Prior Tiburon CEO Summits (2012-2013)

Tiburon has held 35 prior CEO Summits, with the first Tiburon CEO Summit taking place in 2001. Details of Tiburon CEO Summits XXII, XXIII, XXIV, & XXV are included below; for details of other Tiburon CEO Summits, please click here: Most Recent, 2018-2019, 2016-2017, 2014-2015, (2012-2013), 2010-2011, 2008-2009, 2006-2007, 2004-2005, & 2001-2003.

 

 

 

 

 

 

 

 

 

Tiburon CEO Summit XXV: October 8-9, 2013

Tiburon CEO Summit XXV was held October 8-9, 2013, at the Ritz Carlton Hotel in San Francisco, CA. Tiburon CEO Summit XXV officially started at 7:45am on Tuesday, October 8, 2013, included a group dinner that night and finished at 1:00pm on Wednesday, October 9, 2013. Senior industry executives took two days out of their busy schedules to participate. There were over twenty sessions. Along with Tiburon's Managing Partner Chip Roame & Tiburon Principal Matt Lynch, Tiburon CEO Summit XXV included panelists Ryan Alfred (President, BrightScope), John Bunch (CEO, The Mutual Fund Store), Mitch Caplan (CEO, Jefferson National Financial), James Carney (CEO, By All Accounts), Ron Carson (CEO, Carson Wealth Management Group), Bill Crager (President, Envestnet), Ben Cukier (Partner, FTV Capital), Joe Duran (CEO, United Capital Financial Partners), Mike Durbin (President, Fidelity Institutional Wealth Services), Ric Edelman (CEO, The Edelman Financial Group), Ed Forst (CEO, Lincoln Investment Planning), Mark Goldberg (President, Carey Financial), Dan Goldie (CEO, Dan Goldie Financial Services), Mark Gormley (Partner, Lee Equity Partners), Pete Hess (CEO, Advent Software), Anton Honikman (CEO, MyVest Corporation), Mark Hurley (CEO, Fiduciary Network), Steve Janachowski (CEO, Brouwer & Janachowski), Rob Klapprodt (President, Vestmark), Paul Koontz (General Partner, Foundation Capital), Steve Lockshin (Chairman, Convergent Wealth Advisors), Jeff Maggioncalda (CEO, Financial Engines), John Michel (CEO, CircleBlack), Blake Mohr (CEO, Capitas Financial), Robert Moore (President, LPL Financial), John Rafal (CEO, Essex Financial Services), Rich Rosenbaum (Principal, Aquiline Capital Partners), Simon Roy (President, Jemstep), Greg Tschider (CEO, Verisight), Hardeep Walia (CEO, Motif Investing), Michelle Watson (Chief Investment Officer, First Republic Investment Management), Elliot Weissbluth (CEO, HighTower), Chuck Widger (Chairman, Brinker Capital), Chris Wolfe (Chief Investment Officer, Private Banking & Investment Group, Merrill Lynch Wealth Management), & Mike Woods (CEO, DWS Investments Distributors). Tiburon CEO Summit XXV also featured the firm's traditional client-centric panel discussions and two networking-based social events.

Keynote Presentation

Tiburon CEO Summit XXV featured a keynote presentation by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry, with a specific focus on the growing wealth management market. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.

 

 

 



Tiburon CEO Summit XXV
Keynote Presentation
Chip Roame
Managing Partner
Tiburon Strategic Advisors

 

 

 

 

 

 

Chip Roame (Managing Partner, Tiburon Strategic Advisors)

Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXV keynote presentation. Chip Roame (Managing Partner, Tiburon Strategic Advisors) kicked off Tiburon CEO Summit XXV with a presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market.

Charles ("Chip") Roame is the Managing Partner of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the banking, insurance, brokerage, & investment management markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research, he may be the most frequently demanded board advisor. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets.

At Tiburon, Mr. Roame has responsibility for all of the firm's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses -- mutual funds, exchange traded funds, hedge funds & other alternative investments, financial planning, wealth management services, life insurance, annuities, family office services, online financial services, and the growing independent advisor markets. He has also taken a substantial interest in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,600 client engagements for over 400 corporate clients since 1998.

Mr. Roame has won numerous awards throughout the consulting and financial services industries, including being named one of the power 25 elite by Investment News, one of the 25 most influential individuals in the advisor business by Investment Advisor magazine, & one of the five experts with the answers by Boomer Market Advisor. Tiburon has also been named one of the fastest growing companies by the San Francisco Business Times in multiple years.

Mr. Roame is frequently sought as a board member by Tiburon client company boards. He presently serves as a board member at Envestnet (NYSE: ENV), as a board member of the parent company of The Edelman Financial Group (Ric Edelman’s business backed by Lee Equity Partners), and as a trustee of the SA mutual funds family which is sponsored by Loring Ward and employs Dimensional Fund Advisors as its sole sub-advisor.

Overview of Tiburon CEO Summit XXV Keynote Presentation

Mr. Roame addressed the state of the financial services industry, with a specific focus on the growing wealth management market, including the most important news stories in the past six months, recent Tiburon research findings, third-party research findings, and strategic developments at dozens of Tiburon clients. Mr. Roame expressed that his objectives were fourfold, including focusing on corporate client strategies not just industry trends; processing views like a private equity firm; setting an agenda for Tiburon CEO Summit XXV; and offering two methods of summarizing a broad set of industry views.

Mr. Roame began with the broad market environment, including thoughts on the economy & markets; financial industry stumbles; and consumer wealth, baby boomers, and consumer attitudinal & behavioral changes. Mr. Roame then outlined the future of wealth management, including rapidly evolving investment approaches & products; retail financial advice trends; and institutional & international opportunities. Mr. Roame also addressed other thoughts, including the legislative & regulatory agenda and the 2014 elections; the rapid institutionalization of business tactics; and potential strategic activity. Mr. Roame concluded with 50 underlying trends and four fundamental bets.

Broad Market Environment

Mr. Roame began the analysis portion of his presentation with a few economy & markets points as they pertain to business issues. He explained that Tiburon generally does not comment on the economy & markets, but the issues are transcending investments issues and impacting business issues. For perspective, Mr. Roame noted that GDP is up 1.6%, corporate profits are strong, unemployment is down to 7.3% but with lots of footnotes (e.g., the labor participation rate, long-term unemployed, under-employed), inflation is 1.7%, and many world events have had an impact on the economy. Mr. Roame explained that the Federal Reserve’s expected tapering will cause rates to go up and prices of low rate existing bonds to come down. He predicted that tapering will begin in 4Q/13 or 1Q/14 when Fed targets of 2.00% inflation rate and 6.50% unemployment rate are reached. Mr. Roame posed the question: Will the Fed defer past December to new chairman in February?

Mr. Roame continued to discuss the economy & markets by reviewing the bond markets. He began by highlighting what we know: continuing Fed purchases are holding down interest rates, the 30-year bull market treasuries is over, the ten-year treasury note is at 2.6%, and 30-year fixed mortgages are at 4.2%. He added what attendees think is true for the bond markets: 3.18% by April 2014, up 20 bps in six months, and as an aside, attendees from Tiburon CEO Summit XXIV voted that 3.00% would not be reached until 2015 or beyond.

Mr. Roame continued to discuss the economy & markets by reviewing the stock markets. He began by highlighting what we know: stock market indices are above highs, five solid years of returns, five years since the Lehman Brothers melt down, and 25 years since Black Monday. He added that the Tiburon centric view is that the stock markets are back above levels of Tiburon CEO Summit XIII (October 2006) (6½ years ago) and the DJIA is up 80% since Tiburon CEO Summit XVI (April 2008) (five years ago). He added what attendees think is true for the stock markets: 15,475 by April 2014 (up 2.30% in six months).

Mr. Roame described the various financial services industry stumbles beginning first with a semi-annual list of old stumbles including Madoff, Stanford, Goldman Sachs Group, and others. He also outlined new stumbles including JP Morgan Chase & Company, SAC Capital Advisors, and Harbinger Capital among others. Mr. Roame remarked that Bank of America Corporation has paid the largest settlement amounts of $11.6 billion, but added that JP Morgan Chase & Company’s rumored settlement could set the record.

The majority of Tiburon CEO Summit XXV attendees voted that the Madoff Investments scandal was the worst ethical offense of recent years and in the words of attendee Jeffrey Dunham of Dunham & Associates Investment Counsel, “the Madoff Investments scandal scared investor confidence in our industry for decades.” Mr. Roame also shared that Tiburon CEO Summit XXV attendees voted that Anthony Weiner (former New York Congressman) was the biggest idiot of recent years.

The second section of Mr. Roame’s presentation focused on consumer wealth, baby boomer issues, and consumer attitudinal & behavioral changes:

  • Investable assets, retirement plan assets, & financial assets are all up 30%-40% on a relatively steady pace since 2008
  • Personal assets, residential real estate, & private business valuations are now all up closer to 10% since 2008
  • Consumers’ real estate equity is up 35% (with over 100% of that recovery since 2011) so this wealth realization is just now working its way through consumer sentiment
  • In aggregate, consumer household assets are up over 20% since 2008
  • Consumer household debt is down 5% since 2008
  • Consumer net worth reached a new peak of $74.8 trillion versus $57.2 trillion in 2008

Mr. Roame spent a minute on the well known consumer wealth concentration, saying that, “consumer households with less than $500,000 investable assets make up 91% of all consumer households but control just 23% of financial assets.” Meanwhile, the affluent market comprises just 8% of consumer households but controls 77% of consumer household financial assets.

Mr. Roame believes that baby boomers continue to face seven major financial issues, including their lengthening life expectancies, financial & personal asset declines in the period of 2008-2013, inheritances that are not materializing, increasing healthcare costs, the twin thoughts of boomerang children and parents needing elder care, capitalized Social Security benefits as the largest asset for many but with no understanding of how to optimize, plus the ever present risk of inflation. Mr. Roame predicted that, "baby boomers will liquidate their retirement plans, homes, & small businesses over the next two decades, driving continual flow of assets to the investable assets business."

Mr. Roame also addressed the resulting consumer attitudinal & behavioral changes, including those driven by the widening wealth gap. He addressed consumer confidence, consumer sentiment, and the substantial financial services industry trust gap. He also addressed behavioral changes, including consumers’ reduced spending, some deleveraging, some increased savings, net flows out of equity mutual funds, and the renewed growth in the self-serve channels. He revealed another Tiburon CEO Summit XXV attendee survey result which stated that attendees expect do it your self consumers and diversifying across providers to be the most impactful consumer behavior changes on their businesses.

The Future of Wealth Management

Mr. Roame addressed the rapid evolution of investment approaches, including managed accounts winning, rep as advisor & portfolio manager programs showing mixed results, a return to equities, goals-based investing continues to slowly take over, numerous retirement income strategies, tactical and/or thematic investing, and downside protection strategies. Mr. Roame related the results of another Tiburon CEO Summit attendee survey in which attendees voted that the most impactful investment strategy trends are the retirement income orientation & tactical asset allocation trends. Mr. Roame continued to summarize many facts:

  • Tactical strategies are now used by almost half of financial advisors (tactical asset allocation 8% & strategic allocation with tactical overlay 37%)
  • As a general rule, tactical does not work; even balanced mutual funds outperform tactical allocation mutual funds at 6.4% versus 5.5%
  • The total managed accounts market, including packaged programs and RIAs, has reached $5.5 trillion
  • The RIA market & packaged managed account programs are about equal in size, and the RIA market will likely become the larger market in 2013
  • Financial advisor directed managed accounts are now over $1.2 trillion assets under management
  • Equity mutual funds have $93 billion net flows, positive for the first time since before the financial crisis
  • Meanwhile, fixed income mutual funds, which had gathered over $1.0 trillion since 2009, have slowed to just $14 billion net flows

Mr. Roame explained that investment products are rapidly evolving as well. He noted that packaged investment products represent $623 billion in net flows with mutual funds & ETFs net flows about equivalent and SMAs net flows 15% of those of either mutual funds or ETFs. Mr. Roame noted that “people underestimate the longevity of open-end mutual funds.” He then addressed registered investment companies supported by various facts:

  • Registered investment companies have 776 fund sponsors, 16,380 registered investment companies, $14.7 trillion assets under management, and open-end mutual funds dominate assets under management and net flows
  • Open-end mutual funds have 8,752 funds, 264.1 million accounts, and $13.0 trillion assets under management
  • There are 602 closed-end mutual funds with a total of $265 billion assets under management
  • There are 5,787 unit investment trusts with a total of $72 billion assets under management

Mr. Roame then described the state of comingled trust funds & separately managed accounts stating that there are 475 comingled trust funds representing $2.1 trillion assets under management with 15% of all assets in Thrift Savings Plan. He added that the advantages of separately managed accounts are eroding and some of the rest is a sale pitch. Mr. Roame explained that “the separately managed account business remains a dog.”

Mr. Roame stated that “the index and ETF trend is alive and well” and outlined indexing & ETFs summarized stating that indexing is 40% institutional & 29% retail assets under management now, that 50% of mutual funds beat the index in a good year, that investors demand low cost beta, and index mutual funds account for $821 billion assets under management. He went on to explain that there are 1,337 ETFs with $187 billion net flows and referred to some of the players in this field such as PIMCO’s entry, Vanguard’s share gains, Schwab ETF OneSource, the Fidelity Investments-BlackRock alliance, and more. Mr. Roame then defined three ETF supporting trends including managed ETF programs, alternatives in ETFs, and active ETFs. He added that the real story is found by taking another slice of the data and posed the question of post mutual fund or post active management world.

Mr. Roame outlined the state of alternative investments, diving into five areas including the democratization of alternatives, hedge funds, private equity & venture capital, real estate, and other alternatives. He went on to relate that Tiburon CEO Summit XXV attendees voted that alternative investments will realize the most growth in their traditional limited partnership structure and structured as exchange traded funds.

Mr. Roame completed his analysis of investment approaches & products by outlining financial planning & insurance. He touched on ten aspects of financial planning & insurance including financial planning, 529 college savings plans, impact investing, variable annuities, fixed annuities, long-term care insurance, reverse mortgages, estate planning, life insurance, and life settlements. He added that Tiburon CEO Summit XXV attendees voted that estate planning & college savings plans will have the highest financial planning & insurance usage over the next five years.

Moving beyond products to retail financial advice trends, Mr. Roame framed the financial advisor channels with seven key points including that fact that wirehouses still dominate, custodians & independent broker/dealers are slowly catching the wirehouses, some financial advisors are struggling (some regional broker/dealers, insurance broker/dealers, bank broker/dealers, private banks, second tier independent broker/dealers), custodians are doing well, there has been a restructuring of the independent broker/dealer market, the break-away broker trend has not yet substantiated numbers but huge assets for the independent channels to capture, and the increasing dominance of high-end financial advisors.

Mr. Roame summarized the status of the wirehouses, regional broker/dealers, insurance reps, and bank reps markets. He noted that, “The Charles Schwab Corporation, TD Ameritrade, & Fidelity Investments are the leading fee-based financial advisor custodians in terms of number of fee-based financial advisor clients and control about half of the industry’s assets. He also explained that “wirehouse advisors are looking more like RIAs, they are doing it themselves.” He related the following facts:

  • There are 320,000 financial advisors across all channels, down from 338,909 in 2005
  • Primerica, Morgan Stanley, Merrill Lynch, & Wells Fargo Corporation have the most financial advisors at 22,000, 18,043, 15,880, & 15,188 respectively
  • Ignoring traditional channels, the wirehouses still lead in assets under management & administration but Schwab’s $724 billion has almost caught UBS’s $794 billion
  • Morgan Stanley leads the wirehouses in number of financial advisors (17,156) and assets under administration ($1.6 trillion)
  • Half of existing wirehouse retention deals will expire by 2016
  • The regional broker/dealers, in size collectively, are about the equivalent of a fifth wirehouse, with Edward Jones & Company representing $600 billion assets under administration
  • The insurance reps market is dominated by Primerica, a low end firm with 21,700 insurance reps and Allstate, a property & casualty firm with 7,115 insurance reps, not the traditional life insurance firms
  • Bank reps are dominated by those at JP Morgan Chase & Company with 3,201 bank reps and Wells Fargo Corporation with 2,750 bank reps
  • Third-party bank reps are led by those at LPL Financial with 2,238 third-party bank reps, Cetera Financial Institutions with 1,413 third-party bank reps, & Invest Financial with 1,157 third-party bank reps
  • There are 11,888 Securities & Exchange Commission registered fee-based financial advisors, an increase of 40% since 2004
  • Fee-based financial advisors have gathered $3.0 trillion assets under management, up 250% since 2001
  • The Charles Schwab Corporation & Fidelity Investments are the leading fee-based financial advisor custodians in terms of assets under administration, with $762 billion & $586 billion, respectively

Mr. Roame then described the status of do it yourself models with nine main points including three drivers (comfort of younger generation with technology, loss of confidence in some financial advisors and their firms, amazing amount of financial noise that technology can screen & organize), discount brokerage firms second round of B2C in three varieties (investment managers, financial planners, traditional financial advisors with online offers), two exits from second round already, pioneers versus settlers to win, issues, vastly underestimating, will B2C model catch momentum, and Walt Mossberg out at All Things Digital. He went on to explain that almost three-quarters of wealth investors utilize Facebook and almost one-third of wealthy investors utilize LinkedIn. Mr. Roame related that there are 52 online brokerage firms, up from six in 1991 but down from the peak of 77 in 2002. He also explained that the discount brokerage firm channels are growing steadily with assets under administration at $4.6 trillion in 2012.

Mr. Roame completed his talk on do it yourself models by explaining that B2C round two is really made up of three models: investment management models (Financial Engines, Personal Capital Corporation, Betterment, Wealth Front), Financial Planning Models & Non-Discretionary Advice (Mint.Com, LearnVest, Jemstep), & Financial Advisor Online Models (Edelman Online, Savant Capital Management, Searcy Financial Services). He also related that Tiburon CEO Summit XXV attendees voted that Edelman Online, Morningstar, & Personal Capital Corporation have the most impressive B2C models.

Mr. Roame also discussed institutional & international market opportunities. As for the institutional markets, Mr. Roame first framed the opportunity, which includes about equal size defined contribution and defined benefit plan markets; defined contribution plans market increasingly dominant & evolving quickly; corporate, union, and state & local government defined benefit plans; foundations & endowments lead in investment strategies but little else, corporate cash, & sovereign wealth funds.

He pointed out that Tiburon CEO Summit XXV attendees voted that 401K plans & other defined contribution plans will have the highest institutional distribution channels growth over the next five years. Mr. Roame also provided some facts:

  • Corporate defined benefit plan funding levels are at 82%, up from a decade low of 74%
  • The Oklahoma teachers pension fund is the top public pension fund with 17.4% return
  • The foundations market is $660 billion, up 20% since 2001 but still down from its peak of $682 billion in 2007
  • The largest foundation is the Bill & Melinda Gates Foundation with $37.4 billion assets under administration
  • The endowments market is $406 billion, relatively consistent since 2008 and up 35% since 2009
  • The largest university endowments, including Harvard, Texas, Stanford, Yale, & Princeton have $15-$30 billion assets under administration

Mr. Roame then discussed international market opportunities and key trends. Specifically, he defined five huge opportunities referencing 37% of the world population lives in China & India, 48% of mutual fund flows outside of the US, emerging market asset flows, ETFs circling the globe, and globalization of the independent advisor model. Mr. Roame then defined six key trends:

  • Australia employers contribute mandated 9.25% of salaries to tax advantaged retirement plans (employees manage) (goes to 12.0% by 2020)
  • Australia & the United Kingdom banned product company payments to brokerage firms starting in 2012 & 2013 respectively
  • United Kingdom fund industry partnering with government to promote investing
  • United Kingdom eliminated mortgage interest deduction
  • France targeting off shore UBS accounts
  • Asia Pacific demands alternatives (China lets in hedge funds)

Mr. Roame explained that Tiburon CEO Summit XXV attendees anticipate that Asia Pacific Markets & English speaking countries markets will have the most impact over the next five years. He also related that global mutual funds have gathered $23.8 trillion assets under management, up over 100% since 1999 but down from its peak of $24.6 trillion in 2007. Mr. Roame added that over half of the mutual fund market is now outside of the United States.

Other Thoughts

Mr. Roame then shared thoughts on the legislative & regulatory agenda and the 2014 elections, rapid institutionalization of business tactics, and potential strategic activity. He began by outlining the Federal budget deficit which is currently at $755 billion and, amazingly, a surplus is possible in three-to-four years. He added that 44% of Americans are on Social Security & Medicare and that we need entitlement reform specifically for Baby Boomers. Mr. Roame went on to explain that Tiburon CEO Summit XXV attendees are expecting a band-aid agreement.

Mr. Roame then explained that with respect to the debt ceiling the US government debt as a share of GDP is in line with that of the United Kingdom, Germany, & France, and lower than that in Japan. He stated that “if you thought the annual budget was a pathetic process, watch this and remember what the market downturn caused in 2011.” He then explained that tax rates are still low relative to history and European levels.

Mr. Roame touched on the Affordable Care Act (ObamaCare), relating that despite greater than 50% of Americans opposing the Affordable Care Act, the health exchanges are being introduced, leaving Republicans struggling for an answer. He also addressed Dodd Frank which is just one-third complete and has addressed a few points (SEC & CFTC redundancy and CFPB putting pressure on bank margins). Mr. Roame continued with the discussion of Dodd Frank, relating points including too big to fail is bigger now, TARP still 22% outstanding, bank stress tests for solvency, Volcker rule, GSE reform, and shadow banking.

Mr. Roame shared a few views and Tiburon CEO Summit XXV attendee votes as it pertains to governance & regulatory issues:

  • 71% voted that Dodd Frank will never be implemented
  • The ultimate money market fund rule will be floating NAVs for all (33% of attendees) or some money market funds (20% of attendees)
  • 71% believe that a uniform fiduciary standard for retail advice will not be implemented in 2014

Mr. Roame discussed politics looking ahead to 2014 with four main points as a backdrop for the discussion including Republican soul searching, Obama approval rate falling, Republican benefits, and Republicans blow it shutting government down trying to renegotiate ObamaCare. He expressed that Tiburon CEO Summit XXV attendees expect no changes in 2014 and provided the results of another Tiburon CEO Summit XXV attendee survey related to election outcomes:

  • Republicans retain control in the 2014 house election
  • Democrats retain control in 2014 senate election
  • A Democrat will win the 2016 presidential election
  • Hillary Clinton will win the 2016 presidential election

Mr. Roame also addressed the rapid institutionalization of business tactics including client service, target markets, sales & marketing, staffing & compensation, and technology & outsourcing. He began by explaining that in client service two timing is common, 30% withhold information from financial advisors, service is number one, and there is 4% attrition. Mr. Roame added that consumers put more than 90% of their assets with one provider.

With respect to target markets, Mr. Roame broke the issue into two main topics including big data affording a renewed look at some old basics and delivering on the needs of emerging segments. He provided various data points:

  • The Forbes 400 have $2.0 trillion of consumer household assets, up 100% since 2003-2004
  • 91 members of the Forbes 400 live in California
  • Women account for 12% of the members of the Forbes 400, with 2% of the list (eight women) being self made
  • California leads all states in terms of number of $1.0 million net worth households by far, with 859,000
  • Almost half of millenials consider themselves conservative investors
  • Almost half of millenials believe that they spend a lot of time researching alternatives before making major purchase decisions
  • Almost half of millenials need to fully understand all the different options & outcomes before feeling in control of a situation
  • More than one-quarter of millenials would get a second opinion before taking their financial advisor’s advice
  • Tiburon CEO Summit XXV attendees anticipate that female consumers will have the most impact over the next five years
  • Union members make up an increasingly smaller percentage of total employment at just 12%, down from 20% in 1983

Mr. Roame then addressed sales & marketing within two categories including traditional (advertising, stadiums, radio, and books) and leading edge approaches (public relations, big data & predictive analytics, and digital marketing). He explained that The Edelman Financial Group’s Edelman Financial Services conducted 500 seminars in 2013, up from 75 in 2012. Mr. Roame added that digital advertising expenditure reached $118 billion in 2013 and represented 24% of total advertising spend.

Mr. Roame also discussed staffing & compensation with five key points including light being shined on boards, a couple of non-FIG shockers, key executive changes, American Funds expands sales, and incentives that attract & retain talent. He explained that amongst public companies that have implemented majority voting in uncontested election, the vast majority have adopted mandatory resignation policies. He then related that 88% of women report that unconscious bias among leadership is primary barrier to advancement. Mr. Roame then pointed out that Tiburon CEO Summit XXV attendees believe that financial services industry compensation will increase over the next five years.

With regard to technology & outsourcing, Mr. Roame focus on four points including platform consolidation; platforms also supporting individual financial advisors; social, mobile, & the cloud driving technology spending; and technology also increasingly available to consumers. He explained that one-third of financial advisors believe that technology will be the primary force that drives industry innovation. Mr. Roame described that Tiburon CEO Summit XXV attendees voted that big data & mobile technology will be the most impactful technological issues for their firms.

Mr. Roame also addressed potential strategic activity focusing on six areas including FIG profitability, FIG valuations, the role of wealth & asset management, recent & potential strategic activity, and FSI PE & VC facts. He began by explaining that FIG profitability has 8.3% ROE, is up moderately, depends on interest rates, and is 26% of corporate profits. He also explained that Tiburon CEO Summit XXV attendees anticipate that financial services firms profitability will increase over the next five years. Mr. Roame then discussed FIG valuations saying that financial services firms are 22% of the DJIA, FIG stocks are up, and Envestnet hit $1.0 billion market capitalization. He explained the role of wealth & asset management in terms of the history and the news.

Mr. Roame addressed recent & potential strategic activity including regulatory reform & capital needs requiring divestitures, mergers & acquisitions activity likely to pick up because values are up so sellers are willing, low interest rates for borrowing not necessarily driving much activity, diversification moves (Legg Mason looking for international manager), product deals limited, service & technology firms consolidating, captive & independent brokerage forces combining for scale, financial advisors facing significant succession planning issue, other financial advisors building national firms, continued emergence of financial advisor aggregators, private equity continues to bet on independent financial advisor distribution, venture capital firms betting on online advice, most recent IPOs (Envestnet and Financial Engines).

Conclusions

Mr. Roame concluded his presentation by reviewing the 50 underlying trends and the four fundamental bets.

50 Underlying Trends:

 

  • Economy mixed with solid corporate profits but high unemployment, differing consumer segment recoveries, municipal bankruptcies, & troubling world affairs
  • Financial services industry continues to stumble upon itself (JP Morgan Chase & Company, SAC Capital Advisors) plus several idiots (Weiner, Spitzer, Filner)
  • Consumer assets & net worth now both above 2007 peaks (in aggregate)
  • Differing underlying components explain varying levels of consumer sentiment (e.g., growth in investable assets versus personal assets)
  • Wealth gap widening on numerous measures
  • Consumers fundamentally changed (more conservative; more involved; lost generation?)
  • Lack of retirement readiness crisis creeping closer & closer for many Baby Boomers
  • Obamacare is here…
  • Dodd Frank stalling at 30% complete
  • Private investment funds to start advertising
  • Money markets fund NAVs to float
  • Fiduciary rule… Why is there even a debate?
  • FINRA… Scrawny point guard…
  • Core investment strategies evolving (managed accounts; rep driven; retirement income; tactical & possibly thematic investing?; guarantees)
  • ETFs continue to take share while three firms continue to dominate flows and margins are pushed even lower
  • Active ETFs are a wild card
  • Managed ETFs are a big deal
  • Alts for better or worse
  • Financial advisor channels are the largest and fastest growing (institutional channels still talk big game though)
  • Wirehouse broker productivity is very impressive
  • Break-away broker movement relatively quiet (has bull market slowed and/or have wirehouses found a response in compensation plans?)
  • FINRA broker bonus disclosure rules could fire up the break-away broker trend
  • Independent advisors slowly taking share
  • Independent advisors even more fragmented than other areas of financial services
  • Custodians doing well (even beyond the big four firms)
  • Independent broker/dealers focused on hybrids and repositioning as custodians, TAMPs, and/or producer groups (NFP; LPL-Fortigent)
  • Discount brokers doing well (with new revenue models)
  • B2C models re-emerging in three flavors (financial planners; investment managers; & financial advisors with online presence) (LearnVest; Personal Capital; Edelman Online) (spot light on account aggregation)

 

  • Complicated 401K business ripe for innovation (Tiburon wants a low cost ETF 401K plan direct)
  • Defined benefit plans remain underfunded ($ trillions)
  • Foundation & endowment markets (with snazzy investment strategies) turn in weak performance
  • Corporate America awash with cash
  • International consumer markets present wild card
  • Financial advisor target market models succeeding (Hanson & McClain; Lenox Wealth Management; Regent Atlantic Capital)
  • Women’s issues finally getting some attention (more risk averse but shorter careers; longer lives) as baby boomers age (85 Broads) (“I married two of them”)
  • Gen X & Gen Y generations leading to marketing, staffing, & client service changes
  • Big data driving better decisions across multiple marketing methods
  • Digital marketing (SEO; blogging; social media; & email marketing) rivaling traditional marketing efforts
  • Some prominent executive job changes suggesting new industry directions (Jessica Bibliowicz; Paul Hatch; Sallie Krawcheck; Danny Ludeman; Larry Roth)
  • Platform consolidation key (e.g., managed account programs)
  • Social, mobile, & cloud driving technology spending
  • Divestitures driving financial services mergers & acquisitions activity
  • IBD market continues to restructure (RCAP-First Allied-Hatteras Funds-Investors Capital)
  • Financial advisors with a growing succession planning issue
  • Banks likely to be buyers of traditional asset managers and wealth managers (after selling private fund businesses)
  • Another rich price paid for a high-end financial advisor (Bel Air)
  • Financial advisor scale models emerging (The Edelman Financial Group; The Mutual Fund Store; United Capital Financial Partners)
  • Private equity betting on financial advisor channels (The Edelman Financial Group; The Mutual Fund Store)
  • Venture capital betting on self-serve channels (Personal Capital Corporation; Motif Investing; Jemstep)
  • Detroit dead; Twinkie alive


 

 

 

 

 

 

 

 

Four Fundamental Bets:

  • Bet #1: Distribution will increasingly take economics from product manufacturing (sometimes manufacturing will be embedded into distribution though)
  • Bet #2: Financial advisor and do it yourself channels are probably better bets than the institutional or international channels
  • Bet #3: Financial advisor channel smart bets include scale, aggregation, & outsourcing
  • Bet #4: Do it yourself channel smart bets are probably those combining delivery mechanisms

Mr. Roame advised that, "private equity should generally bet on channel businesses over product businesses, in part because the firms closest to the clients always win when margins compress."

General Session Presenter

Matt Lynch

(Principal, Tiburon Strategic Advisors)

 

 

CEO Summit XXV
General Session Presenter

Matt Lynch
(Principal, Tiburon Strategic Advisors)

 

 

 

 

 

 

 


Tiburon CEO Summit XXV featured a general session presentation by Tiburon Principal Matt Lynch. With over 25 years of financial services experience, most recently as CEO of a leading independent broker/dealer & RIA, Mr. Lynch is viewed as a thought leader and change agent known for his innovative approach to the financial services business as a senior executive and as a consultant. Mr. Lynch is among an elite group of industry experts who can leverage experience as a successful executive with consulting expertise. He is sought after for his ability to link strategy with the art of the possible in terms of implementing change. Mr. Lynch accomplishes this through his extensive knowledge of financial advisors, product design & pricing, regulatory requirements & trends, and the benefit of a couple of decades in the trenches. At Tiburon, Mr. Lynch has led corporate strategy engagements for leading banks, insurance companies, broker/dealers, public accounting firms, investment companies, RIAs, & venture capital firms.

Mr. Lynch addressed the three core themes that make up the focus of the Tiburon CEO Summit, including challenging conventional wisdom, focusing on the consumer, and taking responsibility & giving back. Mr. Lynch provided case study examples of these themes as practiced by past Tiburon CEO Summit award winners.

