Prior Tiburon CEO Summits (2016-2017)
Tiburon has held 47 prior CEO Summits, with the first Tiburon CEO Summit taking place in 2001. Details of Tiburon CEO Summits XXXIII, XXXII, XXXI, & XXX are included below; for details of other Tiburon CEO Summits, please click here: (Most Recent), 2024-2025, 2022-2023, 2020-2021, 2018-2019, (2016-2017), 2014-2015, 2012-2013, 2010-2011, 2008-2009, 2006-2007, 2004-2005, 2001-2003.
Tiburon CEO Summit XXXIII: October 9-11, 2017
Tiburon CEO Summit XXXIII
was held October 9-11, 2017 at the Ritz Carlton Hotel in
San Francisco, CA.
Tiburon CEO Summit XXXIII: Photographs
Tiburon CEO Summit XXXIII pictures are available to all attendees and journalists.
Click here to view all photographs.
Keynote Presentations
Tiburon CEO Summit XXXIII featured two keynote presentations by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry. These presentations served as the backdrop and overview of the entire Tiburon CEO Summit
Chip Roame (Managing Partner, Tiburon Strategic Advisors)
Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXXIII keynote presentations. Chip Roame (Managing Partner, Tiburon Strategic Advisors) gave a day #1 presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market. He also gave a day #2 presentation addressing strategic activity within the industry.
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.
Mr. Roame has responsibility for all of Tiburon's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses -- exchange traded funds, hedge funds & other alternative investments, bitcoin & blockchain, 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 regulatory issues such as the fiduciary standard, and in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,900 client engagements for over 450 corporate clients since 1998.
Mr. Roame has won numerous awards throughout the private equity, investment banking, 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 of Envestnet (NYSE: ENV), as a board member of Edelman Financial Services (Ric Edelman's business backed by Hellman & Friedman), 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).
Tiburon Managing Partner Chip Roame gave two keynote presentations at Tiburon CEO Summit XXXIII.
Tiburon CEO Summit XXXIII Day #1 Keynote
Presentation Overview
The objectives of the Tiburon CEO Summit Day #1 Keynote
Presentation were to anchor Tiburon CEO Summit discussion on
consumers; to offer a broad view of the wealth management
industry; set a discussion agenda for Tiburon CEO Summit
XXXIII (framing the dozens of "three big points"), & to
introduce 40+ speakers. The basis of the Tiburon CEO Summit
XXXIII Keynote Presentation is industry developments ("the
news"), recent Tiburon & third-party research findings,
the Tiburon CEO Summit XXXIII attendee content survey, &
Tiburon CEO Summit XXXIII guest speaker presentations (and
prior presentations).
The Future of Wealth Management: The Ten Wealth Management Industry Trends & the Top Five Potential Disruptors
The theme for the Tiburon CEO Summit Day #1 Keynote Presentation at Tiburon CEO Summit XXXIII is the top ten wealth management industry trends & the top five potential disruptors. The top trends are the following:
1. Consumer Households & the Importance of Baby Boomers, the Baby Boomer Retirement Crisis, Consumer Wealth, Delayed Retirements, & the Expected Liquidation
The number of consumers has been growing consistently since 1990. Currently there are 326.5 million consumers, up from 75 million in 1990.
Tiburon CEO Summit attendees continue to estimate that ~50% to ~75% of financial advisor clients are baby boomers. Specifically, 59% of Tiburon CEO Summit attendees surveyed believed ~50% of financial advisor clients are baby boomers, while 34% of Tiburon CEO Summit attendees surveyed believed ~75% of financial advisor clients are baby boomers.
Tiburon CEO Summit attendees continue to believe that baby boomers are not yet financially ready for retirement. Specifically, 55% of Tiburon CEO Summit attendees believe that baby boomers are not close to being financially ready for retirement, while 41% of Tiburon CEO Summit attendees believe that baby boomers are getting there.
Tiburon CEO Summit attendees say that lack of savings & increasing life expectancies are the biggest financial issues for baby boomers. In particular, 38% of Tiburon CEO Summit attendees say that life savings is the biggest financial issue for baby boomers, while 31% of Tiburon CEO Summit attendees say that increasing life expentencies is the biggest financial issue for baby boomers.
Currently, consumer households have $43.1 trillion investable assets and $65.8 trillion financial assets. They also have $106.6 trillion total assets and $91.4 trillion of net worth.
Tiburon CEO Summit attendees mostly believe that the personal savings rate will remain steady or even stagnate over the next five years. Specifically, 69% of Tiburon CEO Summit attendees believe there will be moderate growth in the personal savings rate over the next five years, while only 28% of Tiburon CEO Summit attendees believe the personal savings rate will stagnate.
Tiburon CEO Summit attendees expect many consumers to rely on later retirement ages. Exactly 86% of Tiburon CEO Summit attendees expect that many consumers will rely on later retirement ages, while only 14% of Tiburon CEO Summit attendees expect that few consumers will rely on later retirement ages.
Baby boomers will liquidate some portion of the $63.5 trillion in retirement plans, personal assets, & small businesses. Specifically, baby boomers will liquidate $22.7 trillion in retirement plan assets, $29.5 trillion in personal assets, & $11.3 trillion in small business valuations.
2. Evolving Consumer Investment Approaches: Risk Management & Retirement Income Strategies
Tiburon CEO Summit attendees said that consumers" risk management focus will increase moderately or even hugely over the next five years. In particular, 22% of Tiburon CEO Summit attendees said that consumers' risk management focus will increase hugeley over the next five years, while 74% of Tiburon CEO Summit attendees said that consumers' risk management focus will increase moderately over the next five years.
Tiburon CEO Summit attendees said that the most impactful investment approach trends are retirement income strategies & goals-based investing. On a 10-point scale, with 10 meaning huge impact, Tiburon CEO Summit attendees rated retirement income strategies a 7.4 regarding the impact of consumer investment approach trends. Tiburon CEO Summit attendees rated goals-based investing a 7.2 regarding the impact of consumer investment approach trends.
3. Indexing & Exchange Traded Funds (ETFs): Market Returns & Cost Conscious Investing Here to Stay
Indexing & exchange traded funds have changed the investment management pricing & value proposition. The Vanguard Group has gathered $3.4 trillion assets under management, up from $2 billion in 1976. The Vanguard Group's assets under management have increased consistently since 2008.
The Vanguard Group's financial advisor services has gathered $1.2 trillion assets under management, up from $163 billion in 2005. The Vanguard Group's financial advisor services assets under management stayed relatively consistent at $1.2 trillion assets under management in 2015 & 2016.
Tiburon CEO Summit attendees said that they personally own individual securities, exchange traded funds (ETFs), money market funds, & open-end mutual funds. Specifically, 100% of Tiburon CEO Summit attendees personally own individual securities, 96% own exchange traded funds (ETFs), 85% own money market funds, & 81% own open-end mutual funds.
Fee-based financial advisors are the largest holders of exchange traded funds (ETFs), with $475 billion. Directly behind fee-based financial advisors, independent broker/dealers are the second largest holders of exchange traded funds (ETFs) with $385 billion.
Millennials allocate 36% of their portfolios to exchange traded funds (ETFs) versus 23% for all investors.
4. Socially Responsible Investing & Impact Investing: A Fundamental Change in Philosophy for Women & Millennials?
Nearly two-thirds of socially responsible investing & impact investing assets under management are in Europe. Specifically, Europe makes up 64% of socially responsible investing & impact investing assets under management, followed by the United States with 31% of socially responsible investing & impact investing assets under management.
Socially responsible investing & impact investing firms have gathered $8.7 trillion assets under management, up from $0.2 trillion in 1995. Socially responsible investing & impact investing firms' assets under management nearly doubled in 2014, increasing from $3.7 trillion in 2012 to $6.6 trillion in 2014.
Over half of socially responsible investing & impact investing institutional markets assets under management are from public plans. Specifically, 56% of socially responsible investing & impact investing markets assets under management are from public plans.
Millennials & women are more interested in socially responsible investing & impact investing than traditional men investors. Exactly 85% of millennials and 77% of women are interested in socially responsible investing & impact investing, which is significantly higher than traditional men investors at at 61%.
Tiburon CEO Summit attendees are only one-quarter likely to have personally made socially responsible & impact investments. In particular, 44% of Tiburon CEO Summit attendees have personally made socially responsible investing & impact investing.
Nearly two-thirds of financial advisors have little or no interest in socially responsible investing & impact investing. Specifically 63% of financial advisors had little or no interest in socially responsible investing & impact investing.
Several Tiburon CEO Summit attendees predicted the importance of socially responsible investing & impact investing over the next five years even though not engaging in the trend themselves. Tiburon CEO Summit attendee Skip Schweiss said, I am a 54 year old guy who does not really care about socially responsible investing. I will let my fund managers decide if that is the best place to allocate part of the portfolio. I have a 21 year old millennial daughter who will probably put all the money she ever saves into SRI funds."
5. Discount & Online Brokerage Firms: The Robo & Episodic Advice Trends
Both the retail and financial advisor support models at both Fidelity Investments & The Charles Schwab Corporation are now amongst the leading financial advisor channel firms. Speciifcally Fidelity Investments Retail & Fidelity Clearing & Custody lead with $3 trillion assets under management, followed closely by Schwab Investor Services & Schwab Advisor Services' $2.8 trillion assets under management.
Tiburon CEO Summit attendees said that the do it yourself trend will grow moderately over the next five years. Specifically 67% of Tiburon CEO Summit attendees expect the do it yourself trend will grow moderately over the next five years, while 22% of Tiburon CEO Summit attendees expect the trend to grow hugely.
The episodic advice market will rise from millennials believing that they can invest on own and technology-empowering financial advisors to deliver their services at better price points.
There are 52 online advice firms, up from two in 2000. The number of online advice firms has grown consistently since 2000, with the number of online firms increasing nearly every year.
Online advice firms have gathered $315.6 billion assets under management, up from $16.0 billion in 2007. Online advice firms' assets under management have increased consistently every year.
Online advice industry firms can specifically be segmented to include defined contribution plan focused online advice firms, B2C focused online advice firms, & wholesale robo advisor technology firms. B2C focused online advice firms can be sub-segmented to include discount brokerage firms & mutual fund companies and robo advisors.
Tiburon CEO Summit attendees believe that online advice firms will realize moderate or huge growth over the next five years. Specifically 67% of Tiburon CEO Summit attendees believe that online advice firms will realize moderate growth over the next five years, while 30% of Tiburon CEO Summit attendees believe there will only be huge growth.
6. Declining Number of Financial Advisors: RIAs & Headsets?
Financial advisor channels firms have 301,126 financial advisors, down from 339,450 in 2004 and its peak of 339,920 in 2005. Financial advisor channels firms have decreased consistently over the last nine years.
Tiburon CEO Summit attendees now believe that the role of financial advisors is losing value to clients. Specifically 54% of Tiburon CEO Summit attendees believe that the role of financial advisors is losing value to clients, while 46% of Tiburon CEO Summit attendees believe that the role of financial advisors is gaining value to clients.
Tiburon CEO Summit attendees increasingly think that the number of financial advisors will stagnate or at least grow only moderately over the next five years. Specifically 38% of Tiburon CEO Summit attendees think that the number of financial advisors will grow moderately over the next five years, while %62 of Tiburon CEO Summit attendees think that the number of financial advisors will stagnate.
7. Break-Away Brokers: A Slow & Steady Flow or About to Ramp Up?
Financial advisor teams & financial advisors move in three patterns, including captive-to-captive, independent-to-independent, & captive-to-independent (break-away brokers).
There are 645 successful financial advisor teams & financial advisors that moved in 2016, up from 544 in 2010. Successful financial advisor teams & financial advisors that move average $234 million assets under administration, down from $340 million in 2010. Between 2010 and 2016 there was a dip in the number of successful financial advisor teams & financial advisors changing firms.
Successful financial advisor teams & financial advisors that moved average $234 million assets under administration, down from $340 million in 2010. This has been a significant decrease from $344 million assets under administration in 2015.
Successful financial advisor teams & financial advisors that moved took $151 billion assets under administration, down from $185 billion in 2010. There was a dip in successful financial advisor teams & financial advisors changing firms asset under managements between 2010 and 2016.
Tiburon CEO Summit attendees continue to believe that the break-away brokers trend will grow moderately over the next five years. Specifically 74% of Tiburon CEO Summit attendees continue to believe that the break-away brokers trend will grow moderately over the next five years.
The break-away broker movement could triple in size if the wirehouses continue on strategy to cease paying brokers to move. Specifically captive-to-captive & independent-to-independent moves have $300 billion of successful financial advisor teams changing firms assets under managemet, break-away broker moves have $150 billion, & potential break-away broker moves have $450 billion of successful financial advisor teams changing firms' assets under management.
8. Nationwide RIAs: Nationwide Organic & Acquisitive RIA Firms Coming Soon!
Tiburon CEO Summit attendees continue to say that the number of independent advisors will grow the fastest over the next five years. Specifically 94% of Tiburon CEO Summit attendees say that the number of independent advisors will grow the fastest over the next five years.
Tiburon CEO Summit attendees have become less optimistic on independent broker/dealers over the next five years. Specifically 48% of Tiburon CEO Summit attendees believe that there will be moderate growth in the future of independent broker/dealers over the next five years, while 45% of Tiburon CEO Summit attendees believe that the future of independent broker/dealers' growth will stagnate.
Tiburon will seek to prove the financial advisor bifurcation; it is possible that a few dozen fee-based financial advisors are driving the markets" growth.
The number of multi-billion fee-based financial advisors mergers & acquisitions is impressive. Hellman & Friedman (Edelman Financial Services) leads fee-based financial advisors mergers & acquisition deals with $14.8 billion assets under management.
9. Financial Advisor Technology & Outsourcing: Continuing to Support Independence
Tiburon CEO Summit attendees believe that technology is an empowering force. Tiburon CEO Summit attendee Stuart DePina said, "Technology will continue to enable financial advisors to operate more cost efficient practice."
FA TAMPs have gathered $2.8 trillion assets under management & administration, up hugely since 1995. FA TAMPs have consistently increased their assets under management & administration every year since 1995.
Tiburon CEO Summit attendees believe that TAMPs will realize moderate or huge growth over the next five years. Specifically 74% Tiburon CEO Summit attendees believe that TAMPs will experience moderate growth, while 15% of Tiburon CEO Summit attendees believe that TAMPs will experience huge growth.
10. Financial Advisor Force Aging: Succession Planning Happening? Huge Consolidation Trend Coming?
Financial advisor succession planning is important for three key reasons, including client retention, ethical responsibility, & potential regulatory mandate.
There are 123 independent advisor merger & acquisitions, up from thirteen in 1999. The number of independent advisor merger & acquisitions nearly doubled between 2014 and 2015, going from 54 independent advisors mergers & acquisition transactions in 2014 to 123 transactions in 2015.
Tiburon CEO Summit attendees say that financial advisor consolidation activity will see moderate or even huge growth in 2017-2018. Specifically 76% of Tiburon CEO Summit attendees believe that there will be moderate growth in financial advisor consolidation activity, while 20% of Tiburon CEO Summit attendees believe that there will be huge growth.
The Top Five Potential Disruptors
The top five potential disruptors are as follows:
1. Interest Rates, the Stock Market, Industry Profitability, & Industry Trends
The first potential disruptor is interest rates, the stock market, industry profitability, & industry trends. Interest rates, the stock market, & industry profitability includes low interest rates & bull stock market. Tiburon CEO Summit attendees primarily said the eight year bull market will end. Specifically 61% of Tiburon CEO Summit attendees said the eight year bull market will end, while 39% believe it will not.
2. The Department of Labor (DoL), the Securities & Exchange Commission (SEC, & the Fiduciary Standard
The second potential disruptor is the Department of Labor. Tiburon CEO Summit attendees say that a potential fiduciary regulation by the Securities & Exchange Commission (SEC) is the most important regulatory issue to their firms. Tiburon CEO Summit attendees rated fiduciary regulation (SEC) a 7.8 on a 10-point scale with 10 meaning the most important regulatory issue to your firm. Tiburon CEO Summit attendees said that financial advisor directed programs (rep as advisor & rep as portfolio manager) will grow moderately or even stagnate over the next five years. Specifically 51% of Tiburon CEO Summit attendees said that financial advisor directed programs will grow moderately, while 23% of Tiburon CEO Summit attendees said the growth would stagnate.
3. Tax Reform: Growth Engine or Deficit Creator?
The third potential disruptor is tax reform. Tiburon CEO Summit attendees are relatively more positive on Trump"s tax reform as opposed to his other policies. Tiburon CEO Summit attendees rated personal & corporate income tax rate a 7.0 on a 10-point scale with 10 meaning highest feedback on support for the issues under President Donald Trump's administration. President Trump's tax proposal includes changes to corporate taxes rates (35% to 20%), LLC tax rates (39.6% to 25%); & personal income tax rates (12%-35%).
4. 2018 & 2020 Elections: More of the Same or a Reversal?
The fourth potential disruptor is the 2018 & 2020 elections. Tiburon CEO Summit attendees" have shifted to another affiliation. Tiburon CEO Summit attendees said Republicans will retain control in the 2018 House of Representatives election. Tiburon CEO Summit attendees said Democrats will win control in the 2018 Senate election. Tiburon CEO Summit attendees said democrats will win the 2020 United States presidential election. Tiburon CEO Summit attendees said the specific winner of the 2020 United States presidential election has yet to emerged.
5. Artificial Intelligence & the FANG Companies: Facebook, Amazon, & Google
The fifth potential disruptor is artificial intelligence & the FANG Companies: Facebook, Amazon, & Google. Tiburon CEO Summit attendees are primarily not worried about artificial intelligence disrupting the financial services industry. Specifically 59% Tiburon CEO Summit attendees are not worried at all about artificial intelligence disrupting the financial services industry. One recent study said that almost three-quarters of millennials would take financial advice from the FANG companies with 70% of millennials agreeing that they would take financial advice from FANG companies.
Tiburon's Conclusions on The Future of Wealth Management
Tiburon has two conclusions on the future of wealth management.
Tiburon's first conclusion is the trend is your friend with the rapidly growing market. The future of wealth management industry trends include: rapidly growing market; pricing pressure (transactions; investment management; & financial advice); industry consolidation; technology solutions; & remember that closest to client almost always eventually wins. One to consider: numerous of the cryptocurrencies returned over 1,000% in the first half of 2017. Critical to all trends" Tiburon recognizes the small market shares held by even the largest financial services firms with Fidelity Investments controlling about 10% of financial assets or 3% if adjusted for velocity.
Tiburon's second is industry structure. Financial services industry structure will be increasingly altered by financial services industry venture capital, financial services industry mergers & acquisitions, & financial services industry private equity.
Tiburon CEO Summit XXXIII Day #2 Keynote Presentation Overview
Tiburon Managing Partner Chip Roame's day #2 keynote presentation is intended to address strategic activity in the wealth management industry, including venture capital, private equity, and mergers & acquisitions. Financial services industry investment opportunities is defined by financial services industry profitability & valuations, financial services industry venture capital & minority growth equity, financial services industry public offerings, and financial services industry public stock investing.
Financial Services Industry Profitability & Valuations
The Charles Schwab Corporation generates $1.0 billion quarterly net interest revenues, up from $772 million in 1q/16. The Charles Schwab Corporation's net interest revenues have grown consistently over the last year.
The Charles Schwab Corporation has the lowest cost to serve its client base. Specifically The Charles Schwab Corporation has 18 basis points of expenses-to-average assets under administration, significantly lower than Morgan Stanley Wealth Management's 58 basis points.
The Charles Schwab Corporation earned 41.8% pre-tax profit margin, up from 38.1% in 4q/15. The Charles Schwab Corporation's pre-tax profit margin has grown consistently since the first quarter of 2016.
SS&C Financial Technologies & SEI Investments have the highest revenues amongst FinTech companies. Specifically SS&C Financhial Technologies' 2017 revenues are $1.7 billion, while SEI Investments' 2017 revenues are $1.5 billion.
Envestnet & Financial Engines have the highest expected revenue growth amongst FinTech companies. More specifically, Envestnet's 2017 revenue growth was 14.6% and Financial Engines' revenue growth was 14.5%.
The Charles Schwab Corporation trades at the highest price-to-earnings ratio amongst discount & online brokerage firms at 27.0x. TD Ameritrade follows closely behind with its price-to-earnings reatio amongst discount & online brokerage firms at 23.0x.
BlackRock's dominant share in passive investing shows up in its price-to-earnings ratio. Specifically BlackRock's forward price-to-earnings ration is 17.7x.
Envestnet, MSCI, & Financial Engines have the highest price-to-earnings ratios amongst FinTech firms. Specifically Envestnet's price-to-2018E EPS is 24.7x, MSCI's price-to-2018E EPS is 24.5x, & Financial Engine's price-to-2018E EPS is 24.2x.
Tiburon CEO Summit attendees say that financial services firm stock prices (valuations) will increase moderately in the next five years. Specifically 81% of Tiburon CEO Summit attendees say that financial services firm stock prices (valuations) will experience moderate growth over the next five years.
Financial Services Industry Venture Capital & Minority Growth Equity Investments
Venture capital firms have invested in the financial services industry in at least six markets including, B2C, front-office technology, payments, operations, data & analytics, and market structure. Venture capitalists invested $25.0 billion in financial technology firms in 2016, up from $1.4 billion in 2010.
SoFi has raised the most venture capital amongst financial services firms, with $1.3 billion. SoFi's venture capital investments outnumber all the other leading financial services firm recipients by more than three-fold with the second highest firm.
Robo advisors have raised $223 million venture capital, up from $9 million in 1998. There was a significant increase in venture capital between 2013 and 2016, going from $47 million to $208 million. Robo advisors have raised $991 million venture capital, up from $560 million in 2015.
Betterment Holdings, Personal Capital Corporation, & Wealthfront have raised the most venture capital amongst the online advice firms. Specifically Betterment Holdings has raised $275 million, Personal Capital Corporation has raised $179 million, & Wealthfront has raised $130 million in venture capital.
Tiburon CEO Summit attendees increasingly believe that venture capital's bet on online financial advice will see only moderate growth or stagnate. Specifically 54% of Tiburon CEO Summit attendees believe that venture capital's bet on online financial advice will see moderate growth, while 23% of Tiburon CEO Summit attendees believe that venture capital's bet on online financial advice's growth will stagnate.
Private equity firms have invested in the financial services industry in at least three markets, including investment management (alternative investments managers & long-only managers), FinTech (technology platforms & outsourcing (back office)), & independent advisors (organic growth stories & Pa Aggregators).
Tiburon CEO Summit attendees said that private equity will continue to invest moderately or even hugely in independent financial advisor distribution. Specifically 52% of Tiburon CEO Summit attendees expect moderate growth in independent financial advisor distribution, while 36% of Tiburon CEO Summit attendees expect huge growth in independent financial advisor distribution.
Financial Services Industry Public Offerings
Tiburon CEO Summit attendees said financial services industry initial & secondary public offerings will grow only moderately or even stagnate. Specifically 69% of Tiburon CEO Summit attendees said financial services industry initial & secondary offerings will grow moderately, while 31% of Tiburon CEO Summit attendees said financial services industry initial & secondary offerings' growth will stagnate.
There are 160 private companies are valued at $1.0 billion or more, up from six in 2010. This is significantly more than the 60 private companies just three years prior in 2014. Late stage start ups are valued at $490 billion, up from $40 billion in 2010.
Financial Services Industry Mergers & Acquisitions
Retail banks mergers & acquisitions activity has been quiet. Since 2007, USA targets valuations have decreased from $60 billion to $10 billion in 2017.
Tiburon CEO Summit attendees said that the importance of investment & wealth management businesses to large financial services firms will increase moderately or hugely the next five years. Specifically, 73% of Tiburon CEO Summit attendees believe that there believe there will be moderate growth in the importance of investment & wealth management businesses to large financial services firms, while 18% believe there will be huge growth.
Tiburon CEO Summit attendees said that big banks will not divest investment & wealth management businesses in the next downturn, although a larger minority see the possibility again. Specifically 73% of Tiburon CEO Summit attendees believe that big banks will not divest investment & wealth management businesses in the next downturn, while 27% of Tiburon CEO Summit attendees believe that they will.
Tiburon CEO Summit attendees said that broker/dealer consolidation activity will either grow moderately or hugely in 2017-2018. Specifically 73% of Tiburon CEO Summit attendees said that broker/dealer consolidation activity will grow moderately, while 22% of Tiburon CEO Summit attendees said that broker/dealer consolidation activity will grow hugely.
Tiburon CEO Summit attendees say that financial advisor consolidation activity will see moderate or even huge growth in 2017-2018. Specifically 76% of Tiburon CEO Summit attendees say that financial advisor consolidation activity will see moderate growth, while 20% of Tiburon CEO Summit attendees say that financial advisor consolidation activity will see huge growth.
Tiburon CEO Summit attendees said that other RIAs or roll-up firms will be the most frequent financial advisor acquirers. Specifically 45% of Tiburon CEO Summit attendees said that other RIAs will be the most frequent financial advisor acquirers and another 45% of Tiburon CEO Summit attendees said that roll-up firms will also be the most frequent advisor acquirers.
