategy products to maintain Rydex’s position as an industry innovator.

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Mr. Byrum addressed the evolution of Rydex and the collective competencies within its parent Security Benefit Group. Mr. Byrum also addressed Rydex's forward looking perspective. He made the following points:

Mr. Byrum started by offering a background of Rydex, saying that, “Rydex was built on the need by fee-only investment advisors who had tactical allocation models and were not welcome by conventional mutual funds." It created index based mutual funds that offered and encouraged daily liquidity. Mr. Byrum also outlined Rydex’s value proposition of, “providing institutional-style investment strategies to individual investors by marrying the investment characteristics of institutional portfolios with the structural benefits of registered products”

He then addressed Rydex’ recent focus on alternative investment strategies, discussing how education on this area and getting investors to understand the benefits are the biggest challenges. Mr. Byrum then added that, “Rydex is on the front-end of this new movement. Traditional asset allocation is no longer acceptable. Lower correlated asset strategies need to be added to help increase returns and lower risk; conventional markets may not be offering as much opportunity in the coming years as they have in the past”

Mr. Byrum discussed that alternative investments are perceived to be risky but the fact is they really are intended to balance risk in individuals' portfolios. Part of misconception is that the benefit of including alternative investments in a portfolio was masked in the 1990s but has become more apparent in recent years

Mr. Byrum concluded his remarks by saying that, “yesterday we talked about financial literacy at the level of balancing a check book & managing credit card debt and we’re here now talking about alternative investments, so there is a significant mismatch there”

Joe Deitch (CEO, Commonwealth Financial Network)

	CEO Summit XIV Guest Speaker Joe Deitch (CEO, Commonwealth Financial Network)

Joe Deitch is the CEO of Commonwealth Financial Network, which he founded in 1979 to create an open and supportive environment where professionals could be true to themselves (and to their clients), follow their dreams, and grow to their hearts' content. Mr. Deitch has strived to maintain the original vision of providing indispensable service and cultivating a supportive environment where all affiliated professionals can thrive.

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Mr. Deitch addressed keys to successful management, specifically theory versus practice. He made the following points:

• Mr. Deitch focused his remarks on success: theory versus practice and bringing that success to all aspects of your life. He asked the attendees, “how many of you have mission statements in your marriage?” Mr. Deitch emphasized the importance of a consistent approach and passion to both your business and personal life
  
• Mr. Deitch then discussed how to fully utilize the resources we have, including our brains. He stated that a computer operates at 27,000 MIPS and the human brain operates at 100 million MIPS adding that, “our brain is constantly on – take control!”
  
• Mr. Deitch next addressed recruiting strategies and the importance on hiring the right people and realizing how detrimental a bad team member can be to the overall company’s goals. Mr. Deitch said that, “Commonwealth’s hiring strategy is to have clear job descriptions by profiling both the job and the department first then profiling the candidates to find the right match”
  
• Mr. Deitch next addressed learning from the masters and seeking expert advice, saying that “professional athletes all have coaches – many having multiple coaches to improve performance, and that business executives should also seek out coaches as business can be the greatest sport of all.” Mr. Deitch also shared a Deitch family secret of, “celebrating bad service – as it makes you look great by comparison”
  
• Anne Steer (Executive Vice President, Relationship Management, National Financial Services Corporation) asked, “how has your strategy evolved over the years?” Mr. Deitch responded that, “Commonwealth has maintained the same vision and that now it is easier for him to let people go as the fit needs to be right for the employer and the employee and they would be a star at a different company”
  

John Hailer (CEO, Natixis Global Associates)

	CEO Summit XIV Guest Speaker John Hailer (CEO, Natixis Global Associates)

Mr. Hailer is the CEO of Natixis Global Associates and is responsible for the overall strategic development of the firm’s investment management and distribution businesses. Mr. Hailer works to create and leverage synergies, between the investment management and distribution arms of the organization. Mr. Hailer has been recognized for his leadership within the company. He manages the company’s assets and assists in building distribution architecture that provides access to the investment capabilities of the firm's affiliated managers across a range of investment platforms.