Mr. Lynch's comments on what we have learned from Tiburon CEO Summit Award recipients included:

  • "Award recipients were influenced by their mentors, foundations as youths, & first experiences with financial products or services"
  • "As business leaders, award recipients utilize ethical dilemmas, lessons along the way, and both failures and success as learning experiences"
  • "Focusing on corporate culture philosophy matters"

Mr. Lynch's comments on the expectations & questions of award recipients included:
  • “Recipients expect that financial services companies will develop products & services that meet rapidly evolving consumer needs"
  • "Recipients expect that the industry will successfully engage with the growing 35 and under demographic"
  • "Recipients expect that CEOs will find better ways to create opportunities that enable consumers to make wise financial decisions"
  • "Recipients question how the industry will be able to close the trust gap to develop programs to support the next generation of advisors and clients"

When providing selected highlights of past award winners, Mr. Lynch quoted John Bogle, Bob Reynolds, David Booth, & Ken Fisher:

  • John Bogle (Founder, The Vanguard Group): "You run money not in your own interest, but in the interest of the client. The client is first; client first should be the rule. Remember that and act on it"
  • Bob Reynolds (CEO, Putnam Investments): "Client service, quality, constant improvement. If you are doing the same thing today that you did yesterday, you are not improving you or the business"
  • David Booth (Co-CEO, Dimensional Fund Advisors): "We are obsessed with lowering costs, and figuring out how to help consumers make money by lowering their costs and giving them a fair deal"
  • Ken Fisher (CEO, Fisher Investments): "Mean well, try hard, and put the customers' interests first"

When discussing recognizing new business models in which companies & consumers win, Mr. Lynch quoted Charles Schwab, Walt Bettinger, Al West, & Mark Casady:

  • Charles Schwab (Chairman, The Charles Schwab Corporation): "Wall Street, in my view, has always been constructed on a platform of: how do we make money for ourselves? And in our case, we ask: how can we do a better job for the consumer?"
  • Walt Bettinger (CEO, The Charles Schwab Corporation): "Too many financial services models - busines models and economic models - are designed in such a way that what is good for the company is not what is good for the consumer"
  • Al West (CEO, SEI Investments): "Innovation and progress are just learning from your mistakes; you have to be willing to go out and fail. We try to fail fast"
  • Mark Casady (CEO, LPL Financial): "We have really worked hard to be very transparent with our employees and very transparent with our customers about the things that we are looking at, and the ways that we are thinking about things so that we can all be connected together"

When discussing the industry's moral compass, Mr. Lynch quoted Harry Markowitz:

  • Harry Markowitz (President, Harry Markowitz Associates & Nobel Prize Winner in Economic Sciences): "The purpose of the financial services business is to do good. We exist to serve others, not just ourselves"

When discussing focusing on consumers, Mr. Lynch quoted past award recipients Bill Sharpe, Joe Mansueto, and Don Phillips:

  • Bill Sharpe (Founder, Financial Engines, Professor Emeritus, Stanford University & Nobel Prize Winner in Economics): “I started turning all my academic research and writing towards the individual. The goal of Financial Engines is to put the proper advisory tools in the hands of these investors"
  • Joe Mansueto (CEO, Morningstar): "The culture of our organization is to think in terms of innovation. If you do not innovate, if you cannot find investment methodoligies, research insights that lead to concrete, better outcomes for investors, why should they pay you?"
  • Don Phillips (President, Fund Research, Morningstar): "What do the best firms have in common? They created funds that people would want to buy. They did not try to ram products down people's throats. In the fund industry what you have seen is that those people that serve investors better did better"

When discussing focusing on the long-term, Mr. Lynch quoted past award recipients Rob Arnott:

  • Rob Arnott (CEO, Research Affiliates): If you try do well by helping others achieve their goals - do well by doing good - this is a business that offers wonderful personal rewards, financially and in personal satisfaction to those who are patient. Those who are impatient, the immediate rewards can be much greater but the long-term rewards are not"

Mr. Lynch also relayed common viewpoints of Tiburon CEO Summit Award recipients:

  • "The old model includes a focus on profits first, layers of hidden fees, & the old guard status quo"
  • "The new model includes a focus on the consumer first, transparency, and a culture of innovation"

In closing, Mr. Lynch predicted outcomes for financial services 2030:

  • "The status quo will lead to permanent damage from the trust gap and growth of consumer and government participation, as financial institutions' influence wanes"
  • "The innovation economy will lead to a renewed focus on consumers, increased transparency, and better outcome for all"


Speakers & Panelists

Tiburon CEO Summit XXV also featured speakers & panelists, including Ryan Alfred (President, BrightScope), John Bunch (CEO, The Mutual Fund Store), Mitch Caplan (CEO, Jefferson National Financial), James Carney (CEO, By All Accounts), Ron Carson (CEO, Carson Wealth Management Group), Bill Crager (President, Envestnet), Ben Cukier (Partner, FTV Capital), Joe Duran (CEO, United Capital Financial Partners), Mike Durbin (President, Fidelity Institutional Wealth Services), Ric Edelman (CEO, The Edelman Financial Group), Ed Forst (CEO, Lincoln Investment Planning), Mark Goldberg (President, Carey Financial), Dan Goldie (CEO, Dan Goldie Financial Services), Mark Gormley (Partner, Lee Equity Partners), Pete Hess (CEO, Advent Software), Anton Honikman (CEO, MyVest Corporation), Mark Hurley (CEO, Fiduciary Network), Steve Janachowski (CEO, Brouwer & Janachowski), Rob Klapprodt (President, Vestmark), Paul Koontz (General Partner, Foundation Capital), Steve Lockshin (Chairman, Convergent Wealth Advisors), Jeff Maggioncalda (CEO, Financial Engines), John Michel (CEO, CircleBlack), Blake Mohr (CEO, Capitas Financial), Robert Moore (President, LPL Financial), John Rafal (CEO, Essex Financial Services), Rich Rosenbaum (Principal, Aquiline Capital Partners), Simon Roy (President, Jemstep), Greg Tschider (CEO, Verisight), Hardeep Walia (CEO, Motif Investing), Michelle Watson (Chief Investment Officer, First Republic Investment Management), Elliot Weissbluth (CEO, HighTower), Chuck Widger (Chairman, Brinker Capital), Chris Wolfe (Chief Investment Officer, Private Banking & Investment Group, Merrill Lynch Wealth Management), & Mike Woods (CEO, DWS Investments Distributors).

Ryan Alfred
(President, BrightScope)

 

 

CEO Summit XXV
Panelist

Ryan Alfred
(President, BrightScope)

 

 

 

 

 

 

 

Ryan Alfred is President of BrightScope, responsible for the day-to-day operations of the company. Mr. Alfred frequently speaks on financial industry regulation and is actively engaged in the debate in Washington, DC about issues relating to retirement. Mr. Alfred has been named to Forbes’ Top 30 under 30 in Finance and to the Smart Money Power 30. Previously, Mr. Alfred was a co-founder of Alfred Capital Management, an independent registered investment firm located in La Jolla, CA.

Mr. Alfred's comments included:

  • "Index funds, once selected as retirement plans, tend not to get replaced. It is hard as a fiduciary to make a case for replacing"
  • "Everyone has hit the pause button on big data because most are not sure they have a clear understanding of their own data in the first place. It is a matter of data cleansing first"
  • "Plan sponsors and advisors are going to be looking for more data, better metrics to select and monitor their target-date funds... they are looking for new ways to do it"
  • "It feels like overnight they (T. Rowe Price) have become the primary retirement investment for millions of American workers"
  • "It does not make any sense that a money market fund should charge three times more than a large cap index fund"

 

John Bunch
(CEO, The Mutual Fund Store)

 

 

CEO Summit XXV
Panelist

John Bunch
(CEO, The Mutual Fund Store)

 

 

 

 

 

 

 

John Bunch is CEO of The Mutual Fund Store, responsible for the day-to-day stewardship of the company, its direction and overall business strategy. He took this position in 2011, after arriving from TD Ameritrade, where he was president of retail distribution and served in multiple executive capacities over his seven years there. Prior to that, Mr. Bunch held several leadership positions at The Charles Schwab Corporation.

Mr. Bunch's comments included:

  • “We believe the mass affluent market has historically been underserved. Our mission is to provide them with the same high-quality fee-only experience that has previously been reserved for the HNW market”
  • “The Mutual Fund Store strives to deliver a consistent client experience that can be tailored based on an individual’s needs and goals”
  • "We are pursuing a national presence, not a national brand"
  • "We are after scalable infrastructure, market by market expansion, consistent experience, investment philosophy, & value proposition, and some name brand recognition"
  • "We are not after expanding into markets where ROI projections are not attractive, 'just to be national'"

 

Mitch Caplan
(CEO, Jefferson National Financial)

 

 

CEO Summit XXV
Panelist

Mitch Caplan
(CEO, Jefferson National Financial)

 

 

 

 

 

 

 

Mitch Caplan is CEO of Jefferson National Financial, where he is the key strategist behind the company’s successful expansion and ongoing growth strategy. Under Mr. Caplan’s leadership, Jefferson National has been recognized as the industry’s first flat-fee variable annuity for RIAs and fee-based advisors. Previously, he served as an executive advisor to Aquiline Capital Partners, CEO of E*Trade Financial, & CEO of Telebanc Financial Corporation. Throughout his career, Mr. Caplan has been an advocate for innovation and has been committed to creating superior customer value.

Mr. Caplan's comments included:

  • "The key is the transition of the Fed"
  • "Companies are doing better primarily as a result of financial engineering not necessarily by innovating for the future"
  • "Bernanke has been too media driven trying to keep the market from overreacting.  In a sense, the Fed has boxed themselves in to sending the wrong signals"
  • "You can not assume that profit margins can not expand"
  • "You need to figure out how to charge for intellectual capital while lowering operating cost"

James Carney
(CEO, By All Accounts)

 

 

CEO Summit XXV
Panelist

James Carney
(CEO, By All Accounts)

 

 

 

 

 

 

 

James Carney is CEO and co-founder of By All Accounts. He and his teams are responsible for building, marketing, & selling highly scalable, complex solutions, on time and within budget. Prior to co-founding By All Accounts, Mr. Carney was CEO and co-founder of Bidder’s Edge, the largest online auction portal servicing more than 500,000 users monthly with information available on over eight million items on a near real time basis. Company revenue grew in excess of 100% each year with expanding profit margins. Prior to Bidder's Edge, Mr. Carney was CEO and co-founder of Workgroup Technology Corporation, which developed product information management systems for the engineering and manufacturing environments. The company had a successful IPO on the NASDAQ exchange. Previously, Mr. Carney was CEO and co-founder of WSI, a UNIX based system integrator that developed solutions for the engineering market, which was acquired by BOM Nesbitt Burns. He also ran the Northeast operations for Computervision, the worldwide leading provider of CAD/CAM systems.

Mr. Carney's comments included:

  • "Advisors want technology to work like a refrigerator. They want to open the door and get a cold drink. The do not care how it works"
  • "Where there is change, there is room for technology disrupt"
  • “Data has become a strategic asset to financial firms. The firms with the best data workflow will have the richest analytics, reporting, & insights. This shift is why we are seeing increased demand from global financial institutions to use aggregation technology to streamline the flow of data within their organizations – taking it from one internal system and delivering it to another – so all stakeholders have efficient access to the information, reports, & insights that they need”
  • “Adding new technology can be a huge step for financial advisors, whether they are installing or upgrading a portfolio management system, CRM, planning tool, rebalancing software, client portal, or any other application. And yet, for all the bells and whistles, the applications themselves are not the guarantors of success. Rather, it is the smooth, seamless flow of data through an organization – from system to system – that makes for an effective and well oiled operation”
  • "One of the top trends will be a change in advisor/client interaction as a result of mobile, social, and information technologies"

Ron Carson
(CEO, Carson Wealth Management Group)

 

 

CEO Summit XXV
Panelist

Ron Carson
(CEO, Carson Wealth Management Group)

 

 

 

 

 

 

 

Ron Carson is CEO of Carson Wealth Management Group. He is the firm’s founder and has worked extensively in the field of financial management since 1983. Mr. Carson also founded PEAK, a coaching program for financial advisors, both based in Omaha, Nebraska. Mr. Carson has been honored as one of Barron's Top 100 financial advisors and was named by Registered Rep Magazine as the top independent advisor. He has been selected by Worth Magazine as one of The Best 250 Financial Advisors in the country, as well as being selected by Medical Economics as one of The Nation’s Top 120 Financial Advisors for Doctors. Mr. Carson is a regular guest on CNBC’s Squawk on the Street and CNBC’s On the Money, as well as a frequent guest on KMTV3`s Mid-Day Business Report. Mr. Carson was also the founder & past president of the Heartland Chapter of the Financial Planning Association, past president & board member of the Child Savings Institute, and past president of the American Charitable Foundation. Mr. Carson has shared his success principles, as documented in his book, Tested in the Trenches, with audiences worldwide. Most recently, Mr. Carson co-authored the New York Times best selling book, Avalanche.

Mr. Carson's comments included:

  • "The number of advisors that have a fully executed succession plan is less than 5%. The plan should be a required part of the ADV, then let the market decide whether the plan is acceptable"
  • "I think the financial services industry has taken a lot of comfort in the false notion that clients will always want to do business with an advisor. I do not believe that will be the case"
  • "There is a big need for regulating succession and part of being a fiduciary is having a plan"
  • "Advisors really do not know what they are paying. They have to be forensic accountants to dig in and really see what they are paying"
  • "The financial services industry needs to have the soul of a social worker, otherwise the financial advisor will go the way of the travel agent”

Bill Crager
(President, Envestnet)

 

 

CEO Summit XXV
Panelist

Bill Crager
(President, Envestnet)

 

 

 

 

 

 

 

Bill Crager is President of Envestnet and has been with the company since its founding in 2000. Mr. Crager leads Envestnet's platform, product, and relationship management efforts. Prior to joining Envestnet, Mr. Crager served as managing director at Nuveen Investments beginning in 1997 and prior to that for Rittenhouse Financial Services beginning in 1994. Mr. Crager is frequently cited in industry publications and research regarding innovation and trends in the investment advisory marketplace.

Mr. Crager's comments included:

  • "I think advisors are going to want something more end-to-end — from back-end [software] to thousands of separate account managers and connections to custodians. That complete suite will be highly valued. We think that is a competitive difference"
  • "What impresses me about Tamarac: they have a great service model. They know the RIA business really well"
  • "Advisors who equip themselves with the most advanced wealth management tools and technology are positioned to make better decisions, implement them more effectively, and communicate them in the way that best fits a client’s needs"
  • "We are listening to the advisers and building what they want and the custodians are our partners in so many ways, it really depends on the profile of the adviser as to what they will want and we fully expect that some will be a better fit for the custodial models and others our offerings"
  • "It has been our belief that full integration of advisors’ practices would significantly enhance not only their ability to increase their book of business, but also create depth to their services as well as operational efficiencies"

Ben Cukier
(Partner, FTV Capital)

 

 

CEO Summit XXV
Panelist

Ben Cukier
(Partner, FTV Capital)

 

 

 

 

 

 

 

Ben Cukier is a Partner at FTV Capital. Mr. Cukier leads investments in asset management, lending, & banking. Mr. Cukier was previously with the Telecommunications & Media Team at Madison Dearborn Partners in Chicago. Prior to joining Madison Dearborn Partners, Mr. Cukier was with McKinsey & Company in New York, where he consulted to clients in the telecommunications, internet, and healthcare industries.

Mr. Cukier's comments included:

  • "Some folks will build great, large, registered investment advisory firms. We are just not sure that they will be worth more than the capital invested to build them"
  • "It is hard to innovate and it is hard to grow a large company"
  • "Active ETFs are just starting to take root"
  • "It has never been easy to be in this business, but the challenges have changed. It used to be that advisers didn’t know what ETFs were, but now there are thousands of ETFs out there and the challenge is how to get the advisors’ attention"
  • "You can have a great product but if you do not understand distribution you will have $100 million in assets and low profitability"

Joe Duran
(CEO, United Capital Financial Partners)

 

 

CEO Summit XXV
Panelist

Joe Duran
(CEO, United Capital Financial Partners)

 

 

 

 

 

 

 

Joe Duran is CEO and a founding partner of United Capital Financial Partners, one of the fastest growing wealth counselling firms in the nation. Mr. Duran was previously president of GE Private Asset Management (formerly Centurion Capital Management). Mr. Duran has raised $45 million of capital from three private equity funds (Grail Partners, Putnam Lovell Partners, & Bessemer Venture Partners). Mr. Duran was listed in the Ten to Watch List in 2012 by Registered Rep, is the bestselling author of three nationally published books, and is a frequent contributor to a wide variety of media outlets.

Mr. Duran's comments included:

  • “We think there is space for three to five national firms. We think The Edelman Financial Group, The Mutual Fund Store, & Fisher Investments will be among those”
  • "Brand is more than a name, it is about how you deliver on a promise"
  • “All clients are concerned about three basic risks: lifestyle risk, income risk, & surprise risk. We speak to the simple issues instead of things like standard deviation”
  • “We have invested millions of dollars in our client experience and we think the future of the industry is like Starbucks rather than lots of little mom-and-pop coffee shops. There will be a couple of dominant national brands that people come to trust and respect, unlike the big wirehouses that are out there today”
  • “We are creating a category that does not exist, and it's very hard for people to wrap their brains around it because up to now it has either been the pushed-down model of the full-service brokerage firm or the do-it-all-yourself model of the stand-alone advisor”

Mike Durbin
(President, Fidelity Institutional Wealth Services)

 

 

CEO Summit XXV
Panelist

Mike Durbin
(President, Fidelity Institutional Wealth Services)

 

 

 

 

 

 

 

Mike Durbin is President of Fidelity Institutional Wealth Services. Prior to his employment with Fidelity, Mr. Durbin held various leadership positions at Morgan Stanley including chief operating officer of the national sales division for Morgan Stanley Global Wealth Management.

Mr. Durbin's comments included:

  • "The blurring of business models has caused confusion in the eyes of consumers"
  • "Millionaire investors’ outlook has been consistently pragmatic about current market conditions and pervasively optimistic about a future recovery"
  • "We are not in a business where we want to end up with the most number of clients. We want to have the largest clients with the most assets. We are going after the largest teams and getting them"
  • "I think Fidelity Investments has done the best job of speaking the language of the breakaway brokers"
  • "The just-below-the-surface, but pervasive, black market for information is worse than the in-your-face overt Madoff”

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

CEO Summit XXV
Panelist

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

 

 

 

 

 

Ric Edelman is CEO of The Edelman Financial Group. Mr. Edelman has been ranked by Barron’s among America’s top 100 financial advisors nine times, including being ranked as the number one independent financial advisor in 2009, 2010, & 2012. In 2012, RIA Biz named Mr. Edelman the most influential financial advisor in America. Mr. Edelman has also been ranked as a top financial advisor by Research Magazine, Registered Rep, Financial Advisor, & other publications. Mr. Edelman is also an author, syndicated columnist, & host of weekly television and radio shows on personal finance.

Mr. Edelman's comments included:

  • "The Internet leads to financial transactions being free. It is advice on what transactions to implement that creates value. There is not an algorithm in the world  that can today replace the human advisor"
  • "All the big brokerage firms and banks have chosen not to serve the $5,000 client, but they will over time out of necessity"
  • "Pioneers get shot in the back with arrows, settlers benefit from the path the pioneers created. I view some/most of the recent start-up firms as pioneers, none are sustainable in their present form so we will see the rapidly evolve"
  • "Well meaning, ethical, thoughtful firms like Personal Capital Corporation are tripping on themselves over unintended consequences of having aggregated customer data, which creates a trust issue"
  • "The odds are that if you are alive in 2030, then you will live forever"

Ed Forst
(CEO, Lincoln Investment Planning)

 

 

CEO Summit XXV
Panelist

Ed Forst
(CEO, Lincoln Investment Planning)

 

 

 

 

 

 

 

Ed Forst is CEO of Lincoln Investment Planning, responsible for the activities of 800 licensed advisors and over 200 full-time operations and support personnel. The Lincoln Investment Companies include a full-service broker-dealer and registered investment advisors serving the diverse and changing financial needs of more than 250,000 individual investors, representing over $19 billion in assets.

Mr. Forst's comments included:

  • "Keep an eye on Detroit for guidance as to what may happen with other underfunded public employee pension plans"
  • "Lincoln's success stems from helping financial representatives grow their business"
  • "The size, strength, and high net-worth focus of Capital Analysts complements Lincoln Investment’s leadership in the retirement plans segment of the mass-affluent market"
  • "By fully embracing the regulatory changes and the new 403(b) requirements, school districts across the country may be able to transform a regulatory compliance challenge into an opportunity to attract and retain higher quality employees by promoting their 403(b) plan as one of the top three benefits available to school employees"
  • "With the cost of compliance and technology continuing to rise, firms need to bulk up and gain scale to remain viable"

Mark Goldberg
(President, Carey Financial)

 

 

CEO Summit XXV
Panelist

Mark Goldberg
(President, Carey Financial)

 

 

 

 

 

 

 

Mr. Goldberg is President of Carey Financial, W.P. Carey’s broker-dealer subsidiary, and is a managing director of W.P. Carey. Mr. Goldberg previously served as CEO and president of Royal Alliance Associates, an independent broker-dealer that is part of one of the nation's largest networks of independent advisors. Prior to his CEO position at Royal Alliance, Mr. Goldberg served as executive vice president of SunAmerica Financial Network, a subsidiary of SunAmerica, and the parent company for six national broker-dealers. Mr. Goldberg also served as president of a Tokyo-based securities firm, which was an affiliate of the SunAmerica Financial Network. Mr. Goldberg currently serves on the board of directors of the Investment Program Association and Saint Mary’s Healthcare System for Children. Mr. Goldberg was also a founding member and former director of Financial Services Institute.

Mr. Goldberg's comments included:

  • “Efficient-market theory suggests that if assets are easily bought, sold, researched, and managed, your ability to extract superior investment performance is highly unlikely. However, in assets that are less commoditized, less traded, and less followed, superior research, management, investment prowess, and patience will produce superior results”
  • “A private equity ETF is not investing in private equity, it is made up of securities that are modeled after private equity returns”
  • “The difference between investing using a derivative versus investing in a business is comparable to the difference between starting a football team and betting on the outcome
    of the Super Bowl”
  • "The IPA is endorsing the institutional approach to producing value, which is NAV. We need a standard approach that will create greater confidence for investors and improve their experiences"
  • “Derivatives are an essential part of many portfolios and an important tool for many businesses. But they are undoubtedly a zero-sum game, where for every long position, there is a short position. None of the capital is committed to raw goods or equipment. There is a winner and a loser. There is only wealth transfer, no wealth creation”

Dan Goldie
(CEO, Dan Goldie Financial Services)

 

 

CEO Summit XXV
Panelist

Dan Goldie
(CEO, Dan Goldie Financial Services)

 

 

 

 

 

 

 

Dan Goldie is CEO of Dan Goldie Financial Services. He is a fee-only, independent financial advisor and financial planner. Mr. Goldie has co-authored two investment books including the New York Times bestseller, The Investment Answer. He has been recognized by the San Francisco Business Times as one of the top 25 Bay Area independent advisors, and by Barron's Magazine as one of the top 100 independent financial advisors in the United States. Mr. Goldie's media appearances include ABC News, Fox Business News, National Public Radio, Yahoo! Finance, & CBS Moneywatch, and he has been quoted in the New York Times, Wall Street Journal, San Jose Mercury News, San Francisco Examiner, & many other business and financial publications. 

Mr. Goldie's comments included:

  • "My mission is to make sure my clients do not go through the challenges I went through"
  • "I was proud to work on Wall Street until the move toward profits and away from investors"
  • "The financial services industry is not doing a good job for individuals. There is too much sales pressure & product pushing, not enough education orientation. Consumers rely on us to teach them"
  • "Communication in the financial services industry is too complicated. The best educators I have had took complex concepts and made them simple, this is what the financial services industry needs"
  • “Retirement is an important date because it is the end of your earned income or a reduction in your earned income, but it is not the end of your life. You still need to keep investing as long as you are alive”

Mark Gormley
(Partner, Lee Equity Partners)

 

 

CEO Summit XXV
Panelist

Mark Gormley
(Partner, Lee Equity Partners)

 

 

 

 

 

 

 

Mark Gormley is a Partner at Lee Equity Partners. Prior to co-founding Lee Equity in 2006, Mr. Gormley was a partner at Capital Z Financial Services Partners. Mr. Gormley co-founded Capital Z Financial Services Partners in 1998 and shared responsibility for the oversight of all of the firm's investment and monitoring activities. Prior to founding Capital Z Financial Services Partners, Mr. Gormley served as a managing director at Donaldson, Lufkin & Jenrette, specializing in the insurance and asset management industries. While at Donaldson, Lufkin & Jenrette, Mr. Gormley worked on corporate finance and merger and acquisition assignments, as well as on principal related activities on behalf of Donaldson, Lufkin & Jenrette Merchant Banking. Prior to joining Donaldson, Lufkin & Jenrette in 1989, he was a founding member of the Insurance Group at Merrill Lynch in 1985.

Mr. Gormley's comments included:

  • "There are a lot of great companies and a lot of change going on, which means many opportunities to be had"
  • "We invest with the trends. Various risks tend not to be as significant compared to investing against the flow"
  • "Financial planning is a key opportunity of relative white space in the mass affluent market"
  • "We like to think about building great businesses over time"
  • "At least half of the return today has to come from enhancements to the operating processes of the company"

Pete Hess
(CEO, Advent Software)

 

 

CEO Summit XXV
Panelist

Pete Hess
(CEO, Advent Software)

 

 

 

 

 

 

 

Pete Hess is CEO of Advent Software. Mr. Hess is responsible for vision, strategy, & execution across the firm’s global business. Prior to his appointment to CEO, Mr. Hess served as the company's president for three and a half years, with responsibility for strategy, sales, marketing, services, & product teams worldwide. Mr. Hess has been with Advent Software since 1994 and has held a variety of positions in the company, including executive vice president and general manager of the company's largest businesses, and, previously, vice president of sales and vice president of marketing.

Mr. Hess' comments included:

  • "We have seen movement away from internally developed technology toward outsourced solutions. Among wirehouses this has been an interesting trend"
  • “The client space has certainly been evolving a lot more quickly in the last five years than it had previously. If you look at the buy side and go back ten or fifteen years ago, you had mostly traditional asset managers who serviced high net worth institutional clients around the globe. What you see today is a lot more specialization in the buy-side landscape. You have dedicated hedge funds, dedicated, traditional asset managers, & people who manage mutual funds and long-only investment portfolios”
  • “From the 1990s until about 2009, we saw a lot of firms that were single product specialists. Since the market crisis, it seems that a lot of those firms are now diversifying into other products, which has created an opportunity for Advent Software”
  • "We did not want to force the wrong system on the wrong client. That decision was the right decision long-term. And we feel really good about the fit of the products that we are rolling out to our clients"
  • “I am really thrilled. We had to earn the trust of the marketplace back and we are making good progress"

Anton Honikman
(CEO, MyVest Corporation)

 

 

CEO Summit XXV
Panelist

Anton Honikman
(CEO, MyVest Corporation)

 

 

 

 

 

 

 

Anton Honikman is CEO of MyVest. Mr. Honikman has almost twenty years of experience in leading cross-functional teams in investment management and financial technology. Prior to MyVest, Mr. Honikman served as president of Ada Investment Management, a boutique alternative investment manager. Prior to Ada Investment Management, Mr. Honikman spent five years at Barclays Global Investors, the large, quantitatively oriented investment manager acquired by Blackrock in 2009. Mr. Honikman established and ran Barclays Global Investors strategic ventures group, spearheading strategic investments and partnerships with innovative private financial services firms. Before the strategic ventures group, Mr. Honikman was as a senior investment strategist at Barclays Global Investors, with primary responsibility for designing and promoting defined contribution and retirement income products. Prior to Barclays Global Investors, Mr. Honikman spent ten years in a variety of product management and business strategy roles at Barra (now MSCI), the market leader in portfolio risk analytics. Most recently, as Barra’s vice president of product strategy, Mr. Honikman was responsible for the conception and commercialization of BarraOne, Barra’s flagship web-based multi-asset class portfolio analytics platform. BarraOne is now used by almost every pension fund in the top 50 of the Pensions & Investments rankings. Prior to building BarraOne, Mr. Honikman was responsible for Cosmos, Barra’s global fixed income product line.

Mr. Honikman's comments included:

  • "The key is making data more easily accessible with fewer key strokes to accurate, timely, certain data"
  • "Firms increasingly want to simplify, reduce cost & complexity, and standardize"
  • "The vision of digital channel adoption is that increased client-advisor collaboration leads to better outcomes"
  • "The proliferation of passwords is raising critical security and privacy issues in financial services, especially for the large diversified institutions we serve"
  • "The pros of transitioning to the cloud are cost, convenience, & compliance"

Mark Hurley
(CEO, Fiduciary Network)

 

 

CEO Summit XXV
Panelist

Mark Hurley
(CEO, Fiduciary Network)

 

 

 

 

 

 

 

Mark Hurley is CEO of Fiduciary Network. He oversees the Fiduciary Network team and its transactions and works closely with each of its partner firms. Prior to helping start Fiduciary Network, he was CEO of Undiscovered Managers, a mutual fund company he founded in 1998 and sold to JP Morgan Chase & Company in 2004. Mr. Hurley was previously a managing director at Merrill Lynch., a vice president at Goldman Sachs Group, and served as a presidential appointee at a bureau of the United States Treasury Department from 1990 to 1992.

Mr. Hurley's comments included:

  • "The industry has the tallest mindset contest, we want to work with the tallest minds"
  • "When you get a triple digit return on your capital year after year you tend to be pretty patient"
  • “Most owners of wealth management firms recognize that the business is becoming significantly more challenging. New clients are harder to find, operating costs (employee compensation in particular) are increasing, and regulators are becoming more hostile. Additionally, looming over all of these changes is a much greater, immutable force, old age. The founders of the advisory business, with an average age of 59, are reaching an age at which personal needs and objectives shift in preparation for retirement”
  • "Best metric for the financial services firms is to look at client retention during troubling times"
  • “This thing called the Internet is going to be big because it allows creation of a national presence for small firms"

Steve Janachowski
(CEO, Brouwer & Janachowski)

 

 

CEO Summit XXV
Panelist

Steve Janachowski
(CEO, Brouwer & Janachowski)

 

 

 

 

 

 

 

Steve Janachowski is CEO of Brouwer & Janachowski. Together with Kurt Brouwer, he pioneered the firm's investment strategy of investing in a portfolio of superior no-load mutual funds. Mr. Janachowski oversees the firm's investment research process. He concentrates on working with clients, researching investments, and managing portfolios. He is a member of the firm's board of directors and its investment committee. Prior to forming Brouwer & Janachowski, Mr. Janachowski was an officer in two New York Stock Exchange member firms and he began his career with Holt & Collins, and then moved to Merrill Lynch, both in San Francisco. Mr. Janachowski is the co-author of Mutual Fund Mastery and has written for The San Francisco Examiner and other publications.

Mr. Janachowski's comments included:

  • "I do not think of Build America Bond advisors as entrepreneurs. I see them as missionaries. We rejected the financial product distribution models in favor of working on behalf of our clients"
  • "Some clients that I have been dealing with for 25 years are now unable to make decisions for themselves. More and more, we find ourselves facilitating that transition of oversight for the parents' affairs to the children. If there is more than one child, the transition can be tricky"
  • "The three biggest industry trends are consolidation, profitability compression, & the rising cost of client acquisition"
  • "It is not just a financial transaction... partnerships are harder than marriages"
  • "RIA owners have pride. These people started the company and they have got relationships with their clients and they need to know that their firm isn’t going to get damaged. They really have to be reassured that there’s a genuine match"

Rob Klapprodt
(President, Vestmark)

 

 

CEO Summit XXV
Panelist

Rob Klapprodt
(President, Vestmark)

 

 

 

 

 

 

 

Rob Klapprodt is President of Vestmark. As one of the firm’s co-founders, Mr. Klapprodt has helped grow the assets managed on the Vestmark platform from zero to over $250 billion. Prior to joining Vestmark, Mr. Klapprodt was at Vignette Corporation, where he was responsible for the firm’s web site analysis and personalization solutions which were used by hundreds of companies across all industries. Mr. Klapprodt joined Vignette through its acquisition of DataSage, an eCRM software provider, in 2000. At DataSage, Mr. Klapprodt held various positions in sales, consulting, & product management, including the construction of the initial eCRM prototype which became DataSage's flagship product. Prior to DataSage, Mr. Klapprodt worked at Oracle Corporation, where he focused on the firm’s data warehousing and business intelligence solutions for large enterprises.

Mr. Klapprodt's comments included:

  • “Technology does not replace relationships, but it will serve to enhance the relationship through customized communication”
  • “Over $100 billion in assets flowed into financial advisor directed programs last year, with advisor as manager programs seeing 30% year over year growth”
  • “Many existing UMA programs have not met their growth potential because they have failed to incorporate the financial advisor into the investment process. If you completely
    take away tasks an advisor has been performing for years, they will not adopt the new program”
  • “Due to unique scalability & functionality requirements, broker/dealers, banks, RIAs, & other wealth managers have had limited compliance capabilities across their fee-based business lines”
  • “Given demographic trends and evolving expectations of consumers used to accessing anything and everything on-demand, the need to offer timely portfolio information and analytics to investors will only increase”

Paul Koontz
(General Partner, Foundation Capital)

 

 

CEO Summit XXV
Panelist

Paul Koontz
(General Partner, Foundation Capital)

 

 

 

 

 

 

 

Paul Koontz is General Partner of Foundation Capital. His primary focus is on financial services & internet technologies. Mr. Koontz currently serves as chairman of Financial Engines and is on the boards of Envestnet, eBates, and Refactored Materials.

Mr. Koontz' comments included:

  • "We define financial services much more broadly after decades of dominance by a handful of large firms. It is now filled with entreprenuerial opportunities"
  • "The financial services industry is considered very viable for entreprenuerial talent"
  • "I would expect crowd funding to have a lasting effect on the industry when the markets are good. When the markets are down, crowd funding is like cockroaches that leave when the lights go on"
  • "There is no doubt in my mind that 10 years from now, our notion of the corporate data center is going to be gone, and the way that large companies use technology like software is going to be completely redefined"
  • "Global power grids make up the largest networks in the world. In most cases, the technology on which they are based is essentially 100 years old. The opportunity to reinvent how energy is produced, distributed and consumed is extraordinarily large and is critical in the battle against climate change"

Steve Lockshin
(Chairman, Convergent Wealth Advisors)

 

 

CEO Summit XXV
Panelist

Steve Lockshin
(Chairman, Convergent Wealth Advisors)

 

 

 

 

 

 

 

Steve Lockshin is Chairman of Convergent Wealth Advisors. Mr. Lockshin served as CEO of the firm for eighteen years. He helped pioneer the open architecture approach to investing and was an early adopter of asset allocation strategies for the ultra-high net worth client, employing a mathematical process to determine appropriate client portfolios based on cash flow needs. With Mr. Lockshin’s oversight, Convergent Wealth Advisors became an innovator in the use & analysis of risk & reward parameters for alternative portfolios, equity risk management for concentrated portfolio holdings, and other strategies now employed industry-wide. Mr. Lockshin has been ranked by Barron’s as the top advisor in California in 2013 and one of the top three ranked advisors in each of the last three years on Barron’s list of Top 100 Financial Advisors. Washingtonian magazine also named Mr. Lockshin as one of the Top Financial Advisors in the Washington, DC area. He is a champion for the fiduciary standard and recently wrote the book, Get Wise to Your Advisor.

Mr. Lockshin's comments included:

  • Most consumers are paying premium prices for commoditized services in our industry"
  • "Fees cap out at a certain point, hence assets under account versus assets under management"
  • "There are many online solutions. Consumers can go online and for no money get asset allocation"
  • "Technology could compress margins for the financial services industry"
  • "The suitability versus fiduciary argument is an absolute embarassment for the financial services industry. It is simple, do the right thing for your client"

Jeff Maggioncalda
(CEO, Financial Engines)

 

 

CEO Summit XXV
Panelist

Jeff Maggioncalda
(CEO, Financial Engines)

 

 

 

 

 

 

 

Jeff Maggioncalda is CEO of Financial Engines, a role he has held since 1996. He has also been a director since 1997. He is responsible for the overall management of the firm and has over ten years of experience in the financial services industry. Mr. Maggioncalda has led Financial Engines through five successful rounds of funding, raising $140 million, and building an organization committed to creating powerful and innovative financial technology solutions. Previously, Mr. Maggioncalda worked at McKinsey & Company in their high technology practice and at Cornerstone Research conducting securities and software litigation consulting. He also developed case studies for a business strategy course taught by Intel Chairman Andy Grove. 