Tiburon CEO Summit attendees say that financial technology firm consolidation activity will increase moderately or even hugely in 2017-2018. Specifically 62% of Tiburon CEO Summit attendees say that financial technology firm consolidation activity will increase moderately, while 35% believe that financial technology firm consolidation activity will increase hugely.
Financial Services Industry Activists Campaigns
Financial services industry public stock investing can specifically be segmented by financial services industry mutual funds & ETFs and financial services industry hedge funds.
Tiburon Conclusions on FSI Strategic Activity
Tiburon's conclusions on FSI strategic activity include profitability evaluations to see mixed results; venture capital & minority growth equity investments to increase (B2C; FA technology; & other market segments); initial public offerings & secondary offerings to stagnate; mergers & acquisition activity to increase led by investment management firms & financial advisors (investment management & financial advice; financial advice; other market segments); & activism to increase.
Speakers
Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXXIII included speakers Joe Mansueto (Executive Chairman, Morningstar), Cooper Abbott (President, Carillon Tower Advisors), Blaine Aikin (Executive Chairman, fi360), Anil Arora (CEO, Envestnet Yodlee), Vivina Berla (Co-Managing Partner, Sarona Asset Management), David Blumberg (Managing Partner, Blumberg Capital), Phyllis Borzi (Former Assistant Secretary, Employee Benefits Security Administration, Labor Department, United States of America), Dave Butler (Co-CEO, Dimensional Fund Advisors), Margo Cook (President, Nuveen Advisory Services), Walter Cruttenden (Co-Founder, Acorns), Robert DeChellis (Chairman, Insured Retirement Institute (IRI)), Stuart DePina (President, Envestnet Tamarac), Colin Falls (President, GeoWealth Management), Rob Foregger (Co-Founder, NextCapital Group), Tim Freundlich (President, ImpactAssets), Nick Good (Co-Business Head, SPDR Business, State Street Global Advisors), Bob Guillocheau (CEO, Ascensus), Jan Hier-King (Co-Founder, Bicycle Financial), Tif Joyce (Partner, Sonoma County Wealth Advisors), Kunal Kapoor (CEO, Morningstar), Rick Lacaille (Global Chief Investment Officer, State Street Global Advisors), Vincenzo LaRuffa (Partner, Aquiline Capital Partners), Liz Michaels (CEO, ESG & SRI, Aperio Group), Joe Mrak (CEO, FolioDynamix), Ed O'Brien (CEO, eMoney Advisor), Bob Oros (CEO, HD Vest Financial Services), Stuart Parker (CEO, PGIM Investments, Prudential Financial), Alex Rampell (Partner, Andreessen Horowitz), Simon Roy (CEO, Jemstep), Dave Ryan (President, California, Upton Financial Group), Schwark Satyavolu (Partner, Trinity Ventures), Drew Sievers (CEO, Trizic), Babu Sivadasan (President, Envestnet Retirement Solutions), Laurel Taylor (CEO, FutureFuel.IO), Jason Thomas (CEO, Savos Investments), Bill Van Law (President, Investment Advisors Division, Raymond James Financial), Ken Weise (CEO, Sonoma County Wealth Advisors), Dave Welling (CEO, Mercer Advisors), & Kim Wright-Violich (Managing Partner, Tideline).
Joe
Mansueto
(Executive
Chairman, Morningstar)
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Joe Mansueto is the chairman & CEO of
Morningstar. He founded the company in 1984. Mr.
Mansueto received the 2007 Skip Viragh Award,
sponsored by Rydex Investments & Financial
Advisor magazine, which recognizes new &
innovative services that positively impact the
financial advisor community. Mr. Mansueto also
received the 2007 Visionary Award and was one of ten
winners of the 2007 Chicago Innovation Award,
sponsored by the Chicago Sun-Times and Kuczmarski
& Associates. In 2007, Smart Money magazine
recognized Mr. Mansueto in the Smart Money Power 30,
its annual list of the top 30 most powerful forces
in business & finance. He received the
Distinguished Entrepreneurial Alumnus Award from the
University of Chicago Graduate School of Business in
2000. He received the KPMG Peat Marwick High Tech
Entrepreneur of the Year Award in 1993 and won the
Rosenthal Award for Excellence in Investment
Research from the University of Chicago in 1992.
Before founding Morningstar, Mr. Mansueto was a
securities analyst at Harris Associates.
Mr. Mansueto's comments included:
- "I started Morningstar because I love investing and wanted to build something around my passion. I did not know how to build a company; I have learned how to grow a company in the last thirty years and learned those professional management skills along the way. My vision was to build a big, enduring company. I was well aware of what happens to most entrepreneurs."
- "The real enjoyment is the incremental. I get
tremendous pleasure from watching our methodology
improve."
- "In the early days, we all answered the phone. We became very close to our clients. I really liked those days but I kind of like our position better today."
- "Good advice is effective in helping someone reach their goal, making sure it is appropriated in terms of risk level and appetite."
- "Good advice can be delivered online. The really exciting thing is that millions more people will be served."
- "We put a lot of thought into our management transition (from me to Kunal), and we had the luxury of time. We had weekly meetings on how to make this work, and announced it on Labor Day and answered questions at each location. I don"t think we"ve missed a beat and its worked out very well."
- "The bulk of our products have been organic; our strategy is all based on organic."
- "We put investors interests above our own in everything we do."
- "The print world is struggling, frequency is less, it really hasn"t find a good solution. It will move to digital at some point, it's just a question of when."
- "Not only having the data but also interpreting it, is really where we made our mark in the industry."
Cooper
Abbott
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Carillon Tower Advisors)
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Cooper Abbott is President of Carillon Tower Advisors. Mr. Abbott is also the President of Eagle Asset Management. Mr. Abbott joined the firm in 2003 and has extensive investment industry experience. Mr. Abbot previously served as a vice president at Raymond James Financial and at Deutsche Bank.
Mr. Abbott's comments included:
- "At the end of the day its performance at a price."
- "Carillon Tower Advisers allows teams to concentrate on their primary goal of investing and allows us to provide scalable business support solutions to a growing ecosystem of distinct and talented investment teams."
- "This approach frees teams to focus on their investment process with limited distraction, as experienced professionals provide operational, back-office, infrastructure, distribution and other important business functions."
- "Solution-based approaches are evolving and becoming a more integral component of investor portfolios."
- "Technology is making cost to do business lower in terms of the back office."
- "Alignment of results for compensation makes a lot of sense."
Blaine
Aikin
(Executive
Chairman, fi360)
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Blaine Aikin is the Chief Executive
Officer of fi360. Mr. Aikin received his Master of
Public Management and Policy degree from the Heinz
School of Carnegie-Mellon University. Upon
graduation from CMU, he was selected for the
prestigious Presidential Management Intern Program
which involved management assignments in the
United States Department of Treasury and the
United States Senate. He subsequently served as
Budget Officer for Prince William County,
Virginia. Mr. Aikin previously served as a
principal and Chief Investment Officer of
Allegiance Financial Advisors.
Mr. Aikin's comments included:
- "The transition to greater transparency and objectivity in financial services is undeniable."
- "As the regulatory environment changes and more investors demand fiduciary oversight, the need for highly skilled and educated professionals has skyrocketed."
- "It's fine to call out the importance of the fiduciary standard but the divisive type of rhetoric we often use ultimately is not helpful."
- "You can have real ranges in terms of degree of complexity of the participant"s situation that extend beyond what you see if you"re just looking at the plan assets."
- "As advisers may find it necessary to place greater emphasis on managing longevity risks for clients, it behooves them to better understand the problem."
- "Really you should look at much more than the regulatory picture. There are many more forces that are working in fiduciary fraction that make it inevitable that the future is very fiduciary in orientation."
Anil
Arora
(CEO,
Yodlee)
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Anil Arora is CEO of Envestnet Yodlee and Vice Chairman of Envestnet Board. Prior to the merger with Envestnet, Mr. Arora had been President and CEO of Yodlee since 2000. Under his leadership, Yodlee has been a disruptive catalyst for creativity and ingenuity in the financial industry by collaborating with leading financial institutions, entrepreneurs, and financial technology developers to build and distribute data-driven financial apps used by millions of consumers and small businesses all over the world. Today, Mr. Arora is helping Envestnet | Yodlee lead the charge for better outcomes for both customers and advisors through innovative financial data and technology solutions. Mr. Arora has extensive experience building some of the world's most recognized brands at companies like General Mills, Kraft, and Gateway, as well as innovating new market strategies, and increasing the lifetime customer value for companies in a variety of industries.
Mr. Arora's comments included:
- "We have to look at our industry at a very broad level, and view it with the perspective of a client, advisor, or player. We are in for a dramatic amount of changes. 82% of clients say they"re overwhelmed and have anxiety about their finances. 65% of clients are losing sleep over it during the night."
- "Financial institutions have craved the ability to accelerate innovation with both internal and external developers, but have never had a safe and effective way to do so....We are pleased to finally meet those needs with a revolutionary new approach that we believe will fundamentally change the paradigm for bank innovation and agility."
- "The addition of new customers in wealth management underscores the positive response Yodlee customers have had to the news that Yodlee reached a definitive agreement to merge with Envestnet Inc., a leading provider of unified wealth management technology and services to financial advisors during the third quarter."
- "As a group, we fully support the creation of an Open API framework to enable financial innovation and improve the financial health of consumers."
- "There is an enormous transformation going on in financial services, and we are going to accelerate that."
- "If you want to be a network, you better have scale, broad functionality, and a lot of data. I"m very focused on the data part."
- "We recognize the disruption, and if we want to be a player we need an aggressive vision and have an aggressive strategy."
- "I read a study the other day that 77% of millennials would prefer doing their financial services with FANG companies than financial institutions. It's stunning. We have to do a better job of the next few years."
Vivina
Berla
(Co-Managing
Partner, Sarona Asset Management)
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Vivina Berla is Co-Managing Partner at Sarona Asset Management. Ms. Berla joined Sarona Asset Management in 2011 to lead the growth and evolution of the firm into the institutional market. Prior to that Ms. Berla worked for 20 years in the institutional investment world, of which 11 years included private equity in the United States and Europe. Ms. Berla held senior positions during 10 years at Merrill Lynch Investment Managers in London and left her role as Managing Director of Alternative Investments to join Gartmore Investment Management as Head of EMEA in 2004. Ms. Berla's first career included 11 years in the steel industry in Latin America, Asia, Africa and Middle East.
Ms. Berla's comments included:
- "Private equity in frontier and emerging markets is a young but rapidly maturing industry and it displays characteristics similar to the US private equity industry of the 1980s " plenty of potential opportunities for investors who have an "information advantage" to capture the growth of the "real" economy."
- "The investment opportunity is driven by four main factors " a rising middle class (increasing spending power and demand for locally produced goods and services); change in demographics (young and growing population with significant aspirations, energy and drive); increasing urbanisation (cities" contribution to the national economy is growing at a faster pace than the country average); and returning expatriates (well-educated professionals driven by an entrepreneurial desire to make a difference in their respective countries while generating profits)."
- "The key to attractive returns resides in the ability of investors to find managers who are able to source great deals, manage and improve companies before exiting them successfully."
- "The equity risk premium of frontier markets is much higher and the required return should also be much higher due to the lack of liquidity and higher cost of entering a frontier market."
- "During periods of extreme market stress, frontier markets" relatively illiquid stock markets can suffer sharp declines in the face of heavy selling."
- "Frontier and emerging markets today represent 50% global GDP and also represent 70% of global GDP growth."
- "Bridge the distance between smart capital and entrepreneurs, businesses and companies that are growing faster than North America."
- "Percentage of investors" money allocated in that investment opportunity is almost insufficient."
David
Blumberg
(Managing
Partner, Blumberg)
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David Blumberg is Managing Partner of Blumberg Capital. Mr. Blumberg is an authority on early stage investing with more than 25 years of experience. He founded Blumberg Capital in the early 1990s and launched its first venture-backed fund in 2001. Prior to Blumberg Capital, Mr. Blumberg managed international investments with the Bronfman Family Office, Adler & Co, APAX Partners and at T. Rowe Price. Mr. Blumberg also launched business development for Check Point Software Technologies as one of its top four executives. Mr. Blumberg also serves on the boards of Apester, CaseStack, Credorax, Deep Instinct, DoubleVerify, EarnUp, FeeX, Firmitas, Fortscale, IntSights, Kreditech, Namogoo, Trulioo, Wunder and Zooz. He also serves on the Board of The Lincoln Club of Northern California and is a member of the Pacific Council on International Policy. He is a member of the Investment Committee of 137 Venture and is on the Advisory Committee of StartOut.
Mr. Blumberg's comments included:
- "American consumers want financial institutions to help them focus on getting their business done better, but 76% are still afraid of security breaches."
- "Technology can be used for the benefit of the masses."
- "We need transparency."
- "The PO market has been constrained due to a lot of regulatory reasons."
- "Everyone needs to track their numbers, and needs to have good analytics."
Phyllis
Borzi
(Former
Assistant Secretary, Employee Benefits
Security Administration, Labor
Department, United States of America)
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Phyllis Borzi is the former Assistant Secretary for Employee Benefits Security of the United States Labor Department. Previously, Ms. Borzi was a research professor at George Washington University Medical Center in the Department of Health Policy's School of Public Health and Health Services. In that position, Ms. Borzi was involved in research and policy analysis involving employee benefit plans, the uninsured, managed care, and legal barriers to the development of health information technology. In addition, Ms. Borzi was of counsel with the Washington, D.C. law firm of O'Donoghue & O'Donoghue LLP, specializing in ERISA and other legal issues affecting employee benefit plans, including pensions and retirement savings, health plans, and discrimination based on age or disability.
Ms. Borzi's comments included:
- "Investment advisers shouldn"t be able to steer retirees, workers, small businesses, and others into investments that benefit the advisers at the expense of their clients. The consumer's retirement security must come first."
- "Opponents of the rule are going to find it extremely difficult to successfully delay or substantially dilute the rule."
- "The only thing that appears to have changed is the occupant of the White House. If the administration decides to just flip this rule or make major changes in it, they will be sued. I do not think the courts are going to be looking favorably."
- "I was always very vocal about making sure that the people who were in charge of implementing them balanced the protections " for the workers, the participants and the retirees " against costs."
- "Whose side are you on? Force people to answer that question. There's only one possible answer."
- "Irrespective, of the regulatory events that are taking place, we have to recognize that more and more assets are in the hands of fiduciaries and in fact most of the worlds wealth is in the hands of fiduciaries of some sort and that is true with respect to the institutions."
- "People don"t understand how an agency puts out a regulation. You can" t just snap your fingers and put out a regulation, there is a law of administrative procedures act."
- "Focusing on fiduciary duties was not only good for the customer, but it was good for the business bottom line."
Dave
Butler
(Co-CEO,
Dimensional Fund Advisors)
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Dave Butler is Co-CEO of Dimensional Fund Advisors. Mr. Butler joined Dimensional in 1995 and brings more than 20 years of experience working with financial advisors. Mr. Butler leads a worldwide team of regional directors and client services professionals who apply Dimensional's strategies and resources to help advisors provide investors with an outstanding client experience. Mr. Butler is on the firm's Executive Committee and has been involved with firm-wide strategic vision and decision making for many years.
Mr. Butler's comments included:
- "Peace of mind may be attributed to many aspects of an advisor relationship, and in our view it is an outcome of advisors helping investors feel prepared by setting the right expectations."
- "Returns matter, but having a plan and remaining disciplined are just as important for long-term investment success."
- "Achieving returns in a way that enables people to relax just a little bit more is very important to us and also to investors."
- "When investors work with an adviser who has a holistic understanding of their personal situation and can help them stay focused on their long-term goals, we believe they are better positioned to benefit from what the capital markets have to offer."
- "Naturally, many investors have fears about what is likely their most important financial goal - saving for retirement. By helping clients understand what they can and cannot control, advisors can create a different experience to help ease their concerns."
- "We"re not against private equity at all, we just feel there's less experience in the private equity space. Private equity is probably somewhere below the microcap space. We have no issue with people putting private equity in their portfolio."
- "At the end of the day we want to make sure the share cap funds are protected and make sure assets are controlled in a certain way."
- "There's a significant passion towards the capital markets and how we think. Passion is confused for religious fever."
- "Private equity is going to be a part of the game, just hopefully not the whole game."
Margo Cook
(President,
Nuveen Advisory
Services)
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Margo Cook is President of Nuveen Advisory Services. Ms. Cook is responsible for delivering Nuveen"s investment capabilities to clients globally, overseeing product, marketing and distribution. Ms. Cook also leads the firm's strategy to deliver consultative, outcome-focused advice and investment solutions to clients worldwide. Prior to the integration of the TIAA and Nuveen Investments asset management organizations, Ms. Cook was Co-President of Nuveen Investments. Before joining Nuveen, Ms. Cook led the global institutional business at Bear Stearns Asset Management and also held various senior investment leadership roles within BNY Mellon for more than 20 years, including head of fixed income and Chief Investment Officer of institutional investments.
Ms. Cook's comments included:
- "Investors need to solve for a diverse and growing list of challenges " income generation, diversification, longevity risk and retirement readiness, and matching assets with liabilities, among others " and our clients are asking us to be problem solvers and help them think and execute against their goals."
- "At no other point in our
firm's development have we been as
well positioned to draw upon the
very best investment thinking,
portfolio solutions, product
management expertise, and client
service resources from across the
firm. By undertaking these
proposals, we ensure our ability to
continue to deliver the most
innovative and relevant investment
solutions to our clients."
- "It is really incumbent on us to help our client figure out what the purpose of the asset to structure the portfolio and solve the problem it's trying to solve."
-
- "There"s
a lot of value in the muni
market today."
Walter
Cruttenden
(Co-Founder,
Acorns)
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Walter Cruttenden is Co-Founder & Chairman of Acorns. Early in his career, Mr. Cruttenden founded and served as CEO of two well known investment banking and brokerage firms: Cruttenden Roth (now Roth Capital, active underwriters of emerging growth companies), and E*Offering, formerly the iBank arm of E*Trade Securities (since merged). As CEO, Mr. Cruttenden led both companies through rapid growth and significant liquidity events. Mr. Cruttenden also co-founded SRS Laboratories (since acquired by DTS), after buying the acoustic technology from Hughes, and developing it into an independent company. Mr. Cruttenden also founded one of the largest growth stock conferences in the US, now the Roth Conference.
Mr. Cruttenden's comments included:
- "We just want to enjoy our lives and change the world."
- "There's roughly 100
million people that under save (or
under invest). You can open an
account at 18 but most people really
do not get their act together until
they're 30-something."
- "There are 315,000 financial advisers out there. We're not trying to compete with them. We're trying to be the starter account, the farm school, the incubator."
- "There's
not a place to put in a stock
symbol or a price or type of
order. It just sweeps your money
into this pre-constructed
portfolio, and when you want it,
you withdraw instantly."
- "Investing
is a powerful first step."
Robert
DeChellis
(Chairman,
Insured Retirement
Institute (IRI))
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Robert DeChellis is Chairman of Insured Retirement Institute (IRI)). Mr. DeChellis is also President of Allianz Exchange and has more than 25 years of financial services experience. Prior to joining Allianz, Mr. DeChellis was executive vice president at the Travelers Companies Retail Annuities Division. He was responsible for expanding the company's retail annuity distribution network. Mr. DeChellis also was executive vice president and national sales manager for Jackson National Life Distributors. Before that, he managed sales for a broad range of product lines and distribution channels at Goldman Sachs. He was also a regional manager for Lord, Abbett, & company, a pension consultant with Transamerica, and an account manager for Aetna.
Mr. DeChellis" comments included:
- "We must continue to broaden and deepen our affinity with financial advisors. This will require us to shift our focus to supporting a more holistic retirement planning process."
- "IRI's mission and goals
align well with those of Allianz.
This alignment will create greater
awareness of the importance of
financial planning and driving
global collaborative efforts."
- "We're in a pretty tenuous spot right now as it relates to timing."
- "Price
is important in the absence of
value."
- "You
can't serve a client if you do
not know the details and the
intimacy of their personal
situation."
Stuart
DePina
(President,
Envestnet Tamarac)
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Stuart DePina is President of Envestnet Tamarac. Mr. DePina manages the long-term growth strategy of Tamarac. His balanced leadership is rooted in deep financial experience and the belief that a solid organization is built on customer focus, commitment and thoughtful business practices. Mr. DePina's professional history is distinguished by leadership roles in guiding firms through various stages of development including initial public offerings and acquisitions. Most recently, Mr. DePina served as CEO for Who's Calling, a web-based application that uniquely measured online and traditional direct marketing performance, where he succeeded in doubling the company's revenue base and drove profitability. He served as president and CEO of xSides Corporation, a developer of trusted computing and digital rights management technology. He was chief financial officer for Ticketmaster Corporation, and a partner in the big four firm of KPMG, where he provided consulting and assurance services to a number of clients in the firms' financial services practice.
Mr. DePina's comments included:
- "For years they [Advent Software] said, bundling is not a smart strategy; it is better to be great at one thing. They are right but that one thing is a platform."
- "The widgets that are
part of the portal that advisers
leverage for clients create more
of a sticky relationship between
the adviser and investor."
- "Tools, automation, and artificial intelligence can help manage more relationships for strategists."
- "What
we do is designed for a more
scalable solution for advisors
including proposal generation,
research, rebalancing,
reporting etc. All that
plumbing is there but it's not
what the end investor sees.
This Upside technology is the
last mile and it allows us to
offer the full spectrum."
- "As advisors and their clients are shifting their conversations from strictly performance to holistic financial planning, integrations that provide contextual linking help enable these important discussions."
- Connecting these dots with the advisor and all the information coming out of the investors" financial life is really rich. The individual that is closest to the consumer is going to have the ability to retain them."
- "One of the things we have been able to benefit from, is that we are able to piece together the best of what we have. The end game for us is for you to look at a menu of offerings and select the aspects of our offerings that fit your business class. Tamarac wants to be that ecosystem."
Colin
Falls
(President,
GeoWealth Management)
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Colin Falls is President of GeoWealth Management. As President, Mr. Falls primarily focuses on business strategy, organizational management, and platform product development. Prior to joining GeoWealth, Colin served in various roles at Frontier Wealth Management, a Kansas City based Registered Investment Advisor. He graduated from the University of Notre Dame's Mendoza College of Business in 2007 with a B.A. in Management and Entrepreneurship.
Mr. Fall's comments included:
- "Our clients are looking for access to top notch investment capabilities that can be easily accessed through our end-to-end advisor technology."
- "J.P. Morgan"s technology-enabled model portfolios offer a uniquely differentiated solution that can help advisors efficiently manage and grow their business."
- "Obviously, technology is the key, especially when it can also improve and enhance the user experience of your clients, as well as free up your time to focus on delivering client value."
- "Sophisticated and diversified outsourced portfolios are a top priority. "
- "Custodians seem to
be coming out with new
offerings every day. As you
consider your options,
remember that choosing a
custodian-provided solution is
likely to force your hand and
disrupt your practice for a
while."
Rob
Foregger
(Co-Founder,
NextCapital Group)
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Rob Foregger is Co-Founder of NextCapital Group, a digital advice platform for large financial services firms, and currently serves as Executive Vice President. Mr. Foregger is a seasoned executive with 20 years of managing complex business creation, business growth, and marketplace challenges for direct-to-consumer financial institutions. Mr. Foregger has co-founded and served in leadership roles at several companies, including EverBank Financial and Personal Capital. Mr. Foregger also previously served as President of Fidelity Personal Trust Company.
Mr. Foregger's comments included:
- "Some firms had clearly put things on hold, but a lot of others are looking at this as an offensive strategy to provide legal and scalable advice to consumers."
- "Some of the most exciting innovations in financial technology come from hiring team members with diverse backgrounds."
- "Applying new technologies to old business models often leads to great things. do not be afraid to think differently!"
- "It is imperative that the retirement industry provides transparent and cost-effective financial services, which align with the client's best interests."
- "Fundamentally, to
do lightweight smart
financial planning you have
to have it connected in your
managed accounts functions."
- "There's an ecosystem that's there and you need to try to do this in scale, select ones that do the holy ghost system."
Tim
Freundlich
(President,
ImpactAssets)
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Tim Freundlich is President of ImpactAssets. Mr. Freundlich is a long-time innovator in new financial instruments in the social enterprise sector, which he now applies as the head of ImpactAssets, the $350mm boutique donor advised fund and investment note offerer for impact investments. While previously at Calvert Foundation for 12 years, Mr. Freundlich conceived of and launched the donor advised fund. Mr. Freundlich was also instrumental in building the $250mm Community Investment Note with more than $1 billion invested into 300-plus nonprofits and for profits globally. Mr. Freundlich co-founded and serves as Managing Partner for Good Capital that, in addition to its flagship Social Enterprise Expansion Fund, founded the 2,500-person annual Social Capital Markets (SOCAP) conferences in San Francisco and four Impact Hubs in the United States; co-working, meeting and community space serving approximately 2,000 social innovators.