After an introduction by Tif Joyce (President, Joyce Financial Management), Mr. Hailer addressed global opportunities through deeper partnerships and innovative products. He also reviewed the rethinking of business models with a look at organizing towards innovation. He made the following points:

Mr. Hailer started his presentation by discussing the opportunities and growth rates of international markets identifying the US, UK, France, & Japan as the more mature markets saying that, “we will participate in mature markets and innovate and participate in new markets”

Mr. Hailer said that clients still look to the US saying that, “our clients in the middle east look to the US as the top flight asset manager” but cautioned that you can’t go into new markets with an American centric attitude and that you need local people to be successful

Mr. Hailer next discussed how Natixis plans to stay relevant in the industry through innovation, saying that through their, “multi-manager structure, they stay innovative and nimble to stay relevant in all market places." Mr. Hailer emphasized the Tiburon CEO Summit theme of consumer orientation saying that, "our asset management ideas come from our clients and talking to them about solutions, not products”

Mr. Hailer next discussed the difference between multi-national companies and global companies, and how Natixis has been able to leverage its global advantage, citing an example of delivering innovative solutions from Oakland to Taipei through Singapore

Mr. Hailer summarized Natixis’ acquisition strategy by saying that, “we want to have partners; you can't be all things to all people but we make sure there's a personal fit; we don't acquire just for the assets; our goal to go deeper with existing relationships"

Joe Moglia (CEO, TD Ameritrade)

	CEO Summit XIV Guest Speaker Joe Moglia (CEO, TD Ameritrade)

Joe Moglia is CEO of TD Ameritrade, a role which he assumed in 2001. He subsequently has acquired numerous other discount brokerage firms and fought off a hostile takeover attempt by E*Trade, choosing instead to merge with TD Waterhouse in 2006. Mr. Moglia is responsible for TD Ameritrade's 150 branches, 6.3 million client accounts, over 300,000 daily trades, and $300 billion in client assets.

After an introduction by Skip Schweiss (Chief Operating Officer, TD Ameritrade Trust Company, TD Ameritrade), Mr. Moglia addressed the impact of several key industry trends, TD Ameritrade's acquisition strategy, three key priorities, and keys to leadership. He made the following points:

Mr. Moglia started with an overview of the TD Ameritrade’s business, telling the story of how when he took over as CEO of TD Ameritrade in 2001, he asked the management team about the firm’s core competencies. They decided they were good at equity trading and that this should lead them into the active trader space

At the same time (post-9/11) there was significant excess capacity in the brokerage industry. TD Ameritrade subsequently did nine acquisitions to absorb some of that capacity. The firm is now focused on becoming an asset gatherer rather than a trader. Bolstering this strategy is the recent acquisition of Fiserv’s custody division which gives the firm greater scale in the RIA market and a foothold in the 401(k) market

Mr. Moglia offered the following comparisons from 2001 to 2007 he said that TD Ameritrades trades per day in 2001 were 113,000 and in 2007 reached 322,000, its client assets under management grew from $24 billion in 2001 to $300 billion in 2007, its market cap grew from $700 million in 2001 to $12 billion in 2007, and from a negative ROE in 2001 to 40% in 2007
Mr. Moglia next identified TD Ameritrade’s three key priorities: clients, shareholders, and associates (employees). He said that the firm builds everything around these three key constituencies, saying that, “I believe we have a moral and in effect a fiduciary obligation to help our clients reach their financial goals,” reflecting on the Tiburon CEO Summits’ consumer orientation theme. In the RIA market, TD Ameritrade supports financial advisors' growth; if the RIA grows his/her business, then TD Ameritrade will be successful as well.
Mr. Moglia then addressed what he identified as key leadership attributes:

Know yourself – “know what you’re good at, what you’re not; your strengths and weaknesses, what makes you tick”

Passion - “do what you love, love what you do; do what you really care about, where you know you can make a difference - otherwise all you have is a job”

Courage – “having the guts to do what you really believe is right, regardless of short-term consequences to yourself”

Stress – “this is where the cream rises to the top; your employees will look to you for strength and guidance during times of stress”

Ego – “leave it at the door; make decisions in the best interest of the firm, not just implementing your great ideas”

He ended by saying that, “leadership is about caring for others around you and the real job of a leader is to always have their best interests at heart”

John Murphy (CEO, Oppenheimer Funds)

	CEO Summit XIV Guest Speaker John Murphy (CEO, Oppenheimer Funds)

John Murphy is the CEO of Oppenheimer Funds, a role he assumed in 2000, overseeing more than $260 billion across multiple investment strategies. Mr. Murphy is responsible for overseeing the growth of the company beyond traditional mutual funds, and expanding the company’s product & service offerings with the acquisitions provided by Tremont Capital Management. In addition, Mr. Murphy oversees the company’s attempt to bring hedge funds to retail investors.

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Mr. Murphy addressed how traditional mutual fund companies compete in an increasingly global market. He made the following points:

Mr. Murphy started with a brief overview of Oppenheimer funds and its $250 billion in assets under management focused in retail mutual funds, separately managed account, hedge funds-of-funds, 529 plan accounts, qualified retirement plans, institutional investment management and sub-advisory services, serviced by approximately 2,600 employees


Mr. Murphy next gave an update on the US mutual fund industry, quoting data from the Investment Company Institute showing the US mutual fund industry at $13 trillion - growing almost 100% since 2002 and representing about 25% of US consumer wealth


Mr. Murphy then addressed the US mutual fund industry’s need to compete on the global stage. US market penetration seems to have leveled off with about 43% of US households (or 51 million) owning mutual funds with about 91 million individual shareholders. Even with this US penetration, US mutual fund companies hold less than half of global mutual fund assets and growth rates of mutual fund assets in Luxembourg and Ireland (domiciles for UCITS) have outpaced US growth in recent years. Further, mutual funds are owned by only 6%-8% of households in Asia and assets there could expand from $3.5 billion as of Q3 2007 to $6-$8 billion over the next five years


US mutual fund companies face barriers to selling US mutual funds outside the US due to unfavorable tax treatment relative to UCITS. That is, US funds are required to distribute income and capital gains annually while UCITS have no similar distribution requirement. Further, US funds are required to be organized as complex corporations that separate the investment advisor from the mutual fund company, while UCITS have a choice as to their organizational structure


Mr. Murphy concluded by saying that, "the time is right now to strike and we should make our congressmen and senators aware of the situation." Skip Schweiss (Chief Operating Officer, TD Ameritrade Trust Company, TD Ameritrade) cautioned that, “the Growth Act may be politically difficult given that we have a lame duck president in an election year and a Democratic controlled House of Representatives and Senate that favor taxation, protectionism, & more regulation. Given politicians’ focus on the size of the US deficit, and Democrats’ inclination to repeal the Bush tax cuts and to further raise taxes, and in light of the fact that mutual funds raise significant tax revenue with the current tax laws, improving the tax treatment on US mutual funds appears unlikely”


	CEO Summit XIV Guest Speaker Bob Pozen (Chairman, MFS Investment Management)

Bob Pozen (Chairman, MFS Investment Management)

Bob Pozen is the chairman of MFS Investment Management which established the first mutual fund in the US in 1924. Today, MFS Investment Management, a subsidiary of Sun Life Financial of Canada, has more than $169 billion in assets under management, offering a wide range of products and services to investors, including more than 70 mutual funds, fixed & variable annuities, separately managed accounts, & retirement plans to retail customers, institutional investors, & insurance offerings. The firm has 15 offices worldwide, 2,400 employees, and more than five million shareholders.