Mr. Maggioncalda's comments included:

  • "There is a way to create a real business via an online service that serves low-balance accounts. For all the economics to work you need low cost acquisition, a low cost service model, & a relationship with the end client"
  • “We have a whole generation of people approaching an important point in their lives where they need to think about retirement, at a time when public policy has shifted all responsibility for retirement onto their shoulders”
  • “Financial Engines’ long term vision is predicated on demographics. That is far more enduring and inevitable than any kind of technology trend”
  • “The decision to manage money is key. What is interesting about this is that it is the same underlying technology in terms of engines; it is the same target customer, which is the employee 401K plan; it is the same distribution strategy, which is through the workplace. It actually is all the same, but previously we just did not have the killer app that everybody wanted”
  • “The way we came up with managed accounts is that we were scratching our heads saying, ‘why is there not more people using online advice?’ We went out and started interviewing people and basically found that they do not want to go online and do this. So we wondered what if we take all the same engines, methodology, and everything else, but create a vision of the service where we will take care of this for our customers”

John Michel
(CEO, CircleBlack)

 

 

CEO Summit XXV
Panelist

John Michel
(CEO, CircleBlack)

 

 

 

 

 

 

 

John Michel is CEO of CircleBlack.

Mr. Michel's comments included:

  • "The price question is the wrong question"
  • "The financial services industry needs to figure out how to be a fiduciary but not undress the client during the first meeting"
  • "Why is it that Jon Corzine does not go to jail when he clearly approved the use of customer funds?"
  • "Bloomberg has never dropped it's price, instead they continually focus on how to create more value"
  • "The value of tactical allocation is in its timeliness"

Blake Mohr
(CEO, Capitas Financial)

 

 

CEO Summit XXV
Panelist

Blake Mohr
(CEO, Capitas Financial)

 

 

 

 

 

 

 

Blake Mohr is CEO of Capitas Financial. Previously, Mr. Mohr held several senior management positions for ReliaStar Life Insurance including Chief Financial Officer for the worksite Financial Services business unit. During his time at ReliaStar Life Insurance Mr. Mohr was responsible for managing the company’s 401k business. Prior to ReliaStar Life Insurance, Mr. Mohr was a member of the audit staff for Coopers & Lybrand.

Mr. Mohr's comments included:

  • "The difference in ways that various types of firms use insurance in financial plans is incredible and speaks to the inconsistency of advice in the financial services industry"
  • “Most financial advisors cannot be all things to all people”
  • “Half of the revenue that Northwestern Mutual insurance agents earn comes from investments”
  • "We provide the insurance advice, and we're basically the virtual insurance department for a stockbroker, bank, CPA, or independent advisor. Capitas Financial works with people who are not insurance experts. We become their insurance department"
  • "Northwestern Mutual insurance agents that were once our competitors are now customers because they are less familiar with how to handle the complicated insurance needs of their higher-net-worth clients"

Robert Moore
(President, LPL Financial)

 

 

CEO Summit XXV
Panelist

Robert Moore
(President, LPL Financial)

 

 

 

 

 

 

 

Robert Moore is President of LPL Financial. After joining the company in 2008 to lead financial operations, he transitioned in 2012 to the role of president, with a focus on identifying and enhancing revenue opportunities, both through new business ventures and through the delivery of services that support the growth of its customers. His role was further expanded in 2013 to include oversight of several distinct business lines, including Independent Advisor Services, Institution Services, & Retirement Partners, in addition to continuing his previous responsibilities for investment platform solutions, investment & planning solutions, high net worth solutions (including Fortigent and The Private Trust Company), research, LPL Insurance Associates, and marketing. Prior to LPL Financial, from 2006-2008, Mr. Moore served as CEO at ABN AMRO North America and LaSalle Bank Corporation. Before this role, Mr. Moore worked for Diageo, Europe and Great Britain, in a number of finance management positions, ultimately serving as chief financial officer.

Mr. Moore's comments included:

  • "The vast majority of Dodd Frank is meant to regulate good behavior"
  • “The way advice is provided will change, but the need for advice will not change”
  • "When it comes to demographics, the financial services industry is looking through the rear view mirror not the windshield"
  • “The issue of recruiting & training new advisors is become more critical every day”
  • “In the past few years successful advisors have been able to re-engage with their clients and successfully deliver on their plans”
  • “We would love to see harmonization, but that would mean regulation for registered investment advisors”

John Rafal
(CEO, Essex Financial Services)

 

 

CEO Summit XXV
Panelist

John Rafal
(CEO, Essex Financial Services)

 

 

 

 

 

 

 

John Rafal is CEO of Essex Financial Services, a Connecticut financial services firm with more than $3.9 billion in assets under management. Mr. Rafal has more than 30 years of experience in financial advisory services and has received numerous industry awards in the field of investment management. Mr. Rafal was named the top independent financial advisor in the country by Barron’s Magazine for 2007 & 2008. Mr. Rafal was named as one of the best 100 financial advisers in the United States by Barron’s Magazine in 2004-2013. Most recently, Mr. Rafal was named as the State of Connecticut’s top financial advisor by Barron’s in its 2013 special report on the top 1,000 financial advisors.

Mr. Rafal's comments included:

  • "Live where the client lives and nurture relationships"
  • "Keeping clients out of trouble is a lot of what we do today"
  • "Most of our clients are sophisticated, long-term investors, and the latest IPOs are not something that they are seeking”
  • “The gravitation toward hot products and hedge funds, which come and go, is not what we are about"
  • "There is a Red Sea of advsory firms, all very fragmented. Very few are building enterprise value"

Rich Rosenbaum
(Principal, Aquiline Capital Partners)

 

 

CEO Summit XXV
Panelist

Rich Rosenbaum
(Principal, Aquiline Capital Partners)

 

 

 

 

 

 

 

Rich Rosenbaum is a Principal of Aquiline Capital Partners.

Mr. Rosenbaum's comments included:

  • "You want to be in the business of selling picks & shovels to the miners, not worrying about which miner is going to strike gold”
  • “We like investments in which we can be in a position of influence and where we can bring more to the deal than just money"
  • "Technology-enabled businesses are interesting. It is helpful to hear about what these firms are doing"
  • "One of the cardinal rules of private equity is thou shall not lose capital"
  • "Investors need solutions, not products"

Simon Roy
(President, Jemstep)

 

 

CEO Summit XXV
Panelist

Simon Roy
(President, Jemstep)

 

 

 

 

 

 

 

Simon Roy is President of Jemstep. Mr. Roy is an experienced entrepreneur and executive and has been involved as an investor, consultant, & CEO in several successful Silicon Valley companies. Mr. Roy served as CEO of successful enterprise start-up Accrue Software, which was subsequently listed on the NASDAQ. Previously, he was a senior consultant with McKinsey & Company for several years, serving financial institutions in New York.

Mr. Roy's comments included:

  • “I think structure is an area where algorithms have a difficult time”
  • “Consumers are in a trust-but-verify mode which translates to increased self-directed activity”
  • “The challenge for online financial services is in linking timely, relevant advice with the low cost implementation model”
  • “A key challenge for online financial services is preparing clients for the next 2008”
  • "One of the things the financial services industry can do to create a more informed investor is to improve financial literacy through learning-by-doing"

Greg Tschider
(CEO, Verisight)

 

 

CEO Summit XXV
Panelist

Greg Tschider
(CEO, Verisight)

 

 

 

 

 

 

 

Greg Tschider is CEO of Verisight. Originally founded in 1985 as Pension Specialists, Verisight was rebranded under Mr. Tschider’s leadership in 2011 following the successful integration of NextStep Defined Contribution and the Human Capital Services division of RSM McGladrey. Previously, Mr. Tschider served as president of Wilmington Trust Company & Pension Specialists and its predecessor company AST Capital Trust Conpany of
Delaware. Prior to AST Capital Trust Company of Delaware Mr. Tschider served as general counsel and a member of the interim management team of Security Trust Company.

Mr. Tschider's comments included:

  • "Banks are beginning to understand that for most people, their first interaction with investments is a 401K plan"
  • "Clients are demanding lower fees and more services. Everyone is struggling to meet this challenge, custodians, plan administrators, investment managers, & advisors"
  • “The middle market has historically been underserved. We are just now seeing services that have been offered for the upper part of the market migrating down”
  • “Fee disclosure will enable 401K participants to make better decisions. They will be able to ask ‘what is the value of that active fund versus the index fund, and is that value worth the additional price’”
  • "Today, the providers that focus on the middle market are starting to change their models, and some are pricing per participant"

Hardeep Walia
(CEO, Motif Investing)

 

 

CEO Summit XXV
Panelist

Hardeep Walia
(CEO, Motif Investing)

 

 

 

 

 

 

 

Hardeep Walia is CEO of Motif Investing. Mr. Walia co-founded Motif Investing to create an intuitive way to invest in real-world ideas. He started Motif after spending more than six years in executive positions at Microsoft, including serving as general manager of Microsoft's $2.0 billion enterprise services business. He was also director of corporate development and strategy, helping to oversee Microsoft's investments and acquisitions. Mr. Walia began his career as a consultant with the Boston Consulting Group.

Mr. Walia's comments included:

  • "Never underestimate the power of algorithms"
  • "We do not think you can pick stocks successfully, but you can do well by investing based upon focusing on the right ideas"
  • "Fees have not dropped anywhere near as much as they could drop"
  • "The online start-up businesses are going to change the role of the advisor. These new models can be an advisor's best friend"
  • “Madoff would not have happened if every fund vehicle had a social network around it”

Michelle Watson
(Chief Investment Officer, First Republic Investment Management)

 

 

CEO Summit XXV
Panelist

Michelle Watson
(Chief Investment Officer, First Republic Investment Management)

 

 

 

 

 

 

 

Michelle Watson is Chief Investment Officer of First Republic Investment Management. Ms. Watson is responsible for setting the strategic vision of the firm’s investment process and platform. She maintains oversight of an open architecture investment process that includes internally developed investment solutions as well as an external, third-party manager platform. Ms. Watson also chairs the firm’s asset allocation and investment approval committees. Previously, Ms. Watson worked for U.S. Trust Company as a key contributor in the development and growth of its multi-strategy, open architecture program. Prior to US Trust Company, Ms. Watson worked in investment consulting & manager research at CTC Consulting.

Ms. Watson's comments included:

  • "We are going to have to change the way we think about wealth management given technology.  It is necessary to provide significantly more customized services if we expect to get paid"
  • "We do ourselves a disservice in the way we talk to clients on a quarterly basis. It serves us, not the client"
  • "Traditional investment advice is becoming commoditized"
  • "With the Internet and online investment tools, it is very easy for consumers to do it themselves"
  • "Customization will be the key to getting paid" 
  • "Impact investing will become more important"

Elliot Weissbluth
(CEO, HighTower)

 

 

CEO Summit XXV
Panelist

Elliot Weissbluth
(CEO, HighTower)

 

 

 

 

 

 

 

Elliot Weissbluth is CEO of HighTower, a national advisor-owned financial services company serving high net worth and institutional clients. Prior to HighTower, Mr. Weissbluth was the president of US Fiduciary, a boutique broker dealer, and director of marketing & research at Rogers Casey, one of the nation's leading investment research and institutional registered investment advisory firms. Mr. Weissbluth serves on a number of for profit and non-profit boards, notably as a Trustee of Interlochen, Center for Performing Arts in Michigan.

Mr. Weissbluth's comments included:

  • "A week does not go without some idiot doing something to give the financial services industry a black eye. We intend to work toward restoration of trust"
  • "The broker/dealer is not full of toxic components. We believe that the broker/dealer is a necessary part of the right model"
  • "Culture and brand are major drivers as to why advisors seek out new firms"
  • “The old dialogue which was ‘independent good; Wall Street bad,’ was never an intellectually honest discussion”
  • “The optimal financial services firm leverages the competitive spirit of Wall Street, bringing the cream to the top, and does that inside an independent fiduciary service model, which is optimal to the individual investor”

Chuck Widger
(Chairman, Brinker Capital)

 

 

CEO Summit XXV
Panelist

Chuck Widger
(Chairman, Brinker Capital)

 

 

 

 

 

 

 

Chuck Widger is Chairman of Brinker Capital. Mr. Widger is the founder of Brinker Capital and has over 30 years of experience working with investors in strategic investment planning, and manager search & monitoring. He is a past chairman of the board of trustees for Gettysburg College and is chairman emeritus of the Money Management Institute, the $2.1 trillion managed account industry’s association. He is also the chairman of the Villanova University School of Law Board of Consultors. He was previously CEO of the Mutual Benefit Capital Companies, first vice president with Van Kampen, Morris Stone, and a vice president at CIGNA. Earlier in his career, he practiced law in Pennsylvania in private practice and as an assistant attorney general for the Pennsylvania Department of Justice. Mr. Widger has been featured on CNN’s Money Line and quoted in Barron’s and other financial publications. He is a frequent market and industry commentator, with his thoughts having appeared in top outlets such as The Wall Street Journal, Associated Press, Dow Jones, Investment Advisor, Fund Action, and many other media outlets. Mr. Widger also served as a Lieutenant in the United States Navy.

Mr. Widger's comments included:

  • “The problem with historical benchmarks is that they do not work. When the volatility hits the fan, if you are investing in the Standard & Poors 500, you wind up running for cash. Then when the market recovers you lose out on the recovery. It does not work”
  • “The industry needs to redefine its value proposition. I think the value proposition needs to be personally oriented rather than provider oriented”
  • "What makes me especially proud is that our growth has been entirely organic, something that remains quite unusual in the asset management business"
  • "We have helped to incubate and foster the growth of many regional money managers who got their start by meeting the standards required to earn a place on our platform. We have also launched ideas such as fee-based clearing that not only spawned new firms but changed the business models at traditional clearing firms"
  • "The market environment of 2008 taught the investment industry many decisive lessons, not the least of which is the importance of being able to adjust portfolios quickly and nimbly in response to unanticipated market conditions"

Chris Wolfe
(Chief Investment Officer, Private Banking & Investment Group, Merrill Lynch Wealth Management)

 

 

CEO Summit XXV
Panelist

Chris Wolfe
(Chief Investment Officer, Private Banking & Investment Group, Merrill Lynch Wealth Management)

 

 

 

 

 

 

 

Chris Wolfe is Chief Investment Officer of Private Banking & Investment Group, Merrill Lynch Wealth Management. He also serves as head of global customized solutions with responsibility for coordinating strategies with the Merrill Lynch investment teams in Europe, the Middle East, Africa, Latin America, & Asia. Previously, Mr. Wolfe was head of investment strategy for Rockefeller & Company. Mr. Wolfe is the author of the monthly CIO Outlook.

Mr. Wolfe's comments included:

  • We see the euro providing social good, not just as a monetary instrument
  • "CEOs have done a very good job protecting their margins; we expect them to continue doing that. C corp earnings will be sustained"
  • "We have seen a huge transformation in thinking"
  • "Doom & gloom need to understand that they are expecting a change in CEO thinking
  • "Our rush to simplify has made the conversations about performance disengenuous. We need to educate consumers about money as a means to an end"

Mike Woods
(CEO, DWS Investments Distributors)

 

 

CEO Summit XXV
Panelist

Mike Woods
(CEO, DWS Investments Distributors)

 

 

 

 

 

 

 

Mike Woods is CEO of DWS Investments Distributors and Head of Americas, Global Client Group, Deutsche Asset & Wealth Management. Mr. Woods has almost two decades of experience covering the US investment market. Previously, Mr. Woods served as head of the financial intermediaries & investments group at Evergreen Investments. Prior to Evergreen Investments, Mr. Woods was CEO of XTF Global Asset Management, a New York-based quantitative exchange traded fund asset manager, and spent more than six years as US head of sub-advisory and interest-only business at Citigroup Asset Management.

Mr. Woods' comments included:

  • "The asset management industry is all about understanding what the client wants and solving for those needs. You always start with the client and work backwards"
  • "Retail clients continue to desire access to alternative products, preferably within a 40 act wrapper"
  • "There are two types of players in the ETF market, those who provide undifferentiated and cheap beta, and those who innovate to meet client needs"
  • "The Deutsche Bank footprint is the most powerful engine that Deutsche Asset & Wealth Management has. Institutional clients value capital markets expertise, depth & breadth of product, and strong firm level client relationships"
  • "Distribution at Deutsche Asset & Wealth Management is about introducing clients to the breadth of organizational solutions through generalist sales, supported by product specialists with deep product level knowledge"

 

Attendees


Tiburon was pleased to welcome 186 Tiburon client attendees to Tiburon CEO Summit XXV, including:

 

  • Chip Roame (Managing Partner, Tiburon Strategic Advisors)
  • Rick Adler (Co-Founder, Convergent Capital Management)
  • Sonia Ahuja (Executive Vice President, Business Development & Strategy, BrightScope)
  • Mike Alfred (CEO, BrightScope)
  • Ryan Alfred (President, BrightScope)
  • Mike Apker (Business Head, Reporting & Data Aggregation Services, Envestnet)
  • Daniel Applegarth (Chief Financial Officer, NorthStar Financial Services Group)
  • Carla Avila (Business Head, Financial Institutions, Baron Capital Group)
  • Chuck Baldiswieler (CEO, TCW Funds)
  • David Barry (CEO, Trust Company of America)
  • Tony Batman (CEO, 1st Global Capital Corporation)
  • David Baum (Partner, Investment Products & Services Group, Alston & Bird)
  • Noreen Beaman (CEO, Brinker Capital)
  • Craig Birk (Chief Investment Officer, Personal Capital Corporation)
  • Mag Black (CEO, Beverly Hills Wealth Management)
  • Catherine Bonneau (CEO, Cetera Financial Institutions)
  • Joe Bottazzi (Executive Vice President, Business Development, Edelman Financial Services)
  • Peter Boyle (President, Clifford Swan Investment Counsel)
  • Kurt Brouwer (Chairman, Brouwer & Janachowski)
  • Todd Brunskill (Chief Marketing Officer, First Rate Investment Systems)
  • John Bunch (CEO, The Mutual Fund Store)
  • Caleb Burchenal (Partner, Berkshire Capital Securities)
  • Brad Burgess (Chief Technical Officer, Orion Advisor Services)
  • Derek Burke (President, First Investors Management Company)
  • Dewey Bushaw (Executive Vice President, Retirement Solutions Division, Pacific Life Insurance Company)
  • Jessica Campbell (Executive Vice President, Client Success, BrightScope)
  • Chris Candelaria (Business Head, MyVest Advisors)
  • David Canter (Executive Vice President, Practice Management & Consulting, Fidelity Institutional Wealth Services)
  • Mike Capelle (Executive Vice President, United Capital Financial Partners)
  • Mitch Caplan (CEO, Jefferson National Financial)
  • John Carey (Chief Operating Officer, FolioDynamix)
  • James Carney (CEO, By All Accounts)
  • Ron Carson (CEO, Carson Wealth Management Group)
  • Sasank Chary (Principal, Sageview Capital)
  • Kevin Cimring (CEO, Jemstep)
  • Bernie Clark (Executive Vice President, Advisor Services, The Charles Schwab Corporation)
  • Eric Clarke (President, Orion Advisor Services)
  • Mike Clinton (Chief Operating Officer, Loring Ward Group)
  • David Conover (President, Wealth Management & Brokerage, EverBank Financial)
  • Ron Cordes (Co-Chairman, Genworth Financial Wealth Management)
  • Brian Corkery (Business Head, National Accounts, North America, Wealth Management Services, Citi Open Wealth, Citi Investor Services)
  • Jim Cox (Chief Financial Officer, Advent Software)
  • John Coyne (Vice Chairman, Brinker Capital)
  • Bernie Clark (Executive Vice President, Advisor Services, The Charles Schwab Corporation)
  • Bill Crager (President, Envestnet)
  • Ben Cukier (Partner, FTV Capital)
  • Linda Davis Taylor (CEO, Clifford Swan Investment Counsel)
  • Stuart DePina (President, Envestnet Tamarac)
  • John DeVincent (Executive Vice President, Marketing, eMoney Advisor)
  • Rich Dion (President, Placemark Investments)
  • Steve Dorval (Business Head, Defined Contribution Investments, NYLIM Retirement Plan Services, New York Life Investment Management)
  • Jeffrey Dunham (CEO, Dunham & Associates Investment Counsel)
  • Joe Duran (CEO, United Capital Financial Partners)
  • Mike Durbin (President, Fidelity Institutional Wealth Services)
  • Ric Edelman (CEO, The Edelman Financial Group)
  • Pete Engelken (President, Pathway Strategic Advisors)
  • Mike Everett (Chief Business Development Officer, MyVest Corporation)
  • Michelle Farmer (General Counsel, Advisor Software)
  • Carrie Fleisher (Chief Risk & Compliance Officer, M Holdings Securities)
  • Ed Forst (CEO, Lincoln Investment Planning)
  • Chris Frieden (Partner, Financial Services & Products, Alston & Bird)
  • Matt Frymier (President, Corrum Capital Management)
  • Mark Goldberg (President, Carey Financial)
  • Dan Goldie (CEO, Dan Goldie Financial Services)
  • Ted Gooden (Partner, Berkshire Capital Securities)
  • Craig Gordon (Business Head, RBC Correspondent & Advisor Services)
  • Mark Gormley (Partner, Lee Equity Partners)
  • Scott Graflund (Partner, FallLine Strategic Advisors)
  • Gail Graham (Business Head, Strategy & Execution, United Capital Financial Partners)
  • Larry Greenberg (President, Jefferson National Financial)
  • Oscar Hackett (Chief Financial Officer, BrightScope)
  • Charlie Haims (Chief Marketing Officer, MyVest Corporation)
  • David Hansen (Business Head, Advisory Services, San Francisco Sentry Investment Group)
  • Scott Hanson (Co-CEO, Hanson McClain)
  • Lori Hardwick (Executive Vice President, Enterprise & National Sales, Envestnet)
  • Neesha Hathi (Chief Operating Officer, Schwab Performance Technologies)
  • Craig Hawley (General Counsel, Jefferson National Financial)
  • Brooks Herman (Business Head, Research, BrightScope)
  • Bob Herrmann (CEO, Discovery Data)
  • Pete Hess (CEO, Advent Software)
  • Kyle Hiatt (Executive Vice President, Orion Advisor Services)
  • Steve Hill (Chief Financial Officer, By All Accounts)
  • Gary Holland (Publisher, Barron’s)
  • Anton Honikman (CEO, MyVest Corporation)
  • Kara Hoogensen (Business Head, Defined Contribution Investment Only Business, Principal Funds)
  • Bob Huebscher (CEO, Advisor Perspectives)
  • Bob Huret (Founding Partner, FTV Capital)
  • Mark Hurley (CEO, Fiduciary Network)
  • Tom Idzorek (President, Morningstar Investment Management)
  • Steve Janachowski (CEO, Brouwer & Janachowski)
  • Peter Jantzen (Executive Vice President, Global Sales, Vestmark)
  • Kunal Kapoor (President, Global Client Solutions Group, Morningstar)
  • Zack Karabell (President, River Twice Capital Advisors)
  • Joe Kelly (Business Head, Sales, National Financial Services)
  • Dan Kern (President, Advisor Partners)
  • Michael Kim (Business Head, Business & Sales Channel, Genworth Wealth Management)
  • Rob Klapprodt (President, Vestmark)
  • David Knoch (President, 1st Global Capital Corporation)

 

  • Paul Koontz (General Partner, Foundation Capital)
  • Dan Krems (Executive Vice President, Corporate Strategy, LPL Financial)
  • Boaz Lahovitsky (Business Head, Wealth Manager Services, Wealth & Asset Manager Services, Securities & Fund Services, Citigroup Global Transaction Services)
  • Randy Lambert (Chief Operating Officer, Orion Advisor Services)
  • John Lame (CEO, Lenox Wealth Management)
  • Stephen Langlois (Chief Administrative Officer, National Financial Services)
  • David Lau (Chief Operating Officer, Jefferson National Financial)
  • Chuck Lewis (Vice Chairman, MyVest Corporation)
  • John Linnehan (Chief Financial Officer, Guggenheim Investments)
  • Steve Lockshin (Chairman, Convergent Wealth Advisors)
  • Matt Lynch (Principal, Tiburon Strategic Advisors)
  • Jeff Maggioncalda (CEO, Financial Engines)
  • Frank Maiorano (Business Head, RIA Business, Baron Capital Management)
  • Peter Mangan (CEO, Shareholder Services Group)
  • Pat McClain (Co-CEO, Hanson McClain)
  • Jim McCool (Executive Vice President, Institutional Services, The Charles Schwab Corporation)
  • Matt McGinness (Senior Managing Director, Advisory Consulting Services, First Allied Securities)
  • Bob Meeder (CEO, Meeder Investment Management)
  • Bob Mehringer (Executive Vice President, Advisory Services, FolioDynamix)
  • John Michel (President, Bloomberg Personal Wealth)
  • Sanjiv Mirchandani (President, National Financial Services)
  • Blake Mohr (CEO, Capitas Financial)
  • Viggy Mokkarala (Executive Vice President, Strategic Development, Envestnet)
  • Randy Moore (Partner, Financial Services & Products Group, Alston & Bird)
  • Robert Moore (President, LPL Financial)
  • Hans Morris (Managing Director, Global Financial Services Sector, General Atlantic Partners)
  • Joe Mrak (CEO, FolioDynamix)
  • Tim Murphy (CEO, Investors Capital Corporation)
  • Roger Ochs (President, HD Vest Financial Services)
  • Bill O’Conor (Leader, Financial Services Group Media, Penton Media)
  • Tom Oliver (CEO, United Planners Financial Services of America)
  • Harry O’Mealia (CEO, Legg Mason Investment Counsel)
  • Curt Overway (President, Managed Portfolio Advisors, Natixis Global Associates, Natixis Global Asset Management)
  • Damian Peter (President, Larkin Point Investment Advisors)
  • John Phillips (Executive Vice President, Strategic & Global Sales, National Financial Services)
  • Jose Pierre (CEO, Marketware)
  • Michael Pinsker (CEO, Docupace Technologies)
  • Mark Piquette (Chief Marketing Officer, Trust Company of America)
  • Alex Potts (CEO, Loring Ward Group)
  • Andy Putterman (CEO, Fortigent)
  • John Rafal (CEO, Essex Financial Services)
  • George Riedel (Business Head, Intermediary Distribution, Third-Party Distribution, T. Rowe Price Group)
  • Neal Ringquist (President, Advisor Software)
  • Lisa Roberts (Business Head, Northern California, Citi Private Bank, Citigroup)
  • John Rooney (Managing Principal, Commonwealth Financial Network)
  • Rich Rosenbaum (Principal, Aquiline Capital Partners)
  • Jeremy Ross (Executive Vice President, Sales, BrightScope)
  • Gary Roth (Chief Financial Officer, United Capital Financial Partners)
  • Simon Roy (President, Jemstep)
  • Andrew Rudd (CEO, Advisor Software)
  • Kyle Ryan (Executive Vice President, Advisory Services, Personal Capital Corporation)
  • Rick Sanchez (Managing Partner, Seacrest Investment Management)
  • Paul Sari (Business Head, Institutional Client Development, BNY Mellon Wealth Management)
  • Jon Schepke (CEO , SIM Partners)
  • Jeff Schnitz (Business Head, Silicon Valley Bank Investments)
  • Aaron Schumm (Chief Customer Officer, FolioDynamix)
  • Skip Schweiss (President, TD Ameritrade Trust Company)
  • Jay Shah (Chief Operations Officer, Personal Capital Corporation)
  • Sterling Shea (Business Head, Advisory Programs, Barron’s)
  • Babu Sivadasan (Executive Vice President, Engineering & Product Development, Envestnet)
  • David Smith (Founding Publisher, Financial Advisor & Private Wealth Magazines, Charter Financial)
  • Milo Sprague (Chief Technology Officer, Silicon Valley Bank)
  • Chris Stanley (General Counsel, Loring Ward Group)
  • Leslie Swid (Executive Vice President, Impact Communications)
  • Marie Swift (CEO, Impact Communications)
  • Jim Tanner (Business Head, Global Business Development & Sales, Morningstar)
  • Frank Trotter (President, EverBank Direct)
  • Greg Tschider (CEO, Verisight)
  • Tony Turner (Principa, Financial Tracking)
  • John VanDerHeyden (Chief Operating Officer, NFP Advisor Services Group)
  • Joe Vap (Chief Financial Officer, Jefferson National Financial)
  • Greg Vigrass (CEO, Folio Institutional)
  • Hardeep Walia (CEO, Motif Investing)
  • Rich Walker (CEO, Efficient Technology)
  • Kathy Wallman (Co-Founder, Foliofn)
  • Steve Wallman (CEO, Foliofn)
  • Steve Warren (Chief Operating Officer, MyVest Corporation)
  • Michelle Watson (Chief Investment Officer, First Republic Investment Management)
  • Elliot Weissbluth (CEO, HighTower)
  • Chuck Widger (Chairman, Brinker Capital)
  • Craig Wietz (President, First Rate Investment Systems)
  • Jane Williams (CEO, Sand Hill Global Advisors)
  • Marty Willis (Chief Marketing Officer, Oppenheimer Funds)
  • Matt Wilson (President, Brokerage, Scottrade)
  • Michael Winchell (CEO, Larkin Point Investment Advisors)
  • Chris Wolfe (Chief Investment Officer, Private Banking & Investment Group, Merrill Lynch Wealth Management)
  • Mike Woods (CEO, DWS Investments Distributors)
  • Mike Zebrowski (Chief Operating Officer, eMoney Advisor)

 

 

 

Media Representatives

Tiburon was also pleased to welcome five journalists who registered to attend specific sessions at Tiburon CEO Summit XXV:

  • Dave Armstrong (Managing Editor, Wealth Management.Com)
  • Dan Jamieson (Senior Editor, Investment News)
  • Janet Levaux (Managing Editor, Research Magazine)
  • Collin Micah (Video Producer, Impact Productions Group)
  • Brooke Southall (Editor-in-Chief, RIA Biz)

Tiburon CEO Summit Video Highlights

  • Tiburon CEO Summit XXV Videos Coming Soon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tiburon CEO Summit XXIV: April 9-10, 2013

Tiburon CEO Summit XXIV was held April 9-10, 2013, at the Ritz Carlton Hotel in New York, NY. Tiburon CEO Summit XXIV officially started at 7:45am on Tuesday, April 9, 2013, included a group dinner that night and finished at 1:00pm on Wednesday, April 10, 2013. There were 225 senior industry executives who took two days out of their busy schedules to participate. There were over twenty sessions. Along with Tiburon's Managing Partner Chip Roame & Tiburon Principal Matt Lynch, Tiburon CEO Summit XXIV included economy & markets presentations by Rich Bernstein (CEO, Richard Bernstein Advisors) & Bob Doll (Chief Equity Strategist, Nuveen Asset Management), and speakers & panelists, including Jud Bergman (CEO, Envestnet), Tom Bradley (President, Retail Distribution, TD Ameritrade), Dale Brown (CEO, Financial Services Institute), Valerie Brown (CEO, Cetera Financial Group), David Bugen (Founding Principal, Regent Atlantic Capital), Ric Edelman (CEO, The Edelman Financial Group), Harold Evensky (President, Evensky & Katz), George Gatch (CEO, JP Morgan Funds Management), Bill Harris (CEO, Personal Capital Corporation), Paul Hatch (Vice Chairman, Morgan Stanley Wealth Management), Chet Helck (CEO, Global Private Client Group, Raymond James Financial), Jim Jessee (President, MFS Fund Distributors), Jonathan Korngold (Managing Director, General Atlantic Partners), Sallie Krawcheck (Former President, Global Wealth & Investment Management, Bank of America Corporation), Steve Lockshin (Chairman, Convergent Wealth Advisors), Don Phillips (President, Research, Morningstar), Scott Powers (CEO, State Street Global Advisors), Larry Roth (CEO, Advisor Group, American International Group (AIG)), Esther Stearns (CEO, NestWise), Mark Tibergien (CEO, Pershing Advisor Solutions), David Tittsworth (Executive Director, Investment Adviser Association), & Fred Tomczyk (CEO, TD Ameritrade). Tiburon CEO Summit XXIV also featured the firm's traditional client-centric panel discussions, three less formal break-out sessions, & two networking-based social events.

Keynote Presentation

Tiburon CEO Summit XXIV featured a keynote presentation by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry, with a specific focus on the growing wealth management market. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.

 

 

 



Summit XXIV
Keynote Presentation
Chip Roame
Managing Partner
Tiburon Strategic Advisors

 

 

 

 

 

 

Chip Roame (Managing Partner, Tiburon Strategic Advisors)

Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXIV keynote presentation. Chip Roame (Managing Partner, Tiburon Strategic Advisors) kicked off Tiburon CEO Summit XXIV with a presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market.

 

Charles ("Chip") Roame is the Managing Partner of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the banking, insurance, brokerage, & investments markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research, he may be the most frequently demanded board advisor. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets.

 

At Tiburon, Mr. Roame has responsibility for all of the firm's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses -- mutual funds, exchange traded funds, hedge funds & other alternative investments, financial planning, wealth management services, life insurance, annuities, family office services, online financial services, and the growing independent advisor markets. He has also taken a substantial interest in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,500 client engagements for over 350 corporate clients since 1998.

 

Mr. Roame has won numerous awards throughout the consulting and financial services industries, including being named one of the power 25 elite by Investment News, one of the 25 most influential individuals in the advisor business by Investment Advisor magazine, & one of the five experts with the answers by Boomer Market Advisor. Tiburon has also been named one of the fastest growing companies by the San Francisco Business Times in multiple years.

 

Mr. Roame is frequently sought as a board member by Tiburon client company boards. He presently serves as a board member at Envestnet (NYSE: ENV) and as a trustee for the SA mutual funds family which is sponsored by Loring Ward and employs Dimensional Fund Advisors as its sole sub-advisor.

 

Overview of Tiburon CEO Summit XXIV Keynote Presentation

 

Mr. Roame addressed the state of the financial services industry, with a specific focus on the growing wealth management market, including the most important news stories in the past six months, recent Tiburon research findings, third-party research findings, and strategic developments at dozens of Tiburon clients. Mr. Roame expressed that his objectives were fourfold, including not simply reporting existing trends but attempting to predict future trends; digging below trends to identify successful corporate strategies; reviewing all opportunities in a relative way akin to the process at private equity firms; and setting an agenda for Tiburon CEO Summit XXIV.

 

Before presenting 177 PowerPoint charts supporting Tiburon’s views, Mr. Roame outlined what he labeled as the 35 fundamental trends. A comprehensive list of these 35 trends is included below as part of Mr. Roame’s conclusions.