Mr. Freundlich's comments included:
- "Through these professionally managed funds, donors can provide critical "gap-filling" resources by channeling capital to strategies that are not typically funded by traditional capital markets or by philanthropy."
- "In many instances, client investments fuel high-impact, for-profit enterprises to develop their businesses to the point where more traditional financing becomes available to them."
- "In addition to the funds our donor advisors are participating in, we are seeing a marked increase in direct company venture investments and we have just completed our 281st deal, with nine completed in the last 30 days alone."
- "The whole field is evolving. Five years ago there was a lot less going on, and there were not a lot of good track records to look at outside the ESG [environmental, social and governance] stock and bond managers."
- "Investors and wealth advisors have an increased sense of urgency in aligning and deploying high-impact capital to what they see as a fast opening gap from government policies."
- "Impact investing is real and here to stay."
- "Philanthropy is getting a real refresh."
Nick
Good
(Co-Business
Head, SPDR Business,
State Street Global
Advisors)
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Nick Good is Co-Business Head of State Street Global Advisors' SPDR Business. In this role, Mr. Good is jointly responsible for State Street Global's $500B SPDR Exchange Traded Funds business globally, with primary responsibility for the North America and Latin America regions as well as for the Global Marketing and Global Strategy & Planning functions. Mr. Good initially joined State Street Global Advisors in 2014 as Chief Operating Officer of the United States Intermediary Business Group with responsibility for strategic relationships, sales strategy and investment outlooks for SPDR Exchange Traded Funds in the United States. Prior to joining State Street Global Advisors, Mr. Good spent eight years with BlackRock, primarily as CEO of iShares, Asia Pacific. Mr. Good also served as Managing Director and Head of Strategy and Business Development, Asia Pacific for BlackRock. Mr. Good initially joined the firm as Managing Director, Strategy & Planning for iShares and the Index and Markets Group globally at Barclays Global Investors (BGI), which merged with BlackRock in 2009. Before joining Barclays Global Investors, Mr. Good was a lead client manager at the Boston Consulting Group and a Senior Consultant at the Kalchas Group.
Mr. Good's comments included:
- "A service model in which we segment clients by channel is too simplified in today"s world of fee compression, regulatory change, and the continual need to scale to meet client demands."
- "The industry is shifting and we must customize our client experience and provide a portfolio of resources focused on the drivers, opportunities and challenges investment professionals face in their practice. This reorganization allows us to deliver a higher level of personalized service and support to the growing universe of financial advisors and wealth managers relying on ETFs to meet their clients" goals."
- "While the proliferation of ETFs has democratized asset allocation, there hasn't been enough focus on constructing portfolios."
- "With new
regulation on the
horizon, investors will
more likely focus their
asset allocation
decisions solely on
price."
- "To answer the questions of what is the risk profile and what is the performance attribution, we've seen demand for more capable portfolio analytics."
- "It's not just about management fees but about performance."
Bob
Guillocheau
(CEO,
Ascensus)
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Bob Guillocheau is CEO of Ascensus and is responsible for the strategic direction and vision of the company. Mr. Guillocheau has more than 30 years of experience in the financial services industry. Prior to joining Ascensus in 2003, Mr. Guillocheau was executive vice president and general manager of First Data Retirement Services, chief operating officer of ChannelWave, and chief financial officer for Mellon Bank's Mutual Fund Services Group.
Mr. Guillocheau"s comments included:
- "We feel when
we get to work
everyday with a noble
purpose, we get to
help more than seven
million Americans save
for some of life"s
most important
things."
- "Our focus
will continue on
growing our business
through investing in
our people, providing
great service to our
clients and in turn
providing strong
financial returns to
our investors."
- "We see a great opportunity to grow through new outsourcing deals, but also through acquisitions. We"re always willing to talk, and if it's a strategic and cultural fit, we"re more than happy to do business."
- "There is no
question that society
needs some sort of
government-sponsored
plan. Despite
everyone's best
efforts, adoption
rates of 401ks and
similar retirement
plans are not where
they need to be."
- "It"s imperative that we maintain our focus on the value that we provide to our clients in helping them save for retirement, college, and health care. We listened hard to what our clients were asking of us with our upcoming digital initiatives"the new solutions are truly being built with our clients in mind."
- "27% of Americans over the age of 60 have zero saved for retirement. And social security says for the average American social security should replace 33% of your retirement income."
Jan
Hier-King
(Co-Founder,
Bicycle
Financial)
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Jan Hier-King is Co-Founder and Chief Technology Officer at Bicycle Financial. Ms. Hier-King has 30 years of financial technology and operations experience at The Charles Schwab Corporation, Citibank, and Bank of America Corporation. At The Charles Schwab Corporation, Ms. Hier-King led the development of Schwab.com, ran Human Resources, and was Chief Information Officer. Most recently, Ms. Hier-King led The Charles Schwab Corporation"s technology and operations functions, which supported the company's entire business.
Ms. Hier-King's comments included:
- "I want every person, no matter how much money they have, to understand and act on their financial dreams."
- "We
wanted to change the
narrative of finance
from 'show me the
money' to 'tell me
about your life;
tell me about your
kids; tell me about
how much you save
and how much you can
save every month.'
and if you figure
that out, you can
make headway."
- "Your
kid might get a
college scholarship,
but you're never
going to get a
retirement
scholarship."
- "A house is not liquid, so you can't just right away capture dollars from it."
- "Financial freedom is the mantra for these folks."
- When you think of going home, as you do today, and looking at Alexa, and you know that someday the question to Alexa is going to be: Alexa, what do I do with my savings? And Alexa will get the answer eventually"hopefully Alexa will have to answer based on something we have given Alexa."
- These are folks who are about 25-40 years old, in terms of the demographic, and they are people who don"t care about name brands. So they don"t know or care about Schwab, Fidelity or any of those names. They use Venmo, they use whatever they have on the mobile device, so they"re a different breed.
- "I cared about investing in financial institutions that I trusted, these people, a lot of them don"t care, the trust element is not high."
Tif
Joyce
(Partner,
Sonoma County
Wealth Advisors)
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Tif Joyce is Partner of Sonoma County Wealth Advisors and former President of Joyce Financial Management. Mr. Joyce Tif has been a certified financial planner for more than 27 years. His comprehensive approach to planning and investing ensures that each client's unique needs will be carefully heard and addressed. He has long been a fierce advocate for the informed financial consumer, and has dedicated his career to educating and guiding the underserved "mass affluent" investor.
Mr. Joyce"s comments included:
- "While we do have some wealthy people, mostly we have regular folks who did everything the hard way and were patient."
- "We needed to embrace the tools of the modern age and I wasn"t getting it done."
- "A lot of stuff I"ve avoided in my life and in my practice is making commonly known errors. I have my act together and succession is part of that."
- "The important thing is, you can"t spend it all. You need to save enough of that income so that you"re independent, because you never know when it's going to stop entirely."
- "Financial planners are really consumer economists."
- "It takes a unique combination of people to make a good advisor. You"ve to be a numbers person and you got to be a people person. You"ve got to apply this as if it was yourself."
- "What someone is looking for is a healthy situation, and we are super thorough in what we do for people. It's a giant checklist, and it needs constant attention. It's like painting the Golden Gate Bridge, once you"re done you have to start all over again."
Kunal
Kapoor
(CEO,
Morningstar)
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Kunal Kapoor, CEO of Morningstar, is responsible for managing the company"s investment databases and related products, including Morningstar" Data, the firm"s comprehensive offering of investment data, real-time market data, documents, and more available through a variety of delivery methods including electronic data feeds. Prior to assuming his current role in 2012, Kapoor was president of Equity and Market Data/Software. In 2009, he became president of Individual Software, responsible for Morningstar.com", and in 2010, his role expanded to include the firm"s equity data business. Kapoor joined the company as a data analyst in 1997 and became a fund analyst in 1998. In 2001 he joined Morningstar Investment Services, a registered investment advisor and wholly owned subsidiary of Morningstar, as a senior research analyst. He was named editor of Morningstar" Mutual Funds", the company's flagship publication, in 2003, and in 2004 was appointed director of mutual fund analysis, where he led Morningstar's team of mutual fund analysts. In 2006, Kapoor was named director of business strategy for Morningstar"s international operations. He also served as president and chief investment officer of Morningstar Investment Services. Kapoor holds a bachelor"s degree in economics and environmental policy from Monmouth College and a master"s degree in business administration from the University of Chicago Booth School of Business. He also holds the Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Chicago. In 2010, Crain's Chicago Business named Kapoor to its annual 40 Under 40 class, a list that includes professionals from a variety of industries who are contributing to Chicago"s business, civic, and philanthropic landscape.
Mr. Kapoor"s comments included:
- "Our data reached a certain critical mass, more widespread acceptance of business models, and that wasn"t always the case for growth opportunities."
- "From my perspective, technology is enabling the adviser to have a closer relationship with the clients that advisers should be spending the most time with. Tech provides a huge opportunity for companies like Morningstar to demonstrate value."
- "One of the areas in the world that we see as having the biggest opportunities is in the U.S. As good as the opportunities are overseas, they are just as good here. It is not a matter of one over the other."
- "Everyone thought robo-advisers were going to land with a big thud in the adviser community. But they have gained acceptance in that advisers have found ways to use the new tools they get."
- "The reality is that the vast majority of assets are concentrated in a few funds, and covering that select group is not a challenge."
- "You tend to focus on a lot of stuff that isn"t actually in the job during the management transition. We will prove to be as successful as the last team."
- "We serve investors who want to do it themselves and we serve investors who want us to do it for them."
Rick
Lacaille
(Global
Chief
Investment
Officer, State
Street Global
Advisors)
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Rick Lacaille is Global Chief Investment Officer at State Street Global Advisors and a member of the firm's Executive Management Group. In his role as Chief Investment Officer Mr. Lacaille has responsibility for all investment management activity at State Street Global Advisors, including research and trading. Prior to his current role, Mr. Lacaille was Business Head of Global Active Equities, and previously European Chief Investment Officer. Before joining State Street Global Advisors in 2000, Mr. Lacaille held a wide variety of posts in quantitative fund management and research at Gartmore Investment Management, including periods as Head of Quantitative Research and Head of Structured Equities.
Mr. Lacaille's comments included:
- "We are overweighting equities although we are not ignorant of the risks of euphoria. When we look at the combination of relatively low interest rates and improving earnings growth, that"s a combination that leads us to conclude that we should be risk on."
- "As
an investor,
you have to
find the sweet
spot where
there is
enough slack
in the labor
market to keep
costs down,
but enough
growth in the
economy to
feed the
operating
leverage of
earnings."
- "On
the United
States I think
we'll see a
little bit
more core
inflation but
frankly we do
not think
that's going
to be a real
problem."
- "If you look at the euro zone landscape overall I'm not sure you see quite so many inflationary signs and I think that puts the ECB in a little bit of a dilemma with push and pull coming from different parts of the union."
- "In today's market environment, heavily influenced by macro events and political uncertainty, investors are seeking innovative strategies that can exploit the breadth of the investment universe."
- "The other part of the equation that scares people is low productivity growth and low inflation, and the rationale that one leads to the other."
Vincenzo
LaRuffa
(Partner,
Aquiline
Capital
Partners)
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Vincenzo LaRuffa is a Partner at Aquiline Capital Partners and is a member of the Investment Committee of Aquiline Technology Growth. Prior to joining Aquiline, Mr. LaRuffa was managing director of Susquehanna Growth Equity, a growth equity group he co-founded that focuses on financial technology and software in the United States, Europe, and Israel. Previously, Mr. LaRuffa was an investor with NGP Energy Technology Partners and began his career at Deutsche Bank in the mergers and acquisitions group.
Mr. LaRuffa's comments included:
- "Robo advice is going to be the fabric of customer acquisition."
- "Togetherwork
is in a unique
position to
leverage and
expand upon
the success
and
capabilities
of OmegaFi as
it brings
together
similar
companies to
create the
unrivaled
leader in
group
management and
payments
software,
which is an
attractive and
under-recognized
sector within
financial
technology."
- "This is an industry where chatter and know-how, on not just what deals are getting done in the market but what portfolio companies are experiencing, are extraordinarily powerful."
- "It comes up because today people think about robo-advisers, or alternative lenders or other consumer-facing things. I don"t think things are being labeled fintech that aren"t fintech. I just think that certain end markets get much more consumer attention than others."
- "The payments market, for example, has had tremendous activity by small companies that became large by providing innovative solutions," he said. "The insurance market is in much earlier innings."
- "It"s a different world view from B2C, there aren"t as many customers when companies deployed a bunch of capital."
- "Facilitation of lending solutions to smaller RIAs would be a powerful change in the market."
Liz
Michaels
(CEO,
ESG & SRI,
Aperio Group)
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Liz Michaels is CEO of ESG & SRI at Aperio Group. Prior to joining Aperio, Liz was responsible for the $11 billion defined contribution managed accounts business at Ibbotson Associates, a wholly-owned subsidiary of Morningstar. Earlier in her career, she was the Chief Operating Officer of Morningstar and served on the company's executive committee.
Ms. Michaels' comments included:
- "Financial advisors are increasingly challenged to construct smart investment strategies that reflect the values and/or missions of their clients."
- "BlueStar's
data provides
us with an
additional
tool to help
clients
interested in
aligning their
interests in
Israel in
thoughtfully
designed,
risk-controlled,
low-cost
portfolios. We
are excited to
integrate this
new offering
into our
solution set."
- "These aren't easy discussions within foundations. If your job is to perpetuate the foundation for future generations, the question is whether this is going to negatively impact your ability to do so."
- "The combination of information in the press, and a proliferation of products and offerings in this space means investors are no longer taking no for an answer from their advisers. That means they're either taking their money and walking, or pressuring advisers to make it work."
- "Investors are becoming more sophisticated and more aware of the issue areas, and at the same time they are becoming more demanding, and I do not mean in a negative way."
Joe
Mrak
(CEO,
FolioDynamix)
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Joe Mrak is CEO of FolioDynamix. With 20 years in the industry, Mr. Mrak is an established thought leader and entrepreneur known for his vision and ability to evolve technology and investment products to meet the dynamic needs of leaders in the industry. Prior to launching FolioDynamix, Mr. Mrak co-founded Placemark Investments, the pioneer in overlay management and standards bearer in delivering highly customized account solutions. Mr. Mrak also served as general manager of BISYS WealthSolutions, now owned by Citigroup, and headed up product strategy for CheckFree Investment Services, now Fiserv, where he led product development for Check Free Corporation.
Mr. Mrak's comments included:
- "Integrating FolioDynamix"s powerful trading tools into Envestnet"s unified wealth management, financial planning and data analytics platform offers each of our customers the best of both worlds."
- "Data
aggregation is
something our
clients really
wanted to get,
and we"re
finally giving
it to them."
- "As an industry, we are seeing more and more advisors go the independent RIA route, and we think the technology solution we bring to market is exactly what these advisors need to grow their businesses exponentially, across custodial platforms."
- "The market is so fragmented that it's very hard to get critical mass [in the RIA arena]. FolioDynamix has been around for a long time. They"ve been at the much larger end and scaling that down to the advisor world is very difficult to do."
- "I really think we"re on par with Envestnet. They"re across the table from us nine times out of 10 on any deal we"re selling to. They"re our core competitor. We are probably the last two standing. I think Envestnet tried to get more into our market and we"re going to go right after them. The best way to put it is we"ve got a lot more gas to go after the marketplace."
- "I think you are going to see a lot more Ron Carson's in the world, because they realize there is going to be a lot more opportunities in this market."
Ed
O'Brien
(CEO,
eMoney
Advisor)
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Mr. O'Brien is CEO of eMoney Advisor and has spent his 30-year career focused on the development of technology platforms that enable business growth for financial professionals. Prior to eMoney Advisor Mr. O'Brien served as a Senior Vice President and Vice President at Fidelity Investments. Mr. O'Brien also previously served as a Senior Vice President at AdvisorTech.
Mr. O'Brien"s comments included:
- "We have grown 25% to 30% annually since Fidelity bought us. Our development teams have never been busier or more energized. When you have our infrastructure and foundation, and the backing of Fidelity, there isn"t much you can"t do."
- "At
Fidelity,
we"ve been
talking about
how we help
advisors to
evolve. When
you look at
what eMoney is
doing, it is
creating tools
to help
advisors that
don"t even
clear or
custody with
Fidelity."
- "What happens a lot of time is advisors and clients think that once they"ve created a plan, that"s it. We don"t believe that. We think it"s much more engagement, much more collaboration " it's helping the clients achieve the goals, not just put them down on paper."
- "All of this is built on a single platform, so when the advisor decides a client needs more than pure digital service, they don"t have to pick them up and put them on a different platform. Estate plans or more complex distribution plans, those are things that the advisor just turns on for the client."
- "Advisors need solutions that simplify their everyday lives and appeal to a growing market of investors looking for digital options."
- "We"re using planning to engage your existing client base as well as potential new clients."
- "Planning works when the clients engage."
Bob
Oros
(CEO,
HD Vest
Financial
Services)
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Bob Oros is the CEO of HD Vest Financial Services. Mr. Oros has more than 20 years of sales and operational experience and has served in leadership roles at leading brokerage and investment advisory firms where he had a strong track record of successfully recruiting, retaining, and serving advisors. Prior to HD Vest Financial Services, Mr. Oros served as the Executive Vice President at Fidelity Clearing & Custody. In that role, Mr. Oros also oversaw the retirement strategy for Fidelity Custody & Clearing, providing retirement tools, resources and consulting services to advisors who service retirement plans helping them stay at the forefront of their industry. Prior to Fidelity, Mr. Oros served as a National Sales Manager at Trust Company of America, Executive Vice President and Head of Custom Clearing Services at LPL Financial, and Vice President at The Charles Schwab Corporation.
Mr. Oros' comments included:
- "We really wanted to help our own employees understand what it takes to run an advisory firm and to make decisions and deal with pressure and to feel the real issues. This matters a tremendous amount to us."
- "Thirty
a month is a
big number.
But I would
look at it
less as an
absolute
number.
They"re
actively
engaged in how
their assets
are managed."
- "We all know what is happening in the industry with aging advisors and succession is happening right now."
- "I think the industry needs something like this. If we have a strong vibrant industry, we all get rewards from it. I think it's healthy to have diversity of who is in the room and who they work with as custodians as well as the diversity of technology. It's really helpful. We certainly expect to have a large contingency of Fidelity clients but we want others too."
- "If you peel the layers back, most advisors are dictating the experience clients get, rather than clients dictating that experience."
- "Our investors need new strategies that offer the opportunity to generate income and investment returns in a challenging low-yield environment."
- "In
addition to
the demand for
alpha, our
clients are
increasingly
looking for
depth of asset
class
expertise,
ease of
geographic
access and
robust risk
protocols.
We"re proud
that we have
the global
expertise to
meet these
needs and that
clients trust
us to source
the best
investment
opportunities
on their
behalf."
- "The change to PGIM Investments showcases our ability and commitment to delivering actively managed investment solutions to our global clients through the deep expertise of our multi-manager model."
- "There is a big difference between what you do to justify your fees and what will sell."
- "We're looking to understand the whole convergence between technology-based and human advice. I'm expecting to hear that there are more similarities than differences (among their market) segments in their strategies for providing advice to clients."
- "There is a tremendous advantage to have scale as an organization."
- "The
best time to
sell life
insurance is
when you"re
not looking
for it."
- "13%
of groceries
in the United
States are
bought with
food stamps."
-
"When gmail
came out, it
gave them 1gb
of storage
space, yahoo
gave 10mb.
They made it
100 times
better."
- "It"s expensive to be poor in this country, and these are things banks don"t focus on."
- "A lot of these companies say I"m going to use all tech and no fin."
- "If
we were
standalone, it
would be
no-go."
- "If
you try to
close the
platform, it
will fail.
Invesco gets
that."
-
"Ultimately,
advisors get
to decide
passive,
active, ETFs
or mutual
funds. We hope
to earn the
opportunity to
have some of
Invesco
products
included."
- "It"s
not the case
that the only
options will
be
Invesco-only
set of
portfolios.
It"ll be
introduced
among a set of
options. Those
will be an
options
available to
advisory firms
to decide if
they want to
offer those
options or
not."
- "What
I"m
essentially
saying is many
of these firms
are looking
for a set of
models whether
they can trade
them in-house
or through a
TAMP. We
essentially
support both
models."
- "At the end of the day we"re in the business of connecting advisors."
- "We"re a white label digital advice platform."
- "We love the technology that asks are you going to be around tomorrow?"
- "If investments continue at the current rate, this could become the next mortgage crisis with people " including institutional investors " losing hundreds of millions of dollars when (not if) many of these companies go out of business"
- "All
the increases
in
functionality
will become
ingredients
instead of a
final
destination."
- "I'm very bearish about online lending. I do not expect it to come back."
- "Fundamentally, it is because you have investors who feel like they are missing out on the next bitcoin. That's getting people to jump in."
- "These companies running ICOs could have the best intentions, but they might also have no idea what they're doing. And in many cases, you just do not have the proper information to make an informed decision."
- "The ICO craze will become a bubble and make some carnage in its way."
- "Small banks are hurting, they used to be some of the best places to be, but they can"t compete."
- "If you look at the directive consumer innovations align, the experience gap between the small wealth management and the large wealth management is widening."
Stuart
Parker
(CEO,
PGIM
Investments,
Prudential
Financial)
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Stuart Parker is President of PGIM Investments at Prudential Financial, a manufacturer and distributor of retail mutual funds sold primarily through third-party distribution channels. Prior to PGIM Investments, Mr. Parker was Executive Vice President for both Dennison Associates" sub advisor relationships and Prudential Investment"s retail distribution of mutual funds and managed accounts. Before joining Jennison Associates, Mr. Parker spent fourteen years at Citigroup Asset Management as Head of nonproprietary distribution for its retail and subadvisory business.
Mr. Parker's comments included:
Alex
Rampell
(Partner, Andreessen Horowitz)
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Alex Rampell is a General Partner at Andreessen Horowitz where he leads the firms fintech investments and serves on the boards of Branch, PeerStreet, Point, and Quantopian. Prior to joining a16z, Mr. Rampell was the CEO and cofounder of TrialPay, a leading transactional advertising and payments company serving digital goods and e-commerce clients such as Facebook, Zynga, and Gap, with 100 employees and over $300M in revenue. TrialPay was acquired by Visa in 2015. TrialPay also spun out another company, Yub, the first offline affiliate network, where Mr. Rampell simultaneously served as CEO through its acquisition in late 2013 by Coupons.com.
Mr. Rampell"s comments included:
Simon
Roy
(CEO,
Jemstep)
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Simon Roy is CEO of Jemstep and has responsibility for overall business strategy and management. In his over eight years at Jemstep, Mr. Roy has had direct responsibility for functions including strategy, corporate and business development, sales, services and investment systems. Mr. Roy has more than 20 years of experience serving as an investor in, consultant to and chief executive officer (CEO) including as CEO of a start-up, Accrue Software, which was subsequently listed on the Nasdaq. Prior to that, Mr. Roy served as a senior consultant with McKinsey & Company, serving the financial services industry.
Mr. Roy's comments included:
Schwark
Satyavolu
(Partner,
Trinity
Ventures)
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Schwark Satyavolu is a Partner at Trinity Ventures focusing on early stage technology investments in financial technology, security and artificial intelligence. An entrepreneur himself, Mr. Satyavolu was the co-founder of two financial technology companies: Yodlee and Truaxis. Before joining Trinity, Mr. Satyavolu served as Executive Vice President at LifeLock and head of MasterCard"s global rewards and offers initiatives. An engineer by background, Schwark has also worked for Microsoft Corporation.
Mr. Satyavolu"s comments included:
Dave
Ryan
(President,
California,
Upton
Financial
Group)
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Dave Ryan is President of California at Upton Financial Group. Mr. Ryan has more than 25 years of experience in the Mergers & Acquisitions industry. Mr. Ryan has initiated and completed a wide range of mergers, acquisitions, sales and financings for an extensive range of clients. Mr. Ryan"s previous experience as a practicing Certified Public Accountant, Certified Valuation Analyst, and investor has proven to be an ideal background to work with buyers, sellers, and their representatives in structuring and completing transactions.
Mr. Ryan"s comments included:
- "Many business owners wait years to sell their businesses until the market is healthy enough to command a good price. We"re in one of those markets now."
- "If you"re carrying paper or you"ve got something contingent, you"re making an investment in the guy who is buying your practice. You better have the ability to say something and be part of it."
- "The higher the offer you get, the more likely it is to include requirements that lower your chances of getting paid in full. And often, higher prices come with tax consequences that can leave you reeling like you got hit on the open field by Clay Matthews."
- "Buyers often try to negotiate conditions into the deal you must meet to get paid in full...Think very hard about whether you can realistically do what they"re asking before you bet your final payment on it."
- "If you"re selling to a big company or a private equity firm, they probably will ask you to stay on board for two years or more "and no matter what they say about autonomy, you won"t be the boss anymore."