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Mr. Pozen addressed several issues surrounding sovereign wealth funds, including the source & size of sovereign wealth funds, their impact on capital markets, security & political concerns, disclosure & stability concerns, and protectionism & reciprocity. He made the following points:

• Mr. Pozen started his presentation with some background information on size & source of sovereign wealth funds, sharing from a McKinsey report that two-thirds of sovereign wealth funds assets are built on petrodollar or oil wealth with these nations seeking to diversify their assets away from the concentration on oil (primarily Middle East). Two other sources of sovereign wealth funds assets are trade surpluses (primarily Asia) and pension contributions (Asia & Australia)
  
• Mr. Pozen addressed the flow of sovereign wealth funds showing Asia - excluding China- as the leading source with 55% followed by the Middle East with 32% and China with 13%. The US at 37% is the leading destination of sovereign wealth funds followed closely by Europe at 35%, China at 21%, and Asia at 7%
• Mr. Pozen then addressed the impact of sovereign wealth funds in the US and international financial markets. He noted that Merrill Lynch, Citigroup, and UBS have all recently been capitalized by sovereign wealth funds
  
• Mr. Pozen then addressed security and political concerns with public opinion on sovereign wealth funds in the US decidedly negative - even among those who profess to know little about them. Mr. Pozen countered that sovereign wealth funds' investments tend not to be subject to many of the prevailing concerns about them stating that there are already many restrictions on foreign ownership of US companies, particularly in the crucial transportation, banking, and communications & broadcasting industries
  
• Mr. Pozen also challenged concerns about stability & disclosure with sovereign wealth funds, stating that sovereign wealth funds usually have long term investment horizons so they are not under liquidity pressure and that and there are US reporting mandates on all investors (e.g., 5% owners) regardless of source

Ron Ryan (CEO, Ryan ALM)

Mr. Ryan is the CEO and founder of Ryan ALM, which is focused on solving asset/liability problems through a disciplined structured systems, including custom liability indexes, liability beta portfolio, & portable alpha (liability hedge fund). Mr. Ryan is responsible for overseeing and analyzing the Treasury’s and developing indexes specific to them. Mr. Ryan is the creator of the first daily fixed-income indexes; the Lehman US Treasury indexes.

	CEO Summit XIV Guest Speaker Ron Ryan (CEO, Ryan ALM)

After an introduction by Chip Roame (Managing Principal, Tiburon Strategic Advisors), Ron addressed the pension crisis and the need to align assets to specific liabilities. Mr. Ryan also discussed portable alpha and the proper LDI strategy and cover liability beta & liability alpha. He made the following points:

• Mr. Ryan started by defining the correct pension plans' objectives as “a game of costs not a game of returns” and that the main problem is that pensions need to be liability driven
  
• Mr. Ryan stated that the real reason we have a pension crisis is that interest rates have been declining since 1982 and liabilities have been rising. The US simply cannot afford a healthcare and a pension crisis simultaneously. Over 4,000 corporations have gone bankrupt due to pensions, and the Pension Benefit Guaranty Corporation funds the obligations with the expense born by the US taxpayers. According to the Pension Protection Act of 2006, corporations have seven years to make up their liabilities or face a big problem. Thus the name of the game is for pensions to beat their liabilities by 1-2-3% per year – not to earn a 6% or a 9% alpha
  
• Other problems relate to inaccurate liability valuations and the use of generic indices. For performance measurement purposes, there can be no generic index that behaves like an institution’s specific liabilities. Given the wrong index, you get the wrong risk-reward characteristics of the portfolio
  
• Mr. Ryan went on to say that, “a much better measure of risk (better than the Sharpe Ratio which is based on the 3-month T-Bill for example) is to use the information ratio which is a measure of how the assets behave versus the objective which is usually a liability for most institutions”
  