 

After reviewing the 35 fundamental trends, Mr. Roame began with some opening notes, including a few additional thoughts on the economy & markets, followed by a “know your market” test, which traditionally stumps most Tiburon CEO Summit attendees. The “test” included facts about consumers and industry competitors. Mr. Roame then outlined the future of wealth management, including rapidly evolving investment approaches & products; the independent advisors & consumer empowerment movements; and institutional & international opportunities. Mr. Roame also addressed two potential game changers, including governance & regulatory issues, and potential strategic activity.

 

Opening Notes

 

Mr. Roame began the analysis portion of his presentation with a few additional economy & markets points as they pertain to business issues. For perspective, he noted that the Dow Jones Industrial Average is back to the level of Tiburon CEO Summit XIII (October 2006 or 6� years ago) and is up 80% since Tiburon CEO Summit XVI (April 2008 or five years ago). He also posed some questions, including whether investors have grasped that the stock markets have been up for the past four years, and the likely impact of industry executives having low market expectations. He revealed that Tiburon CEO Summit XXIV attendees on average expect the Dow Jones Industrial Average to reach just 14,723 by October 2013 for Tiburon CEO Summit XXV. Mr. Roame also encouraged attendees to consider how firms will generate revenues if interest rates remain low for several more years. Again, revealing the results of a survey of Tiburon CEO Summit XXIV attendees, he noted that the ten year treasury rate is not expected to reach 3.00% until 2015 or beyond. Mr. Roame also wrapped up this section of his presentation reminding the group that the industry had yet another semi-annual period with one stumble after another, including with the SAC Capital Advisors settlement, Raj Rajaratnam conviction, and both Jerome Kervel (SocGen) and Kweku Adoboli (UBS) being sent to prison.

 

The second section of Mr. Roame’s presentation was his traditional “know your market” test. He updated the Tiburon CEO Summit XXIV attendees on the latest Federal Reserve Flow of Funds data and tried to impress upon them some key points buried in the data:

  • Consumer household net worth at the end of 2012 reached the 2007 peak level of $66.1 trillion
  • Common perception is that consumers were slow to re-enter the stock markets but the bulk of investable assets sits in individual securities that were not liquidated and/or with high net worth households and in defined contribution plans, so investable assets are up substantially more than talking heads imply. Specifically, investable assets, retirement plan assets, & financial assets all up ~10% since 2007 (“industry view”)
  • Meanwhile, personal assets, real estate assets, real estate equity, & private business valuations all still down 15%-20% since their 2005-2006 peaks
  • In aggregate, consumer household assets are down 10% since 2007
  • Consumer household debt is down 5% since 2007 (also down from 14.0% to 10.5% debt to disposable income)
  • Consumer household net worth ended 2012 at the same level as 2007 ($66.1 trillion) (six years of no growth)

Mr. Roame stated, "consumers have the same net worth now that they had at the end of 2007 ($66.1 trillion)," but that, "underlying this aggregate fact are some impactful points; consumers have more financial assets and less debt but also less personal assets (due to depressed housing prices)." As a result, he concluded that, "consumers looking through a personal assets lens (e.g., the value of their homes) still feel and are poor," while "the shift from personal assets to financial assets has disproportionally benefited the 8% of households who own most of the financial assets."

Mr. Roame spent a minute on the well known consumer wealth concentration, saying that, “consumer households with less than $500,000 investable assets make up 91% of all consumer households but control just 23% of financial assets.” Meanwhile, the affluent market comprises just 8% of consumer households but controls 77% of financial assets.

Mr. Roame believes that baby boomers continue to face four major financial issues, including their own aging, their lengthening life expectancies, inheritances that are not materializing, and now the twin thoughts of boomerang children and parents needing elder care. Mr. Roame predicted that, "baby boomers will liquidate their retirement plans, homes, & small businesses over the next two decades, driving continual flow of assets to the investable assets business."

Mr. Roame also addressed the resulting consumer attitudinal & behavioral changes, including those driven by the widening wealth gap. He addressed consumer confidence, consumer sentiment, and the substantial financial services industry trust gap. He also addressed behavioral changes, including consumers’ reduced spending, some deleveraging, some increased savings, net flows out of equity mutual funds, and the renewed growth in the self-serve channels. He revealed another Tiburon CEO Summit XXIV attendee survey result which was that attendees expect consumer household home mortgage debt to stabilize or increase in 2013, ending the deleveraging.

Mr. Roame also tested attendees knowledge of their competitors, saying that, "no product or distribution firm has any significant market share." He pointed to the still dominant market position of the wirehouses, and yet predicted that, “Schwab Institutional will catch UBS in assets under administration in 2013.” He also noted the dominance of BlackRock, which has $3.8 trillion assets under management.

The Future of Wealth Management

Mr. Roame addressed the rapid evolution of investment approaches, including the shifting of fundamental investment strategies, the defensive bias driving fixed income & cash allocations, evolving retirement income & guarantees strategies, and the growing dominance of rep as advisor & portfolio manager programs. Mr. Roame said, "buy & hold was the best investment strategy in the past four years after many industry experts were calling for more tactical asset allocation," and that, “rep as advisor & rep as portfolio manager programs are collecting all of the assets but their returns are often weaker than consumer direct.” Mr. Roame summarized many facts:

  • Packaged fee-account programs gathered more net flows than either ETFs or mutual funds in 2012
  • Advisor managed portfolios increasingly include mutual funds & ETFs
  • Packaged product flows were up over 100% in 2012, suggesting good results for many investment products
  • ETFs and mutual funds had similar net flows in 2012, both far ahead of separately managed accounts
  • Fixed income, balanced, & alternative mutual funds all had positive net flows in 2012 while money market and equity funds had outflows
  • Over the past five years, bond mutual funds have had $1.1 trillion net flows, while equity ETFs have collected $0.6 trillion, and fixed income ETFs have collected $0.2 trillion. Meanwhile, equity mutual funds had $0.5 trillion of net outflows
  • Index mutual funds have gathered $821 billion assets under management, up over 100% since 1999
  • Exchange traded funds have gathered $1.3 trillion assets under management, up from $1.0 billion in 1993
  • Exchange traded funds have net flows of $187 billion, up 500% since 2001, and above their prior peak of $177 billion in 2008
  • Passive equity assets (index mutual funds & ETFs) now comprise 29% of equity mutual fund & ETF assets
  • Institutional mutual funds & ETFs have now surpassed no transaction fee mutual funds in assets under management
  • Tiburon CEO Summit attendees believe that ETFs will not surpass mutual fund assets under management until 2020 or beyond, if ever

After he concluded with views on a variety of other products, Mr. Roame returned to two key points, reminding the attendees that, “mutual funds and ETFs had nearly identical flows in 2012" and that, "equity mutual funds had negative net flows for five years but positive in the first quarter of 2013."

Moving beyond products to address channels, Mr. Roame framed the financial advisor channels as, “both the largest and fastest growing channel.” He shared that attendees predict that the financial advisor (56%) or self-serve (28%) channels will be the fastest growing channels over the next five years. He then outlined the independent advisor & consumer empowerment movements, starting by noting that, "independent advisor channels are picking up share of financial advisors more rapidly than of assets." He noted that, “the wirehouses continue to dominate assets under administration because their financial advisors are substantially more productive, averaging $92.6 million assets under administration per financial advisor.”

Mr. Roame then summarized the status of the wirehouses, regional broker/dealers, insurance reps, and bank reps markets. He noted that, “The Charles Schwab Corporation, TD Ameritrade, & Fidelity Investments are the leading fee-based financial advisor custodians in terms of number of fee-based financial advisor clients and control about half of the industry’s assets.”

Mr. Roame also addresses a wide variety of related issues to independent advisors, including the break-away brokers movement, fee-based financial advisors who are reaching scale, and technology & outsourcing strategies. He argued that the break-away broker trend ($92.9 billion assets in 2012) is not fully started and that the wirehouses could shut this trend down with higher retention payments and/or half-way house strategies. He called out the substantial business building skills of a few independent advisors, including Ric Edelman whose firm serves 20,000 clients. He took note of the rapid growth in outsourcing models like Orion Advisor Services which serves 575,000 accounts, and he predicted a substantial restructuring of the independent broker/dealers market. Mr. Roame stated, "independent broker/dealers are evolving to look more like custodians, TAMPs, and/or producer groups."

He also discussed the continued evolution of the consumer empowerment movement, starting by clarifying that, "the retail direct business is growing faster than the financial advisor channels" and that, “many financial advisors remain in the dark about their clients’ self-directed accounts.” Mr. Roame argued that when nobody has been watching, the self-serve trend has come back to life, including through the discount brokerage firms ($4.6 trillion assets) and the emergence of online only or online plus financial advisor models (Betterment; Covestor; Learnvest; Mint; Motif Investing; NestWise; Personal Capital Corporation; SigFig; & Wealthfront; etc.). Mr. Roame made a very edgy prediction that the number of discount brokerage offices will skyrocket while the number of bank branches will plummet.

Mr. Roame also discussed institutional & international market opportunities. As for the institutional markets, Mr. Roame first framed the opportunity, which includes about equal size defined contribution and defined benefit plan markets, and much smaller foundation and endowment markets. He also pointed to the substantial underfunded status of defined benefit plans and to the heavier use of alternative investments by endowments & foundations, with weaker resulting investment performance. In the international markets, he noted that 37% of the world’s population lives in China & India, that 48% of mutual fund flows are outside of the US, that the ETF trend is circling the globe, and that both the United Kingdom and Australia have banned commissions on investment product sales. In conclusion, he said that, “changes in the defined contribution plans market and the emergence of the international middle class are re-opening both of these opportunities."

Potential Game Changers

Mr. Roame then shared that he believes that there are two potential game changers, including governance & regulatory issues, and potential strategic activity.

Mr. Roame shared a few views and Tiburon CEO Summit XXIV attendee votes as it pertains to governance & regulatory issues:

  • Social Security & Medicare account for 44% of federal spending
  • The top ten financial institutions control 75% of financial assets
  • Dodd Frank is only one-third complete
  • Tiburon CEO Summit XXIV attendees were divided on their views about how money market funds will be regulated, with the greatest share believing that there will be no incremental regulation, while 33% expect floating NAVs, and 29% expect capital requirements
  • Tiburon CEO Summit XXIV attendees primarily believe that a uniform fiduciary standard will not be implemented for retail advice in the next two years
  • Tiburon CEO Summit XXIV attendees increasingly expect the SEC to continue as the RIA regulator

Mr. Roame also addressed recent & potential strategic activity, and concluded with a private equity view of the industry. He noted that regulatory reform and capital needs are requiring many divestitures, including those driven by Dodd Frank, TARP payoffs & other capital needs, and insurance companies consolidating risks. Mr. Roame noted that M&A activity is up as valuations are increasing, and he pointed to recent transaction such as:

  • The Carlyle Group acquiring TCW
  • GTCR acquiring Aligned Asset Managers
  • Orix Corporation acquiring Robeco Group
  • Nationwide acquiring Highmark
  • Hennessey Funds acquiring FBR Funds
  • Morgan Stanley acquiring the remainder of Smith Barney
  • Raymond James acquiring Morgan Keegan
  • Julius Baer acquiring Merrill Lynch (international)
  • Ladenburg Thalmann acquiring Securities America
  • Cetera Financial Group acquiring GEIAN
  • Advisors Group acquiring Woodbury
  • Envestnet acquiring Tamarac

Mr. Roame also noted dozens of private equity investments, including:

  • Independent broker/dealers: LPL Financial; Cetera Financial Group; HD Vest Financial Services; First Allied Securities; National Financial Partners
  • RIAs: The Edelman Financial Group; The Mutual Fund Store; United Capital Financial Partners; Mercer Advisors; Avalon Advisors; Kanaly Trust Company

Mr. Roame left the group with the highlights of a conversation he seemingly has weekly with a variety of private equity firms exploring the financial services markets:

  • Bet #1: Bet on products or channels? Channels for many reasons, including that the growth in passive investment products will shift profits from manufacturers to distributors
  • Bet #2: Bet on which channels? Financial advisors and/or self-serve channels over institutional or international channels for many reasons, including growth rates
  • Bet #3: Bet on which financial advisor channels? Fee-based financial advisors scale and/or outsourcing, even though isolated successes in many other areas
  • Bet #4: Bet on which self-serve channels? This is a crap shoot, so pick a handful of strong management teams amongst Betterment, Covestor, Learnvest, Motif Investing, Personal Capital Corporation, SigFig, & Wealthfront

Mr. Roame advised that, "private equity should generally bet on channel businesses over product businesses, in part because the firms closest to the clients always win when margins compress."

The 35 Fundamental Trends

Mr. Roame ended his presentation by reviewing the 35 fundamental industry trends:

  • Economy still weak (anemic recovery) (unemployment; housing; Washington DC gridlock; municipal bankruptcies; world affairs remain issues)
  • Stock markets back above highs (Stockman: possibly artificially due to Federal Reserve action)
  • Interest rates still low
  • Continued risks in big banks (another $100 billion may exist in claims for LIBOR, mortgages, etc.)
  • Consumer net worth equal to 2007 peak (but differing underlying components explain consumer sentiment)
  • Consumers fundamentally changed (conservative; self-reliant; lost generation)?
  • Core investment strategies evolving (tactical; cash; retirement income)
  • Fee-account flows shifting to rep driven programs and managed ETF programs (but rep as portfolio manager performance worse than consumer direct)
  • ETFs continue to take share (ETF OneSource; Fidelity-BlackRock)
  • Index mutual funds & active institutional share class mutual funds also doing well
  • Active retail class mutual funds getting clobbered (DoA if DC market flows excluded)
  • Active ETFs are a wild card
  • Hedge funds are also a wild card (promise versus reality) (gross versus net) (liquid alts?)
  • Jefferson National reinventing annuities business
  • Financial advisor channels dominate (institutional channels still talk big game though)
  • Financial advisor models multiplying
  • Independent advisors slowly taking share
  • Wirehouse broker productivity is very impressive though

 

  • Break-away broker trend motoring along (slowly)
  • Custodians doing well (even second tier players)
  • Financial advisor scale models emerging (The Edelman Financial Group, United Capital Financial Partners)
  • Financial advisor target market models succeeding (Hanson & McClain; Lenox Wealth Management; Regent Atlantic Capital)
  • Independent broker/dealers repositioning as custodians, TAMPs, and/or producer groups
  • Discount brokers doing well (with new revenue models)
  • B2C models re-emerging in three forms (investment managers; financial planners; & financial advisors with online presence)
  • Digital marketing trend (big data; SEO; blogging; social media; & email marketing) emerging to rival traditional marketing efforts
  • Women’s issues finally getting some attention (more risk averse but shorter careers; longer lives)
  • Gen X & Y generations leading to marketing, staffing, & client service changes
  • 401K plan allocations, performance, & advice being evaluated (DoL hires BrightScope)
  • Defined benefit plans remain underfunded
  • Foundation & endowment markets (with snazzy investment strategies) turn in weak performance
  • International consumer markets present wild card
  • Retail bank M&A activity up as is other M&A activity as market values recover
  • Financial advisor channels and self-serve channels rapidly emerge as places for private equity bets
  • San Francisco Giants; San Francisco 49ers; University of Michigan Football; & University of Michigan Basketball all remain powerhouses

General Session Presenter

Matt Lynch

(Principal, Tiburon Strategic Advisors)

 

 

CEO Summit XXIV
General Session Presenter

Matt Lynch
(Principal, Tiburon Strategic Advisors)

 

 

 

 

 

 

 

Tiburon CEO Summit XXIV featured a general session presentation by Tiburon Principal Matt Lynch. With over 25 years of financial services experience, most recently as CEO of a leading independent broker/dealer & RIA, Mr. Lynch is viewed as a thought leader and change agent known for his innovative approach to the financial services business as a senior executive and as a consultant. Mr. Lynch is among an elite group of industry experts who can leverage experience as a successful executive with consulting expertise. He is sought after for his ability to link strategy with the art of the possible in terms of implementing change. Mr. Lynch accomplishes this through his extensive knowledge of financial advisors, product design & pricing, regulatory requirements & trends, and the benefit of a couple of decades in the trenches. At Tiburon, Mr. Lynch has led corporate strategy engagements for leading banks, insurance companies, broker/dealers, public accounting firms, investment companies, RIAs, & venture capital firms.

Mr. Lynch addressed evaluating strategic alternatives. He organized his time into two sections, including outlining some strategic principles and highlighting the decision criteria in some recent consulting case examples about ETFs, hedge funds, financial advisor M&A, new intermediaries, and Gen X & Y investors. Amongst his comments on strategic principles, Mr. Lynch said:

  • "Tiburon clients have access to the same data, yet often develop vastly different strategies”
  • ”Tiburon is often engaged to challenge conventional wisdom; avoid confirmation biases; and identify emerging disruptors”
  • "Companies need to avoid the trap of just following the herd"
  • "If your business is not focused on consumers, it is impossible to prosper and do well"
  • "Distributors have more of the power because they are often closer to the customers"
  • "At Tiburon, we try to help clients sift through the data, set aside irrelevant information, and move forward in a thoughtful way"

Regarding ETFs, Mr. Lynch said:

  • “ETF assets under management are booming but products have low fees, market share is concentrated, and 401K is not solved”
  • “ETFs are good for distribution companies that make money on related balances but bad for active management firms”

Regarding hedge funds, Mr. Lynch said:

  • "The market has moved faster than the advice & guidance on how to use these products”
  • “Fees are unreasonably high because of recent performance”
  • “Many alternative fund managers are absorbing management fee waivers to reduce total costs of ownership”
  • “RIAs are a growth opportunity but existing pricing is limiting”
  • “Liquid alternatives have terrible performance and many products are not what they advertise but the diversification story plays well and fees are high”

Regarding financial advisor M&A, Mr. Lynch said:

  • “Financial advisors have limited exit options”
  • “Key destination selection criteria for financial advisors looking for new firms include immediate liquidity, payout rate, finding a succession planning solution, & firm culture”
  • “Private equity continues to bet on financial advisor distribution”

Regarding new intermediaries, Mr. Lynch said:

  • “New intermediaries include next gen TAMPs and aided do-it-yourselfer models“
  • ”Self-serve channels & their advice movement include Motif Investing; Folio Investing; Personal Capital Corporation; & Wealthfront”
  • “Wealthfront raised $20 million after gathering $170 million assets under management”

Regarding Gen X & Y investors, Mr. Lynch said:

  • ”They want comprehensive, understandable, actionable financial information”
  • ”They use technology tools for communications, online account access, and management”
  • “They are skeptical of institutions”
  • “They may be the conservative generation”

Economy & Markets Speakers

Tiburon CEO Summit XXIV also featured two economy & markets presentations.

 

 

 

 

CEO Summit XXIV
Economy & Markets Speaker
Rich Bernstein
(CEO, Richard Bernstein Advisors)

 

 

 

 

 

 

 

 

Rich Bernstein
(
C
EO, Richard Bernstein Advisors)


Rich Bernstein is CEO of Richard Bernstein Advisors. Mr. Bernstein has nearly 30 years' experience on Wall Street, including most recently as the Chief Investment Strategist at Merrill Lynch. Prior to joining Merrill Lynch in 1988, he held positions at EF Hutton and Chase Econometrics/Interactive Data Corporation. Mr. Bernstein was voted to Institutional Investor magazine's annual All-America Research Team eighteen times, including ten as the top-ranked analyst in his category. He was also twice named to both Fortune's All-Star Analysts and to Smart Money's Power 30. Mr. Bernstein was recently named to Registered Rep’s Ten to Watch for 2012. Mr. Bernstein sits on the Alfred Sloan Foundation’s investment committee and the Hamilton College endowment’s investment committee. He also sits on he executive committee of the New York University Stern Graduate School fo Business, where he is an adjunct professor of finance.

Mr. Bernstein's comments included:

  • "Bull markets are not periods of wine & roses; fear & indecision dominate the first seven innings of most bull markets”
  • "Investors are not very good at identifying bull markets until the eighth inning. The average investor has underperformed all asset classes except Japan. Investors even underperformed cash; they would have been better with their cash under their mattress”
  • "This market is a lot like 1982. The fears during the 1980s bull market are remarkably similar to today's market! Investors have selective memories about bull markets; they forget the first seven innings. For example: the prior decade’s subpar equity returns, slow growth economy, federal entitlements, tax reform, sovereign debt problems, & declining profit margins"
  • “Sure signs of a market top and bear market include the fed tightening too much and an inverted yield curve, significant overvaluation, and euphoria for asset class of choice”
  • “The Fed is not about to tighten and the Fed is not a leading indicator”
  • "You cannot have a lot of overvaluation when you have a lot of uncertainty"
  • “The emerging markets are where these bear market signs are showing up: India has the highest inflation rate in the world and their central bank is easing; Brazil has the fourth highest inflation rate in the world; and China has a credit bubble building that makes ours look downright amateurish"
  • "Expectations are way too high for emerging market companies"
  • "The US is a better growth story than the emerging markets"
  • "Japan will win the currency race to the bottom and this will be wonderful for the US dollar"
  • “We have three equity themes, including the American industrial renaissance, early cycle Europe, and reflating Japan”
  • “We have one fixed income them, specifically that treasuries are the great diversifier. For six years they have been the only true diversifier out there"
  • “This is what bull markets are all about: the current cycle’s concerns are not unique; there are lots of similarities to the 1980s bull market. US warning signs are not evident”
  • "I do not think the question for investors is stock versus bonds; it is the US versus non-US"

 

 

 

 

CEO Summit XXIV
Economy & Markets Speaker
Bob Doll
(Chief Equity Strategist, Nuveen Asset Management)

 

 

 

 

 

 

 

 

 Bob Doll
(
Chief Equity Strategist, Nuveen Asset Management)


Bob Doll is Chief Equity Strategist of Nuveen Asset Management. Immediately prior to joining Nuveen Asset Management, Mr. Doll served as a senior advisor to BlackRock, where he recently held the role of chief equity strategist. His service with BlackRock dates back to 1999, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At Merrill Lynch Investment Managers, he served as the president & chief investment officer. Prior to joining Merrill Lynch Investment Manager, Mr. Doll served as the chief investment officer of Oppenheimer Funds.

 

Mr. Doll's comments included:

  • "There have been substantial risk clouds, including the sluggish labor markets, the housing market, the European recession, & China’s slowdown”
  • "Factors that are good for the economy are not necessarily the same as those that are good for the stock markets"
  • "US consumers account for 70% of the economy but only 28% of the stock market"
  • "Deleveraging (debt repayment) is the cause of our anemic economy; if all of us pay down our debt in the same day we go into depression"
  • "The stock market does well when unemployment is high -- the opposite of consumer expectations"
  • "Markets love to climb walls of uncertainty"
  • "Everybody worrying is the best set of circumstances for the stock market"
  • ”We expect more of a muddle though economy and a grind higher equity market in 2013 driven by near-term US political uncertainty resolution, further monetary easing in Europe & Japan, further private sector healing in the US (including housing), less sever bumps in Europe, and improving emerging market economies”
  • “Nominal growth will be below 5% for an unprecedented seventh year in a row"
  • "Consumers continue to spend because housing has improved even though taxes are up and gasoline is up"
  • "We have a world that is slowly healing"
  • "My simple mind wants to be in equities of countries that will grow, and away from (Japan and Europe) places that are shrinking"
  • “Expect a nominal return of 6% to 7% from a balanced portfolio in this 3% inflation world watching paint dry; discipline and dollar cost averaging”
  • “Europe should begin to exit its recession by the end of the year as the ECB eases and financial stresses lessen”
  • “The US yield curve will steepen as financial risks and deflationary threats lessen”
  • “US stocks will record new all time highs as stocks advance for the fifth year in a row”
  • "The only reason you can have rising interest rates and a rising equity market is the lessening of deflationary threats"
  • “Emerging markets equities will outperform developed markets equities”
  • “After two years of underperformance, US multi-nationals will outperform domestically-focused companies”
  • "Large cap stocks will outperform small cap stocks”
  • “Cyclical companies will outperform defensive companies”
  • "It would be rare for a bull market to end with defensive stocks leading the way like they are now"
  • “Dividends will increase a double digit percentage as payout ratios will rise”
  • "Today half (usually just a handful) of stocks have higher yields than the ten year treasury"
  • “A nascent US manufacturing renaissance will continue, powered by cheap natural gas”
  • “The government will pass a $2-$3 trillion ten year budget deal”
  • "Washington, DC does not follow the same time clock and calendar as the rest of us; they follow the election calendar"
  • "Where have the moderates gone? They have given up or been voted out of office (red and blue is divided by the Mississippi River)”
  • “The risks include that politicians play politics; the emerging markets recovery is weak; and European financial issues continue"
  • "The average investor consistently underperforms all asset classes over the past twenty years"
  • "Overweight stocks; underweight cash”
  • “Buy low, sell high; the rest is easy"

 

Speakers & Panelists

Tiburon CEO Summit XXIV also featured speakers & panelists, including Jud Bergman (CEO, Envestnet), Tom Bradley (President, Retail Distribution, TD Ameritrade), Dale Brown (CEO, Financial Services Institute), Valerie Brown (CEO, Cetera Financial Group), David Bugen (Founding Principal, Regent Atlantic Capital), Ric Edelman (CEO, The Edelman Financial Group), Harold Evensky (President, Evensky & Katz), George Gatch (CEO, JP Morgan Funds Management), Bill Harris (CEO, Personal Capital Corporation), Paul Hatch (Vice Chairman, Morgan Stanley Wealth Management), Chet Helck (CEO, Global Private Client Group, Raymond James Financial), Jim Jessee (President, MFS Fund Distributors), Jonathan Korngold (Managing Director, General Atlantic Partners), Sallie Krawcheck (Former President, Global Wealth & Investment Management, Bank of America Corporation), Steve Lockshin (Chairman, Convergent Wealth Advisors), Don Phillips (President, Research, Morningstar), Scott Powers (CEO, State Street Global Advisors), Larry Roth (CEO, Advisor Group, American International Group (AIG)), Esther Stearns (CEO, NestWise), Mark Tibergien (CEO, Pershing Advisor Solutions), David Tittsworth (Executive Director, Investment Adviser Association), & Fred Tomczyk (CEO, TD Ameritrade).

Jud Bergman
(CEO, Envestnet)

 

 

CEO Summit XXIV
Panelist

Jud Bergman
(CEO, Envestnet)

 

 

 

 

 

 

 

Jud Bergman is CEO of Envestnet, responsible for directing its core strategies and guiding organizational & business development. Mr. Bergman founded Envestnet in 1999 to provide web-based wealth management software and services and advanced portfolio solutions for independent advisors to better serve their affluent and high net worth clients. Under his direction, Envestnet has grown to empower 23,000 advisors and support $368 billion in financial advisor managed assets. Mr. Bergman also serves as a trustee for Guardian's RS Investments' mutual fund family, which manages over $20 billion in assets. Prior to Envestnet, Mr. Bergman was the managing director, Nuveen Mutual Funds, for Nuveen Investments, a diversified investment manager with over $100 billion under management. In this role he was responsible for the profitable growth of Nuveen's mutual funds business and was a member of Nuveen's Investment Management Committee. From 1992 to 1997, Mr. Bergman directed Nuveen's corporate development activity, where he initiated the development of Nuveen's separately managed accounts business and helped guide the firm's expansion into diversified investment management beyond municipal investments.

Mr. Bergman's comments included:

  • “Will conflicts be more fully disclosed and to what extent will a fiduciary standard be adopted?”
  • “What emerging technologies could affect the financial advisor-investor relationship?”
  • “Are the factors driving financial advisors to independence changing and are they accelerating?”
  • "I think that economies of scale are shifting rapidly in our line of business. We are seeing advisory practices with $120 to $150 million thrive on top line revenues less than $2.0 million with just two or three people in their shop"
  • “Will there be capital sufficient to meet the liquidity requirements of retiring advisors?”
  • “How will advances in investor-facing technology affect industry consolidation activity?”
  • “How fast will the TAMP industry consolidate?”

Tom Bradley (President, Retail Distribution, TD Ameritrade)

 

 

CEO Summit XXIV
Panelist

Tom Bradley
(President, Retail Distribution, TD Ameritrade)

 

 

 

 

 

 

 

Tom Bradley is President of Retail Distribution at TD Ameritrade. Mr. Bradley joined TD Ameritrade in 2006 upon its acquisition of TD Waterhouse and was appointed president of TD Ameritrade Institutional, where he oversaw all institutional business functions, including the company's independent investment advisor services, directed brokerage, self-directed 401(k), & retirement trust businesses. He was named to his current position in 2011.

Mr. Bradley's comments included:

  • “TD Ameritrade has over 5,000 employees, 105 branches, $500 billion in client assets”
  • “TD Bank maintains a 45% ownership stake in TD Ameritrade”
  • "TD Bank is the only AAA rated bank in North America"
  • “Key issues that the industry should be discussing include disengaged investors, regulation, and transfer of wealth”
  • “USA Today on January 17, 2013 said ‘Is it too late to jump into the stock market rally?”
  • “Near zero interest rates provide challenges for financial services firms and investors”
  • "When it comes to regulation, we need better, not more"
  • “Fiduciary versus sales -- advice models are moving to RIA & fiduciary and sales is being preserved as it should be, but dual hats is a problem that needs to be addressed”
  • “AdvisorOne on January 16, 2013 said ‘SEC to take another step toward fiduciary rule”
  • " Lobbying has become a bad word but there is good lobbying too”
  • “There is $31.0 trillion of assets up for grabs by financial advisors”
  • “Consumers are scared, scarred, & skeptical"
  • “The asset allocation process has been commoditized; it is not enough any more; we need something much higher touch”

Dale Brown (CEO, Financial Services Institute)

 

 

CEO Summit XXIV
Panelist

Dale Brown
(CEO, Financial Services Institute)

 

 

 

 

 

 

 

Dale Brown is CEO of the Financial Services Institute, an advocacy organization for independent broker/dealers and independent financial advisors. Mr. Brown brings more than twenty years of association management experience to the FSI, most recently as the associate executive director of the Financial Planning Association (FPA). At the IAFP, one of the FPA’s predecessor organizations, he led the government relations program and the broker/dealer program, which grew to more than 130 member firms by the time the FPA was created in 2000. He also led the successful fight in the mid-1990s against the IRS’s attempts to force independent broker/dealers to reclassify their representatives as statutory employees. The FSI now has 107 firm members and 35,000 financial advisor members.

Mr. Brown's comments included:

  • “FSI’s vision is access to advice for everyone”
  • “FSI’s mission is to advocate for a healthier business friendly regulatory environment”
  • “We formed this organization in response to an oppressive regulatory environment"
  • “I have a good friend in Washington who says that Congress does two things very well: nothing and overreact”
  • “Political gridlock will prevent any meaningful regulatory reform until after the 2014 mid-term elections”
  • “The SEC will enact a uniform fiduciary standard of care before the end of 2014”
  • “FINRA will continue to expand its reach into investment advisory oversight, setting the stage for eventual Congressional authorization in early 2015”
  • “The Republicans will take back control of the White House in 2016, with a candidate whose last name is not Christie, Paul, Ryan, or Rubio”

Valerie Brown
(CEO, Cetera Financial Group)

 

 

CEO Summit XXIV
Panelist

Valerie Brown
(CEO, Cetera Financial Group)

 

 

 

 

 

 

 

Valerie Brown is CEO of Cetera Financial Group and its four independently managed broker/dealer firms. Working closely with the Cetera executive team, Ms. Brown leads the strategy execution for company-wide initiatives that enhance value to all customers, employees, shareholders, & business partners. Prior to her current duties with Cetera, Ms. Brown was CEO of ING Advisors Network, a role in which she was responsible for guiding its four broker/dealers. She had previously also served as its president for five years, where her tenure was highlighted by continuous record revenue and earnings. Previous positions included service as president of ING US Retail Annuities and key international appointments within the ING organization, among them, serving as chief of staff for ING Group’s Executive Committees, Americas and Asia/Pacific. Cetera Financial Group was formed in 2010 upon the sale of three ING broker/dealers to Lightyear Capital.

Ms. Brown's comments included:

  • “Cetera Financial Group is serving multiple faces of independence”
  • “The firm has 6,200 registered reps (4,300 fo whom are dually registered) and $160 billion assets under administration”
  • “Key issues that the industry should be discussing include XXXX”
  • “The advisor must be better off”
  • “Culture is king”
  • “The whole kit and kaboodle”

 

David Bugen
(Founding Principal, Regent Atlantic Capital)

 

 

CEO Summit XXIV
Panelist

David Bugen
(Founding Principal, Regent Atlantic Capital)

 

 

 

 

 

 

 

David Bugen is the Chairman of Regent Atlantic Capital. He has been providing wealth advisory services since 1979. Mr. Bugen is the former chairman of the Northern New Jersey Chapter of the International Association for Financial Planning and served on the Investment Policy Committee for the Financial Planning Association. Mr. Bugen is a member of the Alpha Group, a nationally recognized group of senior investment advisors that Barron's called, "the nation's most powerful financial planners."

Mr. Bugen's comments included:

  • “Regent Atlantic has 38 employees, serves 1,000 clients, and manages $2.4 billion”
  • “The firm utilized Fiduciary network to fund its succession plans”
  • “Regent Atlantic has several practice specialties, including women on wall Street, matrimonial, Pharma executives, physicians, attorneys, & business owners”
  • The firm addresses issues such as GRATs, Roths, SLATs, QPRTs, DAFs, deferred compensation, & stock options”
  • “Many registered investment advisors lack succession plans which may breach their responsibility tot heir clients”
  • "We can not be all things to all people"
  • "The most important thing we do is behavioral counseling at critical points in their lives"
  • “There is a severe talent shortage to address the planning needs of consumers. Owners of advisory firms do not delegate and they are shirking their fiduciary duty. We need to share equity, delegate clients, and create career paths”
  • “Few registered investment advisors manage their firms in the best interests of clients, colleagues, & owners”

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

CEO Summit XXIV
Presenter

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

 

 

 

 

 

Ric Edelman is CEO of The Edelman Financial Group. Mr. Edelman has been ranked by Barron’s among America’s top 100 financial advisors nine times, including being ranked as the number one independent financial advisor in 2009, 2010, & 2012. In 2012, RIA Biz named Mr. Edelman the most influential financial advisor in America. Mr. Edelman has also been ranked as a top financial advisor by Research Magazine, Registered Rep, Financial Advisor, & other publications. Mr. Edelman is also a best selling author, syndicated columnist, & host of weekly television and radio shows on personal finance. His seven books on personal finance include The Truth About Money; Ordinary People, Extraordinary Wealth; & The New Rules of Money.