- "A key question you have to ask yourself on smaller deals is how are you introducing this person to your clients. If you are not all onboard, it is not going to good."
-
Drew
Sievers
(CEO,
Trizic)
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Drew Sievers is CEO of Trizic, a leading provider of enterprise grade, white labeled digital advice and workflow technology to firms like John Hancock/ManuLife and Fidelity Information Systems/Sungard. Formerly, Mr. Sievers was the CEO at mFoundry (acquired by Fidelity Information Systems), where he was pivotal in establishing the North American mobile banking industry, securing more than 1,000 financial institution customers. Mr. Sievers is also Managing Director at Operative Capital, an investor in late seed and Series A financial technology companies.
Mr. Sievers" comments included:
- "Digital wealth advisory is following the same trajectory as online and mobile banking, and Trizic's disruptive model is well-positioned to bring change to an industry ripe for innovation."
- "I"m
a big fan of
advisors, I
don"t think
advisors are
going away."
- "If there's 14,000 banks and credit unions out there, we should be able to go to half that market."
- "When you think about the evolution of the robo arena, these big bank firms moving into this area is a tectonic shift and will create a major disturbance for traditional robo advisors."
- "Without a doubt, compared to any of our competitors, we have the most technically advanced enterprise level software out there. That's what I do; all these other guys, that's not what they do."
- "There"s so much data now, with advisors & firms, you"re going to get access to client"s Facebook feeds and other data coming it. Artificial intelligence will tell you hey, this person just had a kid, or this person has a kid in college."
Babu
Sivadasan
(President,
Envestnet
Retirement
Solutions)
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Babu Sivadasan is President of Envestnet Retirement Solutions. Mr. Sivadasan has a distinguished record working with entrepreneurs, turning their ideas into innovative companies, and delivering solutions for Fortune 500 companies. He has extensive experience in global software delivery models and coordination of engineering activities across geographically distributed groups. He also is experienced in leading architecture, design, and development for large projects. For the past fifteen years, his focus has been on the internet and e-commerce application, and he has acted as a lead architect and programmer for Hewlett-Packard, where he worked on building a Java Virtual machine and an embedded application delivery platform. He was also the founding technology officer for several start-up companies, including Stamps.Com. Mr. Sivadasan has also worked as a technology consultant for application infrastructure companies like Quest Software and financial services companies like Discover Card.
Mr. Sivadasan"s comments included:
- "Traditionally, when you look at it, we"ve created silos. We can"t advise a client holistically, that is true even today. We wanted to make a meaningful change to that, and enable that advisors will be able to serve the client holistically, not be a fiduciary, serve the client holistically. We are 100% behind the advisor whether it is human or digital."
- "The
ERS Fund
Strategist
Network
enables us to
provide the
independent,
unbiased
fiduciary
oversight and
support that
retirement
plan sponsors,
broker-dealers,
and advisors
are seeking.
Given the
adoption of
the fiduciary
standard and
prudent
investment
practices in
the retirement
industry, we
believe the
Network can
help
broker-dealers,
banks and
trusts, and
retirement
advisors to
truly act in
the best
interests of
plan sponsors
and
participants"
- "You should be focusing on the participant first, and the company, the employer, comes second. And it's the other way around today; we believe that we can make a meaningful change there."
- "At a time when many advisors are still adapting to the fee-based business model, our flexible, single-source fiduciary channel empowers advisors working with retirement plan sponsors to deliver advice and solutions that are in every plan participant's best interest."
- "The latest DOL regs compliance tools are just another component of what we"ve been delivering to advisors for the past seventeen or so years."
- "We are really passionate about improving the outcomes of millions of Americans. Today if you look at it, there are 30 million Americans who don"t have coverage, maybe more."
Laurel
Taylor
(CEO,
FutureFuel.IO)
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Laurel Taylor is the founder and driving force behind FutureFuel.IO. Prior to founding FutureFuel.IO, Ms. Taylor was Head of Industry at Google"s Global Business Unit within the Large Customer Sales division, where she was responsible for meeting and exceeding eight-figure revenue targets. During this time, she also served as a super connector and cross-functional bridge within Google: Google Ventures, Partnerships, X, and Enterprise. Prior to Ms. Taylor's role at Google, she served as the Chief Revenue Officer and Executive Vice President of TEECOM, a technology and engineering firm.
Ms. Taylor"s comments included:
- "Users today prefer student debt repayment over food, foosball, and a 401(k). What we see, in general, is that 50% of employees opt-out of their 401(k). They're saying, 'My student debt is crushing. I have to pay down my debt first."
- "Our
system is
broken.
Education
benefits our
entire country
but it also
benefits
corporate."
- "Student debt repayment as a benefit is incredibly difficult to operate because, on the back end, the people getting money don"t provide a lot of transparency."
- "Loan servicers and lenders are fairly antiquated in their abilities to electronically take in money, post money and create visibility around the fact that payments were received and deposited correctly."
- "By integrating student debt repayment and refinancing as a standard part of health and wellness benefits packages, companies alleviate their employees" number one source of financial stress: student debt."
Jason
Thomas
(CEO,
Savos
Investments)
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Jason Thomas is CEO & Chief Investment Officer of Savos Investments, a division of AssetMark. He is responsible for the leadership and oversight of the Savos investment platform and the strategic direction of the division. Mr. Thomas joined Savos Investments in December 2014. Previously, he was the CEO of Portfolio Design Labs, a company he founded to provide next generation risk measurement and management to investment advisors and institutional investors. Prior to that, he was the chief investment officer of Aspiriant, the leading independent wealth management firm in the U.S. with $8 billion in assets under management and advisement. Mr. Thomas began his career at the Federal Reserve Bank of San Francisco.
Mr. Thomas" comments included:
- "We
believe wealth
is reliably
created only
through
participation
in profitable
economic
activity. Risk
is
unavoidable,
but take it
intelligently."
- "Remember
that both
advisors and
clients
evaluate their
entire
experience; we
sometimes
forget that an
individual"s
feelings are
integral to
the investment
process."
- "Because so much of the total wealth generated by a bull market comes at the very end of the cycle, reallocating away from equities due to client concerns about the current market environment can be a very costly strategy."
- "Like
Billy Beane
[the general
manager of the
Oakland A"s],
Savos" job is
to build a
championship
team. When we
build a stock
portfolio, our
goal is to
combine
companies with
appealing
individual
characteristics
that also
complement the
other
holdings."
- "Embrace volatility and look for undervalued areas of the market; for example, our research has indicated a significant current opportunity in high yield municipal bonds."
- "One of the things that is so rewarding is identifying the opportunities that was missed before."
- "The hardest thing about being owned by a platform is creditability; we"re credited as the B team that works for the platform."
Bill
Van Law
(President,
Investment
Advisors
Division,
Raymond James
Financial)
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Bill Van Law is President of the Investment Advisors Division at Raymond James Financial. Previously, he was senior vice president and national director of business development at Raymond James Financial. Mr. Van Law worked in the private client group at Merrill Lynch before joining Raymond James Financial.
Mr. Van Law"s comments included:
- "I
did a really
deep dive so
we could
create
something
competitive.
We want to
position
ourselves to
really grow
this. We saw
advisors who
did not stay
at Raymond
James and left
for an RIA
model, and
that was
disturbing.
That
reinforced
that the
strategy was
not going to
work going
forward unless
we created
something more
competitive."
- "It
is about
quality
caliber and
diversity of
the team. It
is important
that we have
people with
outstanding
experience
from all areas
of where we
are going to
recruit from.
If you look at
our team, now
we have got
experience
from two major
custodians,
Schwab and
Fidelity, and
experience
from
independent
broker-dealers
and the
wirehouses."
- "It does not matter where you are in terms of value, if you are not priced the right way, no one will come."
- "Breakaway
recruiting is
going to hit a
tipping point.
Reversing that
trend just
isn"t going to
happen."
- "As the markets turn, we have to think of how to add value to the advisors."
- "I fully believe that this trend towards M&A, is real and going to continue."
- "Technology is one of the core items that activate the RIA space, technology can be a real competitive edge."
Dave
Welling
(CEO,
Mercer
Advisors)
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Dave Welling is CEO at Mercer Advisors and has more than 20 years of experience in the advisory and wealth management industry. Most recently, Mr. Welling was Managing Director and Co"General Manager of SS&C Advent, a leading provider of technology and operational support to advisors, investment managers and hedge funds. Mr. Welling's past professional experiences include executive leadership roles at Black Diamond Performance Reporting and The Charles Schwab Corporation, as well as management consulting with Bain & Company.
Mr. Welling"s comments included:
- "It"s not the aggregator model, which says, "Join us, we"ll take care of the overhead, you keep doing everything you want to do."
- "I
have good
empathy for
what it feels
like to be the
acquired, and
how to manage
that
transition
effectively."
- "Mercer is one of the country's leading RIAs, and I am excited to be working with Genstar and the Mercer team to fulfill our vision for the company's future."
- "I've had a 20-year love affair with the RIA industry and have passionately been a supporter and service provider to RIAs since 1997. This is a first chance to do it for real."
- "The large firms are starting to outsource. I feel like the momentum is building."
- "Financial planning is finally sexy, financial planners used to be the nerds in high school, but now we"re finally becoming popular, you can also see this in the technology industry."
- "There is so much moving in the technology space, and now moving beyond, that it's not just from the front office, it's to the back porch."
- "Consolidation is definitely happening. Some of the bigger firms will break from the path and they"ll become a little more bar belled."
Ken
Weise
(CEO,
Sonoma County
Wealth
Advisors)
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Ken Weise is CEO of Sonoma County Wealth Advisors. Mr. Weise has been a financial advisor since 2001. In order to better serve his clients, he earned the Accredited Asset Management Specialist designation from the College of Financial Planning. Prior to his current role, Mr. Weise served as a Financial Advisor at Weise Financial Services and Edward Jones & Company.
Mr. Weise"s comments included:
- "I wasn"t chomping at the bit. Tif had a much bigger practice. It was a little scary. But I drilled a little deeper" The value I could bring was very good and the personality fit was right."
- "The fact that the practice was so fee-based, versus transaction-oriented, gave me a comfort that what I was buying should be fairly reliable."
- "It seems like a big hurdle to buy a business, but it's not bad if you baby-step your way through it."
- "Without the selling of a practice, there's a massive opportunity that's missed. Clients will win with a good succession plan with a continued level of service, the seller will benefit from maximizing his business, the staff will have a longer term vision, and the buyer will have exponential growth."
- "Insurance matters more in retirement planning than you may think. It is seldom "top of mind" in retirement planning conversations, but the right coverage could help you maintain some financial equilibrium in the face of sudden money pressures."
- "It became clear to me as a buyer, if I could buy experienced clients- that is invaluable."
Kim
Wright-Violich
(Managing
Partner,
Tideline)
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Kim Wright-Violich is Managing Partner at Tideline and co-leads the firm"s strategy, operations, and client engagement. Prior to Tideline, Ms. Wright-Violich was the CEO of Schwab Charitable, a stand-alone nonprofit corporation founded by The Charles Schwab Corporation to provide turnkey charitable asset management and philanthropic services to investors. In her time as CEO, Ms. Wright-Violich oversaw Schwab Charitable"s growth from a start-up to the second-largest donor advised fund in the United States, with $3.5 billion in assets and over $5 billion in contributions, serving over 25,000 investors and their wealth advisors.
Ms. Wright-Violich"s comments included:
- "Larger firms have a bigger brand and corporate reputation to protect; they have deeper pockets for R&D; and, with client-and asset-retention front of mind, making relationships stickier through innovation is critical, even if just serving a niche."
- "We have witnessed a significant shift in institutional interest in impact investing over the past few years, as managers have established track records of success and more investment options have become available."
- "Non-conflicted, actionable advice on impact investing is needed now more than ever."
- "Donors with accounts of $10 million or more have access to alternative investments, allowing them to customize their investment choices so that their DAFs have similar investment flexibility as private foundations."
- "Donor advised funds are designed to remove the barriers to giving, by outsourcing the administration, record keeping, and due diligence on the charities and receiving some protection from charitable solicitations. Understanding what aspects of charitable giving you want to be relieved of and what you do not want to outsource, helps you make the right choice."
- "Private markets have more horse power than philanthropy by itself."
Attendees
Tiburon is pleased to announce that the following 160 Tiburon clients attended Tiburon CEO Summit XXXIII:
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Tiburon CEO Summit XXXII: April 3-5, 2017
Tiburon CEO Summit XXXII was held April 3-5, at the Ritz Carlton Hotel in New York, NY. Tiburon CEO Summit XXXII started at 7:45am on Tuesday, April 4, 2017, included a group dinner that night, and finished at 2:00pm on Wednesday, April 5, 2017. 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 XXXII included speakers Jack Bogle (Founder, The Vanguard Group), Don Phillips (Managing Director, Morningstar), Ron Albahary (Chief Investment Officer, Threshold Group), Brad Bernstein (Managing Partner, FTV Capital), Phil Blancato (CEO, Ladenburg Thalmann Asset Management), Josh Brown (CEO, Ritzholtz Wealth Management), John Bunch (President, Financial Engines Advisors), Roy Burns (Managing Director, TA Associates), Don Calcagni (Chief Investment Officer, Mercer Advisors), Lawrence Calcano (CEO, iCapital Network), Rich Cancro (CEO, AdvisorEngine), John Coyne (Vice Chairman, Brinker Capital), Lisa Dolly (CEO, Pershing), Tom Dorsey (Founder, Dorsey, Wright, & Asociates), Stephane Dubois (CEO, Xignite), Ric Edelman (Executive Chairman, Edelman Financial Services), John Gabbert (CEO, Pitchbook Data), George Gatch (CEO, Investment Management Americas, JP Morgan Chase & Company), Jane Gladstone (Senior Managing Director, Evercore Partners), Charles Goldman (CEO, AssetMark), Matt Harris (Managing Director, Bain Capital Ventures), Tim Harrison (CEO, Harrison Financial Services), Dennis Lockhart (Former CEO, Federal Reserve Bank of Atlanta), Pierre Mendelsohn (CEO, ALPIMA), Herbert Moore (CEO, Wise Banyan), David Musto (President, Great-West Investments), Adrian Nazari (CEO, Credit Sesame), Shirl Penney (CEO, Dynasty Financial Partners), Steve Piaker (Managing Director, Napier Paker Global Capital), Larry Raffone (CEO, Financial Engines), Len Reinhart (CEO, Wealthcare Capital Management), John Rourke (CEO, Starburst Labs), Aaron Schumm (CEO, Vestwell), Ian Sheridan (Managing Director, Vestigo Ventures), Eric Sontag (Chief Operating Officer, Sontag Advisory), Tom Staudt (Interim Chief Operating Officer, ARK Investment Managment), Angie Stephenson (Chief Operating Officer, ParenteBeard Wealth Management), David Stone (CEO, Aria Retirement Solutions), Jerry Szilagy (CEO, Catalyst Capital Advisors), Mark Tibergien (CEO, Pershing Advisor Solutions), Doug Trott (CEO, PriceMetrix), Nic Volpi (Partner, Permira Advisors), Edmond Walters (Founder, eMoney Advisor), & Elliot Weissbluth (CEO, HighTower).
Tiburon CEO Summit XXXII featured two keynote presentations by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry. These presentations served as the backdrop and overview of the entire Tiburon CEO Summit.
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Chip Roame (Managing Partner, Tiburon Strategic Advisors)
Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXXII keynote presentations. Chip Roame (Managing Partner, Tiburon Strategic Advisors) gave a day #1 presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market. He also gave a day #2 presentation addressing strategic activity within the industry.
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 and CEO-level client base, 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.
Mr. Roame has responsibility for all of Tiburon's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses -- exchange traded funds (ETFs), hedge funds & other alternative investments, bitcoin & blockchain, 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 regulatory issues such as the fiduciary standard, and in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,900 client engagements for over 450 corporate clients since 1998.
Mr. Roame has won numerous awards throughout the private equity, investment banking, 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 of Envestnet (NYSE: ENV), as a board member of Edelman Financial Services (Ric Edelman's business backed by Hellman & Friedman), 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).
Tiburon Managing Partner Chip Roame gave two keynote presentations at Tiburon CEO Summit XXXII.
Tiburon CEO Summit XXXII Day #1 Keynote Presentation:
The Future of Wealth Management: The Top Ten Industry Trends & the Top Ten Potential Disruptors
The objectives of the Tiburon CEO Summit Day #1 keynote presentation were to anchor Tiburon CEO Summit discussion on consumers; to offer a broad view of the wealth management industry; to set a discussion agenda for Tiburon CEO Summit XXXII (framing the dozens of “three big points"), & to introduce 40+ speakers. The basis of the Tiburon CEO Summit XXXII keynote presentation was industry developments (“the news”), recent Tiburon & third-party research findings, the Tiburon CEO Summit XXXII attendee content survey, & Tiburon CEO Summit XXXII guest speaker presentations (and prior presentations).
The theme for the Tiburon CEO Summit Day #1 keynote presentation at Tiburon CEO Summit XXXII was the top ten industry trends & the top ten potential disruptors.
The Top Ten Industry Trends
Mr. Roame outlined the top ten industry trends as follows:
1. Consumers & Their Money
Consumer households have $42.0 trillion investable assets, $64.3 trillion financial assets, $107.9 trillion total assets, and $92.8 trillion net worth. Tiburon CEO Summit attendees continue to estimate that ~75% of financial advisor clients are baby boomers. Tiburon CEO Summit attendees continue to believe that baby boomers are not yet financially ready for retirement. Tiburon CEO Summit attendees say that longer life expectancies & lack of savings are the biggest financial issues for baby boomers. Tiburon CEO Summit attendees expect many consumers to rely on later retirement ages. Baby boomers will liquidate some portion of the $63.5 trillion in retirement plans, personal assets, & small businesses.
2. Evolving Consumer Investment Approaches
Tiburon CEO Summit attendees believe that consumers' risk management focus will increase moderately or even hugely over the next five years. They also expect that the demand for episodic only advice will see moderate growth. Tiburon CEO Summit attendees also said that the Do It Yourself trend will grow moderately over the next five years.
3. Indexing & Exchange Traded Funds
Passive funds gathered $500 billion net flows in 2016 while active funds lost $340 billion. Fee-based financial advisors are the largest holders of exchange traded funds (ETFs), with $475 billion. Millennials allocate 36% of their portfolios to exchange traded funds (ETFs) versus 23% for all investors.
4. Discount Brokerage Firms
Both the retail and financial advisor support models at both Fidelity Investments & The Charles Schwab Corporation are now amongst the leading financial advisor channel firms. The wirehouse channel leads the financial advisor channels in average financial advisor assets under administration with $124.7 million of assets under administration, but discount brokerage firms come in a close second with $110.1 million of assets under administration.
5. Robo Advisors
There are at least 52 online advice firms, up from two in 2002. All online advice firms have gathered $268.9 billion assets under management, including $206.8 billion at defined contribution plan focused firms. Tiburon CEO Summit attendees increasingly think that the number of financial advisors will stagnate or at least grow only moderately over the next five years.
6. Managed Accounts
Tiburon CEO Summit attendees anticipate that managed accounts and financial advisor directed programs will be the most important financial advisor model changes over the next five years. Tiburon CEO Summit attendees believe that financial advisor directed programs (rep as advisor & rep as portfolio manager) will grow moderately over the next five years.
7. Alternative Investments & Liquid Alternatives
Hedge funds have gathered $3.2 trillion assets under management, up from $42 billion in 1988. Hedge fund performance was consistently strong in the late 1980s and early 1990s; more recent performance has been more volatile.
8. Socially Responsible Investing & Impact Investing
Socially responsible investing & impact investing firms have gathered $8.7 trillion assets under management, up from $0.2 trillion in 1995. Tiburon CEO Summit attendees expect that socially responsible investing & impact investing will grow moderately over the next five years.
9. Independent Advisors
Tiburon CEO Summit attendees continue to believe that the number of independent advisors will grow the fastest over the next five years. They also believe that United Capital Financial Partners, Edelman Financial Services, & HighTower have the best chance at building nationwide financial advisory businesses.
10. Break-Away Brokers
Successful financial advisor teams & financial advisors move in three patterns, including captive-to-captive, independent-to-independent, & captive-to-independent (break-away brokers). There were 413 successful financial advisor teams that broke-away in 2015, down from 544 in 2010 but up from 372 in 2014. Successful financial advisor teams & financial advisors that broke-away took $142 billion assets under administration, up from $77 billion in 2010. Tiburon CEO Summit attendees continue to believe that the break-away brokers trend will grow hugely or at least moderately over the next five years. The break-away broker movement could triple in size if the wirehouses cease paying brokers to move.
The Top Ten Potential Disruptors
Mr. Roame said that the top ten potential disruptors are the following:
1. The Federal Reserve
The first potential disruptor is the Federal Reserve increasing interest rates & changing industry profitability. Tiburon CEO Summit attendees believe that the most important outcome of the Federal Reserve increasing interest rates is that it adds to the fuel of the industry.
2. The Eight Year Bull Market, Potential Corrections, & Potential Impacts on Industry Dynamics
The second potential disruptor is the eight year bull market, potential corrections, & potential impacts on industry dynamics. General impacts that this would have include that higher interest rates may lead to stock market declines, and substantial decline may shock investor confidence. Furthermore, a stock market correction could mean less trading & lower asset values to bill upon; slow investments; stopping break-away broker movement; leaving many firms for sale without buyers; & some smaller financial advisors give up.
3. Repeal of the Department of Labor Fiduciary Standard & Other Deregulatory Efforts
The third potential disruptor is the repeal of Department of Labor Fiduciary Standard & other deregulatory efforts. Tiburon CEO Summit attendees say that a potential Fiduciary Regulation by the Securities & Exchange Commission (SEC) is the most important regulatory issue to their firms. They also believe in the need for Taxable Account Uniform Fiduciary Standard.
4. Digital Marketing & Social Media
The fourth potential disruptor is digital marketing & social media. Newspapers print advertising revenues are $14 billion, down from $34 billion in 2005. Digital advertising revenues are $66.6 billion, up from $59.6 billion in 2015.
5. Financial Advisor Technology & Outsourcing
The fifth potential disruptor is financial advisor technology & outsourcing. FA TAMPs have gathered $2.3 trillion assets under management & administration, up hugely since 1995. Tiburon CEO Summit attendees believe that FA TAMPs will realize moderate or huge growth over the next five years.
6. Big Data & Analytics
The sixth potential disruptor is big data & analytics. Tiburon CEO Summit attendees said that big data & mobile technology will be the most impactful technological issues. Almost all Tiburon CEO Summit attendees also believe that big data & analytics will transform the financial services industry.
7. Artificial Intelligence; Blockchain; & the Internet of Things
The seventh potential disruptor is artificial intelligence; blockchain; & the internet of things. Tiburon CEO Summit attendees are primarily not worried about artificial intelligence disrupting the financial services industry, though 38% are worried or very worried.
8. Millennials
The eighth potential disruptor is millennials. Tiburon CEO Summit attendees recognize the importance of social networks on millenials' investment strategy. Over half of high-earning millennials who do not have financial advisors would more likely work with financial advisors if fees were lower. Almost one-third of millennials believe that cash is the best investment versus just 18%-19% of prior generations.
9. FANG: Facebook, Amazon, & Google
The ninth potential disruptor is FANG: Facebook, Amazon, & Google. One recent study said that almost three-quarters of millennials would take financial advice from FANG companies. Tiburon CEO Summit attendees expect moderate growth or even huge growth if FANG companies push further into financial services.
10. China, India, & the Middle East
The tenth potential disruptor is China, India, & the Middle East. Tiburon CEO Summit attendees said that many of their firms do not operate outside of the United States. China & India have over 1.0 billion residents each, more than 200% larger than the United States. The urbanization rate in China will be 70% up from 53% in 2015. Those between the ages of 0-29 make up 59% of Saudi Arabia's population versus just 40% in the United States.
Tiburon's Conclusions on The Future of Wealth Management
The trend is your friend with the rapidly growing market: Historically terrific economics will be challenged (bet on transparency). Remember that closest to client almost always eventually wins.
Tiburon CEO Summit XXXII Day #2 Keynote Presentation: Wealth Management Strategic Industry Activity
Tiburon Managing Partner Chip Roame's day #2 keynote presentation was intended to address strategic activity in the wealth management industry, including venture capital, public offerings, and mergers & acquisitions.
Financial Services Industry Profitability & Valuations
Regarding financial services industry profitability: fee-based financial advisors generate 69 basis points, down from 73 in 2011, 2013, & 2014. Fee-based financial advisors earn a 28.2% operating income margin, up from 22.2% in 2010. Regarding financial services valuations: healthcare led all sectors with a 14.6% total return between November 4, 1980-October 21, 2016; financials had a 12.0% total return. Financials have led all sectors, up 11% since the United States presidential election.