• Thus it is critical that the asset allocations for pension plans be liability driven and/or more tactical in nature. That is, as the funded ratio improves, the pension plans may adjust the asset allocations to become more conservative and “take some chips off the table.” Similarly, as funded ratios decline, asset allocations should adjusted to become more aggressive to improve the rate of return and the ability to meet the plan’s liabilities
  
• Mr. Ryan also pointed out that if you ask any corporation to define their biggest asset, they will inevitably reply that it’s their pension plan. If you ask any corporation to define their biggest liability, they will inevitably reply that it’s their pension plan. And yet, the pension plan director is typically missing from the corporation’s board of directors

Click here to download Mr. Ryan's PowerPoint Presentation:

Michael Steinhardt (Chairman, Wisdom Tree Investments)

	CEO Summit XIV Guest Speaker Michael Steinhardt, Chairman, Wisdom Tree Investments)

Mr. Steinhardt is the Chairman of Wisdom Tree Investments, which offers dividend and earnings-based index funds rather than traditional index funds based on market capitalization. Prior to joining Wisdom Tree Investments, Mr. Steinhardt founded Steinhardt, Fine, Berkowitz, & Company in 1967. Steinhardt, Fine, Berkowitz & Company achieved a performance track record that still stands out on Wall Street: 24% compound average annual returns – more than double the S&P 500 – over a 28 year period, accomplished through short-term strategic trading, including stocks, bonds, long & short options, currencies, all with time horizons ranging from 30 minutes to 30 days.

After an introduction by Kevin Malone (President, Greenrock Research), Mr. Steinhardt addressed his views on the state of the hedge funds industry as well as how and why he started his hedge fund and how and why he eventually closed it. Mr. Steinhardt also discussed his involvement with Wisdom Tree Investments. He made the following points:

• Mr. Steinhardt started by giving a history of how and why he started his hedge fund saying that, “the hedge fund industry is the best paid industry bar none, better than star athletes, better than entertainers.” Mr. Steinhardt also addressed why he decided to close his firm in 1995 stating that, “he found the lows lower and the highs less exciting and he was not able to separate self from performance returns." He added that, “you don’t remember the good trades – you only remember the bad ones”
  
• Mr. Steinhardt next addressed the current economic state - suggesting the country, economy, the financial industry and most individuals are too highly leveraged. He suggested that we are likely in a recession, but we should think about the possibility that we could be in for something worse as the country as a whole has never before been this leveraged, magnifying results both positive and negative. Mr. Steinhardt looked at the ratings agencies as one area of improvement saying that, “a good loan is a good loan until it becomes a bad loan”
• Mr. Steinhardt went on to discuss changes in the hedge funds industry. He started by saying that, in the 1980s the hedge funds industry was, “smaller counter culture that offered nirvana for people who wanted to be entrepreneurs” and that they were measured only in performance. In answering a question about the lost art of stock picking by Bryce James (CEO, Smart Portfolios), Mr. Steinhardt answered that, “there is still an army of stock pickers but they are being drowned by huge companies as they need mobility so it isn’t working with where the stock pickers are going”
• Steve Deschenes (Chief Marketing Officer, Retirement Income Group, Mass Mutual Financial Group) asked about moral hazard and if the hedge fund industry compensation plan encourages hedge fund managers to swing for the fences. Mr. Steinhardt replied that, “with 2 and 20 you should make enough to not swing for the fences and that when people had nothing to lose they usually lost. Mr. Steinhardt also noted that the industry has changed with much bigger hedge funds and that 1% of $8 billion is a good revenue line. He also noted that there has been a shift to larger institutional clients who are more accepting of moderate returns and a stable market while previously hedge fund managers wanted market volatility because, “you were smarter than the other guy”
• John Rooney (Managing Principal, Commonwealth Financial Network) asked if the hedge fund industry needed more regulation, to which Mr. Steinhardt replied that,