Mr. Edelman's comments included:

  • "The industry has failed to deal with the 99%. It is more fun helping poor people become rich people than rich people become richer. With Edelman online, we will deliver planning and investment management services to people with as little as $5,000 for a 2% fee or $100"
  • "No firm has taken market share in the financial advisory industry"
  • "Singularity is the key to the future"
  • "The odds are that if you are alive in 2030, then you will live forever"
  • "Life expectancy could go to 150 to 300!?"
  • "Most of us are not paying enough attention to where technology is taking us"
  • "Technological intelligence and human intelligence will be on a par by 2029; this is the singularity"
  • "The Google Car is legal in 3 states... Odds are your five year old will not drive a car"
  • "There are no lights in factories that are run by robots"
  • "Robots will be able to do any human task within twenty years"
  • “DNA nanotechnology helps these machines replicate themselves using millions of precisely arranged atoms”
  • “Advances in biotech mean that we will literally eat away all the pollutants on the planet; bio-informatics mean your iPhone can become an EKG device; 3D printing in any material is being done right now; now there is 4D and 5D printing”
  • "We need to make all of our services available on mobile"
  • “Nike is FedEx’s number one customer. What happens when the customer can print their shoes or download sweaters from Nordstrom after paying a license fee?”
  • "The questions we must ask ourselves are how can we protect our clients? How must we change our products, advice, & services? What happens to estate planning if you do not die? What is technology going to do to society and business?"
  • "There are human body parts being created right now -- should they buy long-term care?"
  • "I would be happy to have you ask questions but I have no answers"

Harold Evensky
(President, Evensky & Katz)

 

 

CEO Summit XXIV
Panelist

Harold Evensky
(President, Evensky & Katz)

 

 

 

 

 

 

 

Harold Evensky founded and serves as the President of Evensky & Katz. Prior to forming Evensky & Katz, Mr. Evensky served as a vice president of investments with major investment banking firms. Mr. Evensky has served as chairman of the International CFP� Council, the CFP� Board of Governors, the Board of Examiners, & the Board of Appeals. He has served on the Editorial Advisory Board of the Asia Financial Planning Journal, as a columnist for Worth.Com, on the Editorial Advisory Board of the Journal of Financial Planning, & he is currently the research columnist for the Journal of Financial Planning and a board member of the Academy of Financial Services. He has also served on the National Board of the IAFP and the Charles Schwab Institutional Advisory Board & Council. He is the past chairman of the TIAA-CREF Institute Advisory Board and is a member of the Financial Planning Association, the Academy of Financial Services, & the CFA Institute and is an associate member of the American Bar Association. He is the author of Wealth Management and co-editor of The Investment Think Tank & Retirement Income Redesigned.

Mr. Evensky's comments included:

  • “Evensky & Katz has 18 employees; 350 clients, 1,400 accounts, & $820 million assets under management”
  • “The firm’s clients are in 26 states, with 62% in South Florida”
  • “Evensky & Katz is a member of the Fiduciary Network, the Alpha group, & the Committee for the Fiduciary Standard”
  • “Key issues that the industry should be discussing include the commoditization of wealth management; the low return, higher volatility, & correlated environment; mortality & the squaring of the curve; small client solutions, including through technology; and the fiduciary standard and regulations”
  • “Financial planners and financial advisors tend to focus on the probabilities and not the consequences. The risk of investors losing their standard of living is our primary focus as financial planners"
  • “What ought to keep you awake at night is that you will not die"
  • “We really earn our money when everyone else is terrified”
  • "We are financial planners…fee-only fiduciaries in our practice"
  • "Most financial advisors have a sale plan but not a succession plan"
  • "We need to get the word out to younger people about the extraordinary opportunities in our industry"

George Gatch
(CEO, JP Morgan Funds Management)

 

 

CEO Summit XXIV
Panelist

George Gatch
(CEO, JP Morgan Funds Management)

 

 

 

 

 

 

 

George Gatch is CEO of JP Morgan Funds Management. Mr. Gatch joined JP Morgan Chase & Company in 1986 and has held numerous leadership positions throughout the firm in business management, marketing, and sales. JP Morgan asset Management has gathered $2.0 trillion in client assets, generates $10 billion revenues, & earns $3.0 billion pretax income.

Mr. Gatch's comments included:

  • “JP Morgan Asset Management’s channels include US Private Banking; International Private Banking; & JP Morgan Securities”
  • “Multi-asset solutions will account for more than 25% of flows and 15% of profits by 2015”
  • “61% of financial advisors cite asset allocation as he foundation of heir portfolio construction process”
  • “I wonder if this notion of open architecture results in poor outcomes because we are constantly chasing returns”
  • “Investors underperformed the market by nearly 6% during the last two decades”
  • “Investors think globally; do you?”
  • "Investors anchor themselves to their own equity markets"
  • “International stocks compromise 54% of the world’s equity markets, yet represent 28% of equity fund assets held by US investors”
  • “Active versus passive is a false choice”
  • "Investors will increasingly use alternative investments, but so far their experience with non-traditional products has been limited"
  • "The only thing that matters is investment performance. Flows go to top performing funds and new strategies with good salespeople"

Bill Harris
(CEO, Personal Capital Corporation)

 

 

CEO Summit XXIV
Panelist

Bill Harris
(CEO, Personal Capital Corporation)

 

 

 

 

 

 

 

Bill Harris is CEO of Personal Capital Corporation. Personal Capital Corporation is the culmination of Mr. Harris' career (his words), bringing together many things he has worked on over the past twenty years to deliver complete financial solutions for clients. Mr. Harris was formerly CEO of PayPal and CEO of Intuit, the makers of Quicken, QuickBooks, & TurboTax. He has also founded numerous financial technology and security companies, and served on the boards of RSA Security, Macromedia, Success Factors, GoDaddy, & EarthLink.

 

Mr. Harris' comments included:

  • “Personal Capital Corporation provides digital wealth management”
  • “Another company of which I am a founder, MyVest, is a cloud based investment management platform”
  • “Key issues that the industry should be discussing include tech versus touch; product versus customer; and manufacturing versus distribution”
  • “Will services be delivered with technology or people?”
  • "Today, there are four times as many bank branches than we had in the 1970s"
  • "I do not reject face-to-face advice... what I reject is the physical substantiation of the face-to-face advice"
  • “I think the sweet spot is technology and effective touch”
  • “Hybridization is the ability to combine high tech self service with high touch advice in a seamless application”
  • "Co-browsing is the future"
  • “Will we sell products or advise customers?”
  • "The brokerage account was the craftsman model while the mutual fund was the assembly line or mass production that allowed economies of scale"
  • "Computing power made mutual funds possible"
  • “Hyper personalized wealth management is where we are going"
  • “How will we integrate the creation and delivery fo portfolios”

Paul Hatch
(Vice Chairman, Morgan Stanley Wealth Management)

 

 

CEO Summit XXIV
Panelist

Paul Hatch
(Vice Chairman, Morgan Stanley Wealth Mangement)

 

 

 

 

 

 

 

Paul Hatch is Vice Chairman of Morgan Stanley Wealth Management, which manages $1.7 trillion in client assets through a network of 17,000 representatives in 740 locations. Mr. Hatch started as a financial consultant for EF Hutton in 1984 and joined Smith Barney as a branch manager in 1992. He has spent 28 years serving the advisors and clients of Morgan Stanley and its processor firm.

Mr. Hatch's comments included:

  • “Key issues that the industry should be discussing include rep as advisor programs; social media; and improving investor outcomes”
  • “Are rep as advisor programs good or bad for the industry?”
  • "We wirehouses’ advisory businesses will grow via rep as PM and rep as advisor because reps want more control and to capture the economics of the model"
  • "The ultra high net worth teams will look like law firms"
  • “Senior and junior partners are self liquidating”
  • “We are looking a lot less for entrepreneurs and a lot more for team members”
  • “The next generation is of great character”
  • "Social media is about keeping in constant contact. It changes our relationships. It will transform our ability to interact with clients"
  • “As an industry what are we doing to focus on improving investor outcomes? Are we doing enough?”
  • “Relative returns are the wrong measure; we have to focus on client outcomes, not product performance”
  • "I believe the single biggest problem is financial illiteracy but I also believe it will not be solved in my lifetime"

 

Chet Helck
(CEO, Global Private Client Group, Raymond James Financial)

 

 

CEO Summit XXIV
Panelist

Chet Helck
(CEO, Global Private Client Group, Raymond James Financial)

 

 

 

 

 

 

 

Chet Helck is CEO of the Global Private Client Group at Raymond James Financial, which includes the firm’s domestic broker/dealer subsidiaries, Raymond James & Associates and Raymond James Financial Services, together with Canadian subsidiary Raymond James Limited and London-based Raymond James Investment Services. Collectively, the Private Client Group comprises nearly two thirds of the total firm revenues. In addition, his leadership responsibilities include wealth management and marketing and corporate communications. He also serves as a director of Raymond James Financial, as well as of numerous subsidiaries throughout the organization.

Mr. Helck's comments included:

  • “Raymond James has 6,200+ financial advisors in 2,600+ locations with$392 billion assets under administration”
  • “The firm has a market capitalization of $5.3 billion and has reported 100 consecutive profitable quarters”
  • "Putting the client first has always been the mantra”
  • “Raymond James generates $2.7 of its $4.2 billion fo revenues in its Private Client Group”
  • "We are a service bureau for financial advisors and they are our clients; we offer a wide range of models in our advisor choice program"
  • "Our reps’ clients are all free agents and can leave anytime they want and so are our reps"
  • "There is nothing wrong with being in the direct business; we are just not in it"
  • “Key issues that the industry should be discussing include trust & confidence; risk management; the fiduciary standard; and the RIA & hybrid models”
  • "Our industry is in its darkest hour from a perception point of view"
  • “We as leaders should take a lesson from how hard financial advisors work to gain trust”
  • “We need more disclosures with regard to conflicts; that is a matter fo trust & confidence”
  • "I think regulation is going to change dramatically"
  • “Social media… What we should do is get out of the way and let it happen”

 

Jim Jessee
(President, MFS Fund Distributors)

 

 

CEO Summit XXIV
Panelist

Jim Jessee
(President, MFS Fund Distributors)

 

 

 

 

 

 

 

Jim Jessee is President of MFS Fund Distributors. Mr. Jessee is responsible for the marketing and sales of MFS' US-based mutual funds and separately managed accounts. His team also distributes MFS investment offerings through insurance company variable products. He joined the company in 1987. The firm is 80% owned by Sun Life of Canada.

Mr. Jessee's comments included:

  • “MFS is the oldest mutual fund company in the US (1924)”
  • “MFS manages $323 billion assets, 55% for the retail markets and 45% for institutional clients”
  • “Key issues that the industry should be discussing include the rise of advisory platforms using discretion (home office and rep); continued growth of defined contribution opportunities; and global marketplace asset gathering”
  • “The data we receive as an asset manager is still lacking; if we could get good data at he financial advisor level at all of the firms, we could better align compensation”

 

Jonathan Korngold
(Managing Director, General Atlantic Partners)

 

 

CEO Summit XXIV
Panelist

Jonathan Korngold
(Managing Director, General Atlantic Partners)

 

 

 

 

 

 

 

Jonathan Korngold is Managing Director at General Atlantic Partners, where he has worked since 2001. Mr. Korngold has worked in General Atlantic's London office and is now based in New York, where he is a member of the firm's Executive Committee and Investment Committee, and is the head of the firm's Global Financial Services sector, as well as co-head of the firm's Global Healthcare sector. In his capacity as a Managing Director, Mr. Korngold has worked closely with many of the firm's public and private portfolio companies in the financial services, healthcare services, transaction processing, and business services areas, and he is currently a board member of MedExpress Urgent Care and Align Networks.

Mr. Korngold's comments included:

  • “General Atlantic is a global growth investor”
  • “The firm has a stable capital base and unique long-term structure”
  • “Investments range form $75 to $400 million”
  • “The firms primarily makes minority investments in private companies, and makes ten to twelve investments per year”
  • “General Atlantic makes investments in specialized asset management and asset services, as well as next generation payments”
  • “Investments have included CITCO; E*Trade Financial; First Republic Bank; GETCO; NYMEX; NYSE Euronext; Oak Hill Advisors; Pierpont Securities; RiskMetrics Group; and more”
  • “Key issues that the industry should be discussing include the growth of passive & index products; the success of RIA roll-up platforms; and asset accumulation in the emerging markets”
  • “The growth of passive & index products will shift profit pools from manufacturers to distributors”
  • “Demand for liquid alternatives is surging; this is the first thing in years to re-energize mutual funds”
  • “The RIA roll-ups bring risk in scaling and managing a federation of quasi-independent entrepreneurs”
  • "Independent platforms like Cetera Financial Group and LPL Financial may be better positioned to capture the independent advisor asset flows”
  • “In the vast majority of emerging markets, distribution capabilities trump investment performance for retail flows”

 

Sallie Krawcheck
(Former President, Global Wealth & Investment Management, Bank of America Corporation)

 

 

CEO Summit XXIV
Panelist

Sallie Krawcheck
(Former President, Global Wealth & Investment Management, Bank of America Corporation)

 

 

 

 

 

 

 

Sallie Krawcheck has had a series of high profile roles, having served most recently as the President of Global Wealth & Investment Management at Bank of America Corporation. Previously she was the CEO of Citi Wealth Management, the Chief Financial Officer of Citigroup, the CEO of Smith Barney, and the CEO of Sanford Bernstein & Company. She is currently considering next steps in her career. In her most recent role at Bank of America Corporation, she led one of the largest wealth management businesses in the world with more than 20,000 financial advisors across the entire wealth spectrum and $2.0 trillion in total client assets.

Ms. Krawcheck's comments included:

  • "Running Merrill Lynch was like the Disney ride The Tower of Terror"
  • “Key industry issues that the industry should be discussing include continued risk in the big banks; opportunities for wealth management in niches; and how social media changes everything”
  • “Do banks, and therefore the industry, have enough capital?”
  • "Money market funds are not what you think"
  • "We do not need more disclosure, we need the right disclosure. Only 17% read disclosures. We need a simple one pager”
  • “We continue as an industry to let the media define us”
  • “We need to change the value proposition”
  • "Our industry runs the risk of becoming the Republican Party -- old white guys saying to each other, "we are right, aren't we?"
  • “As an industry we are in danger of skating to where the puck was”
  • "Women control 60% of the assets, live eight years longer, and are over 50% of the population, and the industry considers us a niche!”
  • "We in our industry do not have this right yet... Only 2% of the assets stay when the first generation passes away"
  • “Social media changes everything”

 

Steve Lockshin
(Chairman, Convergent Wealth Advisors)

 

 

CEO Summit XXIV
Panelist

Steve Lockshin
(Chairman, Convergent Wealth Advisors )

 

 

 

 

 

 

 

Steve Lockshin is Chairman of Convergent Wealth Advisors, having founded the firm in 1994 and served as CEO for eighteen years. Mr. Lockshin is also Co-Founder of Advizent. Mr. Lockshin leads Convergent in its efforts to deliver a differentiated offering to the ultra affluent. Under his leadership, the company has emerged as an early adopter of asset allocation strategies for ultra-high-net-worth families, successful use of Monte Carlo simulation to better quantify the risks & reward parameters of alternative portfolios, equity risk management, and other innovative strategies. His focus remains on building the company through client service & differentiated offerings, with a particular emphasis in trust & estate tax strategies, concentrated wealth strategies, and overall family wealth planning. Mr. Lockshin previously served as a partner at Meltzer & Associates, a nationally recognized firm providing services in insurance, estate planning, & executive compensation. From 1985 to 1988, he worked with Legg Mason in various businesses, including an extended period in the municipal bond department.

 

Mr. Lockshin's comments included:

  • "As chairman, I will concentrate my efforts on the areas of the business I am most passionate about"
  • “The financial services & advisory industry will become increasingly commoditized as a result of technology”
  • “Pricing remains disconnected from value. Obfuscation and complexity stand in the way. As a result, the world is upside down when it comes to value versus compensation”
  • “We are limited by the estate planning tools out there”
  • "Good tax & estate planning will trump good investments every time"
  • “Our industry is plagued with conflicts. What does it mean to be a true fiduciary?”
  • “We have benefited as an industry through hidden fees and obfuscation but technology in the hands fo consumers will enable them to recognize differences between real value and commoditized services”
  • "We are a bunch of salespeople trying to be a profession"
  • "We have an ego problem in this industry"
  • "I like flat fees; it takes the conflict out of it”
  • ”If you can not provide advice beyond portfolio allocation and manager selection, you may find the future quite difficult”

 

Don Phillips
(President, Fund Research, Morningstar)

 

 

CEO Summit XXIV
Panelist

Don Phillips
(President, Fund Research, Morningstar)

 

 

 

 

 

 

 

Don Phillips is President of Research at Morningstar, overseeing the firm’s global fund, equity, & credit research. He has also served on the company’s board of directors since 1999. Mr. Phillips joined Morningstar in 1986 as the company’s first mutual fund analyst and soon became editor of its flagship publication, Morningstar� Mutual Funds™, establishing the editorial voice for which the company is best known. Mr. Phillips helped to develop the Morningstar Style Box™, the Morningstar Rating™, and other distinctive proprietary Morningstar innovations that have become industry standards.

 

Mr. Phillips' comments included:

  • “Morningstar is a leading provider of independent investment research”
  • “Morningstar’s mission is to create great products that help investors reach their financial goals”
  • “Key issues that the industry should be discussing include the need to restore confidence among investors; the need for better relationships with Washington, DC; and the need to establish a sense of responsibility and pride around investing”
  • “There is a good story: performance is up; 401K balances well up from 2007; buy & hold, diversification, dollar cost averaging are not dead. The industry’s tools worked”
  • “Fund launches like target date funds have been responsible”
  • “Costs, transparency, & investor protections are better in the US fund market than in any other”
  • “Global investor experience: The US fund industry gets an A for quality, transparency, & cost but a C for taxation and regulation”
  • “Mutual funds are the vehicle fo choice for America’s middle class. They are something to champion and export”
  • “The UK fund industry partners with the government and regulators to promote investing and bring assets to its fund industry”
  • “The US president appoints former prosecutors of organized crime to lead the SEC and DOL and oversee funds”
  • “Asset managers must prove that they align their interests with Main Street, not Wall Street”
  • “We need to focus on the problem. Americans are not saving well for retirement”
  • “Casting investing as a game, appealing to greed, as done in the late 1990s, was short sighted”
  • “We need to put pride into being an investor”
  • “Reputations are forged in decades, not in quarters”
  • “In the end if investors do not win, then everything else has failed”
  • “Today mutual funds are bought not sold”

 

 

Scott Powers
(CEO, State Street Global Advisors)

 

 

CEO Summit XXIV
Panelist

Scott Powers
(CEO, State Street Global Advisors)

 

 

 

 

 

 

 

Scott Powers is CEO of State Street Global Advisors (SSGA), the investment management arm of State Street Corporation and one of the largest institutional asset managers in the world. Mr. Powers is also a member of State Street's Management Committee, the company's senior-most strategy and policy-making team. Prior to joining State Street in 2008, Mr. Powers served as CEO of Old Mutual US, the US operating unit of London-based Old Mutual. During his seven year tenure at Old Mutual, he was one of six senior executives overseeing the worldwide operations and was also a member of Old Mutual's executive committee, where he was actively involved in the development and execution of overall business strategy.

 

Mr. Power's comments included:

  • “State Street Global Advisors has gathered $2.1 trillion assets under management”
  • “We need to help investors regain confidence in the capital markets and that they can get a fair deal"
  • “Active ETFs will probably be relevant in five or ten years”
  • “This is not about mutual fund versus ETFs or active versus passive; investors use both mutual funds & ETFs, including active and passive”
  • “Separation of alpha and beta: advance beta; ETFs”
  • "Clients increasingly want to see the alignment of the economics with the results they get delivered"
  • “Tail risk management: managed volatility strategies; divergent return strategies; multi asset class solutions”

 

Larry Roth
(CEO, Advisor Group, American International Group (AIG))

 

 

CEO Summit XXIV
Panelist

Larry Roth
(CEO, Advisor Group, American International Group (AIG))

 

 

 

 

 

 

 

Larry Roth has been CEO of the Advisor Group at American International Group (AIG) since 2007. Advisor Group is a leading independent broker/dealer, with four primary subsidiaries, including FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial, & Woodbury Financial. Mr. Roth has also served as CEO of Royal Alliance Associates. Mr. Roth serves as director at The United States Life Insurance Company in the City of New York.

 

Mr. Roth's comments included:

  • “Advisor Group has 6,000 reps, two million unique clients, $130 billion assets under management, and generates $1.1 billion revenues”
  • “Key issues that the industry should be discussing include those surrounding consumers, product manufacturers, & distributors”
  • "Consumers need help but we are not prepared to serve them"
  • “During every stage of their lives, baby boomers have created demand for innovative products to satisfy their needs. This time, their need is to preserve their lifestyles in retirement, without running out of money”
  • "Insurance product manufacturing is difficult; demand is up but supply is down"
  • “The macroeconomics of low interest rates makes manufacturing new products, and supporting existing ones, cost prohibitive”
  • "We do not have enough financial advisors to serve the number of consumers"
  • “Financial advisors will need to bifurcate their services between the mass market, looking for retirement planning support, and more affluent clients who expect high-touch personalized financial services”
  • "Aging financial advisors are jettisoning their smaller consumers right when they need their help the most"
  • "When we talk about growth & succession strategies to successful financial advisors they say, ‘that sounds like work!’"
  • “Younger financial advisors are more difficult to get in, take longer to get up and running, and we are not training as much as in the past”
  • “Our industry business model is out of touch with client expectations”

 

Esther Stearns
(CEO, NestWise)

 

 

CEO Summit XXIV
Panelist

Esther Stearns
(CEO, NestWise)

 

 

 

 

 

 

 

Esther Stearns is CEO of NestWise at LPL Investment Holdings. Ms. Stearns has been in the financial services industry for 30 years. She started her career at The Charles Schwab Corporation and remained for fourteen years in a variety of operational, compliance, & technology-related positions. Ms. Stearns then moved to LPL Financial, where she was in charge of technology for many years before becoming president and chief operating officer. NestWise has a presence in Atlanta, Dallas, & Denver, and ten financial advisors.

 

Ms. Stearns' comments included:

  • “NestWise is a new kind of financial services company, committed to providing middle class Americans with access to affordable personal financial advice”
  • “Using innovative technology, financial advisors are trained for this market, and a financial plan designed for this audience, we are poise dot serve a 32-40 million household underserved market”
  • “NestWise addresses three compelling industry issues, including meeting the growing need fr middle class financial advice; financial planning is what people need; and our industry is not socially relevant”
  • “Self-service and impersonal advice is not the answer”
  • “We place too much emphasis on investing”
  • “We need to serve a broad base of Americans to solve real problems”
  • “Managing the long-term needs of middle class Americans is hard.”
  • “We have a social imperative to provide this; we need a call to action as an industry to address this issue”

 

Mark Tibergien
(CEO, Pershing Advisor Solutions)

 

 

CEO Summit XXIV
Panelist

Mark Tibergien
(CEO, Pershing Advisor Solutions)

 

 

 

 

 

 

 

Mark Tibergien is CEO of Pershing Advisor Solutions, a BNY Mellon company. Pershing Advisor Solutions is one of the country's leading custodians for registered investment advisors and family offices. Pershing Advisor Solutions’ assets under custody have increased from $30 to $109 billion over the past five years. Mr. Tibergien is also a managing director of Pershing, a BNY Mellon company, and a member of Pershing's Executive Committee and BNY Mellon's Operating Committee. Mr. Tibergien joined Pershing in 2007. He was previously at Moss Adams.

 

Mr. Tibergien's comments included:

  • “Pershing Advisor Solutions perceives itself as the new model custodian. It serves professionally managed growth oriented advisory firms that serve clients with complex lives”
  • “Pershing Advisor Solutions believes that what makes it different is its bank & brokerage custody model; private banking solutions; global reach; and practice management capabilities”
  • “Key issues that the industry should be discussing include the globalization of the advisory model; designing new model financial services companies around clients; & the implications of the age gap”
  • "Pershing has a fast growing segment of financial advisors working with clients in international markets"
  • "The right perspective to approach this business is to focus on financial advisors' client satisfaction"
  • "The really successful firms are focused on defining their optimal clients."
  • "We have not been very successful in bringing in younger financial advisors. The average age of financial advisors is 57. Only 22% of financial advisors are under the age of 40 and only 5% are under 30; there are implications for the future."
  • “The amount of assets owned by those 45 and under is almost the same as those owned by the baby boomers”
  • "I think people are confusing succession planning with selling practices. Succession should be part of your growth strategy. If you do not have a succession strategy as part of your growth strategy, you are going to be selling an empty oil well."
  • "Older financial advisors call themselves entrepreneurs but I am convinced that entrepreneur is a French word that means, ‘I do not want to be accountable.’"
  • "Our generation views work by how much we put in and the next generation gauges it by how they get out."

 

David Tittsworth
(Executive Director, Investment Adviser Association)

 

 

CEO Summit XXIV
Panelist

David Tittsworth
(Executive Director, Investment Adviser Association)

 

 

 

 

 

 

 

David Tittsworth has served as Executive Director of the Investment Adviser Association since 1996. He is responsible for the management of the non-profit organization dedicated to serving & representing the interests of SEC-registered investment advisory firms. Founded as the Investment Counsel Association of American and based in Washington, DC, the IAA engages in numerous advocacy, compliance, & educational services on behalf of its membership. Prior to assuming his current position, Mr. Tittsworth served as counsel of the house committee on energy & commerce. Prior to that he was a partner at government relations firm Chambers, Conlon, & Hartwell. Mr. Tittsworth has served in Washington, DC, almost continuously, since 1987, including stints on the house budget committee and as senior counsel to the house subcommittee on transportation, trade, & hazardous materials.

 

Mr. Tittsworth's comments included:

  • “The IAA has 550 investment management firm members that manage $10 trillion for a variety of individual and institutional clients”
  • “Most regulatory reform is well intentioned but poorly executed. Examples include money market reform; SEC registration of hedge funds & private equity funds; CFTC & SEC redundancy; Dodd Frank; & Federal Reserve Bank stress tests”
  • “Next in line are investigations into money laundering; derivatives; & predatory lending”
  • “Nobody can regulate mortality”
  • “Washington, DC brings risks, including legislative risks, regulatory & compliance risk, reputational risk, & political risk”
  • “Legislative risk includes the Dodd Frank Act and the potential SRO legislation”
  • "FINRA is actively lobbying to expand its turf"
  • “Regulatory & compliance risk includes the fiduciary duty and the harmonization of broker/dealer and investment advisor regulations"
  • "Do not weaken or water down the Advisors Act fiduciary duty"
  • “Regulation will not close the trust gap between Wall Street and consumers”

 

Fred Tomczyk
(CEO, TD Ameritrade)

 

 

CEO Summit XXIV
Panelist

Fred Tomczyk
(CEO, TD Ameritrade)

 

 

 

 

 

 

 

Fred Tomczyk is CEO of TD Ameritrade. He is a 25 year veteran of the financial services industry with extensive expertise in wealth management, insurance, & banking. Mr. Tomczyk has served as CEO of TD Ameritrade since 2008 and previously served as the company’s chief operating officer. His involvement with the company goes back more than five years as he helped to shape the Ameritrade & TD Waterhouse merger and later served on the board of directors. Today, Mr. Tomczyk oversees the management of the firm and progress made toward its strategic objectives: to maintain a leadership position in the trading business and to continue growing as an asset gatherer. Prior to assuming his current position, Mr. Tomczyk served as vice chairman of corporate operations for TD Bank Financial Group. Prior to that role, Mr. Tomczyk's positions at TD Bank Financial Group included executive vice president of core banking & wealth management, as well as executive vice president of retail distribution, where he led the branch networks of TD Bank and Canada Trust through the merger to become TD Canada Trust. Prior to joining Canada Trust, Mr. Tomczyk served as CEO of London Life.

 

Mr. Tomczyk's comments included:

  • "TD Ameritrade has 5,400 employees in two channels, retail brokerage with ~$300 billion of client assets and RIA custody with ~$200 billion of client assets”
  • “Our retail brokerage business has 105 branches, 800 investment consultants, and five million funded retail accounts”
  • “Our RIA custody business serves 4,700 RIAs”
  • “We processes 360,000 client trades per day in 2012, 38% of which was options & futures”
  • “TD Ameritrade had $80 billion of client cash at the end of 2012, which is painful at these low rates”
  • “The firm generates $2.6 billion of revenues and a 35% pretax margin”
  • "We are open minded about acquisitions, but they have to make strategic and financial sense"
  • “Key issues that the industry should be discussing include whether the trend in ETF and index products (and the continued low interest rate environment) means the wealth management model needs to be structurally changed; if the breakaway broker trend is over or if it will continue; and how active asset managers will compete given the trend to passive asset management and the more recent price wars”
  • "The mishandling of the Facebook initial public offering in 2012 rattled the confidence of retail investors who were already leery of financial markets"
  • “There is always turmoil in the industry, including the breakaway broker trend, which we see as opportunity for us”
  • "You have to be in favor of more disclosure in principle"

 

Attendees


Tiburon CEO Summit XXIV had 225 confirmed client attendees, including:

  • Chip Roame (Managing Partner, Tiburon Strategic Advisors)
  • Rick Adler (Board Member, Convergent Capital Management)
  • Gurinder Ahluwalia (CEO, Genworth Financial Wealth Management)
  • Sonia Ahuja (Executive Vice President, Business Development & Strategy, BrightScope)
  • David Akellian (Executive Vice President, Custom Clearing Services, LPL Financial)
  • Mike Alfred (CEO, BrightScope)
  • Ryan Alfred (President, Product Development, BrightScope)
  • Alan Alzfan (Partner, McGladrey)
  • Daniel Applegarth (Chief Financial Officer, NorthStar Financial Services Group)
  • Lee Argush (Business Head, Concord Trust & Wealth Solutions, LPL Financial)
  • Marion Asnes (Chief Marketing Officer, Envestnet)
  • Carla Avila (Business Head, Financial Institutions, Baron Capital Group)
  • Jeni Bahr (Chief Financial Officer, Wealth Enhancement Group)
  • Chuck Baldiswieler (CEO, TCW Funds)
  • David Ballard (Chief Operating Officer, Advisor Group, American International Group (AIG))
  • David Barry (CEO, Trust Company of America)
  • Tony Batman (CEO, 1st Global Capital Corporation
  • John Battaglia (CEO, Aris Wealth Services, Aris Corporation of America)
  • David Baum (Partner, Investment Products & Services Group, Alston & Bird)
  • Brent Beene (Managing Partner, Regent Atlantic Capital)
  • Ed Beggs (CEO, Laser App Software)
  • Michael Bell (CEO, Curian Capital)
  • Jud Bergman (CEO, Envestnet)
  • Brad Bernstein (Partner, FTV Capital)
  • Rich Bernstein (CEO, Richard Bernstein Advisors)
  • Rudy Bethea (Chief Business Development Officer, NestWise)
  • John Blamphin (Chief Operating Officer, Retirement Management Systems)
  • Phil Blancato (President, Ladenburg Thalmann Asset Management)
  • Joe Bottazzi (Chief Communications Officer, Edelman Financial Services)
  • Phillip Bowman (Chief Marketing Officer, TD Ameritrade)
  • John Brackett (Managing Partner, Bar Financial Network)
  • Tom Bradley (President, Retail Distribution, TD Ameritrade)
  • Dale Brown (CEO, Financial Services Institute)
  • Josh Brown (Partner, Fusion Analytics Investment Partners)
  • Valerie Brown (CEO, Cetera Financial Group)
  • Todd Brunskill (Chief Marketing Officer, First Rate Investment Systems)
  • David Bugen (Founding Principal, Regent Atlantic Capital)
  • Randy Bullard (CEO, ETF Strategy Group)
  • Derek Burke (President, First Investors Management Company)
  • Jim Cahn (Chief Investment Officer, Wealth Enhancement Group)
  • Bruce Cameron (CEO, Berkshire Capital Securities)
  • Jessica Campbell (Executive Vice President, Client Success, BrightScope)
  • David Canter (Executive Vice President, Practice Management & Consulting, Fidelity Institutional Wealth Services)
  • Mitch Caplan (CEO, Jefferson National Financial)
  • John Carey (Chief Operating Officer, FolioDynamix)
  • Jay Carter (CEO, Stern Agee Financial Services)
  • Christine Cataldo (Chief Operating Officer, Edelman Financial Services)
  • Carolyn Clancy (Executive Vice President, Funds Network, Personal, Workplace, & Institutional Services, Fidelity Investments)
  • Eric Clarke (President, Orion Advisor Services)
  • Andy Clipper (Business Head, North America, Wealth Management Services, Citi Open Wealth, Citi Investor Services, Citigroup)
  • John Cochran (Managing Director, Lovell Minnick Partners)
  • Steve Cohen (Chief Strategy Officer, Pro Funds Group)
  • David Conover (President, EverBank Wealth Management)
  • Dean Cook (President, FTJ Fund Choice)
  • Ron Cordes (Co-Chairman, Genworth Wealth Management)
  • Brian Corkery (Business Head, National Accounts, North America, Wealth Management Services, Citi Open Wealth, Citi Investor Services, Citigroup)
  • Trish Cox (Business Head, Schwab Corporate Brokerage Services, The Charles Schwab Corporation)
  • John Coyne (President, Brinker Capital)
  • Bill Crager (President, Envestnet)
  • Peter Crenier (Business Head, Business Development, Investment Services, Fiserv)
  • Kevin Crowe (Executive Vice President, Advisor Solutions, SEI Advisor Network, SEI Investments)
  • Jim Crowley (Business Head, National Accounts, Pershing)
  • Ben Cukier (Partner, FTV Capital)
  • Scott Curtis (President, Raymond James Financial Services)
  • Jeff Cusack (Business Head, RIA Sales & Alternatives Distribution, Nuveen Investments)
  • Dick Davies (Business Head, Defined Contribution, Americas Institutional, Russell Investments)
  • Peter Daytz (Business Head, Investments, Citi Trust, Citigroup)
  • Joe Deitch (Chairman, Commonwealth Financial Network)
  • Jeff Dekko (CEO, Wealth Enhancement Group)
  • Joseph DiTalia (Chief Operating Officer, North America, Wealth Management Services, Citi Open Wealth, Citi Investor Services, Citigroup)
  • Bob Doll (Chief Equity Strategist, Nuveen Investments)
  • Jeffrey Dunham (CEO, Dunham & Associates Investment Counsel)
  • Joe Duran (CEO, United Capital Financial Partners)
  • Ric Edelman (CEO, The Edelman Financial Group)
  • Ken Ehinger (CEO, M Holdings Securities, M Financial Group)
  • Tom Embrogno (Executive Vice President, Docupace Technologies)
  • Harold Evensky (President, Evensky & Katz)
  • Mike Everett (Chief Marketing Officer, My Vest Corporation)
  • Mike Falcon (Business Head, Retirement Business, JP Morgan Asset Management)
  • Pat Farrell (CEO, Investacorp)
  • Ed Forst (CEO, Lincoln Investment Planning)
  • Chris Frieden (Partner, Financial Services & Products, Alston & Bird)
  • Mary Gaspar (Business Head, Technology, Citi Wealth & Asset Services, Citigroup)
  • George Gatch (CEO, Global Funds Management, JP Morgan Asset Management)
  • Davin Gibbins (Chief Investment Officer, Aris Corporation of America)
  • Mark Goldberg (President, Carey Financial, WP Carey & Company)
  • Charles Goldman (Co-Founder, Advizent)
  • Craig Gordon (Business Head, RBC Correspondent & Advisor Services)
  • Gail Graham (Business Head, Strategy & Execution, United Capital Financial Partners)
  • Phil Green (Chief Financial Officer, Brinker Capital)
  • Larry Greenberg (President, Jefferson National Financial)
  • Tony Guerrerio (Partner, Wedgewood Partners)
  • Oscar Hackett (Chief Financial Officer, BrightScope)
  • Trista Hannan (Executive Vice President, Corporate Sales, Morningstar)
  • Scott Hanson (Co-CEO, Hanson McClain)
  • AJ Harper (CEO, BNY Mellon Managed Investments Hong Kong, The Bank of New York Mellon Corporation)
  • Bill Harris (CEO, Personal Capital Corporation)
  • Paul Hatch (Vice Chairman, Morgan Stanley Wealth Management)
  • Chet Helck (CEO, Global Private Client Group, Raymond James Financial)
  • Shari Hensrud (Chief Investment Officer, FolioDynamix)
  • Bob Herrmann (CEO, Discovery Data)
  • Pat Hoffmann (Business Head, Defined Contribution Investment Only Business & Strategic Relationships, Asset Management Group, Wells Fargo Distributor, Wells Fargo Corporation)
  • Spencer Hoffman (Managing Director, Lovell Minnick Partners)
  • Anton Honikman (CEO, My Vest Corporation)
  • Chris Housen (CEO, Housen Financial Group)
  • Bob Huebscher (CEO, Advisor Perspectives)
  • Harold Hughes (Senior Managing Director, Global Distribution, Alliance Bernstein)
  • Jay Hummel (President, Lenox Wealth Management)
  • Paul Ingersoll (Managing Partner, Good Harbor Financial)
  • Brian Jacobs (CEO, Jacobs Strategic Consulting)
  • Peter Jantzen (Executive Vice President, Global Sales, Vestmark)
  • Jim Jessee (President, MFS Fund Distributors)