Financial Services Industry Venture Capital & Minority Growth Equity Investments
Robo advisors raised $208 million venture capital, up from $9 million in 1998. Tiburon CEO Summit attendees increasingly believe that venture capital's bet on online financial advice will see only moderate growth or stagnate in 2017-2018. Tiburon CEO Summit attendees said that private equity will continue to invest hugely or at least moderately in independent financial advisor distribution
Financial Services Industry Public Offerings
There were 128 initial public offerings (IPOs) in 2016, down from 580 in 1995 & its peak of 840 in 1996. Tiburon CEO Summit attendees said financial services industry initial & secondary public offerings will grow only moderately or even stagnate.
Financial Services Industry Mergers & Acquisitions
Mergers & acquisitions' transaction value was $1.5 trillion, down from $2.4 trillion in 2012 & its peak of $3.5 trillion in 2014. Tiburon CEO Summit attendees increasingly say that financial services firm merger & acquisition activity will grow moderately. There were 126 investment management mergers & acquisitions transactions, down from 127 in 2012 & its peak of 144 in 2015. Investment management firm mergers & acquisitions transaction volume is $18.2 billion, up from $14.9 billion in 2012, but down from its peak of $27.4 billion in 2014. Tiburon CEO Summit attendees say that financial technology firm consolidation activity will increase moderately or even hugely in 2017-2018. Tiburon CEO Summit attendees also say that financial advisor consolidation activity will remain steady in 2017-2018. Tiburon CEO Summit attendees said that other RIAs or roll-up firms will be the most frequent financial advisor acquirers.
Financial Services Industry Activists Campaigns
Activist hedge funds pursued 355 campaigns, up from 253 in 2008. Financial services industry activist fund specific targets have included American International Group (AIG) (Icahn Enterprises), LPL Financial Holdings (Marcato Capital Management), State Street Corporation (Trian Fund Management), & The Bank of New York Mellon Corporation (Marcato Capital Management & Trian Fund Management).
Tiburon Conclusions on Wealth Management Industry Strategic Activity
Tiburon's conclusions on wealth management industry strategic activity include profitability valuations to see mixed results; venture capital & minority growth equity investments to increase; initial public offerings (IPOs) & secondary offerings to stagnate; mergers & acquisition activity to increase led by investment management firms & financial advisors; & activism to increase.
Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXXII included speakers Jack Bogle (Founder, The Vanguard Group), Don Phillips (Managing Director, Morningstar), Ron Albahary (Chief Investment Officer, Threshold Group), Brad Bernstein (Managing Partner, FTV Capital), Phil Blancato (CEO, Ladenburg Thalmann Asset Management), Josh Brown (CEO, Ritzholtz Wealth Management), John Bunch (President, Financial Engines Advisors), Roy Burns (Managing Director, TA Associates), Don Calcagni (Chief Investment Officer, Mercer Advisors), Lawrence Calcano (CEO, iCapital Network), Rich Cancro (CEO, AdvisorEngine), John Coyne (Vice Chairman, Brinker Capital), Lisa Dolly (CEO, Pershing), Tom Dorsey (Founder, Dorsey, Wright, & Asociates), Stephane Dubois (CEO, Xignite), Ric Edelman (Executive Chairman, Edelman Financial Services), John Gabbert (CEO, Pitchbook Data), George Gatch (CEO, Investment Management Americas, JP Morgan Chase & Company), Jane Gladstone (Senior Managing Director, Evercore Partners), Charles Goldman (CEO, AssetMark), Matt Harris (Managing Director, Bain Capital Ventures), Tim Harrison (CEO, Harrison Financial Services), Dennis Lockhart (Former CEO, Federal Reserve Bank of Atlanta), Pierre Mendelsohn (CEO, ALPIMA), Herbert Moore (CEO, Wise Banyan), David Musto (President, Great-West Investments), Adrian Nazari (CEO, Credit Sesame), Shirl Penney (CEO, Dynasty Financial Partners), Steve Piaker (Managing Director, Napier Paker Global Capital), Larry Raffone (CEO, Financial Engines), Len Reinhart (CEO, Wealthcare Capital Management), John Rourke (CEO, Starburst Labs), Aaron Schumm (CEO, Vestwell), Ian Sheridan (Managing Director, Vestigo Ventures), Eric Sontag (Chief Operating Officer, Sontag Advisory), Tom Staudt (Interim Chief Operating Officer, ARK Investment Managment), Angie Stephenson (Chief Operating Officer, ParenteBeard Wealth Management), David Stone (CEO, Aria Retirement Solutions), Jerry Szilagy (CEO, Catalyst Capital Advisors), Mark Tibergien (CEO, Pershing Advisor Solutions), Doug Trott (CEO, PriceMetrix), Nic Volpi (Partner, Permira Advisors), Edmond Walters (Founder, eMoney Advisor), & Elliot Weissbluth (CEO, HighTower).
Jack Bogle
(Founder, The Vanguard Group)
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Tiburon CEO Summit XXXII |
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Jack Bogle is CEO of Vanguard's Bogle Financial Markets Research Center. Mr. Bogle founded the Vanguard Group in 1974, served as CEO until 1996 and senior chairman until 2000. Mr. Bogle was recognized as a Tiburon CEO Summit award recipient in 2010 because he exemplifies the three central themes, including focusing on Consumer (and other client) Needs, Challenging Conventional Industry Wisdom (innovation), & Taking Responsibility. Mr. Bogle is one of the most respected mutual fund leaders and a legend to many.
Mr. Bogle's recent comments have included:
- "Time is your friend; impulse is your enemy."
- "Ideas are a dime a dozen, but implementation is everything."
- "The reason an institution fails is because they forgot what they came from."
- "Trading is a losers game overall."
- "Ask yourself: Am I an investor, or am I a speculator? An investor is a person who owns business and holds it forever and enjoys the returns that US businesses, and to some extent global businesses, have earned since the beginning of time. Speculation is betting on price. Speculation has no place in the portfolio or the kit of the typical investor."
- "Ask yourself: Am I an investor, or am I a speculator? An investor is a person who owns business and holds it forever and enjoys the returns that US businesses, and to some extent global businesses, have earned since the beginning of time. Speculation is betting on price. Speculation has no place in the portfolio or the kit of the typical investor."
Don Phillips
(Managing Director, Morningstar)
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Don Phillips is a Managing Director at Morningstar. Previously Mr. Phillips oversaw 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's recent comments have included:
- "I think we need new onramps into the industry, stop making it so complicated."
- "Online advice is going to marry with financial advisors to offer incredible tool kits which are going to serve the younger generation. I am quite optimistic about it. I see technology & better training coming together to meet this challenge."
- "What the public really craves is simplicity, but the industry creates complexity."
- "At the end of the day investors have a right to the transparency and the chain of command, and ultimately know how their money is invested."
- "Asset managers must prove that they align their interests with Main Street, not Wall Street."
Ron Albahary
(Chief Investment Officer, Threshold Group)
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Ron Albahary is Chief Investment Officer of Threshold Group. Mr. Albahary leads Thereshold's investment management and research services and manages the firm's team of investment professionals. Prior to Threshold Group, Mr. Albahary held various positions at Covergent Wealth Advisors, Schroders, SEI Investments, Merrill Lynch, & more.
Mr. Albahary's recent comments have included:
- "I bring great passion to the innovation and delivery of solutions designed to navigate turbulent markets and help clients sleep well at night knowing they are well positioned to achieve their goals."
- "We"re not attracting new talent in this industry, which is a big problem."
- "This is a unique opportunity to gain investment knowledge and insight in a tangible way that very few organizations are able to achieve."
- "We evaluated the universe of funds by applying our proprietary quantitative scoring framework and found those funds with a well defined theory of change and an outcome- focused orientation (versus simply counting outputs) tended to score the highest. Interestingly, our top three were generally consistent with the selections of the other judges."
- "Despite the equity and credit markets quickly shrugging off the initial shock of Brexit (at least for now), the potential for longer term consequences is something we take seriously and view with great caution."
Brad Bernstein
(Managing Partner, FTV Capital)
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Brad Bernstein is Managing Partner of FTV Capital. Mr. Bernstein leads investments in enterprise technology & Services and financial services. Mr. Bernstein has over twenty years of private equity experience. Prior to joining FTC Capital, Mr. Bernstein was a partner at Oak Hill Capital Management. Mr. Bernstein began his career with Patricof & Company Ventures and Merrill Lynch.
Mr. Bernstein's recent comments have included:
- "Technology has become a true game-changer in financial services. As the wealth management landscape in the UK continues to transform, digital tools will become table stakes for advisers who want to retain existing clients and continue to grow their client bases."
- "Using & building technology & partnering those who work with technology is absolutely critical."
- "Market inefficiencies, widespread growth in mobility and global ecommerce, heavy regulatory requirements, and massive demand for digitization are all driving opportunities for companies that are more effectively serving markets vacated by incumbents or that are enabling existing players to innovate more rapidly."
- "It's one thing to build a product to get into the market, but it's another thing to sell it in the market."
- "We view these long-term trends through the lens of the executives in our Global Partner Network. Our team proactively catalyzes investment opportunities with outstanding management teams who have successfully capitalized on these market dynamics and are looking for a financial sponsor offering deep domain expertise and access to our Global Partner Network to accelerate sales."
Phil Blancato
(CEO, Ladenburg Thalmann Asset Management)
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Philip Blancato is CEO of Ladenburg Thalmann Asset Management. Mr. Blancato is a 25 year veteran of the financial services industry with a specialized knowledge of portfolio and risk management, asset allocation and macro-economic theory as well as constructing and implementing seamlessly integrated platforms of fee-based solutions. Prior to joining Ladenburg Thalmann Asset Management, Mr. Blancato worked for PowellJohnson and Prudential Securities.
Mr. Blancato's recent comments have included:
- "I think we are in the midst of a real change in the midst of how we look at asset allocation."
- "It's really not true that active management does not succeed. We throw it all in one bucket."
- "There are money managers that develop strategies based on economic cycles, and I would argue that there isn't one right now. Others manage money based on the yield curve, and how do you do that when it is in a range we haven't seen before? And then you have an earnings recession for five quarters in a row and the market is at or near all-time highs."
- "Advisors are staunchly not willing to give up peas unless you"re willing to give up peas."
- "Certainly the posturing of the Fed is creating a lot of noise, and when you get comments like that, it creates a little bit of anxiety in the market."
Josh Brown
(CEO, Ritholtz Wealth Management)
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Josh Brown is CEO of Ritholtz Wealth Management. Mr. Brown is also the creator of The Reformed Broker blog and was ranked as the number one financial person to follow on social media by Barron"s, the Wall Street Journal, and TIME Magazine. In addition, Mr. Brown serves on the advisory boards of Reanalyze and Brightscope.
Mr. Brown's recent comments have included:
- "Automated allocation software is just a tool, employed by human firms, like email."
- "I think there is a lot of ambiguity in the terms and that is probably why there is this whole thing going on where no one will trust a living human again."
- "I think that this active, passive debate is no longer a debate. I think it's been won, and I think we know who won."
- "Volatility is not risk, it is the source of future returns."
- "Regulations are created by governments usually after something goes horribly wrong. And then, you know, we forget why we have those regulations and we cut them."
John Bunch
(President, Financial Engines Advisors)
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John Bunch is President of Financial Engines Advisors. Mr. Bunch has served as Executive Vice President at Financial Engines, and President at Financial Engines’ subsidiaries, Financial Engines Advisors and The Mutual Fund Store. Prior to joining Financial Engines Advisor Center, Mr. Bunch held numerous positions at TD Ameritrade, TD Waterhouse, & The Charles Schwab Corporation.
Mr. Bunch's recent comments have 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 high net worth market."
- "The worst thing you can do is give a digital lead to an advisor."
- "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."
- "We are not after expanding into markets where ROI projections are not attractive, just to be national."
Roy Burns
(Managing Director, TA Associates)
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Roy Burns is Managing Director at TA Associates. Mr. Burns joined TA in 2001 as an Associate and returned to TA in 2006 following graduate school. Roy has closed nine investments totaling over $4 billion in enterprise value since joining TA. Prior to TA, he was involved in ten leveraged financings for sponsors and strategics, totaling over $7 billion. Roy’s primary focus is on services and technology providers in electronic payments, investment management and wealth management, and he also has experience in business services.
Mr. Burn's recent comments have included:
- "TA Associates" considerable experience in financial services enables us to offer strategic counsel and resources to augment NorthStar's organic growth and pursue strategic acquisitions to build long-term value."
- "Our activities in the marketplace can be helpful for these guys to uncover companies that may fit but because they haven"t really been focused on that avenue for growth, that they"re really starting from a place where they can use the incremental resources that TA can provide."
- "We are proud of our successful history of investing in the asset management space. These are outstanding businesses that differentiate themselves on the basis of their intellectual capital and make a real impact on clients. TA has made sixteen investments in this industry over the last 25 years making us among the most active private equity investors in the industry. Investing in this market successfully requires substantial industry knowledge and a reputation for being highly respectful of each firm's unique culture."
- "Stadion's early embrace of tactical asset allocation investment strategies has positioned it as a leader among its peers. With its unique approach to managing money, its highly-rated mutual funds, and its partnerships with some of the country's leading financial services providers, Stadion is well-positioned for continued growth."
- "TA's business model is to back talented management teams of great businesses and assist them in achieving and maintaining a high growth rate over a long period of time. We are not focused on maxing a business in the short run. We want to build companies of consequence that can achieve and sustain leading market share and profitability over the long run, which benefits customers, employees and shareholders."
- "TA's business model is to back talented management teams of great businesses and assist them in achieving and maintaining a high growth rate over a long period of time. We are not focused on maxing a business in the short run. We want to build companies of consequence that can achieve and sustain leading market share and profitability over the long run, which benefits customers, employees and shareholders."
Don Calcagni
(Chief Investment Officer, Mercer Advisors)
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Don Calcagni is Chief Investment Officer of Mercer Advisors. Mr. Calcagni's primary responsibilities include setting the strategic direction of the firm's investment offerings, stewarding the firm's assets under management, and acting as firm liaison to clients and institutional partners alike. Mr. Calcagni is an expert in the areas of financial mathematics, corporate finance, portfolio management, & taxation.
Mr. Calcagni's recent comments have included:
- "Rather than focusing on the client retention, focus on the client and why they"re leaving."
- "I would love to see more appropriate benchmark reporting in the average investor space."
- "Keep in mind that markets hate uncertainty. New information " in the form of an unexpected outcome " results in markets repricing themselves."
- "Solving the deficit will likely require some combination of entitlement reform and defense spending reduction as these are by far the largest components of the federal budget."
- "Consequently, our advice to you is this: don"t make changes to your portfolio in response to short-term news or flawed predictions from the so-called "expert" punditry currently flooding media outlets."
- "Consequently, our advice to you is this: don"t make changes to your portfolio in response to short-term news or flawed predictions from the so-called "expert" punditry currently flooding media outlets."
Lawrence Calcano
(CEO, iCapital Network)
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Lawrence Calcano is CEO of iCapital Network, where he leads the firm's key strategic and business development initiatives. Prior to joining iCapital Network, Mr. Calcano spent seventeen years with Goldman, Sachs. Mr. Calcano also serves on the Boards of the Mental Health Association of New York City, Capitol Acquisition 2, & Bite Tech.
Mr. Calcano's recent comments have included:
- "One of the hardest things in one of these companies is to have a realistic set of expectations."
- "You need to have a systematic approach to investing in private equity."
- "Given the robust interest in this asset class, we anticipate that more advisers and their wealthy clients will begin to explore private equity investments as a way of complementing a traditional portfolio composed of public equities and fixed income."
- "The minimum commitment levels required by fund managers from investors typically ranges from $5 million to $20 million, which makes many funds out of reach for all but the biggest investors. This reflects the fact that private equity has traditionally been the domain of large institutional investors, such as pension funds, endowments and foundations."
- "Alternatives as an asset class is a relatively new option for investors and advisors. So, advisers still need to educate themselves and climb the learning curve on these products to get a better understanding of the timelines, the fee and compensation structures and the overall investor experience before discussing these investments with clients."
Rich Cancro
(CEO, AdvisorEngine)
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Rich Cancro is CEO & founder of AdvisorEngine. Mr. Cancro has over twenty years of experience building and managing wealth management businesses, platforms and products. Prior to founding AdvisorEngine, Mr. Cancro held positions in Bank of America Merrill Lynch, JP Morgan Chase & Company, The Bear Sterns Companies, and Pershing.
Mr. Cancro's recent comments have included:
- "The general use of the funds is going to be toward product development."
- "We had a client's investment philosophy fully digitized ten days from the time that we signed the contract."
- " Our purpose to help advisers is clear. People were sometimes confused by what we did, and were shocked at how much we offer."
- "Every time over the past two years we have done demonstrations, whether it's for a prospect or an industry veteran, every single time they say, I can not believe you have all this other stuff."
- "Through my client experience in firms of all sizes, from the $50 million RIA, the billion dollar RIA, the hundred billion plus global franchise, the broker/dealers, banks, insurance companies, every single one of them [is] saying, "We want to change the client experience."
John Coyne
(Vice Chairman, Brinker Capital)
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John Coyne is Vice Chairman of Brinker Capital with 36 years of industry experience. Mr. Coyne leads Brinker Capital's initiative to broaden distribution into new market-places. In addition, Mr. Coyne is a board member and executive committee member of the Money Market Institute. Mr. Coyne was President of Brinker Capital and served as Chief Compliance Officer and a variety of regional and national sales persons at the firm.
Mr. Coyne's recent comments have included:
- "We see a lot of advisors without a plan, & their plan is to live their book out until they die."
- "The weak US dollar is also a strength for US manufacturers as domestic goods become cheaper to purchase overseas."
- "We need a bipartisan resolution to regulate government spending effectively."
- "Success takes time and commitment, and those are much easier to give if you are happy and engaged in what you are doing."
- "We"ll be moving to fill in the gaps for RIAs around practice management, technology, & service sales reports."
Lisa Dolly
(CEO, Pershing)
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Lisa Dolly is CEO of Pershing. Ms. Dolly was most recently the chief operating officer of the firm and has been with Pershing for over 25 years. Ms. Dolly has served as chairperson of the Securities Industry and Financial Markets Association (SIFMA) Operations and Technology Steering Committee and has served on cross-industry committees with DTCC. In addition, Ms. Dolly was named on the "Women to Watch" list by InvestmentNews and the "50 Most Influential Women in Private Wealth" list by Private Asset Management magazine.
Ms. Dolly's recent comments have included:
- "There's an availability of information that has never existed before, and our world is moving towards that."
- "There is a lot of emotion around the issue of digital advice, but advice is one small piece of the story. Technology is the real story."
- "The broker/dealer model has been under stress, and they"re going to morph into something that looks like an RIA."
- "We have heard what other firms (expect). I think (costs of implementing the DOL) would be higher than what they are estimating because it is so early in the process."
- "We look forward to helping our clients at INSITE 2016 with ideas designed to help them run their businesses more efficiently and serve their clients more effectively."
Tom Dorsey
(Founder, Dorsey, Wright, & Associates)
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Tom Dorsey co-founded Dorsey, Wright & Associates in January 1987. Mr. Dorsey has over 40 years of experience in the financial services business, having started as a stock broker with Merrill Lynch Pierce Fenner & Smith in 1974. He is the author of nine books whose subject matter ranges from the Point & Figure methodology to motivational topics, and is regularly quoted in the financial media. Mr. Dorsey is an award winning speaker, having taught the Point & Figure method of investing, around the globe. Additionally, he has been recognized for his business acumen with various awards including the Citizens Community Award from Governor Charles Robb, Runner-up Ernst & Young Entrepreneur of the Year Award 1999, Runner-up Best Small Business of Richmond, VA 2000, and Alumni of the Year 2000, Virginia Commonwealth University as well as Star Alumni Virginia Commonwealth University 2015. In 2015, DWA was acquired by Nasdaq.
Mr. Dorsey's recent comments have included:
- "Who knew that the restart would be Donald trump? It needed to be someone, some way that broke us out of the old way. If you stay in the old way, you"re going to end up like Japan. Japan, for 20 years, has had no growth."
- "Technology is where we are going " embrace it."
- "Life is a cinch by the inch, but life is hard by the yard."
- "To build a strong company, reduce your importance."
- "Do you know what does not have an agenda? A relative strength chart."
Stephane Dubois
(CEO, Xignite)
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Stephane Dubois is CEO and founder of Xignite. Mr. Dubois is a recognized financial data industry executive who founded Xignite to pioneer market data in cloud. Mr. Dubois was also nominated for FTF News Fintech Person of the Year and recently named for the second year to Institutional Investor's Tech 50 list of financial visionaries and innovators. Prior to founding Xgnite, Mr. Dubois was Vice President of Product Management at Advent Software, and held positions at Walker Interactive Systems and Oracle Corporation.
Mr. Dubois" recent comments have included:
- "Financial institutions can no longer afford to operate rigid and proprietary data infrastructures"These legacy institutions must innovate and simultaneously cut costs if they want to survive and thrive in this new paradigm."
- "It's very, very difficult to innovate when you have all this infrastructure... Enable innovation, limit infrastructure"
- "You can"t really afford to be stuck in the past."
- " The fintech revolution has only just begun and will sweep all aspects of the financial services industry in the coming years."
- "In a few years, most enterprise applications will have migrated to cloud and billions of devices consuming such data will also be operating off the cloud. If your data is not in the cloud by 2020, your business will probably not survive"
- "You can"t really afford to be stuck in the past."
Ric Edelman
(Executive Chairman, Edelman Financial Services)
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Ric Edelman, Founder and Executive Chairman of Edelman Financial Services, is widely regarded as one of the top advisors in the field. He was ranked the nation's #1 Independent Financial Advisor three times by Barron"s, named among the country's Top 10 Wealth Advisors by Forbes magazine in 2016 and is the 2017 recipient of the IARFC's Loren Dunton Memorial Award, which is awarded to a person who has made a substantial contribution to the financial services profession and/or the financial interests of the public. He also was named one of the "Ten most influential figures" in the advisory field by RIABiz in 2013.
Mr. Edelman's recent comments have included:
- "Disruptions destroy companies, Instagram destroyed Kodak, Wikipedia destroyed encyclopedias."
- "Any occupation that is redundant and repetitive will be replaced by robotics; computers can push the paper faster, cheaper, & be more accurate than humans can."
- "We leverage technology and build great tools and products for investors who are self-directed or who need a little guidance. For clients who require or want a more high-touch experience, we refer them to an independent RIA. We believe in this model because we understand that investors want objectivity and the flexibility to choose the solution that is right for them."
- "Pioneers get shot in the back with arrows, while the settlers who follow them build great cities. I view most of robo-advisors as pioneers; they lack sustainable business models in their present form and are doomed to failure. But their successors will change the industry."
- "If you aren"t invited to a client's wedding, if you aren"t the second person they call for a funeral, you are doing something wrong."
- "We leverage technology and build great tools and products for investors who are self-directed or who need a little guidance. For clients who require or want a more high-touch experience, we refer them to an independent RIA. We believe in this model because we understand that investors want objectivity and the flexibility to choose the solution that is right for them."
John Gabbert
(CEO, PitchBook Data)
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John Gabbert is CEO and founder of PitchBook, a private market financial data platform. Gabbert has more than eighteen years of experience in building information technology products for capital market professionals. Prior to founding PitchBook in March of 2007, Gabbert was the managing director of private markets for Dow Jones, & vice president of Worldwide Research for VentureOne, Venture Source and The Private Equity Analyst. Gabbert has played a key role in six acquisitions/ mergers (three as the acquired target and three as part of the acquiring/merged organization) by both strategic and private equity investors.
Mr. Gabbert's recent comments have included:
- "Fintech is the fuel for innovation for early stage companies."
- "We have grown revenues ten times over the last five years. This year we will hit over 60% growth and next year we anticipate 50% growth. This year's sales will be over $50 million and we have about 600 people in the team."
- "PitchBook is all about the people " and this team is the biggest reason why we are successful. We call ourselves PitchBook Panthers"because we relentlessly pursue our work like a panther does, and I think we have done just that. I am proud to be a Panther."
- "I am a loyal person and Morningstar has been a great partner, very supportive from the beginning. So all else being equal, I would rather have Morningstar be the home for PitchBook for the next chapter."
- "Joining forces with Morningstar will help us enter into our next stage of growth, including developing the next-generation version of our award-winning data and software platform, investing in our world-class sales and customer support functions, and expanding our business in Europe and Asia."
George Gatch
(CEO, Investment Management Americas, JP Morgan Chase & Company)
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George Gatch is CEO of Investment Management Americas at JP Morgan Chase & Company. Mr. Gatch joined JP Morgan Chase & Company in 1986 and has held numerous leadership positions throughout the firm in business management, marketing, and sales.
Mr. Gatch's recent comments have included:
- "In 20-30 years from today every defined benefit plan will have an allocation like Ford Corporation has today (77% fixed income)."
- "When the millennials have lost confidence in our industry, we will have to change that."
- "The only thing that matters is investment performance. Flows go to top performing funds and new strategies with good salespeople."
- "It is likely that returns for equities and bonds going forward will be less than they have been over the past five years, and we"re entering a period where volatility is undoubtedly going to increase as the Fed tightens monetary policy."
- "Today launching a fund is an entirely different ball game" The level of expertise and resources required to research, develop and launch new products has grown exponentially."
Jane Gladstone
(Senior Managing Partner, Evercore Partners)
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Jane Gladstone is Senior Managing Director of Evercore Partners. Prior to joining Evercore Partners, Ms. Gladstone was a Managing Director at Morgan Stanley. With 25 years of experience in investment banking, Ms. Gladstone has been named one of the Top 50 rainmakers on Wall Street by Dealmaker magazine and one of the Top 50 Most Influential by Bloomberg.
Ms. Gladstone's recent comments have included:
- "The enforcement environment has changed overnight; big traditional financial institutions can innovate & acquire fintech companies."
- "No such thing as a high heel market, just a bad credit market."
- "We are one of the few developed markets that thinks about the consumer based on whatever product you"re selling."
- "For the capital markets, market structure brokerage universe it's the equivalent of Davos."
- "Some of the most important changes involve the central clearing that's mandated for most over-the-counter trades."
Charles Goldman
(CEO AssetMark)
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Charles Goldman is CEO of AssetMark and serves on the boards of Personal Capital Corporation. Prior to joining AssetMark, Mr. Goldman was President of Fidelity Investments, Custody & Clearing, where he was responsible for three of Fidelity's businesses: National Financial, Fidelity Institutional Wealth Services and Fidelity Family Office Service. Mr. Goldman has executive experience across a range of industries and is recognized for effectively turning around and building successful businesses through major growth initiatives, cost containment and by building world-class service organizations.
Mr. Goldman's recent comments have included:
- "We think about value creation, we do it through four strategic pillars: asset management excellence, compelling technology, thought leadership, & deep relationships."
- "All the profits in the world of broker/dealers go to hidden fees, and those are going away."
- "There are lot of advisers moving to a fee-based model, moving to independence and moving to outsourcing, and we are focused on capturing that opportunity."
- "We have 6,000 relationships and $20 billion in assets, and that is meaningful, but we don't have a dominant share, and frankly, no one does."
- "We are excited to work with Huatai through this transition and beyond as we share a common belief in delivering outstanding service and innovative solutions to advisors and the investors they serve."
Matt Harris
(Managing Director, Bain Capital Ventures)
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Matt Harris is a Managing Director at Bain Capital Ventures and leads the New York City office. He started his investing career in the private equity group at Bain Capital in 1995, having worked previously at Bain & Company. In 2000, Matt founded Village Ventures where he focused on early-stage FinTech investments. In 2012 Matt rejoined Bain Capital Ventures and leads investments in financial technology and services including AvidXchange, BillTrust, Chrome River, Digital Currency Group, Flywire, IEX, Justworks, Novus Partners, OpenFin and Sigfig.
Mr. Harris's recent comments have included:
- "There is this kind of deathless phrase: liquidity breeds liquidity."
- "Lending is a fundamentally risky business."
- "A balance of pragmatism & vision makes a good management team."
- "The first year I decided to do fintech investment, in 2002, there was $300 million total invested in fintech companies."
- "If you"re in the fintech seat at private equity firm five years ago, you either invested in a robo advisor or your partners are asking you why you haven"t invested in a robo advisor yet."
Tim Harrison
(CEO, Harrison Finacial Services)
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Tim Harrison is CEO of Harrison Financial Services. Mr. Harrison founded Harrison Financial Services in 1994 and started his career at Northwestern Mutual as an intern. Mr. Harrison has been helping clients achieve financial security by providing innovative solutions for their personal and business needs for over twenty years.
Mr. Harrison's recent comments have included:
- "There is a number of ways we can grow, but one of them is grow with our own efforts within, there a lot of advisors that we can bring in."
- "Giving back has always been part of my life. I learned by watching my mom and dad, who are still active today at 75 and 80 years old."
- "On one end of the spectrum, for five years we have led the manpower and financial support that helped raise over 100,000 food items for the Salvation Army and the food pantries of Omaha with the Red Kettle Run. Additionally, we taught and brought experts in on topics like personal finance, specifically to women and youth, and have been involved on several investment committees for large foundations in Omaha."
- "It is a core value of everyone we hire to have a servant mentality. We don"t have to ask, but everyone we hire is involved in something in the community they are passionate about and have a natural connection to"More and more of our future focus will be centered on organizations with the greatest impact and we love when we can do something never been done before and can truly make a difference in our community and the lives of others."
- "Our team is involved in raising awareness to the public, our clients and certain nonprofits on topics ranging from identity theft, advanced estate and charitable strategies, poverty and hunger and providing financial education on topics like Social Security and caring for elderly parents. Several team members have even taken on various leadership roles on a number of local boards and organizations including EO (Entrepreneurs" Organization) Nebraska"etcetera."
Dennis Lockhart
(Former CEO, Federal Reserve Bank of Atlanta)
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Dennis Lockhart recently stepped down as President and CEO of the Federal Reserve Bank of Atlanta. Mr. Lockhart was responsible for all the Bank's activities, including monetary policy, bank supervision and regulation, and payment services. In addition, Mr. Lockhart serves on the Federal Reserve's chief monetary policy body, the Federal Open Market Committee (FOMC). Prior to Federal Reserve Bank of Atlanta, Mr. Lockhart served on the faculty of Georgetown University's School of Foreign Service, chairman of the Small Enterprise Assistance Funds, managing partner at Zephyr Management LP, president of Heller International Group, and chairman of the advisory committee of the U.S. Export-Import Bank. Mr. Lockhart held various positions earlier in his career, with Citicorp/Citibank (now Citigroup) including assignments in Lebanon, Saudi Arabia, Greece, Iran, New York and Atlanta.
Mr. Lockhart's recent comments have included:
- "A key point regarding inflation is that conditions have not been deteriorating, just hanging below target, on balance for me the data have been encouraging and affirm that the economy has been growing at a moderate pace. "
- "I believe the economy is sustaining sufficient momentum to substantially achieve the (Fed's) monetary policy objectives in an acceptable medium-term time horizon."
- "We have been relying extensively on consumer appetite."
- "I would certainly like to see the fiscal side step up to some real serious deliberations of what can be done."
- "I do not want to encourage the view that the (Federal Open Market Committee) or the Fed is in any serious way considering negative interest rates for this economy."
Pierre Mendelsohn
(CEO, ALPIMA)
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Pierre Mendelsohn is CEO of ALPIMA. Mr. Mendelsohn founded ALPIMA in October 2014 to give professional & institutional investors a new service and investment experience. Alpima is a new generation digital platform focused on systematic investing and asset allocation. Mr. Mendelsohn is passionate about science & technology, and how they can make finance better for investors. Prior to joining ALPIMA, Mr. Mendelsohn spent twenty years on the trading floors of leading investment banks in New York, London, and Hong Kong. Before founding Alpima, Mr. Mendelsohn was an MD with Morgan Stanley. He previously worked with Merrill Lynch, Bankers Trust & more.
Mr. Mendelsohn's recent comments have included:
- "Competition, for us, is the best way to fight and to keep working very hard, keep building, & keep winning."
- "The digital transformation of money management is real."
- "The problem in this industry is that huge amounts of money is spent building single purpose objects."
- "Do a good job. Execute. Satisfy your clients."
- "Replicating robo-advisory models is not our aim " the aim is to give our clients something they don"t already have."
Herbert Moore
(CEO, Wise Banyan)
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Herbert Moore is CEO and Co-Founder of Wise Banyan. Prior to founding Wise Banyan, Mr. Moore founded Archipelago capital Management. Mr. Moore also held various positions at Ansbacher Investment Management and Azimuth Trust. Mr. Baynan received his master's degree in Engineering from Stanford University.
Mr. Moore's recent comments have included:
- "We really liked the idea of putting down roots with your money and laying the groundwork for future financial success."
- "The ETF market has really improved in the past ten years and we"re very fortunate to be able to benefit from that and have our clients benefit tremendously from it as well."
- "Diversification will certainly bring down the volatility in your portfolio in the long run, but as ETFs become more broadly diversified and efficient, I think there is a case to be made that some of them can be combined into a single allocation."
- " Annuities is something we will likely stay away from simply because they"re a high-fee financial product."
- "".I don"t see the robo-advisors as putting traditional interactive brokers out of business. I see this as an evolving way for people to manage the core of their portfolio, the people who have decided that passive, low-cost indexing is the way to go, which we genuinely believe."
David Musto
(President, Great-West Investments)
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David Musto is President of Great-West Investments. Mr. Musto previously served as Chief Executive Officer for JP Morgan Chase & Company Retirement Plan Services and Senior Vice President at Prudential Retirement. Mr. Musto joined JP Morgan Chase & Company in 2007 where he led the firm's effort to serve investment and support needs of plan sponsor clients, retirement platforms and intermediary partners. Mr. Musto has over 25 years of experience in the benefits and retirement industry
Mr. Musto's recent comments have included:
- "We see a big opportunity to take our strong product sets and bring them in the marketplace to help institutions and individuals not directly served by our businesses."
- "That market is evolving as customers show interest in passive versus active management and multi-manager solutions."
- "Managed accounts are able to tailor asset allocation to individuals, and are therefore better suited than target-date funds for some, especially for near-retirees, who may have more complex situations."
- "Our new organization will build upon some well-established resources and capabilities that will work closely together to create some leading edge investment solutions."
- "Like other record keepers in the marketplace, we recognized that over the next three to five years, there is going to be a major transformation in the underlying technology that supports this industry."
Adrian Nazari
(CEO, Credit Sesame)
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Adrian Nazari is CEO & founder of Credit Sesame, a lending consumer credit and personal finance website that provides millions of consumers access to free student loan management, free credit scores, free credit monitoring, free credit and identity protection and better ways to save money and manage their finances. Prior to Credit Sesame, Mr. Nazari was founder and CEO of Financial Crossing and Financial Circuit.
Mr. Nazari's recent comments have included:
- "We are especially proud that our loan analytics and recommendations engine has identified total annualized savings of more than $600 million for our customers. These savings profoundly impact people's lives."
- "There are many financial consequences of breaking your lease from losing your deposit, to having to pay rent for the months remaining on the lease after you move out. If you can wait to move until your lease is up, it can save you a lot of money."
- "I think free ID theft protection is a game changer. A good analogy would be early access to the Internet. At first, consumers had to pay for Internet by the minute. A revolution took place when newer companies began to offer it on a monthly subscription basis which disrupted everything for the established Internet providers. Offering free ID theft protection instead of the standard pay-a-monthly-fee model has the potential to disrupt the ID protection industry in the same way."
- "If you normally shop at high-end stores and regularly pay off your card and suddenly start shopping at discount stores and carrying a balance, the lender could use this behavior data as an indicator that you have become higher risk and could take measures to minimize its exposure."
- "Pay your bills on time, keep debt balances low, open accounts only when necessary to avoid excessive inquiries on your credit report."
Shirl Penney
(CEO, Dynasty Financial Partners)
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Shirl Penney is CEO of Dynasty Financial Partners. Mr. Penney founded Dynasty Financial Partners in 2010 to improve the financial advisor model by building a service platform that allows advisors to do more with client, grow their business more efficiently, and minimize conflict. Prior to Dynasty Financial Partners, Mr. Penney worked for Slomon Smith Barney and Citigroup.
Mr. Penny's recent comments have included: Steve Piaker
Tiburon CEO Summit XXXII
Steve PIaker is Managing Director at Napier Park Global Capital. Prior to joining Napier Park Global Capital, Mr. Piaker was a Managing Partner at CCP Equity Partners. In addition, Mr. Piaker was a founding member of the financial institutions group within GE Capital Corporation's leveraged buyout division and began his career with Chase Manhattan Corporation.
Mr. Piaker's recent comments have included: Larry Raffone
Tiburon CEO Summit XXXII
Larry Raffone is CEO of Financial Engines. Mr. Raffone has served as President, Chief Executive Officer, and director of Financial Engines since January 2015. Since 2012, Mr. Raffone has held numerous positions with Financial Engines. Prior to joining Financial Engines, Mr. Raffone served as the executive vice president of Fidelity Investments Institutional Brokerage Group. Mr. Raffone's recent comments have included: Len Reinhart
Tiburon CEO Summit XXXII
Len Reinhart is CEO of WealthCare Capital Management. Mr. Reinhart is also serving on the Board of Directors of Wheelhouse Analytics, and Lifeyield. Mr. Reinhart has three decades of experience and innovation. Prior to joining WealthCare Capital Management, Mr. Reinhart founded Lockwood and held various positions at Pershing, Smith Barney, and EF Hutton. Mr. Reinhart's recent comments have included: John Rourke
Tiburon CEO Summit XXXII
Mr. Rourke is CEO and co-founder of Starburst Labs. As CEO of Starburst Labs, Mr. Rourke oversees the creation, development, and operations of web-and-mobile apps that are vertically aligned for investors, advisors, broker-dealers, and financial media brands. Prior to Starburst Labs, Mr. Rourke was CEO and cofounde of Upswing CRM and Bantam Live CRM. Mr. Rourke's recent comments have included: Aaron Schumm
Tiburon CEO Summit XXXII
Aaron Schumm is CEO of Vestwell. Mr. Schumm has over fifteen years of FinTech, FinServ, & wealth management experience. Prior to joining Vestwell, Mr. Schumm was co-founder of Actua and held various positions at Northern Trust, Citigroup, & Fiserv. Mr. Schumm received his MBA from Duke University. Mr. Schumm's recent comments have included: Ian Sheridan
Tiburon CEO Summit XXXII
Ian Sheridan is Managing Director and Co-Founder of Vestigo Ventures. Mr. Sheridan has more than 25 years of experience in business startup, turnaround, growth, and innovation. Prior to co-founding Vestigo Ventures, Mr. Sheridan held various positions at SunGard Financial Systems, DST Systems, and others. Mr. Sheridan began his career at the NYSE. Mr. Sheridan's recent comments have included:: Eric Sontag
Tiburon CEO Summit XXXII
Eric Sontag is Chief Operating Officer of Sontag Advisory. Mr. Sontag manages the general business practices and processes of the firm. Prior to joining Sontag Advisory, Mr. Sontag held positions at BlackRock and he began his career in the Portfolio Analytics Group. Mr. Sontag received his BA from Cornell University in Economics and Sociology. Mr. Sontag's recent comments have included: Tom Staudt
Tiburon CEO Summit XXXII
Tom Staudt is the Interim Chief Operating Officer for ARK Investment Management. Mr. Staudt manages and oversees the daily operations of the firm. Prior to joining ARK Investment Management, Mr. Staudt worked for WILX-TV, and NBC affiliated television station for Central Michigan and Fidelity. Mr. Staudt received his Master of Business Administration from Cornell University. Mr. Staudt's recent comments have included: Angie Stephenson Tiburon CEO Summit XXXII Angie Stephenson is the Chief Operation Officer of ParenteBeard Wealth Management, a Partner and Senior Wealth Advisor. As the Chief Operation Officer, she oversees the firm's operations and practice. Ms. Stephenson is a member of the firm's executive team and looks for acquisition opportunities. She is directly involved in transitioning the acquired firms and advisors into the team of ParenteBeard Wealth Management. Ms. Stephenson's recent comments have included: David Stone
Tiburon CEO Summit XXXII
David Stone is CEO of Aria Retirement Solutions and co-founded Aria Retirement Solutions in 2009. Mr. Stone has more than two decades of financial services experience as well as specific expertise in annuity product development and distribution. Prior to co-founding Aria Retirement Solutions, Mr. Stone was chief legal counsel for all of Charles Schwab's insurance and risk management initiatives. Mr. Stone's recent comments have included: Jerry Szilagy
Tiburon CEO Summit XXXII
Jerry Szilagyi is CEO and co-founder of Catalyst Capital Advisors. Mr. Szilagyi was active as a consultant and investment banker in the financial services industry. Prior to co-founding Catalyst Capital Advisors, Mr. Szilagyi was CEO of Thomas Lloyd Global Asset Management. Mr. Szilagy's recent comments have included: Mark Tibergien
Tiburon CEO Summit XXXII
Mark Tibergien is CEO of Pershing Advisor Solutions. Mr. Tibergien is also Managing Director for Pershing and a member of its Executive Committee and BNY Mellon's Senior Leadership Team. Mr. Tibergien has worked with public and private companies on matters related to business management, transition planning, & strategy formulation since 1976. Prior to joining Pershing, Mr. Tibergien held positions in Moss Adams, Management Advisory Services, & more. Mr. Tibergien's recent comments have included: Doug Trott
Tiburon CEO Summit XXXII
Doug Trott is CEO of PriceMetrix. Mr. Trott co-founded PriceMetrix in 2000, brining eighteen years of strategy consulting experience in the retail and wholesale financial services. Mr. Trott focuses on client development and growth of PriceMetrix, setting the company's strategic direction in meeting the evolving needs of North American brokerage and Wealth Management firms. Prior to co-founding PriceMetrix, Mr. Trott founded the Taddlingstone Consulting Group and began his consulting career at Oliver, Wyman. Mr. Trott's recent comments have included: Nic Volpi
Tiburon CEO Summit XXXII
Nic Volpi is Partner of Permira. Mr. Volpi is a member of the Financing Group and has worked numberous transactions. Prior to joining Permira, Mr. Volpi spent years at Bera Capital Partners, Index Securities in Geneva, and the Financial Institutions Group at Merill Lynch. Mr. Volpi's recent comments have included: Edmond Walters
Tiburon CEO Summit XXXII
Edmond Walters is the founder of eMoney Advisor, a wealth planning and management solutions provider for financial advisors. Mr. Walters founded eMoney Advisor in 2002 and spent more than twenty years in the financial services industry. Prior to founding eMoney Advisor, Mr. Walters was associated with Kistler, Tiffany, & Company and Wharton Business Group. Mr. Walters" recent comments have included: Elliot Weissbluth
Tiburon CEO Summit XXXII
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 was ranked second on RIAbiz's 2012 list of most influential figures in the RIA Business and was included on InvestmentNews" 2012 power twenty list and Investment Advisor's list of top 25 most influential people in the financial services industry in 2012 & 2013. 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 recent comments have included: Attendees Tiburon is pleased to announce that the following 209 Tiburon clients attended Tiburon CEO Summit XXXII:
Tiburon CEO Summit XXXI was held on October 10-12, at the Ritz Carlton Hotel in San Francisco, CA. Tiburon CEO Summit XXXI featured a keynote presentation by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry, focusing on the rapid evolution being driven all across the business value chain. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.
Chip Roame (Managing Partner, Tiburon Strategic Advisors) Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXXI keynote presentations. Chip Roame (Managing Partner, Tiburon Strategic Advisors) gave a day #1 presentation broadly addressing the state of the financial services industry, with a specific focus on the growing wealth management market. He will also give a day #2 presentation addressing strategic activity within the industry. 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. Mr. Roame has responsibility for all of Tiburon's consulting, research, & marketing activities which keeps him on the leading-edge of strategic initiatives in the industry's fastest growing businesses -- exchange traded funds, hedge funds & other alternative investments, bitcoin & blockchain, 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 regulatory issues such as the fiduciary standard, and in financial services industry venture capital & private equity opportunities and mergers & acquisitions transactions. At Tiburon, Mr. Roame has led over 1,900 client engagements for over 450 corporate clients since 1998. Mr. Roame has won numerous awards throughout the private equity, investment banking, 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 Edelman Financial Services (Ric Edelman's business backed by Hellman & Friedman), 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). Tiburon Managing Partner Chip Roame gave two keynote presentations at Tiburon CEO Summit XXXI. Tiburon CEO Summit XXXI Day #1 Keynote Presentation Overview The Future of Wealth Management: The Top Ten Industry Trends Context Setting: Consumers & Their Money Consumer households have $39.6 trillion investable assets, $61.3 trillion financial assets, $100.3 trillion total assets, and $85.6 trillion net worth. There are 10.1 million consumer households with over $1.0 million net worth, back above its prior peak of 9.2 million in 2007. Baby boomers will liquidate some portion of the $60.7 trillion in retirement plans, personal assets, & small businesses. Discount Brokerage Firms Discount brokerage firms changed the transaction pricing & value proposition; now underappreciated full-service financial advisors. Both the retail & financial advisor support models at both Fidelity Investments & The Charles Schwab Corporation are now amongst the leading financial advisor channels with assets under administration ranging from $1,107 billion to $1,522 billion. The wirehouse channel leads the financial advisor channels in average financial advisor assets under administration with $124.7 billion. Discount brokerage closely follows it with $110.1 billion in assets under administration. Indexing & Exchange Traded Funds Indexing & Exchange traded funds have changed the investment management pricing & value proposition. In 2015 investors pulled $207 billion out of actively managed funds & invested $414 billion into passive funds. In 2016 only fixed income mutual funds have positive net flows amongst actively managed mutual funds, with US equity funds in their third straight negative net flows years. Actively managed mutual funds have been losing share of assets under management to index mutual funds & exchange traded funds. Exchange traded funds have gathered $2.4 trillion assets under management, up from $1.0 billion in 1993. The Vanguard group had the largest inflows with
$236.1 billion. PIMCO had the largest outflow with -$86.9 billion. Robo Advisors There are at least 51 online advice firms, up from 30 in 2009. All online advice firms have gathered $245.9 billion assets under management, up from $16.0 billion in 2007. Online advice firms' assets under management are dominated by the defined contribution focused firms. The leading online firms are the defined contribution plan focused firms & the large discount brokerage firms & mutual funds companies with Financial Engines leading with $114.5 billion assets under management. Tiburon CEO Summit attendees have become fare more aware of the online advice models when asked to name the most impressive. Independent Advisors Tiburon CEO Summit attendees continue to believe the role of financial advisors is gaining value to clients, although this view is declining. Tiburon CEO Summit attendees increasingly think the number of financial advisors will decrease or at best remain steady over the next five years. Tiburon CEO Summit attendees continue to say that the number of independent advisors will grow the fastest over the next five years. Break-Away Brokers Successful financial advisor teams that move an average of $344 million assets under administration in 2015 have remained relatively consistent since 2010. Successful financial advisor teams & financial advisors that moved in 2015 took $142 billion assets under administration, up from $77 billion in 2010. Tiburon CEO Summit attendees continue to believe that the break-away brokers trend will grow hugely or at least moderately over the next five years. Hedge Funds & Liquid Alternatives Hedge funds have gathered $2.7 trillion assets under management, up from $1.3 trillion in the first quarter of 2009, but down from its peak of $2.9 trillion in the second quarter of 2015. Hudge funds has $20 billion net outflows in 2015, and it is gaining speed. Socially Responsible Investing & Impact Investing Socially responsible investing & impact investing is a big wildcard in the top ten industry trends and may be driven by women & millenials. Socially responsible investing & impact investing strategies have gathered $6.6 trillion assets under management, upfrom $200 billion in 1995. Europe has the highest proportion of share managed assets (59%) devoted to sustainable investments. There are 69% of millennial investors are interested in environmental, social, & governance issues, up from 19% of nonmillennial investors. Fiduciary Standard The fiduciary standard changes everything & the biggest winners may be managed accounts, ETFs, Robo Advisors, & Define Contribution plan providers. Some claim that hundreds of billions of dollars in individual retirement accounts (IRAs) may be orphaned. Front-end commission A-shares have gathered $1.9 trillion assets under management, up from $0.8 trillion in 2000. Mutual Funds' 12b-1 fees are $13.2 billion, up from $10.0 billion in 2000, but down from their peak of $13.4 billion in 2007. Most predict that products like variable annuities will see declines in usage. buron CEO summit attendees believe that a uniform fiduciary standard will not be implemented for retail advice in 2016-2017. Interest Rates The impact interest rates have on the future of wealth management is huge & may be hiding many emerging trends. Global private banks' gross margin is 95 basis points, down from 116 points in 2007 & its peak of 126 basis points in 2008. Life insurance companies average investment portfolio yield is 4.4%, down from 7.0% in 2000. 2016 Elections The 2016 elections are a poor choice & it does matter. The election affects fed policy by includence, Dodd Frank, CFPB, Capital gains tax rates, estate tax rates, carried interest provision, SCOTUS, & more. Tiburon's Conclusions on The Future of Wealth Management Trend is your friend with the rapidly growing market; historically terrific economics will be challenged (bet on transparency); & remember that closest to client almost always eventually wins. Tiburon CEO Summit XXXI Day #2 Keynote Presentation Overview The purpose objectives of the day #2 keynote presentation are to recognize Tiburon's increasing role in strategic industry activity by devoting second day of agenda to such; share the facts & avoid sensationalism & deal promotions; & potentially build day #2 conference agenda. Tiburon Managing Partner Chip Roame's day #2 keynote presentation is intended to address strategic adctivity in the wealth management industry, including venture capital, private equity, and mergers & acquisitions. Financial Services Industry Profitability & Valuations Life insurance companies average investment portfolio yield is 4.4%, down from 7.0% in 2000. Fee-based financial advisors' operating income margin is 28.2%, up from 22.2% in 2010. BlackRock & Janus Capital group have positive stock appreciation in 2016, BlackRock leading with 9.5%. Financial Services Industry Venture Capital & Minority Growth Equity Investments Venture capital funds invested $59.0 billion, up from $15.0 billion in 1997 but down from its peak of $105.0 in 2000. Venture capitalists invested $10.5 billion in financial technology firms in 2015, up from $1.4 billion in 2010. SoFi has raised the most venture cpaital amongst financial services firms, with $1.2 billion. Betterment Holdings, Personal Capital Corporation, & Walthfront have raised the most venture capital amongst the online advice firms. Tiburon CEO Summit attendees increasingly believe that venture capital's bet on online financial advice will see only moderate growth or stagnate. Tiburon CEO Summit attendees increasingly say that Bitcoins will catch on. Financial Services Industry Public Offerings There were 130 initial public offerings in 2015, down from 580 in 1995 & its peak of 840 in 1996. Technology companies accounted for 15% of initial public offerings in 2015, down from 35% in 1995 & its peak of 72% in 1999. Financial Services Industry Mergers & Acquisitions Amundi & DE Shaw have the largest investment management firm areas with $1.2 & $1.1 trillion respectively. Tiburon CEO Summit attendees increasingly say that financial services firm merger & acquisition activity will stagnate or grow moderately. Tiburon CEO Summit attendees say that financial technology firm consolidation activity will increase in 2016-2017. There were 84 fee-based financial advisor merger & acquisitions, up from thirteen 1999. Tiburon CEO Summit attendees said that United Capital Financial, Edelman Financial Services, & HighTower have the best chance at building nationwide financial advisor business. Financial Services Industry Activists Campaigns Activist hedge funds have gathered $125 billion assets under management, up from $10 billion in 2003. Activist hedge funds have $6.0 billion net flows, up from $2.0 billion in 2004, but down from their peak of $14.0 billion in 2014. Activist hedge funds pursued 355 campaigns, up from 253 in 2008. Tiburon Conclusions on FSI Strategic Activity Tiburon's conclusions on FSI strategic activity include profitability to increase; valuations to increase; venture capital & minority growth equity investments to increase; initial public offerings & secondary offerings to stagnate; mergers & acquisition activity to increase led by investment management firms & financial advisors; & activism to increase. Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXXI included speakers Walt Bettinger (CEO, The Charles Schwab Corporation), Ryan Beach (President, CLS Investments), Tom Bradley (President, Retail Distribution, TD Ameritrade), Len Brennan (CEO, Russell Investments), Alan Clopine (Co-CEO, Pure Financial Advisors), Todd Crockett (Managing Director, TA Associates), Mark Delfino (CEO, Hoyle Cohen), Stuart DePina (President, Envestnet Tamarac), Kyle Griswold (Partner, FTV Capital), Doug Hammond (CEO, NFP), Bob Heller (Former Governor, Federal Reserve Board, & Former CEO, Visa USA), Anton Honikman (CEO, MyVest Corporation), Chris Kitze (Partner, Crosslink Capital), Rob Klapprodt (President, Vestmark), Michael Kossman (Chief Operating Officer, Aspiriant), Bruce Lavine (CEO, 55 Capital Partners), Jim Lockhart (Vice Chairman, WL Ross & Company), Bo Lu (CEO, FutureAdvisor), Steve McLaughlin (Managing Partner, Financial Technology Partners), Nathan Mersereau (President, Planning Alternatives), Bob Moser (CEO, Laird Norton Wealth Management), Russ Norwood (Founding Partner, Venturi Wealth Management), Josh Pace (CEO, Trust Company of America), Lowell Putnam (CEO, Quovo), Kevin Rafferty (CEO, Vertical Management Systems), Steve Savage (CEO, Litman Gregory Asset Management), Skip Schweiss (President, TD Ameritrade Trust Company), Mike Sha (CEO, SigFig), Erik Strid (CEO, Concentus Wealth Advisors), Andy Swan (CEO, LikeFolio), Bill Van Dresser (Managing Partner, Legacy Wealth Advisors), Tom Wagner (Partner, Summit Wealth Group), Craig Wietz (President, First Rate), Jane Williams (Chairman, Sand Hill Global Advisors), John Wise (CEO, InvestCloud), & Justin Wisz (CEO, Vestorly). Tiburon CEO Summit XXXI also featured the firm's traditional client-centric panel discussions and two networking-based social events. Walt Bettinger
Tiburon CEO Summit XXXI
Walt Bettinger has been Chief Executive Officer of The Charles Schwab Corporation since October 2008 and concurrent with his appointment, he was named to the board of directors of The Charles Schwab Corporation. In addition, Bettinger serves on the Board of Directors of Charles Schwab Company. and Charles Schwab Bank, and as a Chairman of The Board of Trustees for the Schwab managed mutual funds and exchange traded funds. Prior to assuming his current role, he was most recently President of The Charles Schwab Corporation.