 

  • Fred Jonske (CEO, M Financial Group)
  • Tif Joyce (President, Joyce Financial Management)
  • Baird Juckett (Executive Vice President, Copy Talk)
  • Deena Katz (Chairman, Evensky & Katz)
  • Dan Kern (President, Advisor Partners)
  • Michael Kim (Business Head, Business & Sales Channel, Genworth Wealth Management)
  • Rob Klapprodt (President, Vestmark)
  • Aaron Klein (CEO, Riskalyze)
  • David Knoch (President, 1st Global Capital Corporation)
  • Deirdre Koerick (Chief Compliance Officer, Lincoln Investment Planning)
  • Jon Korngold (Managing Director, Portfolio Management, General Atlantic Partners)
  • Sallie Krawcheck (Former President, Global Wealth & Investment Management, Bank of America Corporation)
  • Dan Krems (Executive Vice President, Corporate Strategy, LPL Financial)
  • Stephen Langlois (Chief Administrative Officer, National Financial Services)
  • Raef Lee (Business Head, Third-Party Platform Strategy, SEI Advisor Network)
  • Scott Lee (CEO, FinaConnect)
  • Chuck Lewis (Vice Chairman, My Vest Corporation)
  • Sarah Libbey (President, Fidelity Charitable Gift Fund)
  • Steve Lockshin (Chairman, Convergent Wealth Advisors)
  • Steve Lundquist (Business Head, RIA Channel, JP Morgan Funds Management, JP Morgan Asset Management)
  • John Lunny (CEO, Vestmark)
  • Matt Lynch (Principal, Tiburon Strategic Advisors)
  • Frank Maiorano (Business Head, RIA Business, Baron Capital Management)
  • Tim McCarthy (Chairman Emeritus, Nikko Asset Management)
  • Bob McNichol (Chairman, Aris Corporation of America)
  • Bob Mehringer (Executive Vice President, Advisory Services, FolioDynamix)
  • Doris Meister (President, Tri-State Region, US Markets, BNY Mellon Wealth Management)
  • John Michel (President, Bloomberg Personal Wealth)
  • Viggy Mokkarala (Executive Vice President, Strategic Development, Envestnet)
  • Chris Momsen (Co-Business Head, Sales & Solutions, Advent Software)
  • Ed Moore (President, Edelman Financial Services)
  • Randy Moore (Partner, Financial Services & Products Group, Alston & Bird)
  • Bruce Morris (Executive Vice President, Banking & Corporate Groups, Source Media)
  • Maree Moscati (CEO, Copy Talk)
  • Joe Mrak (CEO, FolioDynamix)
  • Cecile Munoz (President, US Executive Search & Consulting)
  • David Murphy (Business Head, Americas, Prime Finance, Citigroup)
  • David Musto (CEO, Retirement Plan Services, JP Morgan Asset Management)
  • Jim Nagengast (CEO, Securities America)
  • Steve Nesbitt (CEO, Cliffwater)
  • Brian Nielsen (CEO, Northern Lights Distributors)
  • Roger Ochs (President, HD Vest Financial Services)
  • Steve Onofrio (Senior Managing Director, Sales & Service, SEI Advisor Network, SEI Investments)
  • Jennifer Openshaw (President, Finect)
  • Nico Oriol (CEO, Finect)
  • Kevin Osborn (Executive Vice President, Managed Accounts, Wealth Management Solutions, Prudential Investments)
  • Jennifer Papadopolo (Managing Partner, Regent Atlantic Capital)
  • Stuart Parker (President, Prudential Investments)
  • Heeren Pathak (Chief Technology Officer, Vestmark)
  • Jim Patrick (Business Head, High Net Worth Advisory Business, Envestnet)
  • John Peluso (President, First Clearing Correspondent Services)
  • Damian Peter (President, United Advisors)
  • Don Phillips (President, Fund Research, Morningstar)
  • John Phillips (Executive Vice President, Strategic & Global Sales, National Financial Services)
  • Michael Pinsker (CEO, Docupace Technologies)
  • Laura Pollard (Executive Vice President, Fidelity ActionsXchange, Fidelity Investments)
  • Alex Potts (CEO, Loring Ward Group)
  • Scott Powers (CEO, State Street Global Advisors)
  • Laura Pruitt (Partner, Financial Services & Products Group, Alston & Bird)
  • Chris Rasmussen (CEO, Doxim)
  • Neal Ringquist (President, Advisor Software)
  • Tony Rochte (President, SelectCo Division, Fidelity Asset Management, Fidelity Investments)
  • Andrew Rogers (CEO, Gemini Fund Services)
  • Jeremy Ross (Executive Vice President, Sales, BrightScope)
  • Jim Ross (Senior Managing Director, Intermediary Business Group, State Street Global Advisors)
  • Gary Roth (Chief Financial Officer, United Capital Financial Partners)
  • Larry Roth (CEO, Advisor Group, American International Group (AIG))
  • Myra Rothfeld (Chief Marketing Officer, Genworth Wealth Management)
  • Trey Ruch (Executive Managing Director, Stern Agee Financial Services)
  • Andrew Rudd (CEO, Advisor Software)
  • Michael Sapir (CEO, Pro Funds Group)
  • Paul Sari (Business Head, Institutional Client Development, BNY Mellon Wealth Management)
  • Mark Schoenbeck (Chief Marketing Officer, Curian Capital)
  • Mike Schott (Group Publisher, On Wall Street & Bank Investment Consultant, Source Media)
  • Aaron Schumm (Chief Customer Officer, FolioDynamix)
  • Eric Schwartz (CEO, 76 West Holdings)
  • Skip Schweiss (President, TD Ameritrade Trust Company)
  • Brandon Sharrett (Business Head, Sales & Account Management, Investment Services, Fiserv)
  • Sterling Shea (Business Head, Advisory Programs, Barron’s)
  • Stuart Silverman (Chairman Emeritus, Fusion Advisor Network, NFP Advisor Services Group)
  • Savneet Singh (CEO, Gold Bullion International)
  • Babu Sivadasan (Executive Vice President, Engineering & Product Development, Envestnet)
  • David Smith (Founding Publisher, Financial Advisor & Private Wealth Magazines, Charter Financial Publishing Network)
  • Lex Sokolin (CEO, Nest Egg Wealth)
  • Esther Stearns (CEO, NestWise, LPL Investment Holdings)
  • Beth Stelluto (Chief Marketing Officer, NestWise)
  • Jon Stern (Partner, Berkshire Capital Securities)
  • Jim Stueve (President, RidgeWorth Investments)
  • Ram Subramaniam (Executive Vice President, Brokerage & Cash Management, Fidelity Investments)
  • Leslie Swid (Executive Vice President, Impact Communications)
  • Marie Swift (CEO, Impact Communications)
  • Mark Tibergien (CEO, Pershing Advisor Solutions)
  • David Tittsworth (Executive Director, Investment Adviser Association)
  • Fred Tomczyk (CEO, TD Ameritrade)
  • Andrea Trachtenberg (Chief Marketing Officer, Altegris Funds, Altegris Investments)
  • Frank Trotter (President, EverBank Direct)
  • Bill Van Law (President, Investment Advisors Division, Raymond James)
  • Enrique Vasquez (CEO, Cetera Financial Specialists, Cetera Financial Group)
  • Greg Vigrass (CEO, Folio Institutional, Foliofn)
  • Kathy Wallman (Co-Founder, Foliofn)
  • Steve Wallman (CEO, Foliofn)
  • Gib Watson (President, Envestnet Prima, Envestnet)
  • Dorothy Weaver (CEO, Collins Capital Investments)
  • Dave Welling (Business Head, Black Diamond-Advent Software, Advent Software)
  • Peter Wheeler (President, Commonwealth Financial Network)
  • Rob Whitaker (Group Publisher, Source Media)
  • Chuck Widger (Chairman, Brinker Capital)
  • Craig Wietz (President, First Rate Investment Systems)
  • Matt Wilson (President, Brokerage, Scottrade)
  • Martin Wise (CEO, Relationship Capital Partners)
  • Mike Woods (CEO, DWS Investments Distributors, DWS Investments)
  • Bill Wostoupal (President, Northern Lights Distributors, NorthStar Financial Services Group)
  • Jeffrey Yager (Partner, McGladrey)
  • Jason Yates (Chief Technology Officer, BrightScope)

 

Media Representatives

Tiburon was also pleased to welcome the following 22 journalists who registered to attend specific sessions at Tiburon CEO Summit XXIV:

  • Dave Armstrong (Managing Editor, Wealth Management.Com)
  • Mason Braswell (Associate Editor, On Wall Street)
  • Greg Bresinger (Contributing Writer, Financial Advisor)
  • Diana Britton (Managing Editor, Rep)
  • Lee Conrad (Editor-in-Chief, Bank Investment Consultant)
  • Margarida Correia (Associate Editor, Bank Investment Consultant)
  • Veronica Dagher (On Air & Online Columnist, Wealth Management, WSJ.Com)
  • Rachel Elson (Executive Editor, Financial Planning)
  • Anne Field (Columnist, Registered Rep)
  • Bruce Fraser (Contributing Editor, Financial Advisor Magazine)
  • Dina Hampton (Managing Editor, RIA Biz)
  • Joyce Hanson (Associate Editor, AdvisorOne)
  • Warren Hersch (Editor, Life Insurance News, LifeHealthPro.Com)
  • Lorie Konish (Managing Editor, On Wall Street)
  • Quinn Law (Video Producer, Impact Productions Group, Impact Communications)
  • Megan Leonhardt (Associate Editor, WealthManagement.Com, Penton Business Media, Penton Media)
  • Joseph Lingad (Videographer & Producer, Dow Jones & Company)
  • Daisy Maxey (Special Writer, Dow Jones Newswires)
  • Charlie Paikert (Senior Editor, Financial Planning)
  • Evan Simonoff (Executive Editor, Financial Advisor Magazine)
  • Paula Vasan (Senior Digital Editor, Financial Planning, On Wall Street, & Bank Investment Consultant)
  • Scott Wenger (Editorial Director, Independent Advisor Group, Source Media)

Tiburon CEO Summit Video Highlights

  • Tiburon CEO Summit XXIV Videos Coming Soon

Tiburon CEO Summit XXIII: October 16-17, 2012

Tiburon CEO Summit XXIII was held October 16-17, 2012 at the Ritz Carlton Hotel in San Francisco, CA. Tiburon CEO Summit XXIII officially started at 7:45am on Tuesday, October 16, 2012, included a group dinner that night in Tiburon, CA and finished at 12:30pm on Wednesday, October 17, 2012. 193 senior industry executives took two days out of their busy schedules to participate. There were over twenty sessions. Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXIII included the sixth annual Tiburon CEO Summit Award presentations to Walt Bettinger (CEO, The Charles Schwab Corporation) and Harry Markowitz (President, Harry Markowitz Associates & Nobel Prize Winner in Economics). Tiburon CEO Summit XXIII also included an economy & markets presentation by Jeff Gundlach (CEO, DoubleLine Capital) and fifteen general session panelists, including Gurinder Ahluwalia (CEO, Genworth Wealth Management), Chuck Baldiswieler (CEO, TCW Funds), Mitch Caplan (CEO, Jefferson National Financial), Stuart DePina (President, Envestnet Tamarac), Ric Edelman (CEO, The Edelman Financial Group), Cynthia Egan (President, Retirement Plan Services, T. Rowe Price Group), John Hague (Partner, Alternative Investments & Brokerage Groups, McGladrey), Bill Harris (CEO, Personal Capital Corporation), Bob Huret (Founding Partner, FTV Capital), Joe Mansueto (CEO, Morningstar), Alex Potts (CEO, Loring Ward Group), Knut Rostad (President, The Institute for the Fiduciary Standard), Andrew Rudd (CEO, Advisor Software), Skip Schweiss (President, TD Ameritrade Trust Company), & Frank Trotter (President, EverBank Direct). Tiburon CEO Summit XXIII also featured the firm's traditional client-centric panel discussions, five less formal break-out sessions, & two networking-based social events.

Keynote Presentation

Tiburon CEO Summit XXIII featured a keynote presentation by Tiburon's Managing Partner Chip Roame regarding the state of the financial services industry, with a specific focus on the growing wealth management market. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.

 

 

 



Tiburon Summit XXIII
Keynote Presentation
Chip Roame
Managing Partner
Tiburon Strategic Advisors

 

 

 

 

 

 

Chip Roame (Managing Partner, Tiburon Strategic Advisors)

Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXIII keynote presentation. Chip Roame (Managing Partner, Tiburon Strategic Advisors) kicked off Tiburon CEO Summit XXIII with a presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market.

Charles ("Chip") Roame is the Managing Partner of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the banking, insurance brokerage, & investments markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research, he may be the most frequently demanded board advisor. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets.

At Tiburon, Mr. Roame has responsibility for all of the firm's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses - mutual funds, exchange traded funds, hedge funds & other alternative investments, financial planning, wealth management services, life insurance, annuities, family office services, online financial services, and the growing independent advisor markets. He has also taken a substantial interest in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,500 client engagements for over 350 corporate clients since 1998.

Mr. Roame has won numerous awards throughout the consulting and financial services industries, including being named one of the power 25 elite by Investment News, one of the 25 most influential people in financial planning by Investment Advisor magazine, & one of the five experts with the answers by Boomer Market Advisor. Tiburon has also been named one of the fastest growing companies by the San Francisco Business Times in multiple years.

Mr. Roame is frequently sought as a board member by Tiburon client company boards. He presently serves as a board member at Envestnet (NYSE: ENV) and as a trustee for the SA mutual funds family which is sponsored by Loring Ward and employs Dimensional Fund Advisors as its sole sub-advisor.

Overview of Tiburon CEO Summit XXIII Keynote Presentation

Mr. Roame addressed the state of the financial services industry, with a specific focus on the growing wealth management market, including the most important news stories in the past six months, recent Tiburon research findings, third-party research findings, and strategic developments at dozens of Tiburon clients. He began with observations on the broad market environment, including consumer wealth, growing baby boomer issues, financial services industry stumbles, the resulting consumer attitudinal & behavioral changes, and the 2012 elections & regulatory issues. Mr. Roame then outlined the future of wealth management, including rapidly evolving investment approaches and the independent advisor & consumer empowerment movements. Mr. Roame also addressed three other issues worth watching, including the institutionalization of business tactics, trends in the institutional & international markets, and expected supporting strategic activity.

Broad Market Environment

As it pertains to the broad market environment, Mr. Roame sought to put recent world events into perspective. He discussed consumer wealth, growing baby boomer issues, & financial services industry stumbles, including investable assets, retirement plan assets, personal assets, the housing market, & the small business market. He also addressed liabilities, net worth, baby boomer financial issues, and the expected liquidation. Mr. Roame said, "we have twenty years of opportunity due to the expected liquidation of baby boomers' money, after which, the industry will likely evolve in other ways." Mr. Roame clarified numerous industry theories, saying that, "only 2% of baby boomers will inherit over $200,000; the wealth transfer remains overstated," "the savings rate is a little misleading; for instance dollars put into 401K plans do not count as savings," and "average consumer household assets are over $200,000 but the median consumer household has just $8,000." He also predicted the next financial services industry stumble being the huge flows going into low rate bond mutual funds saying that, "either short-term through rising rates and falling NAVs, or long-term through diminished purchasing power, consumers will lose and the industry will be called out." He also challenged the group to consider, "in ten years, what is going to happen to the banks that are filling their balance sheets with 3% mortgages today? Will Fannie Mae and Freddie Mac fail, and will the US tax payers be forced to bail them out again?"

Mr. Roame addressed the resulting consumer attitudinal & behavioral changes, including those driven by the widening wealth gap. He addressed consumer confidence, consumer sentiment, the Occupy Wall Street movement, and the recent public resignation letter by Goldman Sachs Group executive Greg Smith. He also addressed behavioral changes, including some deleveraging, some increased savings, negative net flows out of equity mutual funds, fewer equity trades, the unsuccessful rally to dump the big banks, and the renewed growth in the self-serve channels. Mr. Roame said, "there are 8.6 million millionaires today versus 9.2 million in 2007, which is close to the 2005-2006 level, so there has been no growth in six years in the size of the market for many financial services firms." Mr. Roame further clarified that some inaccurate conclusions are possible through the lens of investment professionals; he said that, "the stock market has come back and the bond market has always done relatively well, but consumers do not feel rich or happy because their homes and small businesses are still down in value since 2006." He went on to say that, "consumer confidence & sentiment are both trending up but are extremely low," "a substantial trust gap has arisen, represented by the Harris Reputation Quotient that lists only tobacco and government lower than financial services," and "there is a major consumer self-serve movement due to the lack of trust in the financial services industry."

Mr. Roame then addressed the 2012 elections and the potentially resulting legislative & regulatory agenda as it pertains to the fiscal cliff, tax rates, health care reform, the Dodd Frank Act, investment management rules, the fiduciary debate, Department of Labor rules, & more. Mr. Roame offered his predictions for the 2012 elections (presidency to Obama; Senate to Democrats; & House to Republicans) and then challenged the group to consider that, "Social Security and Medicare are 44% of Federal spending. How can you have any debt and deficit reform without dealing with that fact?" Mr. Roame predicted, "four more years of nothing getting done no matter which way the election turns out."

The Future of Wealth Management

Mr. Roame addressed the rapid evolution of investment approaches, including those driven by the low interest rate environment. He defined the fundamental shifts in investment strategies (e.g., tactical asset allocation, asset liability matching). Mr. Roame explained that, "fee-accounts, ETFs, and hedge funds all had hugely positive flows in 2011, while mutual funds continued to have negative flows. But not all is bad for mutual funds as fixed income, balanced, & alternative mutual funds all had positive flows in 2011 while money market and equity funds had huge outflows." He further suggested that, "indexing will boom and competitively priced active managers will also do well." He added, "Black Rock, State Street Global Advisors, & Vanguard are 80% of the ETF market. It is a giant market with three dominant players." He continued to predict a growing product polarization, saying that, "indexing will grow to more than its current 25% market share and at the same time a wide variety of often richly priced alternative strategies will capture flows." And he concluded on the growth in products solving retirement income needs and guarantees, addressing along the way nearly all investment products, including mutual funds, indexing, exchange traded funds, active ETFs, hedge funds, other alternative investments, life insurance, annuities, & longevity insurance. As is customary, Mr. Roame wrapped up his investment product insights with a peek into the wine market, where many know he is involved as an advisor.

Mr. Roame outlined the independent advisor & consumer empowerment movements, outlining the status of the wirehouses, regional broker/dealers, independent advisors, retail banks, & private banks. He argued that the break-away broker trend is not fully started and that the wirehouses could shut this trend down with higher retention payments and/or half-way house strategies. He predicted a substantial restructuring of the independent broker/dealers market and also pointed to the increasing dominance of the most succcessful financial advisors. He also discussed the continued evolution of the consumer empowerment movement. Mr. Roame argued that when nobody has been watching, the self-serve trend has come back to life, including through the discount brokerage firms (channel, advice, & disruption strategies) and the emergence of online only or online plus financial advisor models (Mint; Simplify; Prosper; Betterment; SigFig; Goal Getter & Goalgami; Personal Capital Corporation; Wealthfront; Covester; Motif; etc.). Mr. Roame made a very edgy prediction that the number of discount brokerage offices will skyrocket while the number of bank branches will plummet. Mr. Roame said that, "the break-away broker trend is exciting but maybe not as big as some state." He pointed out that the real asset growth is in the RIA market. And he wrapped up this section of his presentation by saying that, "consumer empowerment is growing. The holy grail is to develop a technology-based offering with episodic in-person financial advice."

Three Other Issues Worth Watching

Mr. Roame discussed the institutionalization of business tactics, with a specific focus on sales & marketing and technology & outsourcing. Mr. Roame said that, "the largest financial advisory businesses have figured out marketing, staffing, & technology." He pointed to successful mass marketing and niche marketing strategies. He discussed stand-alone technology and the various outsourcing models. He called attention to the lack of industry training programs and the maturization of staffing models. And he closed by saying that, "client service is substantially driven by the number of one's touches."

Mr. Roame also discussed institutional & international market opportunities. Mr. Roame argued that changes in the defined contribution market and the emergence of the international middle class are re-opening both of these opportunities. He also pointed to the substantial underfunded status of defined benefit plans and to the heavier use of alternative investments by endowments & foundations. Mr. Roame said that, "48% of mutual fund flows are overseas." He added a caution though, saying that, "Canada's economy is the same size as that of Pennsylvania, and South Korea's economy is the same size as that of Massachusetts. The potential opportunities of globalization may be overstated."

Mr. Roame also addressed recent strategic activity, including financial services industry focused public and private equity investments, financial services industry venture capital investments, and recent mergers & acquisitions. He noted that regulatory reform and capital needs are requiring many divestitures and that bank stocks are up big in 2012 while those of brokerage firms are not so. Mr. Roame took note of, "the smart money of private equity is buying up the leading independent advisors, including the The Edelman Financial Group, The Mutual Fund Store, Mercer Advisors, Avalon Advisors, Kanaly Trust Company, and others."

Award Recipients

Tiburon Strategic Advisors is pleased to announce the recipients of its Tiburon CEO Summit Awards. Walt Bettinger (CEO, The Charles Schwab Corporation) and Harry Markowitz (President, Harry Markowitz Associates & Nobel Prize Winner in Economics) were recognized as Tiburon CEO Summit award winners at Tiburon CEO Summit XXIII on October 16-17, 2012 because they exemplify three central themes: Focusing on Consumer (and Other Client) Needs, Challenging Conventional Industry Wisdom (Innovation), & Taking Responsibility. The award recipients are chosen by a running tally of the votes of thousands of prior Tiburon CEO Summit attendees.

 

 

 

 

 

 

CEO Summit XXIII
Award Recipient
Walt Bettinger
(CEO, The Charles Schwab Corporation)

 

 

 

 

 

 

 

 

Walt Bettinger (CEO, The Charles Schwab Corporation)

Walt Bettinger is CEO of The Charles Schwab Corporation where he leads the development of strategies & services that assist millions of people worldwide in their efforts to save and invest - either directly, with the help of independent investment advisors, or through company-sponsored retirement or benefit plans. He leads a workforce of approximately 14,100 full-time employees, with headquarters in San Francisco, CA and branch offices in more than 300 locations across the US plus London, Hong Kong, & Puerto Rico.

As it pertains to the Tiburon CEO Summit award criteria, some of Mr. Bettinger's accomplishments include:

  • Challenging Conventional Industry Wisdom (Innovation): Mr. Bettinger founded The Hampton Company, a provider of retirement plan services to corporations and their employees, in 1983 at age 22. Mr. Bettinger was one of the leaders in many trends now taken for granted in the 401K plan market, including daily valuation and open architecture. The Charles Schwab Corporation acquired The Hampton Company in 1995. More recently as CEO of The Charles Schwab Corporation, Mr. Bettinger has led the firm's efforts to price exchange traded funds more competitively, increase distribution through independent branch offices, and incorporate exchange traded funds into 401K plans.
  • Focusing on Consumer (and Other Client) Needs: Many Tiburon CEO Summit attendees recall Mr. Bettinger's presentation at an earlier Tiburon CEO Summit regarding the need for the industry to serve middle class Americans, utilizing his own family situation as his case example. The Charles Schwab Corporation's low account minimums, broad branch office structure, and industry leading web site are all indicative of a continuing consumer focus.
  • Taking Responsibility: Mr. Bettinger and his wife Teri are the founders of the Walt & Teri Bettinger Foundation

Some of Mr. Bettinger's comments included:

  • "It was a great experience to fail miserably" (referring to his early business days in northeast Ohio)
  • "Learning comes from struggle, rarely success"
  • "Chuck Schwab always starts and ends converstaions focused on consumers' needs"
  • "We are in the trust business and the level of confidence is terrible"
  • "There was no run on retail money market funds; runs come from large institutions pulling their funds"
  • "We want all parts of the company to be successful"
  • "Schwab's average retail investor has $300,000. Its average financial advisor account is $500,000. Its 401K business has the highest average account in the industry"
  • "Target date funds are a blunt instrument"
  • "People with $100,000 at Schwab pay back their Schwab bank loans"
  • "No firm is offering a true intra-day trading ETF 401K plan"
  • "Schwab is a challenger brand"

 

 

 

 

 

 

CEO Summit XXIII
Award Recipient
Harry Markowitz
(President, Harry Markowitz Associates & Nobel Prize Winner in Economics)

 

 

 

 

 

 

 

 

 

Harry Markowitz (President, Harry Markowitz Associates & Nobel Prize Winner in Economics)

Harry Markowitz is President of Harry Markowitz Associates and a Nobel Prize Winner in Economics. He is also an adjunct professor of finance at the University of California at San Diego. He was previously at the Rand Corporation, General Electric, & Baruch College of the City University of New York.

Professor Markowitz won the The Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel in 1990. He shared this award with Merton Miller and Bill Sharpe. Professor Sharpe was also a recent Tiburon CEO Summit Award recipient. Professor Markowitz had previously been awarded the Von Neumann Prize in Operations Research Theory by the Operations Research Society of America and the Institute of Management Sciences.

As it pertains to the Tiburon CEO Summit award criteria, some of Professor Markowitz' accomplishments include:

  • Challenging Conventional Industry Wisdom (Innovation): Professor Markowitz' article on Portfolio Theory appeared in 1952. He defined Modern Portfolio Theory, introducing the two factor model of risk and reward and introducing the concept of diversification that all now take for granted. To many, Professor Markowitz is the father of modern finance.
  • Focusing on Consumer (and Other Client) Needs: Professor Markowitz has spent extensive time helping to apply his theories to consumer savings. Amongst many other activities, Professor Markowitz was an early backer of Guided Choice, an advisory program for mid-size accounts within 401K plans.
  • Taking Responsibility: Professor Markowitz has made himself available to many

Some of Professor Markowitz' comments included:

  • "I was a nerd before it was an in thing"
  • "I am a philosopher and I am interested in how you act under uncertainty"
  • "I have two reasons why I live in San Diego, CA rather than Chicago, IL or New York, NY. Summer & Winter"
  • "I did not know I was going to win a Nobel Prize but I knew I was going to get a PhD"
  • "Losing a world war is bad for your portfolio" (referring to the German stock market post World War II)
  • "Modern Portfolio Theory worked in 2008 if you rebalanced; if you were high on the efficient frontier, you got clobbered"
  • "I do not give a lot of thought to investing"

Economy & Markets Speaker

Tiburon CEO Summit XXIII also featured its traditional economy & markets presentation by Jeff Gundlach (CEO, DoubleLine Capital).

 

 

 

 

 

CEO Summit XXIII
Economy & Markets Speaker
Jeff Gundlach
(CEO, DoubleLine Capital)

 

 

 

 

 

 

 

Jeff Gundlach
(CEO, DoubleLine Capital)

Jeff Gundlach is the CEO of DoubleLine Capital. He was previously chief investment officer of TCW. In 2010, Mr. Gundlach was named to Smart Money's Power 30, one of the seventeen most influential people by Mutual Fund Wire, and Fund Leader of the Year by Fund Nation. In 2011, he was named one of five mutual fund all-stars by Fortune Magazine and Bond Manager of the Year by Foundations & Endowments Money Management. Since its founding in 2010, Mr. Gundlach has grown Double Line Capital to $50 billion assets under management.

 

Some of Mr. Gundlach's comments included:

  • "The 1980s began an age of rising debt"
  • "The developed countries are now the debtor economies"
  • "Recessions should have been cleansing for the economy but they were kept too shallow"
  • "Government involvement leads to inflation; education & health care are two great examples"
  • "Our government spends seven times more dollars on older people than younger people. Isn't that backwards?"
  • "The US is outspending other developed countries on health care but life expectancy is dropping in the US"
  • "We should borrow for education, research & development, and infrastructure - not dinner at Sizzler"
  • "50% of Americans pay no income taxes"
  • "The only way to balance the budget is to massively cut spending or massively raise taxes"
  • "The only way to balance the budget is to reduce entitlements and polls show that 78% do not want to do it"
  • "Defense spending is not the problem. What is killing us is health care which is 24% of federal outlays"
  • "Hugo Chavez polls higher than Congress"
  • "Government debt is no longer a safe haven; even Germany has had four defaults in the last couple hundred years"
  • "Wages are at a record low while corporate profits are at a record high"
  • "Short the S&P 500 and go long the Shanghai"

 

General Session Panelists

Tiburon CEO Summit XXIII also featured fifteen general session panelists, including Gurinder Ahluwalia (CEO, Genworth Wealth Management), Chuck Baldiswieler (CEO, TCW Funds), Mitch Caplan (CEO, Jefferson National Financial), Stuart DePina (President, Envestnet Tamarac), Ric Edelman (CEO, The Edelman Financial Group), Cynthia Egan (President, Retirement Plan Services, T. Rowe Price Group), John Hague (Partner, Alternative Investments & Brokerage Groups, McGladrey), Bill Harris (CEO, Personal Capital Corporation), Bob Huret (Founding Partner, FTV Capital), Joe Mansueto (CEO, Morningstar), Alex Potts (CEO, Loring Ward Group), Knut Rostad (President, The Institute for the Fiduciary Standard), Andrew Rudd (CEO, Advisor Software), Skip Schweiss (President, TD Ameritrade Trust Company), & Frank Trotter (President, EverBank Direct).

Gurinder Ahluwalia
(CEO, Genworth Wealth Management)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Gurinder Ahluwalia
(CEO, Genworth Wealth Management)

 

 

 

 

 

 

 

Gurinder Ahluwalia is CEO of Genworth Wealth Management. He has over twenty years of executive management experience with General Electric and Genworth Financial. His tenure at Genworth has been defined by overseeing the restructuring of the firm's wealth management businesses and leading the integration of the old Genworth Financial Asset Management and Asset Mark Investment Services. In 2010, Mr. Ahluwalia also spearheaded Genworth Financial's purchase of Altegris Investments, a leading alternative mutual fund family of products.

Some of Mr. Ahluwalia's comments included:

  • "Genworth is predominantly a global insurer"
  • "I am not for sale" (referring to recent articles saying that Genworth Wealth Management is for sale)
  • "Consumers want to buy at the ingredient level"

Chuck Baldiswieler
(CEO, TCW Funds)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Chuck Baldiswieler
(CEO, TCW Funds)

 

 

 

 

 

 

 

 

Chuck Baldiswieler is CEO of TCW Funds and a group managing director of TCW, overseeing distribution of both TCW Funds and Met West Funds through both the financial intermediary marketplace and the firm's private client services group. He was previously at Jenswold, King, & Associates, Bank One Trust, Shell Oil, Rauscher Refsnes, & Thomson McKinnon Securities.

Some of Mr. Baldiswieler's comments included:

  • "A recurring theme will be dollars going into alternatives"
  • "Private equity, real estate, distressed debt, & infrastructure do not lend themselves to the '40 Act format"
  • "If rates rise 3.00%-4.00%, half of the defined benefit plans that are still left will be gone"

Mitch Caplan
(CEO, Jefferson National Financial)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Mitch Caplan
(CEO, Jefferson National Financial)

 

 

 

 

 

 

 

 

Mitch Caplan is CEO of Jefferson National Financial. He oversees all aspects of the company's growth strategy, including its industry leading role in launching a flat insurance fee variable annuity. Jefferson National is the winner of more than twenty industry awards, including the DMA 2010 Financial Services Company of the Year. Previously he served as an executive advisor to Aquiline Capital Partners, a private equity firm specializing in the financial services industry. Prior to Aquiline, Mr. Caplan was CEO of E*Trade Financial Corporation. Under his leadership, from 2003 to 2006, E*Trade reported four consecutive years of record revenues and earnings.