Bettinger's duties include leading the development of strategies and 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 is credited with leading Schwab through the financial crisis. Post crisis, from 2009 through 2012 Schwab grew client assets by $530 billion " $200 billion more than the growth of all four of Schwab's primary publicly traded competitors added together.
Bettinger has been recognized throughout his career as a leader in financial services including selection in 2014 to Fortune magazine's Businessperson of the Year listing, in 2010 to the Power 30 by Smart Money magazine of the world's most powerful and influential players; the 2009 lifetime achievement award for contributions to the retirement security of working Americans by Plan Sponsor magazine and receipt by Tiburon Strategic Advisors of a 2012 Tiburon CEO Summit award.
In 1983, at the age of 22, Bettinger founded The Hampton Company, a provider of retirement plan services to corporations and their employees. The Charles Schwab Corporation acquired Hampton in 1995.
Mr. Bettinger's comments included: Ken Arthur
Tiburon CEO Summit XXXI
Ken Arthur, one of three founders of ETF Engine, has worked for 35 years in the information technology industry primarily specializing in investor record keeping. He has had positions in corporate management, marketing, business development, product development and IT development, participating in the creation and processing of multiple recordkeeping systems for mutual funds, stocks & bonds, managed accounts, and wrap processing. Ken was instrumental in building, selling and servicing investor recordkeeping for some of the largest banks, brokerage firms and mutual fund companies in the US. His career started in programming for Lockheed and he then moved into data processing services and sales for the IBM Company. At IBM Ken participated in the development of a mutual fund transfer agency system that became the recordkeeping platform for Applied Financial Systems (AFS). He joined Applied Financial Systems where he was Vice President of sales and marketing. AFS was acquired by SunGard and during his tenure at SunGard he continued with the development of new investor recordkeeping systems, eventually becoming president of SunGard Shareholder Services. Ken was one of the four founders of Funds Associates Ltd (FAL) that built and processed the SuRPAS shareholder recordkeeping system that has become the largest mutual fund omnibus recordkeeping system in the US, processing over 150 million shareholder records, representing more than 2.6 trillion dollars of assets. After the sale of Funds Associates to PFPC (PNC Bank Subsidiary) Ken became a Senior Vice President in Advanced Product Development supporting E-commerce activities for PFPC’s product lines. Upon leaving PFPC Ken, with his partners, started KDS Partners, a consulting firm specializing in investor recordkeeping both in the USA and internationally. Ken has a degree in Physics from the University of Colorado and an MBA from Santa Clara University Mr. Arthur's comments included:
Ryan Beach
Tiburon CEO Summit XXXI
Ryan Beach has been the President of CLS Investments since 2012. CLS Investments is one of the largest ETF strategists & third party money managers in the United States. Prior to CLS Investments, he was an associate general counsel at NorthStar Financial Services Group from 2011 to 2012, where he advised clients on SEC and FINRA requirements. From 2005 to 2011, Mr. Beach was an attorney at Scudder Law Frim. He graduated from Brigham Young University with a Bachelor's degree in Economics and later graduated from the University of Nebraska College of Law with a Juris Doctorate in 2005. Mr. Beach's recent comments included:: Marty Beaulieu
Tiburon CEO Summit XXXI
Marty Beaulieu has been Executive Chairman of Altegris Investments since 2016. He is responsible for firm strategy and the day-to-day management of the company. He is a Director of MFS Institutional Advisors. Mr. Beaulieu serves as a Member of Advisory Board of Vestigo Ventures. He served as Head of Retail iShares US at BlackRock. He is an Advisory Board Member of BrightScope. Previously, Mr. Beaulieu served as Managing Director at BlackRock Financial Services and served as the CEO and Chairman of McLean Budden Limited. Previously, Mr. Beaulieu was responsible for McLean Budden's worldwide distribution efforts through its retail, institutional, and international sales subsidiaries. He joined MFS in 1990. Mr. Beaulieu served as Vice Chairman of Massachusetts Financial Services Company. Mr. Beaulieu joined Altegris as a member of its Board in March 2016 and graduated from Santa Clara University in 1980.
Mr. Beaulieu's comments included: Tom Bradley
Tiburon CEO Summit XXXI
Tom Bradley is President of Retail Distribution at TD Ameritrade. Tom Bradley is responsible for retail distribution at TD Ameritrade, which includes the company's branch network, marketing, investor service & sales call centers, guidance solutions, investment products and investor education businesses. He also serves as a member of the company's senior operating committee, which shapes the strategic focus of the organization. Mr. Bradley's experience in the financial services industry began as a financial advisor with Northwestern Mutual Life and RW Baird & Company. He joined TD Waterhouse in 1986 and continued with the firm until it merged with Ameritrade in 2006 to form TD Ameritrade. At TD Waterhouse he was responsible for correspondent clearing and capital markets businesses, and he also launched what is now known as TD Ameritrade Institutional1, supporting independent registered investment advisors (RIAs). In his most recent role, as president of TD Ameritrade Institutional, Mr. Bradley was responsible for all business functions, including independent RIA services segment and corporate services business. Mr. Bradley was recently awarded the 2013 Pioneers in Financial Services Award by William Paterson University's Cotsakos College of Business. In 2011 he was named one of the 25 most influential people in the RIA community by Investment Advisor magazine, an honor he received in 2004, 2006 and 2009 as well. He was named Visionary of the Year by Texas Tech University's Division of Personal Financial Planning in 2008. The National Association of Personal Financial Advisors (NAPFA) also recognized Mr. Bradley with the 2006 Special Achievement Award. Mr. Bradley's comments included: Len Brennan
Tiburon CEO Summit XXXI
Len Brennan serves as CEO at Frank Russell Company and previously served as the President. Mr. Brennan served as CEO at Russell Investments at London Stock Exchange Group plc since 2011 until 2016 and it's Group Director of Buyside Solutions until 2016. He served as the Chief of Europe, Middle East and Africa business at Frank Russell Company. Previously, he served as the President, and Chief Executive Officer at Rainier Investment Management. He joined the Rainier Investment Management in November 2005 and was responsible for the overall business and operational activities. Mr. Brennan has an extensive experience in the financial services industry. Prior to joining the firm, he was the Managing Director at Russell Investment Group and was responsible for the Individual Investor Services globally. Over the same period, he served as President of Frank Russell Investment Management Company, President of Russell Funds Distributors, and President of Frank Russell Investment Company. He managed all aspects of the Frank Russell's U.S. retail business, including sales, client service, marketing, new business development, operations, and compliance. A native of Canada, he managed the firm's Toronto and London offices and launched the company's first multi-manager investment fund outside the United States. He serves as a Director of Russell Investments and Rainier Investment Management. He is a CFA charter holder and is a Member of the CFA Institute. Mr. Brennan received a Bachelor's degree in commerce from Carleton University, Ottawa, Canada. Mr. Brennan"s
comments included: Bernie Clark Tiburon CEO Summit XXXI Bernie Clark is head of Schwab Advisor Services and a member of Charles Schwab's Executive Committee. He oversees the business that provides custodial, operational, and trading support to nearly 7,000 independent investment advisory firms with $1.1 trillion in assets under management In addition to custody services, Schwab Advisor Services provides practice management and consultative support to help independent advisors start, build and grow their firms. A recognized industry leader, he has been named by Investment Advisor magazine as one of the "IA 25 ," which annually ranks the 25 most influential people in the industry.
Clark has more than 30 years of financial industry experience serving individual and institutional investors. He began his career at Schwab in 1998 as senior vice president of trading and operations for Schwab Institutional. He later worked on the retail business as leader of the client services organization, before returning to the advisor business to lead the sales and relationship management organization. He took on his current role as head of Schwab Advisor Services in 2010.
Prior to joining Schwab, Clark was with the London office of Deutsche Morgan Grenfell. There he held the position of managing director in charge of global sales support, hedge fund operations and technology, including managing client service support in Asia, Europe and the U.S. He also spent 13 years with Salomon Brothers as a member of the executive committee responsible for North American operations.
Clark serves on the board of the Foundation for Financial Planning and the Arizona State University W.P. Carey School of Business, Center for Services Leadership. He is very involved in organizations in the Phoenix area, including serving as president of the Saguaro High School Football Foundation and as an active supporter of the Phoenix Children's Hospital.
Clark earned his Bachelor of Science degree in accounting from St. John's University in New York.
Mr. Clark's comments included: Alan Clopine
Tiburon CEO Summit XXXI
Alan Clopine is the CEO of Pure Financial Advisors. He currently shares the CEO role with Michael Fenison, the original founder of the company. Alan is primarily responsible for the day-to-day activities of the firm while Michael's focus is on expansion and hiring. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. Now, in 2016, Pure Financial has over 1,600 clients and over $1.4 billion of assets under management. Prior to joining Pure Financial Advisors, Alan was the founding and senior partner at Clopine & Associates; a CPA firm established in 1987 and located in San Diego. The firm was consistently ranked in the top 50 CPA firms in the San Diego Business Journal, Book of Lists.
Alan has provided tax planning services for individuals, corporations and trusts for over 30 years while running multiple companies. His goal is to help clients create tax-efficient income streams that are sustainable in retirement. Mr. Clopine"s
comments included: Todd Crockett
Tiburon CEO Summit XXXI
Todd Crokett is Managing Partner of TA Associates. Todd joined TA in 1994 as an associate in the Boston office and has worked in the Menlo Park office since 2000. Before joining TA Associates, Todd Crockett worked for Salomon Brothers – Financial Analyst in the Financial Institutions and Structured Finance Groups. He received his BA in Politics from Princeton University and his MBA from Harvard Business School. He is currently a board member at DiscoverOrg, Evanston Capital Management, NorthStar Financial Services Group, Procare Software and Russel Investments. Mr. Crockett's comments included: Mark Delfino
Tiburon CEO Summit XXXI
Mark Delfino is the CEO of HoyleCohen. In 2008, he joined the HoyleCohen team as part owner and Managing Director. Under his leadership, he has scaled operations and has positioned the firm for continual growth and ever-increasing investment, financial planning, and client service capabilities. He navigated the firm through the recent financial crisis, continues to lead during a time of volatile, yet opportunistic economic recovery, and maintains a clear purpose and vision for the future of the firm and our clients. He is an Investment Advisor Representative (IAR) and has extensive experience in business, planning, and investment management.
With an MBA from Harvard University and undergraduate degree in Economics from Butler University, Mark's professional pedigree includes over twenty years as an operating executive and trusted advisor. Prior to joining HoyleCohen, Mark was the founding principal of D-Rock Investment Services. He was also a Partner of The Boston Consulting Group (BCG), and a senior executive of a technology services company that was acquired and merged into Yahoo. Mr. Delfino"s
comments included: Scott Grauer
Tiburon CEO Summit XXXI
Scott Grauer is executive vice president for Wealth Management at BOK Financial and CEO of the company’s broker/dealer BOSC. BOK Financial is one of the largest bank holding companies in the United States. In his current role, Grauer is responsible for all the company’s wealth management business lines in all markets, including Institutional Wealth, The Private Bank, and International Banking. In addition to his role as CEO of BOSC, he serves as chairman on both of the company’s registered investment advisers, Cavanal Hill Investment Management, and The Milestone Group. Grauer holds numerous FINRA securities licenses, registrations and designations. Grauer joined BOK Financial in 1991 as part of the company’s acquisition of an independent retail brokerage operation and was named manager of BOSC retail in 1996. In late 1999, he was named president and CEO of the firm and assumed responsibilities for retail, institutional and investment banking activities when BOK Financial first combined these units under one organization. Under Grauer’s leadership, BOSC’s strong revenue growth has been one of BOK Financial’s most prominent success stories. A native of Cedar Rapids, Iowa, Grauer grew up in Leawood, Kansas and graduated from Shawnee Mission South High School in Overland Park, Kansas. He earned a bachelor’s degree in business administration from Baker University in Baldwin City, Kansas.
Mr. Grauer's comments included: Kyle Griswold
Tiburon CEO Summit XXXI
Kyle Griswold joined FTV Capital in 2007 after working as an investment banking associate at Berkshire Capital Securities. Mr. Griswold, based in FTV's New York office, has been actively involved in many successful FTV investments in the financial services and payments/transaction processing sectors. He is currently a board member at Apex Fund Services, a global fund administrator, Aspire Financial Services, a retirement plan solutions provider, True Potential, an investment and wealth management platform, and World First, a foreign exchange solutions platform. He is a board observer at Swan Global Investments, an investment management firm, and also actively involved with CardConnect, a payment processing services company. Mr. Griswold helped successfully exit Fleet One (acquired by Wright Express in 2012), IndexIQ (acquired by NYLife Investment Management in 2015) and VelocityShares (acquired by Janus Capital in 2014). Mr. Griswold received a BA in economics and mathematics from Trinity College and is a CFA" charterholder. Mr. Griswold"s
comments included: Doug Hammond
Tiburon CEO Summit XXXI
Doug advances initiatives that ensure NFP is synonymous with a leading, full-capability insurance broker and consultant that cares deeply about its employees and clients" well-being. He's held several leadership roles at NFP since 1999, including chief operating officer and general counsel, and has over two decades" experience in executive management, operations, underwriting, and law. Doug's committed to building exceptional leadership teams that embody NFP's dedication to trust, transparency and communication, and to delivering clients a broader range of high-quality solutions. In 2013, he led NFP's pivotal $1.4 billion go-private transaction with Madison Dearborn Partners (MDP), a leading private equity firm, providing NFP with significant opportunities for future growth. Prior to NFP, Doug practiced corporate insurance law at a national firm, where he represented NFP's founding capital partner before and during its startup phase. Doug is a member of the MDP Financial Services Advisory Board and serves on the board of directors of Kestra Financial, one of the largest hybrid retail independent broker-dealers in the U.S. He also serves on the Advisory Council of the Dolan School of Business of Fairfield University. In addition, he co-authored Reinsurance Law, a leading subscription treatise on reinsurance practice and legal trends. He earned his Bachelor of Arts from Fairfield University and his Juris Doctor from St. John's University School of Law. Mr. Hammond"s
comments included:
(Managing Director, Napier Park Global Capital)
Speaker
Steve Piaker
(Managing Director, Napier Park Global Capital)
(CEO, Financial Engines )
Speaker
Larry Raffone
(CEO, Financial Engines)
(CEO, WealthCare Capital Management)
Speaker
Len Reinhart
(CEO, WealthCare Capital Management)
(CEO, Starburst Labs)
Speaker
John Rourke
(CEO, Starburst Labs)
(CEO, Vestwell)
Speaker
Aaron Schumm
(CEO, Vestwell)
(Managing Director, Vestigo Ventures)
Speaker
Ian Sheridan
(Managing Director, Vestigo Ventures)
(Chief Operating Officer, Sontag Advisory)
Speaker
Eric Sontag
(Chief Operating Officer, Sontag Advisory)
(Interim Chief Operating Officer, ARK Investment Management)
Speaker
Tom Staudt
(Interim Chief Operating Officer, ARK Investment Mangement)
(Chief Operating Officer, ParenteBeard Wealth Management)
Speaker
Angie Stephenson
(Chief Operating Officer, ParenteBeard Wealth Management)
(CEO, ARIA Retirement Solutions)
Speaker
David Stone
(CEO, ARIA Retirement Solutions)
(CEO, Catalyst Capital Advisors)
Speaker
Jerry Szilagy
(CEO, Catalyst Capital Advisors)
(CEO, Pershing Advisor Solutions)
Speaker
Mark Tibregien
(CEO, Pershing Advisor Solutions)
(CEO, PriceMetrix)
Speaker
Doug Trott
(CEO, PriceMetrix)
(Partner, Permira Advisers)
Speaker
Nic Volpi
(Partner, Permira Advisers)
(Founder, eMoney Advisor)
Speaker
Edmond Walters
(CEO, eMoney Advisor)
(CEO, HighTower)
Speaker
Elliot Weissbluth
(CEO, HighTower)
Keynote
Presenter
Chip Roame
Managing
Partner
Tiburon
Strategic Advisors
The objectives of the Keynote Presentation were to anchor Tiburon CEO Summit discussion on consumers; offer a broad view of the wealth management industry (with a new theme at each Tiburon CEO Summit), with the theme at Tiburon CEO Summit XXXI being The Most Important Data Inflection Points; set a discussion agenda for Tiburon CEO Summit XXXI (framing the dozens of “three big points” and introduce 40+ speakers). The basis of the Tiburon CEO Summit XXXI Keynote Presentation is industry developments (“the news”), recent Tiburon & third-party research findings, the Tiburon CEO Summit XXXI attendee content survey, & Tiburon CEO Summit XXXI guest speaker presentations (and prior presentations).
(CEO, The Charles Schwab Corporation)
Prior Award Recipient
Walt Bettinger
(CEO, The Charles Schwab Corporation)
(Co-Founder, ETFengine)
Speaker
Ken Arthur
(Co-Founder, ETFengine)
(Executive Chairman, CLS Investments)
Speaker
Ryan Beach
(Executive Chairman, CLS Investments)
(Executive Chairman, Altegris Investments)
Speaker
Marty Beaulieu
(Executive Chairman, Altegris Investments )
(President, Retail Distribution, TD Ameritrade)
Speaker
Tom Bradly
(President, Retail Distribution, TD Ameritrade)
(CEO, Russell Investments)
Speaker
Len Brennan
(CEO, Russell Investments)
(Executive Vice President, Advisor Services, The Charles Schwab Corporation)
Speaker
Bernie Clark
(Executive Vice President, Advisor Services, The Charles Schwab Corporation )
(Co-CEO, Pure Financial Advisors)
Speaker
Alan Clopine
(Co-CEO, Pure Financial Advisors)
(Managing Director, TA Associates)
Speaker
Todd Crockett
(Managing Director, TA Associates)
(CEO, Hoyle Cohen)
Speaker
Mark Delfino
(CEO, HoyleCohen)
(CEO, BOK Financial Services )
Speaker
Scott Grauer
(CEO, BOK Financial Services) )
(Partner, FTV Capital)
Speaker
Kyle Griswold
(Partner, FTV Capital)
(CEO, NFP)
Speaker
Doug Hammond
(CEO, NFP)
Bob Heller
(Former Governor, Federal Reserve Board, & Former CEO, Visa USA)
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Bob Heller served on the Board of Governors of the Federal Reserve System from 1986, until 1989. From 1965 to 1971, Heller taught economics at UCLA. He accepted a professorship at the University of Hawaii and continued to teach economics for two more years. In 1974, Heller became chief of the financial studies division at the International Monetary Fund. In 1978, he became senior vice president and director of international economic research at Bank of America in San Francisco. In the fall of 1986, President Ronald Reagan nominated Heller to the Board of Governors. Heller served as chairman of the Committee on Bank Supervision and Regulation, was a member of the Federal Financial Institutions Examination Council, the National Advisory Council on International Monetary and Financial Policies, and represented the Board at the Organization for Economic Co-operation and Development. After leaving the Board of Governors, Heller returned to the private sector, joining Visa. In 1991, Heller became president and chief executive officer of Visa USA. and served in the role for two years. From 1994 - 2001, he served as the executive vice president of Fair Isaac Corporation. Heller is active in many business and civic organizations. He has served on the boards of VISA, the Fair Isaac Corporation and BMW of North America. He has also been Chairman of Marin General Hospital. He currently is a member of the boards of Bank of Marin, Bank of Marin Bancorp and Sonic Automotive. as well as several private corporations. Heller is the author of seven books and over one-hundred articles on economics, finance, and business.
Mr. Heller"s comments included:
- "At the current period we have the slowest recovery of the post war period. This is because of the high regulations."
- "We have something absolutely new: regulators for the regulators."
- "There are two issues threatening the long term: pension and insurance funds."
- "We are competitive with the Fed, also"our purpose it to try to replace the check with plastic."
- "The Federal debt will become unsustainable during the next decadee two issues threatening the long term: pension and insurance funds."