Some of Mr. Caplan's comments included:

  • "Lawsuits will come from the predictable upcoming client bond losses"
  • "The most interesting new products will have low costs with some guarantees for the clients"
  • "Will higher taxes bring back interest in the tax deferral feature of annuities?"

Stuart DePina
(President, Envestnet Tamarac)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Stuart DePina
(President, Envestnet Tamarac)

 

 

 

 

 

 

 

 

Stuart DePina is President of Envestnet Tamarac. He was the CEO of Tamarac prior to its sale to Envestnet in 2012 and continues to lead the firm's long-term growth strategy. Prior to Tamarac, Mr. DePina was CEO of Who's Calling, CEO of xSides Corporation, chief financial officer of Ticket Master Corporation, and a partner at KPMG.

Some of Mr. DePina's comments included:

  • "How can we help our clients communicate better and faster with their clients?"
  • "How can we help smaller independent advisors compete with the wirehouses?"

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Ric Edelman
(CEO, The Edelman Financial Group)

 

 

 

 

 

 

 

 

Ric Edelman is CEO of The Edelman Financial Group. Mr. Edelman has been ranked by Barron’s among America’s top 100 financial advisors nine times, including being ranked as the number one independent financial advisor in 2009, 2010, & 2012. In 2012, RIA Biz named Mr. Edelman the most influential financial advisor in America. Mr. Edelman has also been ranked as a top financial advisor by Research Magazine, Registered Rep, Financial Advisor, & other publications. Mr. Edelman is also a best selling author, syndicated columnist, & host of weekly television and radio shows on personal finance. His seven books on personal finance include The Truth About Money; Ordinary People, Extraordinary Wealth; & The New Rules of Money.

Some of Mr. Edelman's comments included:

  • "The industry has failed to deal with the 99%"
  • "The reason everyone hates us is because we make it easy to do so"
  • "We have met the enemy and it is us"
  • "It is more fun helping poor people become rich people than rich people become richer"
  • "With Edelman online, we will deliver planning and investment management services to people with as little as $5,000 for a 2% fee or $100"
  • "No firm has taken market share in the financial advisory industry"
  • "Singularity is the key to the future"
  • "The odds are that if you are alive in 2030, then you will live forever"

Cynthia Egan
(President, Retirement Plan Services, T. Rowe Price Group)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Cynthia Egan
(President, Retirement Plan Services, T. Rowe Price Group)

 

 

 

 

 

 

 

 

 

 

 

 

Cynthia Egan is President of Retirement Plan Services at T. Rowe Price Group and a member of the firm's operational steering committee. She was previously at Fidelity Investments, Bankers Trust Company, KPMG, & the Federal Reserve. In 2005, she was name Fund Marketer of the year by Institutional Investor in recognition for her work on post-retirement issues and solutions.

 

Some of Ms. Egan's comments included:

  • "Do the right thing for clients and the business will come"
  • "T. Rowe Price Group is elegant in its simplicity"
  • "More dollars are now more appropriately invested through target date mutual funds"
  • "The movement to daily valuation was a never say never moment"
  • "Corporate plan sponsors were scared in 2008 because of their fiduciary responsibilities"
  • "Financial advisors are emerging as important players in the defined contribution plans market; it was not always that way. Today, 99% of the time there is an intermediary and many financial advisors have focused their practices on the defined contribution plans market"

 

John Hague
(Partner, Alternative Investments & Brokerage Groups, McGladrey)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

John Hague
(Partner, Alternative Investments & Brokerage Groups, McGladrey)

 

 

 

 

 

 

 

 

 

 

 

 

John Hague is a Partner and the National Director of the Alternative Investments & Brokerage Industry Groups at McGladrey. He has more than 28 years of public accounting experience, primarily focused on the financial services industry. He specializes in providing audit & consulting services to the securities, commodities, & alternative investments industry, including broker/dealers, futures commission merchants, hedge funds, private equity funds, commodity pods, proprietary trading firms, mutual funds, a commodity futures exchange, and a regional stock exchange. Prior to joining McGladrey, Mr. Hague was the chief financial officer of a publicly held regional broker/dealer and futures commission merchant.

 

Some of Mr. Hague's comments included:

  • "There were two regulators in the MF Global Office on the day they went down"
  • "The regulatory horror story will be having to test things never tested before"
  • "A lot of what we will be asked to do will not provide value to the investing public"

 

Bill Harris
(CEO, Personal Capital Corporation)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Bill Harris
(CEO, Personal Capital Corporation)

 

 

 

 

 

 

 

 

 

 

 

 

Bill Harris is CEO of Personal Capital Corporation. Personal Capital is the culmination of Mr. Harris' career (his words), bringing together so many things he has worked on over the past twenty years to deliver complete financial solutions for clients. Mr. Harris was formerly CEO of PayPal and CEO of Intuit, the makers of Quicken, QuickBook, & TurboTax. He has also founded numerous financial technology and security companies, and served on the boards of RSA Security, Macromedia, Success Factors, GoDaddy, & EarthLink.

 

Some of Mr. Harris' comments included:

  • "Today, there are four times as many bank branches than we had in the 1970s"
  • "The brokerage account was the craftsman model while the mutual fund was the assembly line or mass production that allowed economies of scale"
  • "Computing power made mutual funds possible"
  • Hyper personalized wealth management is where we are going"
  • "Almost everything in Silicon Valley is focused on the twenty-somethings"
  • "I do not reject face-to-face advice... what I reject is the physical substantiation of the face-to-face advice"
  • "Co-browsing is the future"

 

Bob Huret
(Founding Partner, FTV Capital)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Bob Huret
(Founding Partner, FTV Capital)

 

 

 

 

 

 

 

 

 

 

 

 

Bob Huret is a Founding Partner of FTV Capital. He has over 40 years of commercial banking and investment banking experience. He has participated in more than 100 bank and bank-related mergers, public offerings, & joint ventures. He was previously a senior consultant to Montgomery Securities and at the Bank of California and First Chicago Corporation. Mr. Huret is also the founder of Newell Associates, a money management firm, and Third Age Media, an internet portal.

 

Some of Mr. Huret's comments included:

  • "We want our pensions back"
  • "My take on regulations is... you ain't seen nothing yet"
  • "Regulation... coming soon to an office near you"
  • "It is clear to me that everyone in this industry will be subject to the fiduciary model"

Joe Mansueto
(CEO, Morningstar)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Joe Mansueto
(CEO, Morningstar)

 

 

 

 

 

 

 

 

Joe Mansueto is CEO of Morningstar. He founded the firm in 1984 and has since served as chairman. Mr. Mansueto served as CEO from 1984 to 1996 and again since 2000. Mr. Mansueto is a former Tiburon CEO Summit Award winner. He was also listed ninth on Mutual Fund Wire.Com's 100 most influential people of the year and on Chicago Magazine's top 40 Chicago pioneers over the past four decades.

Some of Mr. Mansueto's comments included:

  • "Our mission is to help investors of all stripes"
  • "Our mission is to help people move up the chain"
  • "Morningstar is a licensing and subscription model"
  • "Gamma is the quantification of what financial planners do for their clients"

Alex Potts
(CEO, Loring Ward Group)

 

 

 

 

CEO Summit XXIII
General Session Panelist

Alex Potts
(CEO, Loring Ward Group)

 

 

 

 

 

 

 

 

Alex Potts is CEO of Loring Ward Group as well as CEO of the SA Funds, where Tiburon's managing partner serves as a trustee. Previously he was chief operating officer of LWI Financial. He has also served as CEO of RNP Advisory Services.

Some of Mr. Potts' comments included:

  • "In our (Loring Ward) opinion, the investment process has been solved" (referring to the preference for indexing"
  • "It is always a good time to buy the market but you need time on your side"
  • "The idea of someone selling a product is offensive"
  • "If financial advisors set up their businesses properly they will not need to worry about regulations"
  • "Trusted financial advisors are in the best business in the world"

Knut Rostad

(President, The Institute for the Fiduciary Standard)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Knut Rostad
(President, The Institute for the Fiduciary Standard)

 

 

 

 

 

 

 

 

 

 

 

 


Knut Rostad is President of The Institute for the Fiduciary Standard. He was also previously founder & chairman of The Committee for the Fiduciary Standard. He serves as the regulatory & compliance officer at Rembert, Pendelton, & Jackson. Mr. Rostad has represented his firm in numerous initiatives to advance the fiduciary status before the SEC and Congress.

 

Some of Mr. Rostad's comments included:

  • "The six key fiduciary issues are based on centuries of law"
  • "Bank of America Corporation, American International Group (AIG), & Goldman Sachs Group are championing the benefits of conflicted advice"
  • "Frank Lutz (republican pollster) is scared to death of how consumers look at Wall Street"
  • "Consumer attitudes will spur massive amounts of new regulations"

 

Andrew Rudd

(CEO, Advisor Software)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Andrew Rudd
(CEO, Advisor Software)

 

 

 

 

 

 

 

 

 

 

 

 


Andrew Rudd is CEO of Advisor Software. He previously was the founder of Barra (which he sold in a 1991 initial public offering, and then again in 2004 to Morgan Stanley for $900 million). Previously he was a professor of finance & operations at Cornell University. More broadly, Mr. Rudd is an expert in quantitative analysis, asset allocation, modern portfolio theory, risk management, and performance measurement (as well as, obviously, being an industry-leading entrepreneurial role model). He was the CEO of Barra from 1984-1999, and is the co-author of two books on institutional investing: Modern Portfolio Theory - The Principles of Investment Management and Option Pricing.

 

Some of Mr. Rudd's comments included:

  • "Has the industry been solving the wrong problem?" (referring to the traditional asset versus a broader asset & liability lens)
  • "It is hard to believe that a target date mutual fund is optimal for anyone other than the vendors"

 

Skip Schweiss

(President, TD Ameritrade Trust Company)

 

 

 

 

 

 

CEO Summit XXIII
General Session Panelist

Skip Schweiss
(President, TD Ameritrade Trust Company)

 

 

 

 

 

 

 

 

 

 

 

 


Skip Schweiss is President of TD Ameritrade Trust Company, which delivers retirement solutions and services for independent registered investment advisors and third-party administrators using TD Ameritrade's trust platform. He is also managing director of corporate services, including self-directed brokerage accounts & designated brokerage services. Prior to his current appointment, Mr. Schweiss held a variety of management positions with Fiserv Investment Support Services, which was acquired by TD Ameritrade in 2008.

 

Some of Mr. Schweiss' comments included:

  • "There are strong feelings that debt and deficits are our single largest problem"
  • "Medicare and Social Security were previously sound but life expectancies increased by fifteen years"
  • "The Securities & Exchange Commission is scared that any court challenge to Dodd-Frank will fail"
  • "Consumers go to RIAs and stock brokers looking for advice and they do not see the differences"
  • "Financial advisors are going to pay more due to regulations"

 

Frank Trotter
(President, EverBank Direct)

 

 

 

 

 

CEO Summit XXIII
General Session Panelist
Frank Trotter
(President, EverBank Direct)

 

 

 

 

 

 

 

Frank Trotter is President of EverBank Direct, EverBank's consumer direct distribution channel. He is also CEO of EverBank Wealth Management. He was previously at Mercantile Bank and Mark Twain Bank, where he created the world currency family of deposits and directed the global launch of ecash. As an early advocate of global market investing, Mr. Trotter helped to pioneer the concept in the marketplace by developing and leading the international markets division at Mark Twain Bank and developing the World Currency Family of deposit accounts, giving clients easier access to foreign currency markets.

Some of Mr. Trotter's comments included:

  • "There are the giant banks and then there is everyone else"
  • "It is a computing power arms race"
  • "If Google gets into investments, then maybe they will pay you to trade because then they will know that much more about you"

Attendees
Tiburon CEO Summit XXIII had 193 client attendees, including:

 

  • Chip Roame (Managing Partner, Tiburon Strategic Advisors)
  • Gurinder Ahluwalia (CEO, Genworth Wealth Management)
  • Sonia Ahuja (Executive Vice President, Business Development & Strategy, BrightScope)
  • Mike Alfred (CEO, BrightScope)
  • Ryan Alfred (President, Product Development, BrightScope)
  • Jeff Anderson (Executive Vice President, Diversified Financial Services, IXI Services, Equifax)
  • Mike Apker (Business Head, Reporting & Data Aggregation Services, Envestnet)
  • Lee Argush (Business Head, Concord Trust & Wealth Solutions, LPL Financial)
  • Marion Asnes (Chief Marketing Officer, Envestnet)
  • Steve Atkinson (Executive Vice President, Advisor Relations, Loring Ward Group)
  • Chuck Baldiswieler (CEO, TCW Funds)
  • George Ball (Chairman, The Edelman Financial Group)
  • Dave Banerjee (CEO, RND Resources)
  • David Barry (CEO, Trust Company of America)
  • Atindra Barua (CEO, TrustFort)
  • Tony Batman (CEO, 1st Global Capital Corporation)
  • John Battaglia (CEO, Aris Wealth Services)
  • David Baum (Partner, Investment Products & Services Group, Alston & Bird)
  • Ed Beggs (CEO, Laser App Software)
  • Bob Belke (Managing Director, Lovell Minnick Partners)
  • Walt Bettinger (CEO, The Charles Schwab Corporation)
  • Craig Birk (Chief Investment Officer, Personal Capital Corporation)
  • Catherine Bonneau (CEO, Cetera Financial Institutions)
  • Joe Bottazzi (Chief Communications Officer, Edelman Financial Services)
  • Kurt Brouwer (Chairman, Brouwer & Janachowski)
  • Derek Bruton (Business Head, National Sales, LPL Financial)
  • Derek Burke (President, First Investors Management Company)
  • Dewey Bushaw (Executive Vice President, Retirement Solutions Division, Pacific Life Insurance Company)
  • James Cahn (Chief Investment Officer, Wealth Enhancement Group)
  • Bruce Cameron (CEO, Berkshire Capital Securities)
  • Jessica Campbell (Executive Vice President, Client Success, BrightScope)
  • David Canter (Executive Vice President, Practice Management & Consulting, Fidelity Institutional Wealth Services)
  • Mitch Caplan (CEO, Jefferson National Financial)
  • Scott Case (Business Head, The Private Bank, Silicon Valley Bank)
  • Bernie Clark (Executive Vice President, Advisor Services, The Charles Schwab Corporation)
  • Joni Clark (Chief Investment Officer, Loring Ward Group)
  • Eric Clarke (President, Orion Advisor Services)
  • Todd Clarke (President, CLS Investments)
  • Andy Clipper (Business Head, North America, Wealth Management Services, Citi Investor Services)
  • John Cochran (Managing Director, Lovell Minnick Partners)
  • Steve Cohen (Chief Strategy Officer, Pro Funds Group)
  • Reed Colley (CEO, Black Diamond Performance Reporting, Advent Software)
  • David Conover (President, EverBank Wealth Management)
  • Bill Crager (President, Envestnet)
  • Peter Crenier (Business Head, Business Development, Investment Services, Fiserv)
  • Ben Cukier (Partner, FTV Capital)
  • Bob Curtis (CEO, Pie Tech)
  • Brian Davis (Business Head, Scottrade Advisor Services)
  • Surajeet Deka (Executive Vice President, Sales & Marketing, TrustFort)
  • Jeff Dekko (CEO, Wealth Enhancement Group)
  • Richard Del Monte (President, Del Monte Group)
  • Stuart DePina (President, Envestnet Tamarac)
  • Mike DiGirolamo (Business Head, Investment Advisors Division, Raymond James Financial Services)
  • Patrick Donahue (Chief Product Officer, My Vest Corporation)
  • Jeffrey Dunham (CEO, Dunham & Associates)
  • Steve Dunlap (President, Pershing Managed Account Solutions)
  • Mike Durbin (President, Fidelity Institutional Wealth Services)
  • Susan Duvall-Dickson (Chief Operating Officer, Private Ocean)
  • Ric Edelman (CEO, The Edelman Financial Group)
  • Cynthia Egan (President, Retirement Plan Services, T. Rowe Price Group)
  • Tom Embrogno (Executive Vice President, Sales, Docupace Technologies)
  • Randy Epright (Chief Information Officer, AIG Life & Retirement)
  • Harold Evensky (President, Evensky & Katz)
  • Mike Everett (Chief Marketing Officer, My Vest Corporation)
  • Mike Falcon (Business Head, Retirement Business, JP Morgan Asset Management)
  • Michelle Farmer (General Counsel, Advisor Software)
  • David Fetter (CEO, Fetter Logic)
  • Steve Finn (Chairman, Trust Company of America)
  • Kevin Fitzwilson (Managing Partner, Coldstream Holdings)
  • Carrie Fleisher (Chief Operating Officer, M Holdings Securities, M Financial Group)
  • Tim Freeman (Managing Partner, Efficient Marketing)
  • Greg Friedman (President, Private Ocean)
  • Rick Frisbie (Chief Administrative Officer, Global Strategic Services, Franklin Templeton Investments)
  • Dave Goerz (Chief Investment Officer, High Mark Capital Management)
  • Craig Gordon (Business Head, RBC Correspondent & Advisor Services)
  • Mark Gormley (Partner, Lee Equity Partners)
  • Patrick Goshtigian (President, EP Wealth Advisors)
  • Gail Graham (Business Head, Strategy & Execution, United Capital Financial Partners)
  • Larry Greenberg (President, Jefferson National Financial)
  • Stewart Gross (Managing Director, Lightyear Capital)
  • Jeff Gundlach (CEO, DoubleLine Capital)
  • Bill Hackett (CEO, Matthews International Capital Management)
  • Oscar Hackett (Chief Financial Officer, BrightScope)
  • John Hague (Partner, Alternative Investments & Brokerage Groups, McGladrey)
  • Jim Hale (Founding Partner, FTV Capital)
  • Trista Hannan (Executive Vice President, Corporate Sales, Morningstar)
  • Scott Hanson (Co-CEO, Hanson McClain)
  • Bill Harris (CEO, Personal Capital Corporation)
  • Brett Harrison (CEO, Cetera Advisors)
  • Neesha Hathi (Chief Operating Officer, Schwab Performance Technologies)
  • Shari Hensrud (Chief Investment Officer, FolioDynamix)
  • Anton Honikman (CEO, My Vest Corporation)
  • Bob Huebscher (CEO, Advisor Perspectives)
  • Kirk Hulett (Executive Vice President, Strategy & Practice Management, Securities America)
  • Jay Hummel (President, Lenox Wealth Management)
  • Bob Huret (Founding Partner, FTV Capital)
  • Peter Jantzen (Executive Vice President, Global Sales, Vestmark)
  • Jon Jones (Co-CEO, Brighton Jones)
  • Tim Jones (Entrepreneur-in-Residence, Alpine Investors)
  • Tif Joyce (President, Joyce Financial Management)
  • Rhonda Kavanagh (Chief Financial Officer, Wealth Enhancement Group)
  • Kevin Keefe (Executive Vice President, Wealth Management, AIG Advisor Group)
  • Harry Kellogg (Vice Chairman, Silicon Valley Bank)

 

  • Joe Kelly (Business Head, Sales, National Financial Services)
  • Dan Kern (President, Advisor Partners)
  • Michael Kim (Business Head, Business & Sales Channel, Genworth Wealth Management)
  • Michael Kitces (Partner, Research, Pinnacle Advisory Group)
  • Tim Kirley (Principal, United Kingdom Operations, Edward Jones & Company)
  • Rob Klapprodt (President, Vestmark Software)
  • Yale Kofman (Chief Administrative Officer, First Republic Investment Management)
  • Rick Lacaille (Chief Investment Officer, State Street Global Advisors)
  • Stephen Langlois (Chief Administrative Officer, National Financial Services)
  • David Lau (Chief Operating Officer, Jefferson National Financial)
  • Drew Lawton (Executive Vice President, Retirement Solutions Business, New York Life Investments)
  • Bruce Levitus (Business Head, Investment Advisory Services, Advisor Group, American International Group, (AIG))
  • Chuck Lewis (CEO, My Vest Corporation)
  • Felipe Luna (CEO, Concert Wealth Management)
  • Matt Lynch (Principal, Tiburon Strategic Advisors)
  • Rebecca Macieira-Kaufmann (President, California, Citibank)
  • Billy Maguy (Partner, Alpine Investors)
  • Joe Mansueto (CEO, Morningstar)
  • Harry Markowitz (Adjunct Professor, Finance, University of California at San Diego)
  • Jill Mavro (Business Head, Strategic Accounts, Intermediary Business Group, State Street Global Advisors)
  • Pat McClain (Co-CEO, Hanson McClain)
  • George McClelland (Vice Chairman, F-Squared Investments)
  • Tom Moysak (CEO, Xtiva Financial Systems)
  • Jim McCool (Executive Vice President, Institutional Services, The Charles Schwab Corporation)
  • Jerry Miller (Senior Advisor, Lightyear Capital)
  • Amy Millman (President, Northern California, BNY Mellon Wealth Management)
  • Viggy Mokkarala (Executive Vice President, Strategic Development, Envestnet)
  • Ed Moore (President, Edelman Financial Services)
  • Randy Moore (Partner, Financial Services & Products Group, Alston & Bird)
  • Julien Mordecai (CEO, All Back Office Consulting)
  • Hans Morris (Managing Director, Global Financial Services Sector, General Atlantic Partners)
  • Tom Moysak (CEO, Xtiva Financial Systems)
  • Joe Mrak (CEO, FolioDynamix)
  • Charlie Nelson (President, Great West Retirement Services)
  • Tracy Nickl (Business Head, National Sales, BNY Mellon Wealth Management)
  • Brian Nielsen (President, Northern Lights Distributors)
  • Roger Ochs (President, HD Vest Financial Services)
  • Cathy Odelbo (Executive Vice President, Strategy, Morningstar)
  • Steve Onofrio (Senior Managing Director, Sales & Service, SEI Advisor Network)
  • Bob Oros (Executive Vice President, Sales & Relationship Management, Fidelity Institutional Wealth Services)
  • Mike Papedis (Executive Vice President, National Business Development, HighTower)
  • John Phillips (Executive Vice President, Strategic & Global Sales, National Financial Services)
  • Michael Pinsker (CEO, Docupace Technologies)
  • Laura Pollard (Executive Vice President, Fidelity ActionsXchange)
  • Alex Potts (CEO, Loring Ward Group)
  • Howard Present (CEO, F-Squared Investments)
  • Bruce Raabe (President, Collins & Company)
  • Ron Redell (Business Head, Mutual Funds, DoubleLine Capital)
  • Ted Rich (Principal, Vinoy Capital)
  • Neal Ringquist (President, Advisor Software)
  • Lisa Roberts (Business Head, Northern California, Citi Private Bank)
  • John Rooney (Managing Principal, Commonwealth Financial Network)
  • Jeremy Ross (Executive Vice President, Sales, BrightScope)
  • Knut Rostad (President, The Institute for the Fiduciary Standard)
  • April Rudin (CEO, The Rudin Group)
  • Andrew Rudd (CEO, Advisor Software)
  • Rich Santos (Group Publisher, Registered Rep & Trust & Estates, Wealth Management Group, Penton Media)
  • Aaron Schumm (Chief Customer Officer, FolioDynamix)
  • Carrie Schwab-Pomerantz (President, The Charles Schwab Foundation)
  • Skip Schweiss (President, TD Ameritrade Trust Company)
  • Ian Sheridan (Business Head, IRA & Retirement Income, DST Retirement Solutions)
  • Dave Shindel (Executive Vice President, United Planners Financial Services of America)
  • David Smith (Founding Publisher, Financial Advisor & Private Wealth Magazines, Charter Financial Publishing Network)
  • Lou Stanasolovich (CEO, Legend Financial Advisors)
  • Chris Stanley (General Counsel, Loring Ward Group)
  • Anne Steer (Chief Strategy Officer, TrustFort)
  • Bill Stevens (Business Head, Private Bank, Silicon Valley Bank)
  • Phyllis Streit (Chief Financial Officer, Cumberland Advisors)
  • Jim Stueve (President, RidgeWorth Investments)
  • Leslie Swid (Executive Vice President, Impact Communications)
  • Marie Swift (CEO, Impact Communications)
  • Cam Thornton (Managing Partner, Navigator Legacy Partners)
  • Andrea Trachtenberg (Chief Marketing Officer, Altegris Funds, Altegris Investments)
  • Frank Trotter (President, EverBank Direct)
  • Franklin Tsung (Chief Operating Officer, AppCrown)
  • John VanDerHeyden (Chief Operating Officer, NFP Advisor Services Group)
  • Greg Vigrass (CEO, Folio Institutional, Foliofn)
  • Lisa Von Redden (Chief Operating Officer, FolioDynamix)
  • Kathy Wallman (Co-Founder, Foliofn)
  • Steve Wallman (CEO, Foliofn)
  • Steve Warren (Chief Operating Officer, My Vest Corporation)
  • Gib Watson (Group President, Envestnet Prima, Envestnet)
  • Dan Weeks (Chief Operating Officer, BrightScope)
  • Dave Welling (Chief Solution Officer, Black Diamond Performance Reporting, Advent Software)
  • Alan Werba (Chairman, Loring Ward Group)
  • John Wernz (Chief Marketing Officer, Wealth Enhancement Group)
  • Rob Whitaker (Group Publisher, Source Media)
  • Craig Wietz (President, First Rate Investment Systems)
  • Jane Williams (CEO, Sand Hill Global Advisors)
  • Bill Winterberg (CEO, FPPad)
  • Bill Wostoupal (Executive Vice President, NorthStar Financial Services)

 

 

 

Media Representatives

Tiburon was also pleased to welcome the following six journalists who registered to attend specific sessions at Tiburon CEO Summit XXIII:

  • Dave Armstrong (Managing Editor, Wealth Management.Com)
  • Justin Billings (Video Director, Impact Productions Group)
  • Kelly O’Mara (Reporter, RIA Biz)
  • John Shinal (Freelance Journalist, Financial Planning Magazine)
  • Brooke Southall (Editor-in-Chief, RIA Biz)
  • Steve Stein (Reporter, The Ark Media Company)

 

 

 

 

 

 

 

 

 

 

 

 

Tiburon CEO Summit Video Highlights

Some representative Tiburon CEO Summit videos are included below:

 

 

 

 

 

Jon Baum (CEO, The Dreyfus Corporation) discusses client service with media representatives who attended Tiburon CEO Summit XVIII

 

 

 

Tiburon Managing Partner Chip Roame discusses highlights of Tiburon's signature keynote speech The Future of Advice with media representatives who attended Tiburon CEO Summit XVIII

 

 

 

Tiburon Managing Partner Chip Roame discusses product trends with media representatives who attended Tiburon CEO Summit XVIII

Jim McCool (Executive Vice President, The Charles Schwab Corporation) discusses employer support for retirement plans with media representatives who attended Tiburon CEO Summit XVIII

 

 

Tiburon Managing Partner Chip Roame discusses wirehouse trends at Tiburon CEO Summit XIV

 

Gib Watson (CEO, Prima Capital Management) discusses passive versus active investment strategies at Tiburon CEO Summit XVIII

 

 

 

 

 

 

 

 





Tiburon CEO Summit XXII: April 17-18, 2012

Tiburon CEO Summit XXII was held April 17-18, 2012 at the Ritz Carlton Hotel in New York, NY. Tiburon CEO Summit XXII officially started at 7:45am on Tuesday, April 17, 2012, included a group dinner that night at Delmonico's Restaurant in New York, NY and finished at 12:30pm on Wednesday, April 18, 2012. 221 senior industry executives took two days out of their busy schedules to participate. There were over twenty sessions. Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXII included the fifth annual Tiburon CEO Summit Award presentations to David Booth (CEO, Dimensional Fund Advisors), Bob Reynolds (CEO, Putnam Investments), & Al West (CEO, SEI Investments). Tiburon CEO Summit XXII also included an economy & markets presentation by Derek Young (Vice Chairman, Pyramis Global Advisors). And general session guest panelists included Mike Alfred (CEO, BrightScope), Tony Batman (CEO, 1st Global), Jud Bergman (CEO, Envestnet), Chris Blunt (President, Life Insurance, New York Life), Tom Bradley (President, Retail Distribution, TD Ameritrade), Bruce Cameron (CEO, Berkshire Capital Securities), Mitch Caplan (CEO, Jefferson National Financial), Mark Casady (CEO, LPL Financial), Ben Cukier (Partner, FTV Capital), Scott Powers (CEO, State Street Global Advisors), Todd Thomson (Chairman, Dynasty Financial Partners), & Elliot Weissbluth (CEO, HighTower). Tiburon CEO Summit XXII also featured the firm's traditional client-centric panel discussion, five less formal break-out sessions, & two networking-based social events.

Keynote Presentation

Tiburon CEO Summit XXII featured a general session keynote presentation by Tiburon's Managing Partner Chip Roame regarding the state of the financial services industry, with a specific focus on the growing wealth management market. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.

 

 

 



Summit XXII
Opening Keynote Presentation
Chip Roame
Managing Partner
Tiburon Strategic Advisors

 

 

 

 

 

 

Chip Roame (Managing Partner, Tiburon Strategic Advisors)

Charles ("Chip") Roame is the Managing Partner of Tiburon Strategic Advisors and a leading strategic consultant to CEOs, other senior executives, & boards of directors in the brokerage, investments, banking, & insurance markets. Prior to forming Tiburon in 1998, Mr. Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation. Mr. Roame is quoted daily throughout the media and, due to Tiburon's widely shared research; he may be the most frequently demanded board advisor and conference speaker. His particular expertise is that of corporate strategy for larger financial services firms, designing broad multi-faceted strategies and making trade-offs between alternative businesses, products, & markets.

At Tiburon, Mr. Roame has responsibility for all of the firm's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses - mutual funds, exchange traded funds, separately managed accounts, hedge funds & other alternative investments, financial planning, wealth management services, life insurance, annuities, family office services, online financial services, and the growing independent advisor markets. He has also taken a substantial interest in financial services industry venture capital & private equity opportunities and investment banking transactions. At Tiburon, Mr. Roame has led over 1,500 client engagements for over 350 corporate clients since 1998.

Mr. Roame has won numerous awards throughout the consulting and financial services industries, including being named one of the power 25 elite by Investment News, one of the twenty-five most influential people in financial planning by Investment Advisor magazine, & one of the five experts with the answers by Boomer Market Advisor. Tiburon has also been named one of the fastest growing companies by the San Francisco Business Times in multiple years.

Mr. Roame is frequently sought as a board member by Tiburon client company boards. He presently serves as a board member at Envestnet (NYSE: ENV) and as a trustee for the SA mutual funds family which is sponsored by Loring Ward and employs Dimensional Fund Advisors as its sole sub-advisor. In the past, he has served on a variety of other boards, including those for start-up ventures Anira Advisory Group, One Harbor, & Prima Capital Holdings, as well as the Institute of Investment Management Consultants trade group.

Overview of Tiburon CEO Summit XXII Keynote Presentation

Mr. Roame addressed the state of the financial services industry, with a specific focus on the growing wealth management market, including the most important news stories in the past six months, recent Tiburon research findings, and strategic developments at dozens of Tiburon clients. He began with observations on the broad market environment, including the economy, markets, growing baby boomer issues, financial services industry stumbles, and the resulting consumer attitudinal & behavioral changes. Mr. Roame then outlined the future of wealth management, including the rapidly evolving product and distribution markets. Mr. Roame also addressed four other issues worth watching, including the regulatory agenda & the 2012 elections, the institutionalization of business tactics, institutional & international market opportunities, and pent-up strategic activity. In closing Mr. Roame presented the top 25 fundamental trends impacting all financial services firms.

Broad Market Environment

As it pertains to the broad market environment, Mr. Roame sought to put recent world events into perspective for the financial services industry CEOs attending Tiburon CEO Summit XXII. Mr. Roame discussed the economy, markets, growing baby boomer issues, & financial services industry stumbles, including the gross domestic product (GDP), the US budget deficit, the US trade deficit, various views on the unemployment rate, interest rates, the European debt crisis, the stock markets, the housing market, & the small business market. He said that, "unemployment is the most important political & economic issue." He also gave the audience a detailed understanding of consumer wealth, including saying that, "the most disturbing fact is that consumer households own just 38% of the value of their homes, down from 69% in 1985," that, "deleveraging is way overstated; data does not support such a trend," that, "consumers have $7.3 trillion in private business valuations," and that, "inheritances to baby boomers are not materializing as the money is going to health care instead."

Mr. Roame then addressed the resulting consumer attitudinal & behavioral changes, including those driven by the widening wealth gap. He addressed consumer confidence, consumer sentiment, the Occupy Wall Street movement, and the recent public resignation letter by Goldman Sachs Group executive Greg Smith. He also addressed behavioral changes, including the higher savings rate, the unsuccessful rally to dump the big banks, and the renewed growth in the self-serve channels. He defined the three most critical broad market environment trends to be:

  • Low interest rate environment
  • Living with uncertainties
  • Rapidly evolving consumers

He concluded by saying that, "many markets have rallied back but consumer sentiment has not increased at the same rate."

The Future of Wealth Management

Turning specifically to the fast growing wealth management market, Mr. Roame sought to offer the group some perspective, saying that, "wealth management and payments are the two fastest growing markets in financial services."

Mr. Roame then addressed the rapidly evolving product markets, including the fundamental investment process restructuring, the product polarization, and the trend towards retirement income & guarantee products. He highlighted the growth in tactical strategies, highlighted successful strategies of the winners including Black Rock and The Vanguard Group, addressed the rapid growth in indexing, and made predictions for even faster growth of alternative investments. Some of his comments included that, "indexing is 20% of assets but is growing," that, "$102 billion is spent on active management," and that, "long only equity is not growing." And as is customary, Mr. Roame wrapped up his investment product insights with a peek into the wine market, where many know he is involved as an advisor. He defined the three most critical product trends to be:

  • Fundamental investment process restructuring
  • Product polarization
  • Retirement income needs & guarantees

After addressing products, Mr. Roame turned to distribution markets. Mr. Roame framed the size and growth rates of the financial advisor, self-serve, and institutional markets, saying that, "consumer assets invested by financial advisors are the biggest and fastest growing segment of the market." Mr. Roame then discussed the huge growth in independent advisors & break-away brokers, arguing that the break-away broker trend is not fully started and that the wirehouses could shut this trend down with higher payouts and/or half-way house strategies. Some of his commments included that, "12% of wirehouse brokers move in any given year but 80% after getting fired." He also discussed the continued evolution of the self-serve channels, including online tools & advice, online brokerage, online banking & mortgages, & online insurance. Mr. Roame argued that when nobody has been watching the self-serve trend has come back to life. Some of his comments included that, "there are 50 discount brokerage firms but five have all of the market share." Mr. Roame made a very edgy prediction that the number of discount brokerage offices will skyrocket while the number of bank branches will plummet. Mr. Roame defined the five most important distribution market trends to be:

  • Break-away broker trend
  • Restructuring of the independent broker/dealer market
  • Increasing dominance of high-end financial advisors
  • Self-serve channels & their advice movement
  • The re-emergence of online advice

Four Other Issues Worth Watching

Beyond the future of wealth management, Mr. Roame highlighted four other issues worth watching, including the regulatory agenda & the 2012 elections; the institutionalization of business tactics; the related institutional & international markets; and recent industry strategic activity.

Mr. Roame addressed the regulatory agenda & the 2012 elections, including owning up to his incorrect prediction six months earlier that Mitt Romney would select Godfather's Pizza's Herman Cain as his running mate. He laid out six predictions:

  • Tax rates going up
  • Regulations catching up with the graying of boundaries between brokers & financial advisors
  • Nationalization of insurance regulations
  • Department of Labor on own course
  • Health care reform implementation
  • The 2012 presidential & congressional elections

He discussed the institutionalization of business tactics, with a specific focus on sales & marketing and technology & outsourcing. Amongst his points, he said that marketing was finally surpassing sales in importance and that technology & outsourcing trends would include CRM as the driver and models would be redefined around outsourcing platforms. One of his most shocking points was that, "Silicon Valey Bank serves 50% of all venture backed companies in the US."

Mr. Roame also discussed related institutional & international opportunities. Mr. Roame argued that changes in the defined contribution market and the emergence of the international middle class are re-opening both of these opportunities. Dimensional Fund Advisors is a good example of a firm capitalizing on these trends. Some of his comments included that, "Financial Engines is now the largest RIA," that, "the Harvard endowment and the Gates Foundation are roughly the same size," and that, "one-third of all people live in Chian & India." He pointed to three specifics:

  • Defined contribution advice offerings
  • Corporate, union, & state pension plans all underfunded
  • International being ignored by many US financial services firms

Mr. Roame also addressed recent strategic activity, including financial services industry mergers & acquisitions, financial services industry private equity, and financial services industry venture capital. He ended with three points:

  • Regulatory reform & capital needs requiring exits
  • Private equity continues to bet on independent financial adivsor distribution
  • Financial advisor aggregation

The Top 25 Fundamental Industry Trends

In an effort to offer a structured view of the key points, Mr. Roame concluded by summarizing 25 fundamental trends driving the financial services industry as they pertain to the broad market environment, products, distribution channels, regulatory agenda & the 2012 elections, business tactics, institutional & international markets, and strategic activity.

Award Recipients

Tiburon Strategic Advisors is pleased to announce the recipients of its Tiburon CEO Summit Awards. David Booth (CEO, Dimension Fund Advisors), Bob Reynolds (CEO, Putnam Investments), & Al West (CEO, SEI Investments) were recognized as Tiburon CEO Summit award winners at Tiburon CEO Summit XXII on April 17-18, 2012 because they exemplify three central themes: Focusing on Consumer (and Other Client) Needs, Challenging Conventional Industry Wisdom (Innovation), & Taking Responsibility. The award recipients are chosen by a running tally of the votes of thousands of prior Tiburon CEO Summit attendees.

 

 

 

 

 

 

CEO Summit XXII
Award Recipient

David Booth
(Co-CEO, Dimensional Fund Advisors)

 

 

 

 

 

 

 

 

David Booth (CEO, Dimensional Fund Advisors)

David Booth founded Dimensional Fund Advisors in 1981 to provide access to small capitalization stocks, which were largely underrepresented in institutional portofolios at the time. Many of Mr. Booth's original concepts underpin Dimensional's overall strategy and his problem-solving innovations for clients set the firm apart from its competitors. As Chairman and Co-CEO of the $240 billion assets under management firm today, Mr. Booth continues to focus on the firm's key corporate initiatives and strategic long-range planning.

Mr. Booth won the Financial Analysts Journal's Graham & Dodd Award of Excellence (with Gene Fama) in 1992. In 2010, Investment News named Mr. Booth as one of The Power 20 in the financial services industry, and Mutual Fund Wire ranked him 12th in its list of the 100 Most Influential People in mutual funds.

As it pertains to the Tiburon CEO Summit award criteria, some of Mr. Booth's accomplishments include:

  • Challenging Conventional Industry Wisdom (Innovation): Dimensional Fund Advisors has clearly challenged conventional wisdom and Mr. Booth has been the core coneptualist and philosophical leader of the firm. Mr. Booth was one of the pioneers of indexing when he started his career with Wells Fargo and collaborrated on the first index funds with Mac McQuown. Mr. Booth was an early proponent of efficient markets. He founded Dimensional Fund Advisors in his Brooklyn, NY apartment based on groundbreaking work in indexing and small capitalization investing. Dimensional has at its core today the belief that it can not beat the market but that it can add value in trading strategies, portfolio strategies, & tax strategies. The current focus of Dimensional is on globalization.
  • Focusing on Consumer (and Other Client) Needs: Dimensional Fund Advisors clearly has a consumer centric business model. Mr. Booth's problem solving innovations for clients set the firm apart from its competitiors. Similarly, Dimensional requires financial advisors seeking to utilize its products to attend training. Furthermore, as an often first mover, Dimensional has had the opportunity to charge premium fees but instead has repeatedly sought to set long run prices at the expense of its near-term profitability.
  • Taking Responsibility: Mr. Booth has given back, most notably to the University of Chicago, where he made the largest gift ever to a business school and which has subsequently named its business school in honor of him as The University of Chicago Booth School of Business. He further serves as a lifetime member of the school's Business Advisory Council. Mr. Booth also is a member of the University of Chicago board of trustees, the University of Kansas Endowment Association, & Georgetown University's board of directors. He is also a member of the Paintings Conservation Council of the J. Paul Getty Trust.

Tiburon's Managing Partner Chip Roame sat down with Mr. Booth at Tiburon CEO Summit XXII. In response to Mr. Roame's congratulatory remarks, Mr. Booth said, "thank you; it means a lot to me; thank you very much." In response, to Mr. Roame's introduction, Mr. Booth said, "our firm was interested in lowering the conflicts of interest" and "my competitive advantage was not becoming a professor." In addressing his efforts at challenging conventional wisdom, Mr. Booth said that "the firm started in my apartment and we did not think we would make any money but at least we would be independent" and "our firm is based on academic research and not typical Wall Street research." In addressing his efforts at focusing on conumer (and other client) needs, Mr. Booth added that "we sought to lower the conflicts of interest," "we are designing strategies that are really cost effective," "we are obsessed with lowering costs, figuring out how to help consumers make money by lowering their costs and giving them a fair deal," and "we hope to help consumers over the long haul." And in addressing his efforts at taking responsibility, Mr. Booth said, "I treated the University of Chicago like a partner and like in many gifts, you get so much more out of it" before he concluded that, "The University of Chicago named the business school after me because my name is short."

Afterwards, Mr. Roame facilitated a question & answer session with Mr. Booth. In response to audience questions, Mr. Booth said:

  • "65 is not old"
  • "Gray is the new blonde"
  • "It is hard to call T-Bills the riskless rate now that you are living off of it"
  • "The top down approach does not work anymore"
  • "Financial services is becoming more integrated"
  • "People want to dump stuff on someone's desk but want to be more involved"
  • "Most innovation comes from the academic world"
  • "Social media meets no-load mutual funds"
  • "Our basic investment philosopy transends cultural barriers"

 

 

 

 

 

 

 

CEO Summit XXII
Award Recipient

Bob Reynolds
(CEO, Putnam Investments)

 

 

 

 

 

 

 

 

Bob Reynolds (CEO, Putnam Investments)

Bob Reynolds is CEO of Putnam Investments. Prior to joining Putnam Investments in 2008, Mr. Reynolds served as Vice Chairman & Chief Operating Officer of Fidelity Investments from 2000 to 2007.

Mr. Reynolds was recognized with a Lifetime Achievement Award from Plan Sponsor magazine; the President's Medal of Excellence from Boston College; the Distinguished Alumni Award from West Virginia University; & the De La Salle Award from Manhattan College.

As it pertains to the Tiburon CEO Summit award criteria, some of Mr. Reynold's accomplishments include:

  • Challenging Conventional Industry Wisdom (Innovation): Mr. Reynolds challenged conventional industry wisdom first by building the Fidelity Investments 401K business. He subsequently determined that Fidelity Investments could move beyond its roots as a money manager and compete with The Charles Schwab Corporation, TD Ameritrade, E*Trade, and other firms in the discount brokerage & custody business. Moving to Putnam Investments in 2008 (a job some others may have passed upon), Mr. Reynolds has taken the firm from its death bed to now leading a push into the fast growing RIA market.
  • Focusing on Consumer (and Other Client) Needs: Mr. Reynolds demonstrated his focus on consumer & client needs by being concerned for retirees in 401K plans & beyond. Mr. Reynolds early on was a believer that high value would win out. Fidelity Investments had a terrific brand but was not necessarily perceived as high value. Mr. Reynolds pushed the high value concept.
  • Taking Responsibility: Mr. Reynolds has pushed Putnam Investments into a leading advocacy position, including taking positions on critical issues such as retirement reform, fee transparency, the lifetime income view on workplace savings, & excess liquidity risk in target date mutual funds. Mr. Reynolds serves on the board of directors of the West Virginia University Foundation; the Concord Museum; the Dana-Farber Cancer Institute; the Lahey Clinic; & the Initiative for a Competitive Inner City in Boston.

Tiburon's Managing Partner Chip Roame sat down with Mr. Reynolds at Tiburon CEO Summit XXII. In response to Mr. Roame's congratulatory remarks, Mr. Reynolds said, "thank you very much... thank you." In response to Mr. Roame's introduction, Mr. Reynolds said, "the 401K is America's retirement system," "the magic number is 10%; people need to save 10% per year," and "right now 401K plans cover half of America's workers." In addressing his efforts at challenging conventional wisdom, Mr. Reynolds said that, "there is no such thing to me as a bad idea," and "information, if you use it right, is a tremendous weapon." In addressing his efforts at focusing on conumer (and other client) needs, Mr. Reynolds added that, "the retail investor has been shot twice in the last ten years; some would say three times," "put yourself in your clients' shoes and what would you want?," "you need great service people; we have been lucky to win a service award for 22 years in a row; Putnam has a real service culture," "my vision is to always do what is right for the individual," and if you do what is right, down the road, you will get paid for it." And in addressing his efforts at taking responsibility, Mr. Reynolds concluded that, "we want to grow from here; its a tough market, with a tremendous amount of uncertainty... it has challenged us to come up with new products & services."

Afterwards, Mr. Roame facilitated a question & answer session with Mr. Reynolds. In response to audience questions, Mr. Reynolds said that:

  • "I think the game has just begun when it comes to IRA rollovers"
  • "There will always be room for active management; skills always get paid"
  • "Give me something where I can live with the volatility (absolute return funds)"
  • "Our product is financial advisor friendly"

 

 

 

 

 

 

CEO Summit XXII
Award Recipient

Al West
(CEO, SEI Investments)

 

 

 

 

 

 

 

 

Al West (CEO, SEI Investments)

Al West founded SEI Investments in 1968. SEI is a leading global provider of outsourced asset management, investment processing, & investment operations solutions that help corporations, financial institutions, financial advisors, & affluent families create and manage wealth.

Mr. West was recognized in 2010 by Investment Advisor as one of the 30 most influential people in and around the independent advice business. In 2011, Mr. West was recognized by Strategic Insight as one of the 60 most influential Visionaries of the Modern Era of the Mutual Fund Industry. Mr. West has also won the Joseph Mayo Pettit Alumni Distinguished Service Award, the Joseph Wharton Award, the Raymond Rafferty Entrepreneurial Excellence Award, the B'Nai B'rith International Distinguished Humanitarian Award, and he was named Legend CEO by the Technology Council of Philadelphia.

As it pertains to the Tiburon CEO Summit award criteria, some of Mr. West's accomplishments include:

  • Challenging Conventional Industry Wisdom (Innovation): Mr. West has been a constant challenger of conventional wisdom. SEI Investments was founded as Simulated Environments Incorporated to provide simulated training for bank officers, training that did not exist at the time (1968). A more recent example of Mr. West's challenging conventional wisdom has been in goals based investing which he has promoted for twelve years. He is now pushing the firm's global wealth platform. Several executives at SEI Investments refer to Mr. West as the firm's chief creative or innovation officer. And SEI's entire culture reinforces this concept, with no permanent offices, furniture on wheels, no assigned parking spots, all in a series of barn-like buildings.
  • Focusing on Consumer (and Other Client) Needs: SEI Investments' mission is to help its clients succeed; the firm's entire focus is on making clients successful. Mr. West stresses employee-to-client engagement; for example, Mr. West directly reconfigured SEI's workforce in the mid-1990s in order to leverage emerging online delivery opportunities. Mr. West encourages his executives to understand client needs and also encourages them to educate clients to be sure that they are solving the correct issues.
  • Taking Responsibility: Mr. West has given back to Georgia Tech and The Wharton School at the University of Pennsylvania He supports the Wounded Warrior program, started a non-profit organization supporting the recovery of those with co--occurring mental illness and substance abuse disorders (West Bridge) which has saved the lives of many, and started a home that trains homeless people to re-enter the workforce. He is also chairman of the SEI Center for Advanced Studies in Management at Wharton, a member of the Wharton Board of Overseers, a member of the Executive Committee of the World Affairs Council of Philadelphia, chairman of the American Business Conference, & a member of the Georgia Tech Foundation.

Tiburon's Managing Partner Chip Roame sat down with Mr. West at Tiburon CEO Summit XXII. In response to Mr. Roame's congratulatory remarks, Mr. West said, "I appreciate that... thank you; thank you very much; you do a great job." In response to Mr. Roame's introduction, Mr. West said, "if you want to make your clients happy then make your employees happy." In addressing his efforts at challenging conventional wisdom, Mr. West said that, "innovation and progress are just learning from your mistakes", "go out and fail; you have to reward failure", and "we try to fail fast." In addressing his efforts at focusing on conumer (and other client) needs, Mr. West added that, "we serve those who have wealth and those that serve them", "intimate client relationships are what you want", and "everything starts and ends with your clients." And in addressing his efforts at taking responsibility, Mr. West concluded that "...".

Afterwards, Mr. Roame facilitated a question & answer session with Mr. West. In response to audience questions, Mr. West said that:

  • "Culture is a business decision"
  • "We have no assigned parking spots; I park every morning in the losers' parking lot. I am not an early riser; I'd love to park closer but our culture is that everyone is in this together"
  • "All of our desks are on wheels"
  • "There is good discipline that comes with being a public company"

Economy & Markets Speaker

Tiburon CEO Summit XXII also featured its traditional economy & markets presentation by Derek Young (Vice Chairman, Pyramis Global Advisors, Fidelity Investments).

 

 

 

 

 

CEO Summit XXII
Economy & Markets Speaker
Derek Young
(Vice Chairman, Pyramis Global Advisors, Fidelity Investments)

 

 

 

 

 

 

 

Derek Young
(Vice Chairman, Pyramis Global Advisors, Fidelity Investments)

Derek Young is Vice Chairman of Pyramis Global Advisors at Fidelity Investments. Mr. Young joined Fidelity Investments in 1996 as director of risk management for Fidelity Management Trust Company (FMTC). Since then he has held a variety of positions across Fidelity Investments with increasing levels of responsibility and management oversight, including senior vice president of Strategic Investment Services & Marketing for FMTC, head of Fidelity Investment's US Asset Allocation Committee, and co-manager of numerous mutual funds, including the Strategic Fund Family and the Asset Manager Fund Family. Prior to his new position, Mr. Young was chief investment officer of Fidelity Investment's Global Asset Allocation Group. Prior to joining Fidelity Investments, Mr. Young was a manager in the risk strategy consulting practice for KPMG. From 1991 to 1995, he worked for the Board of Governors of the Federal Reserve as a senior financial analyst and then as a supervisory financial analyst. Mr. Young began his career as a vice president at Empire Financial Services in 1986.

 

Mr. Young's comments included:

  • "Despite record earnings, 83% of active managers underperformed the S&P 500 in 2011"
  • "2011 was the most volatile year for equities since the 1930s"
  • "We have been going sideways since the tech bubble burst"
  • "I believe that we are moving into another decade of difficult markets"
  • "Investors have remained skeptical"
  • "Institutions continue to get out of equities"
  • "Capital goes to fund goverment debt and not to more productive areas"
  • "There are more people age 65 now than the cumulative number prior
  • "Individuals are going to be forced to work longer and change their expectations of retirement"
  • "Individuals fear running out of money more than death itself"

General Session Panelists

Tiburon CEO Summit XXII also featured general session panelists Mike Alfred (CEO, BrightScope), Tony Batman (CEO, 1st Global Capital Corporation), Jud Bergman (CEO, Envestnet), Chris Blunt (President, Insurance, New York Life), Tom Bradley (President, Retail Distribution, TD Ameritrade), Bruce Cameron (CEO, Berkshire Capital Securities), Mitch Caplan (CEO, Jefferson National Financial), Mark Casady (CEO, LPL Financial), Ben Cukier (Partner, FTV Capital), Scott Powers (CEO, State Street Global Corporation), Todd Thomson (Chairman, Dynasty Financial Partners), Elliot Weissbluth (CEO, HighTower), & Derek Young (Vice Chairman, Pyramis Global Advisors, Fidelity Investments).

Mike Alfred
(CEO, BrightScope)

 

 

 

 

CEO Summit XXII
General Session Panelist

Mike Alfred
(CEO, BrightScope)

 

 

 

 

 

 

 

 

Mike Alfred is CEO of BrightScope, responsible for the strategic vision and leadership of the company. Previously, Mr. Alfred was a co-founder and portfolio manager at Alfred Capital Management, an independent registered investment firm located in La Jolla , CA. He has been a financial advisor and portfolio manager since 2003.

After introducing BrightScope to the Tiburon CEO Summit XXII audience, Mr. Alfred listed his three strategic industry issues as:

  • Data: Big, social, open, & connected
  • Social media: Will be transformative for financial services over time
  • Rise of the fiduciary: Corresponds with the rise of the more intelligent empowered consumer

In response to audience questions Mr. Alfred said:

  • "We want to be where the distribution is going to come from in the future and we think that is with financial advisors"
  • "We work with a number of large RIAs who form strategy groups with multiple firms with a goal to work on remaining independent"

Tony Batman
(CEO, 1st Global Capital Corporation)

 

 

 

 

 

 

CEO Summit XXII
General Session Panelist

Tony Batman
(CEO, 1st Global Capital Corporation)

 

 

 

 

 

 

 

 

 

 

 

 

Tony Batman is CEO of 1st Global, a diversified financial services firm that is the business development and resource partner to leading tax, accounting, & law firms. 1st Global works with these firms to provide comprehensive wealth management services to emerging affluent families, businesses, founadations, & other institutions.

 

After introducing 1st Global to the Tiburon CEO Summit XXII audience, Mr. Batman listed his three strategic industry issues as:

  • Twin demographic nightmares: Rapidly aging CPAs (less energetic, coasting) & younger investor generation with vastly different attitudes about advice (Gen X, Gen Y, Millennials)
  • If alpha always inevitably becomes beta, where is alpha to be found? What price for beta only? Government policy implications?
  • Unidentified new systemic risks with intermittent periods of insanely turbulent markets

In response to an audience question, Mr. Batman said:

  • "The younger generation wants to understand, be involved, and work collaboratively with financial advisors, and maybe develop as much intellectual ability as their financial advisor"

 

Jud Bergman

(CEO, Envestnet)

 

 

 

 

 

 

CEO Summit XXII
General Session Panelist

Jud Bergman
(CEO, Envestnet)

 

 

 

 

 

 

 

 

 

 

 

 


Jud Bergman is CEO of Envestnet, responsible for directing its core strategies, and guiding organizational and business development. Mr. Bergman founded Envestnet in 1999 to provide web-based wealth management software and services and advanced portfolio solutions for independent advisors to better serve their affluent and high net worth clients. Under his direction, Envestnet has grown to support over 14,000 advisors and service over $127 billion in assets as of September 30, 2011. Mr. Bergman also serves as a trustee for Guardian's RS Investments' mutual fund family, which manages over $20 billion in assets. Prior to Envestnet, Mr. Bergman was the managing director, Nuveen Mutual Funds, for Nuveen Investments, a diversified investment manager with over $100 billion under management. In this role he was responsible for the profitable growth of Nuveen's mutual fund business and was a member of Nuveen's Investment Management Committee. From 1992 to 1997, Mr. Bergman directed Nuveen's corporate development activity, where he initiated the development of Nuveen's separately managed accounts business and helped guide the firm's expansion into diversified investment management beyond municipal investments. Mr. Bergman received a BA from Wheaton College and earned an MBA in Finance & Accounting from Columbia University.

 

After introducing Envestnet to the Tiburon CEO Summit XXII audience, Mr. Bergman listed his three strategic industry issues as:

  • Will conflicts be more fully disclosed and to what extent will a fiduciary standard be adopted?
  • What emerging technologies could affect the financial advisor-investor relationship?
  • Are the factors driving financial advisors to independence changing and are they accelerating?

In response to an audience question, Mr. Bergman said:

  • "I think that economies of scale are shifting rapidly in our line of business. We are seeing advisory practices with $120 to $150 million thrive on top line revenues % less than $2.0 million with just two or three people in their shop"

 

Chris Blunt
(President, Insurance, New York Life)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Chris Blunt
(President, Insurance, New York Life)

 

 

 

 

 

 

 

Chris Blunt is President of Insurance at New York Life. Mr. Blunt joined New York Life in 2004 as executive vice president at New York Life Investment Management, where he was responsible for retail investments. In 2007, he was elected chief operating officer for the Life & Annuity operations of New York Life Insurance Company, and in 2008 was appointed head of Retirment Income Security. New York Life leads the industry in new life insurance premiums written, with a US market share of 11.7%.

After introducing New York Life to the Tiburon CEO Summit XXII audience, Mr. Blunt listed his three strategic industry issues as:

  • Shrinking distribution forces & commoditization
  • US tax and regulatory threats
  • International regulation and reserving

In response to audience questions, Mr. Blunt said:

  • "New York Life has a higher credit rating than the US government"
  • "We concluded that our opportunities are better at the point of rollover; a vast majority of consumers do rollover"
  • "If you are not in the life insurance business, you can not really take on open ended longevity risks; you need something to offset it with"

 

Tom Bradley
(President, Retail Distribution, TD Ameritrade)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Tom Bradley
(President, Retail Distribution, TD Ameritrade)

 

 

 

 

 

 

 

Tom Bradley is President of Retail Distribution at TD Amertirade. Mr. Bradley joined TD Ameritrade in 2006 upon its acquisition of TD Waterhouse and was appointed president of TD Ameritrade Institutional, where he oversaw all institutional business functions, including the company's independent investment advisor services, directed brokerage, self-directed 401(k), & retirement trust businesses. He was named to his current position in 2011.

 

After introducing TD Ameritrade to the Tiburon CEO Summit XXII audience, Mr. Bradley listed his three strategic industry issues as:

  • Near zero interest rates - challenges for financial services firms and investors
  • Regulation - need "better" not "more"
  • Fiduciary vs. sales - advice models are moving to RIA/fiduciary and sales is being preserved as it should be, but "dual hats" is a problem that needs to be addressed

In response to audience questions, Mr. Bradley said:

  • "Consumers are scared, scarred, & skeptical"
  • "TD Bank is the only AAA rated bank in North America"
  • "When it comes to regulatoin, we need better, not more"
  • "Lobbying has become a bad word but there is good lobbying too"

 

Bruce Cameron
(CEO, Berkshire Capital Securities)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Bruce Cameron
(CEO, Berkshire Capital Securities
)

 

 

 

 

 

 

 


Bruce Cameron is CEO of Berkshire Capital Securities. He joined Berkshire Capital in 1983 as the first independent investment bank covering the investment management and securities industries. As CEO, Mr. Cameron is responsible for the overall development and direction of the firm. Mr. Cameron leads the firm's new business efforts and is actively involved in advising the firm's major clients. Prior to the formation of Berkshire Capital, Mr. Cameron was Associate Director of Paine Webber Group's Strategic Planning Group. He began his career at Prudential Insurance Company, working first in the Comptroller's Department and then in the Planning & Coordination Group. Mr. Cameron graduated from Trinity College, where he received a BA in Economics, and from Harvard Business School , where he received an MBA. He also attended the London School of Economics. Mr. Cameron is a CFA charterholder and a Fellow of the Life Management Institute. He is also a past board member of the New York Society of Security Analysts.

 

After introducing Berkshire Capital Securities to the Tiburon CEO Summit XXII audience, Mr. Cameron listed his three strategic industry issues as:

  • Conflict/pressure around attracting/retaining/paying quality professionals to deliver the range of services needed to compete vis-a-vis delivery of objective quality services in the context of quality contrrol and consistency issues in the context of increasing size
  • Pressure on investment operations expected to deliver alpha against the limits of capacity in any investment strategy to invest vs. fee sensitivity on the part of clients
  • Industry reputation and the concern that investors and clients feel that the game is stacked against them

In response to an audience question, Mr. Cameron said:

  • "Unless you are in the top 25% of venture capital funds, then why bother?"

 

Mitch Caplan
(CEO, Jefferson National Financial)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Mitch Caplan
(CEO, Jefferson National Financial)

 

 

 

 

 

 

 


Mitch Caplan is CEO of Jefferson National, where he oversees all aspects of the company's growth strategy. Previously, he served as an executive advisor to Aquiline Capital Partners, CEO of E*TRADE Financial Corporation, & CEO of Telebanc Financial Corporation.

 

After introducing Jefferson National Financial to the Tiburon CEO Summit XXII audience, Mr. Caplan listed his three strategic industry issues as:

  • Secular trends: Rapid growth of fee-based model converging with rapid growth of HNW segment
  • Cyclical Trends: Demand of unique strategies to manage ongoing market volatility
  • Democratization of pricing and prducts for HNW market: Simplicity, transparency, and greater choice

In response to an audience question, Mr. Caplan said:

  • "We try to think of ourselves as the anti-insurance carrier"

 

Mark Casady
(CEO, LPL Financial)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Mark Casady
(CEO, LPL Financial)

 

 

 

 

 

 

 

 

Mark Casady is the CEO of LPL Financial. Before joining the firm in 2002, Mr. Casady was managing director of the mutual funds group at Deutsche Asset Management, Americas (formerly Scudder Investments). He was also a member of the Scudder, Stevens, & Clark board of directors and management committee. Prior to Scudder Investments, Mr. Casady held roles at Concord Financial Group and Northern Trust. Mr. Casady serves on the Financial Industry Regulatory Authority's (FINRA) board of governors and is former chairman and a current board member of the Insured Retirement Institute. Mr. Casady also previously served on the executive committee of the Investment Company Institute board of governors. Mr. Casady was recognized as the financial executive of the year by DePaul University College of Commerce in 2007 and was also named one of the top 50 financial professionals by Irish American magazine in 1999. Mr. Casady was inducted into the Redefining Investment Strategy Education Hall of Fame by the University of Dayton in 2008.

 

After introducing LPL Financial to the Tiburon CEO Summit XXII audience, Mr. Casady listed his three strategic industry issues as:

  • Protection: Non-correlated assets; balance sheet products
  • Opportunity: Boomers need help; Gen X and Y opportunity is even bigger; brokerage world is changing --> flow to advisory
  • Productivity: All about platforms; wide range of client types: individual wealth, plan-based, institutions; central services

In response to an audience question, Mr. Casady said:

  • "People are choosing their husbands & wives online now so choosing a financial advisor online should be no big deal"

Ben Cukier
(Partner, FTV Capital)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Ben Cukier
(Partner, FTV Capital)

 

 

 

 

 

 

 

Ben Cukier is a Partner at FTV Capital. Mr. Cukier leads investments in asset management, lending, & banking. Mr. Cukier was previously with the Telecommunications & Media Team at Madison Dearborn Partners in Chicago. Prior to joining Madison Dearborn Partners, Mr. Cukier was with McKinsey & Co. in New York, where he consulted to clients in the telecommunications, Internet, and healthcare industries. Mr. Cukier received his BS and BA from the University of Pennsylvania and an MBA from Stanford University.

After introducing FTV Capital to the Tiburon CEO Summit XXII audience, Mr. Cukier listed his three strategic industry issues as:

  • Retirement: longevity insurance/annuities in 401K plans; capture the rollover; massive shift in record keeping platforms
  • ETFs: traditional mutual fund providers enter market; active ETFs; continue growth in tactical asset allocation using ETFs
  • Middle office: continued trend in outsourcing the middle office (index verification, performance attribution, reference data (maybe))

In response to an audience question, Mr. Cukier said:

  • "Active ETFs are just starting to take root"

 

Scott Powers
(CEO, State Street Global Advisors)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Scott Powers
(CEO, State Street Global Advisors)

 

 

 

 

 

 

 

Scott Powers is CEO of State Street Global Advisors (SSgA), the investment management arm of State Street Corporation and one of the largest institutional asset managers in the world. Mr. Powers is also a member of State Street's Management Committee, the company's senior-most strategy and policy-making team. Prior to joining State Street in 2008, Mr. Powers served as CEO of Old Mutual US, the US operating unit of London-based Old Mutual. During his seven year tenure at Old Mutual, he was one of six senior executives overseeing the worldwide operations and was also a member of Old Mutual's executive committee, where he was actively involved in the development and execution on overall business strategy.

After introducing State Street Global Advisors to the Tiburon CEO Summit XXII audience, Mr. Powers listed his three strategic industry issues as:

  • Separation of alpha and beta: advance beta; ETFs
  • Tail risk management: managed volatility strategies; divergent return strategies; multi asset class solutions
  • Consolidation: regulatory reform; capital needs of banks and insurance companies

In response to an audience question, Mr. Powers said:

  • "Clients increasingly want to see the alignment of the economics with the results they get delivered"

 

Todd Thomson
(Chairman, Dynasty Financial Partners)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Todd Thomson
(Chairman, Dynasty Financial Partners)

 

 

 

 

 

 

 

Todd Thomson is Chairman of Dynasty Financial Partners. Todd is a member of the Board of Directors of Commtouch Software, LTD., Cordia Bancorp and Bank of Virginia. He is also a member of the Board of the World Resources Institute as well as a member of the Economic Club of New York. He is Chairman of the Wharton Leadership Advisory Board. He is also a past member of the Board of Trustees of Davidson College. Mr. Thomson received his BA in Economics from Davidson College and his MBA from the Wharton School of Business.

After introducing Dynasty Financial Partners to the Tiburon CEO Summit XXII audience, Mr. Thomson listed his three strategic industry issues as:

  • Need for an "easy button" for sophisticated advisors
  • Partnership among like-mind RIAs
  • Access challenges

In response to an audience question, Mr. Thomson said:

  • "The biggest teams are the ones most interested in moving right now"

Elliot Weissbluth
(CEO, HighTower)

 

 

 

 

 

CEO Summit XXII
General Session Panelist
Elliot Weissbluth
(CEO, HighTower)

 

 

 

 

 

 

 

Elliot Weissbluth is CEO of HighTower, a national advisor-owned financial services company serving high net worth and institutional clients. Prior to HighTower, Mr. Weissbluth was the president of US Fiduciary, a boutique broker dealer, and director of marketing & research at RogersCasey, one of the nation's leading investment research and institutional registered investment advisory firms. Mr. Weissbluth serves on a number of for profit and non-profit boards, notably as a Trustee of Interlochen, Center for Performing Arts in Michigan.

After introducing HighTower to the Tiburon CEO Summit XXII audience, Mr. Weissbluth listed his three strategic industry issues as:

  • Secular shift: brokers and clients leaving old model for new
  • Standard of care: fiduciary standard will be made clear
  • Consolidation: top of market already consolidated, now bottom of market will contract

In response to an audience question, Mr. Weissbluth said:

  • "90% of people do not the know the definition of a fiduciary"

 

Attendees
Tiburon CEO Summit XXII had 221 client attendees, including:

 

  • Chip Roame (Managing Partner, Tiburon Strategic Advisors)
  • Rick Adler (CEO, Convergent Capital Management)
  • Gurinder Ahluwalia (CEO, Genworth Financial Wealth Management)
  • David Akellian (Executive Vice President, Custom Clearing Services, LPL Financial)
  • Mike Alfred (CEO, BrightScope)
  • John Alshefski (Business Head, Business Development, Investment Manager Services, SEI Investments)
  • Mike Apker (Business Head, Reporting & Data Aggregation Services, Envestnet)
  • Andy Arenberg (Global Business Head, ETF Distribution, Russell Investments)
  • Dan Arnold (Business Head, Corporate Strategy, LPL Financial)
  • Marion Asnes (Chief Marketing Officer, Envestnet)
  • Steve Atkinson (Executive Vice President, Advisor Relations, Loring Ward Group)
  • Wayne Badorf (Executive Vice President, Intermediary Sales, Wells Fargo Fund Distributor)
  • Chuck Baldiswieler (CEO, TCW Funds)
  • Kim Bang (CEO, Bond Desk Group)
  • David Barry (CEO, Trust Company of America)
  • Atindra Barua (CEO, TrustFort)
  • Tony Batman (CEO, 1st Global Capital Corporation)
  • Chris Battaglia (Publisher, Pensions & Investments)
  • David Baum (Partner, Investment Products & Services Group, Alston & Bird)
  • Jon Baum (CEO, The Dreyfus Corporation)
  • Jud Bergman (CEO, Envestnet)
  • Jessica Bibliowicz (CEO, National Financial Partners)
  • Don Black (Business Head, Marketing & Communications, Barron’s)
  • Chris Blunt (President, Insurance, New York Life Insurance Company)
  • David Booth (Co-CEO, Dimensional Fund Advisors)
  • Joe Bottazzi (Chief Communications Officer, Edelman Financial Services)
  • Tom