Anton Honikman
(CEO, MyVest Corporation)
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Mr. Anton Honikman is CEO of MyVest. Prior to MyVest, Anton served as President of Ada Investment Management, a boutique alternative investment manager. Previously, Mr. Honikman was at Barclays Global Investors (BGI, now BlackRock), where he established and ran BGI's Strategic Ventures Group, spearheading strategic investments and partnerships with innovative financial services companies. Before the Strategic Ventures Group, Mr. Honikman designed and represented defined contribution, and retirement income, and international index products for BGI. Mr. Honikman joined BGI from Barra (now MSCI), the market leader in portfolio risk analytics, As Barra's VP of Product Strategy, Anton was responsible for the conception and commercialization of BarraOne, Barra's flagship web-based multi-asset class portfolio analytics platform, now the established standard among large U.S. pension funds. He earned a Bachelor of Business Science with honors in financial economics and applied statistics from the University of Cape Town, South Africa. He is a trustee of the San Francisco School.
Mr. Honikman's comments included:
- "They can"t support the necessary technology internally to succeed and they know it."
- "The challenge for the wealth management industry is to provide personalized solutions at scale."
- "We"ve always espoused a client-centric approach to wealth management. Now, it's less about products and more about client outcomes, and that's a change we are proud to be a part of."
- "Do no harm your employees. If they leave, your customers leave."
- "We remain committed to serving our clients and continuing to provide the tools advisors need to prepare their clients for the future."
Kunal Kapoor
(CEO, Morningstar)
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Kunal Kapoor, CEO of Morningstar, is responsible for managing the company's investment databases and related products, including Morningstar" Data, the firm's comprehensive offering of investment data, real-time market data, documents, and more available through a variety of delivery methods including electronic data feeds. Prior to assuming his current role in 2012, Kapoor was president of Equity and Market Data/Software. In 2009, he became president of Individual Software, responsible for Morningstar.com", and in 2010, his role expanded to include the firm's equity data business. Kapoor joined the company as a data analyst in 1997 and became a fund analyst in 1998. In 2001 he joined Morningstar Investment Services, a registered investment advisor and wholly owned subsidiary of Morningstar, as a senior research analyst. He was named editor of Morningstar" Mutual Funds", the company's flagship publication, in 2003, and in 2004 was appointed director of mutual fund analysis, where he led Morningstar's team of mutual fund analysts. In 2006, Kapoor was named director of business strategy for Morningstar's international operations. He also served as president and chief investment officer of Morningstar Investment Services. Kapoor holds a bachelor's degree in economics and environmental policy from Monmouth College and a master's degree in business administration from the University of Chicago Booth School of Business. He also holds the Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Chicago. In 2010, Crain's Chicago Business named Kapoor to its annual 40 Under 40 class, a list that includes professionals from a variety of industries who are contributing to Chicago's business, civic, and philanthropic landscape.
Mr. Kapoor's comments included:
- "The very much of the discussion is the high costs of active versus low cost of passive."
- "From my perspective, technology is enabling the adviser to have a closer relationship with the clients that advisers should be spending the most time with. Tech provides a huge opportunity for companies like Morningstar to demonstrate value."
- "One of the areas in the world that we see as having the biggest opportunities is in the U.S. As good as the opportunities are overseas, they are just as good here. It is not a matter of one over the other."
- "Everyone thought robo-advisers were going to land with a big thud in the adviser community. But they have gained acceptance in that advisers have found ways to use the new tools they get".
- "The reality is that the vast majority of assets are concentrated in a few funds, and covering that select group is not a challenge."
Rob Klapprodt
(President, Vestmark)
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Mr. Rob Klapprodt serves as President of Vestmark. Mr. Klapprodt served as the President of Vestmark Software of Vestmark. Mr. Klapprodt has been at Vestmark since 2001 and is responsible for sales, marketing, business development and products. Prior to Vestmark, Mr. Klapprodt served as a Senior Product Manager at Vignette Corporation (NASDAQ: VIGN), where he was responsible for Vignette's analysis and personalization solutions. Mr. Klapprodt joined Vignette through their acquisition of DataSage, an eCRM software provider, in January 2000. At DataSage, Mr. Klapprodt held various positions in sales, consulting and product management, including the construction of the initial eCRM prototype which became DataSage's flagship product. Mr. Klapprodt worked at Oracle Corporation prior to DataSage, where he focused on Oracle's data warehousing and business intelligence solutions for large enterprises. Mr. Klapprodt holds a BS from Pennsylvania State University where he studied Economics and Mathematics.
Mr. Klapprodt"s comments included:
- "The costs and risks associated with managing IRAs and other retirement accounts under DoL will make it impractical for many firms to maintain them."
- "With the right technology, firms can create a viable operating model for advising retirements accounts and improve their operations overall."
- "In developing new modules for our managed accounts platform, our philosophy has been to partner with forward-thinking clients, define a vision, and deliver a solution that works in the real word."
- "Due to unique scalability and functionality requirements, broker-dealers, banks, RIAs and other wealth managers have had limited compliance capabilities across their fee-based business."
- "As debates about robo-advisors continue to rage on, it's hard not to flash back to similar stages for innovations that transformed other industries or daily life. For example, there was a time when social media was viewed as a fad."
Chris Kitze
(CEO, Safe Cash Payment Technologies)
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Chris is a serial entrepreneur who has created companies with over $7 billion of market capitalization over his 25-year career. He's been part of the Lycos" IPO team, was founder and CEO of Xoom.com (IPO: 1998), and was CEO of NBCi, formed by the merger of Xoom.com and Snap.com, in addition to other companies in digital media and payments, such as Wine.com and Unseen. He is Chairman of Unseen, Director of IQzone, and General Partner at Flying Disc Investments. He was previously Director at iNome / Intelius, Chairman of Wine.com, CEO at Yaga, CEO at NBC Internet, Chairman at Xoom.com, VP Marketing at Lycos, CEO of Point Communications, Publisher at Softkey International, Publisher at The Learning Company, and CEO of Aris Multimedia. Chris's patents include Method and system for delivering files in digital file marketplace, Method and system for generating a secure message as a URL message, Digital file marketplace, Method and system for automatically distributing fees, including a reseller commission, during a digital file transaction, and Efficient transportation of digital files in a peer-to-peer file delivery network. Chris authored The Electric Image and earned his BS in Chemical Engineering at the University of Colorado Boulder in 1981.
Mr. Kitze"s comments included:
- "The future of digital currency is very bright. We think it could replace most paper money in five years because it has a huge benefit for central banks & governments, banks, and for merchants & consumers."
- "What took years will now take months or days as most people have smartphones and are familiar with this technology."
- "Private currencies will likely be every bit as valuable as the widespread legal tender currencies of today. Bitcoin is now widely enough used and it can be exchanged for fiat and those two factors probably move it out of the private currency realm."
- "We think Bitcoin is great and yes, we do also value freedom, privacy and people's ability to use their private property as they see fit."
- "If you are a merchant and you take credit cards, you have this huge problem of chargebacks, which run another 1% of your sales. They not only cost you the price of the money you collected but also a penalty fee from the card network."
Aaron Klein
(CEO, Riskalyze)
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Aaron's career has largely been at the intersection of finance and technology. As Co-Founder and CEO at Riskalyze, he led the company to twice being named one of the world's top ten most innovative companies in finance by Fast Company Magazine. Today, 90 Riskalyzers serve thousands of advisors who manage over $90 billion on the platform. In his spare time, Mr. Klein serves as a Sierra College Trustee, and co-founded a school project for orphans and vulnerable kids in Ethiopia. He has been honored by Investment News as one of the industry's top 40 Under 40 executives.
Mr. Klein"s comments included:
- "In five years, there will be a plethora of digital advice platforms, because the diversity of thousands of advisory business models and approaches won"t go away, and our different advisor-facing technology needs to become more client-facing."
- "But we can"t out-robo the robo-advisors. In the race to depersonalize the investor experience, the venture capital-backed money will win."
- "We began as contrarians in the belief that risk should be at the center of how you engage with clients, and we continue as contrarians in our belief that robo is a technology model, not a business model."
- "But we can"t out-robo the robo-advisors. In the race to depersonalize the investor experience, the venture capital-backed money will win."
- "Advisors say they want simplicity, and then they send us requests on a monthly basis to make it more complicated. We simply say no, because at the end of the day they still want simplicity, and it's something they love us for."
Michael Kossman
(Chief Operating Officer, Aspiriant)
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Michael is currently the Chief Operating Officer of Aspiriant, a premier wealth management firm serving an elite clientele. He joined a predecessor firm (Kochis Fitz) in August, 2000 and was Aspiriant's Chief Financial Officer from formation in 2008 until 2012. He now serves on the firm's Board of Directors, Managing Committee, and Firm Strategy Committee, as well as Chairs the Compensation Committee. He brings over 25 years of broad-based business experience in finance, human resources, technology, operations, taxation, regulatory environments, and strategic planning. Michael received his CPA license in 1991, and shortly thereafter joined Gap, succeeding to the role of International Tax Manager, providing planning and compliance support to both domestic and foreign operating companies and expatriates in Canada, the United Kingdom, France, Hong Kong, and Japan. Michael also had the honor of being selected to serve on the Gap Foundation Grants Committee. After leaving Gap, Michael worked as the Deputy Executive Director at Project Open Hand, a large institutional social services agency, for six years, where he ultimately oversaw programs that fed more than 2,000 people daily through home delivered meals, drop-in grocery programs, and congregate lunch sites.Michael has devoted significant amounts of time and energy to the community of San Francisco, including board positions with DIFFA/San Francisco, The National AIDS Memorial Grove, and Frameline. He was also a founding board member of ANSA, now the premier international voice for nutrition services programs, and a very early member of Plan C, a local political organization. In recognition of his efforts, March 31, 2000 was proclaimed Michael Kossman Day in San Francisco by Mayor Willie L. Brown. Michael earned his Bachelor of Arts degree in Business Economics from the University of California, Santa Barbara in 1986 where he graduated Magna Cum Laude.
Mr. Kossman"s comments included:
- "Get better, not necessarily bigger."
- "If the borrower doesn't pay, who comes next? ... How does Schwab get an appropriate level of security?"
- "People didn't want to pay for financial planning, only portfolio management. The pendulum was swinging for the investment platform."
- "Robo advisors are not a threat. If you don"t pay for something is difficult to see the value."
- "In terms of size, between $0.5 and $1.5 billion is fine."
Bruce Lavine
(CEO, 55 Capial Partners)
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Bruce Lavine has been the CEO of 55 Capital Partners since 2016. 55 Capital Partners is an asset management firm that implements sophisticated institutional portfolio management strategies with ETFs for a variety of different client types. Mr. Lavine was the Vice Chairman of Equilar Atlas from 2012 to 2016, and prior to that, he was Equilar Atlas" Chief Operating Officer from 2006 to 2012. Bruce revieced a Bachelor's degree with distinction in commerce and a master's in finance from the University of Virginia. Mr. Lavine is a Chartered financial analyst with many years of experience in senior management positions in the ETF industry.
Mr. Kranefuss" recent comments have included:
- "The flash crash was a market problem, not an ETF problem."
- "Active and passive are gonna be blended together in the future."
- "You"ll have to have some active management on the portfolio or you will disappoint the customer."
- "Today's markets are challenging with what we believe will be low forward-looking returns and an increasing number of volatility surprises. We are thrilled to partner with United Advisors to provide their clients with ETF portfolio solutions that utilize sophisticated, well-documented techniques broadly used by institutional investors to manage risk and enhance returns."
- "We also believe that advisors want to use more ETFs in their clients' portfolios, but are often frustrated with how to select the 'right' ones. At 55 Capital, we have the capacity to navigate the sea of ETFs and to construct efficient, resilient, diversified, tax-efficient portfolios."
Jim Lockhart
(Vice Chairman, WL Ross & Company )
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Jim Lockhart is Vice Chairman of WL Ross & Company. His responsibilities include overseeing financial services portfolio companies and sourcing new opportunities in the financial services industry. Mr. Lockhart previously was the director of Federal Housing Finance Agency and chairman of its Oversight Board, and director of its predecessor agency, the Office of Federal Housing Enterprise Oversight. He also served on the Financial Stability Oversight Board, overseeing the TARP Program. Mr. Lockhart was the deputy commissioner and chief operating officer of the Social Security Administration and executive director of Pension Benefit Guaranty Corporation. Mr. Lockhart's private sector financial services experience includes senior positions at an investment bank, reinsurer, insurance broker, risk management firm and major oil company. He also served as an officer aboard a nuclear submarine.
Mr. Lockhart"s comments included:
- "We recommend employees from small companies to join a pool retirement plans with other employees."
- "We have to figure out how to get the private market back into the mortgage market."
- "The stock and the preferred (stock) is worthless and should be worthless."
- "We recommend $500 saving for young people and low income people."
- "There is a real need to bring capital to various segments of the financial industry: from small to medium banks, insurance companies, as well as mortgage servicing and origination."
Bo Lu
(CEO, FutureAdvisor)
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Bo Lu is CEO and co-founder of FutureAdvisor, a robo advisor that has automated portfolio management. He is the eldest son of Chinese immigrants who fled communist China in the years after Tiananmen Square. The Lu's settled in Chicago, and Bo majored in computer science at the University of Illinois Urbana-Champaign. Mr. Lu joined Microsoft, where he met his co-founder Jon Xu, as a software engineer. An investor since the dot-com bubble, Mr. Lu saw that the young professionals working with him were unable to find unbiased financial advice. In 2010, he and Jon Xu founded FutureAdvisor, took it through YCombinator, and raised their first round. The company now employs nearly 40 people, manages about $250 million in assets (18 times more than a year ago), and is backed by Sequoia Capital and Canvas Venture Fund. Mr. Lu is a registered investment advisor and holds a Series 65 license. .
Mr. Lu's comments included:
- "We do not bring the money to technology. We bring the technology where the money is."
- "This industry is about scales."
- "There is no natural way of software answers the questions to our clients."
- "Today if you have very little money your only choices are a standalone digital advisor"We enable that tomorrow you can go to your bank."
- "Digital advice is here to stay and will play a larger role as the combination of digital and human advice, packaged appropriately together, continues to improve outcomes for both financial advisors and their clients."
Joel Mandelbaum
(CEO, Strategic Insight)
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Joel Mandelbaum is the CEO of Strategic Insight. Joel has deep experience delivering information and workflow solutions to financial services clients and is a graduate of Massachusetts Institute of Technology. Joel joined Asset International from Warburg Pincus, where he was Entrepreneur in Residence and Senior Advisor where he advised on investments in financial software & technology. Previously, he held the position of CEO at Wall Street Systems. He also served as President of Thomson Market Information Services where he ran eight companies that included securities pricing, asset-backed securities, municipal bonds, trading, & electronic publishing. Asset International is the twelfth financial services business managed by Joel.
Mr. Mandelbaum's comments included:
- "We are dedicated to helping our clients and, in turn, deepen and broaden their offerings to their clients."
- "This acquisition expands Strategic Insight's data offering and research and development capacity. BrightScope is well known for its unique retirement data and its technology innovation. We are excited by the opportunity to add retirement data to our portfolio and accelerate our commitment to the asset management community."
- "We are now realizing our ambition of creating the go-to supplier for the asset management community. Bringing Market Metrics and Matrix Solutions in to the Asset International family represents an excellent fit for our clients and employees, and we are delighted to have joined forces. Together we are building a dedicated enterprise to fully service the rapidly changing global investment management sector."
- "BrightScope is well known for its unique retirement data and its technology innovation. We are excited by the opportunity to add retirement data to our portfolio and accelerate our commitment to the asset-management industry."
- "We are now realising our ambition of creating the go-to supplier for the asset management community. Bringing Market Metrics and Matrix Solutions in to the Strategic Insight family represents an excellent fit for our clients and employees, and we are delighted to have joined forces. Together we are building a dedicated enterprise to fully service the rapidly changing global investment management sector."
Steve McLaughlin
(Managing Partner, Financial Technology Partners)
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Financial Technology Partners, founded by Steve McLaughlin, Managing Partner, formerly a senior investment banker in Goldman Sachs Group's Financial Technology Group and Financial Institutions Group in New York and San Francisco. Mr. McLaughlin has personally advised on hundreds of highly successful FinTech transactions over the years and no other investment banker has a more consistent track record for successfully completing deals across the wide array of FinTech that includes Payments, Banking Tech, Alternative Lending, Insurance Tech, Healthcare Tech, Financial Management Solutions and Financial BPO. Having earned a reputation for delivering record setting results for his clients, Steve has demonstrated that his unique focus and insight into the FinTech marketplace provides a competitive advantage unmatched in the sector.
Mr. McLaughlin"s comments included:
- "This is an evolution, not a revolution. Digital Wealth Management is already changing the way money is managed."
- "Some insurance players will make acquisitions on fintech companies."
- "Today's robos and DWM will be eclipsed by the next wave. It's all about having enough capital."
- "We realized early on that it takes specialized focus and deep industry insights to position FinTech in a way that helps buyers / investors properly understand the unique growth profile and synergies that exist in the sector."
- "Look at what ApplePay is doing."
Nathan Mersereau
(President, Planning Alternatives)
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Tiburon CEO Summit XXXI |
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With over twenty years of experience in the financial services industry, Nathan Mersereau brings a wealth of knowledge and expertise to Planning Alternatives. Prior to joining the firm in 2009, Nathan was the owner and President of Oakland Wealth Management. Nathan is responsible for leading the strategic direction of Planning Alternatives as well as overseeing WealthCare Advisors, an affiliate firm providing wealth management services to physicians. As a Certified Financial Planner", Nathan provides comprehensive financial planning solutions to clients with a specialization in planning for financial independence. Nathan has contributed to various media publications including USA Today, the Wall Street Journal and Michigan Medicine, as well as appeared on NBC's WDIV-TV Channel 4. Nathan holds a Bachelors of Arts in Administrative and Commercial Studies from the University of Western Ontario and a Bachelors of Commerce in Finance from the University of Windsor. He is a member of Young Presidents" Organization (YPO), a premier peer network of chief executives and business leaders. Nathan is a contributing member of the CNBC " YPO Chief Executive Network.
Mr. Mersereau"s comments included:
- "Culture is the king."
- "Through a personalized, proactive approach to client service, careful attention to firm culture, deep community engagement and dedication to philanthropic work, the firm is determined to humanize the world of finance."
- "The more we can help clients understand that financial planning is simply a vehicle help them to plan for a future they want to experience, the more effective we can be."
- "Before making any business with someone ask yourself: Would I spend a day in a canoe with you?".
- "Be strategic and implement relentlessness."
Sanjiv Mirchandani
(President, Fidelity Clearing & Custody)
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Tiburon CEO Summit XXXI |
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Sanjiv Mirchandani is president of Fidelity Clearing & Custody Solutions, the business that offers a comprehensive clearing and custody platform, trading capabilities and business process and operations consulting to banks, broker-dealers, registered investment advisors, professional asset managers, strategic acquirers and retirement advisors and recordkeepers. Mr. Mirchandani joined Fidelity Investments in 1994 and has held several positions, including president of products and marketing for Personal and Workplace Investing, where he was responsible for the management, growth and profitability of Fidelity's consumer products and services for retail and workplace investors. Prior to that role, he acted as executive vice president of brokerage and asset management products within the personal investments business, including Fidelity's retail mutual funds, FundsNetwork, Portfolio Advisory Services, brokerage accounts and retirement, education and healthcare savings products. Before that, he was general manager for the retail retirement business, including contributory IRAs, rollover IRAs, self-employment plans and pre-retiree services. Prior to being named general manager, he was senior vice president of customer segment management, where he was responsible for marketing and improving customer profitability for all of Fidelity's retail customer segments. Mr. Mirchandani began his career at Fidelity as senior vice president of retail market planning, overseeing retail strategy with functional responsibility for market research, database marketing and industry analysis. Prior to joining Fidelity, Mr. Mirchandani spent six years at the American Express Company as a director of marketing in the consumer card business. He began his career at the Citibank consumer bank, where he worked for three years. Mr. Mirchandani received a bachelor of commerce degree from the University of Bombay, in India, in 1982 and an MBA from Cornell University in 1984.
Mr. Mirchandani's comments included:
- "Offering advice to baby boomers is where the business is."
- "In order to grow a successful business in the future, advisors must build a solid foundation of financial and wealth planning, intimately knowing clients, helping them manage significant life events and guiding them through varied market conditions to achieve their goals."
- "We believe that a planning-led practice will give firms an edge, and help them to be more future-ready, which is why we are working so closely with eMoney to bring many elements of our new platform to life."
- "The competitive advisor compels digital knowledge and financial advising."
- "We have to consider a lot of exits as the industry is consolidating."
Robert Moore
(CEO, Cetera Financial Group))
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Tiburon CEO Summit XXXI |
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Robert Moore was appointed CEO of Cetera Financial Group in 2016. As CEO, Mr. Moore assumes overall executive responsibility for Cetera Financial Group, which includes: Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, and Cetera Financial Specialists along with First Allied Securities, The Legend Group, Summit Brokerage Services, and Girard Securities. He also continues to serve as a member of Cetera's board of directors. Mr. Moore was formerly the chief executive officer of Legal & General Investment Management America (LGIMA). Prior to joining LGIMA, Mr. Moore served as president of LPL Financial with oversight of the company's primary client-facing functions, client service and operations teams. Prior to becoming president of LPL, he served as CFO. Before joining LPL Financial, Mr. Moore served as chief executive officer at ABN AMRO North America and La Salle Bank Corporation. He has also held a number of finance management positions, as well as key investment and portfolio management roles earlier in his career. He currently serves on the Insured Retirement Institute (IRI) Executive Committee, Advisory Board for the Securities Industry & Financial Markets Association (SIFMA), as well as a board member for Invest in Others, the Chicago Shakespeare Theater, and Chicago History Museum. He is a former member of the board of the Financial Services Institute, the development board for The University of Texas, Austin and has also served on the LIGMA board since 2008. Mr. Moore currently holds Series 7, 24, 27, 99 securities registrations and is a Charted Financial Analyst (CFA).
Mr. Moore's comments included:
- "I do believe this is a tremendous opportunity of simplifying our business."
- "Our unwavering commitment and deep-set beliefs to always put the client first led us to partnering with Carson Group. They present a uniquely expansive value that is truly distinctive and differentiated in our profession, extending from the complexities of helping an advisor grow their business to materially enhancing the client experience through integrated technology."
- "Client experience is gonna be proofed".
- "With this ecosystem, we"re gonna have a very powerful opportunity to have great conversations with our clients".
- "This is highly about personal advice more than about financial advice".
- "With this ecosystem, we"re gonna have a very powerful opportunity to have great conversations with our clients".
Bob Moser
(CEO, Laird Norton Wealth Management)
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Tiburon CEO Summit XXXI |
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Bob Moser, CEO of Laird Norton Wealth Management since 2008 has more than 30 years of experience in private wealth management, financial services and business management. Laird Norton Wealth Management was founded by clients for the benefit of clients and it is Bob’s Chalenge to broaden and enhance operations at an organization that’s already exemplary at what it does.This means focusing on leadership-building and select growth opportunities as the decade unfolds, while at the same time ensuring safety and continuity for clients, employees and owners. Bob focuses on leadership-building and select growth opportunities as the decade unfolds, while at the same time ensuring safety and continuity for clients, employees and owners. He is also is a Board Chair at College Success Foundation, Advisory Board Chair at King County Parks Foundation, a board member for The Virginia Mason Foundation, a board member at Treehouse and a board member at Amara. In 2013, Bob lead LNWM’s efforts to create the King County Parks Foundation, in partnership with King County Parks
Mr. Moser's comments included:
- "There are two important components when you manage individual wealth: You have to fundamentally understand the economic drivers of the business and you have to truly have the best interest of clients at heart."
- "Even in these depressed economic times, we are still seeing wealth being created and it will continue to be a growth market for five to ten years."
- "It is really pretty common that you will see lots of family businesses where the first generation will start it, the second generation will build it and the third generation will move on."
- "We are a family business with deep roots in the Puget Sound region, and we understand the importance of strengthening the community for future generations."
- "I love this business. I love working with clients."
Christine Nigro
(Vice Chairman, Axa Advisors)
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Tiburon CEO Summit XXXI |
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Christine Nigro is vice chairman of AXA Advisors, the broker/dealer for the retail distribution channel for the company. Ms. Nigro is responsible for managing all aspects of the distribution platforms (Broker- Dealer and Crump), digital strategy and adoption, practice management and field support for 5,200 AXA Advisors financial professionals nationwide. Ms. Nigro has more than 20 years of experience in the financial services industry, and joined AXA Advisors in February 2006 as chief operating officer (COO) of the broker/dealer. As COO, she played a major role in enhancing the operational efficiency of the broker/dealer and in providing strategic guidance to expand its service, technology and investment product offerings to support the wide range of needs of AXA Advisors financial professionals and clients. Ms. Nigro has held numerous management roles for domestic and global organizations. Prior to joining AXA Advisors, she was vice president and director of Personal Financial Services, Investment Operations and Customer Service for JP Morgan Chase, where she was responsible for supporting telephone customer sales, service, and product administration. Previously, Ms. Nigro was vice president of the International Private Client Group for Merrill Lynch, where she was responsible for creating new products and developing local markets in the United Kingdom and Australia. Earlier, she spent eight years with Fidelity Investments: four in the United Kingdom where she was responsible for the execution, clearing and custody for the organization's assets for more than 40,000 clients. Ms. Nigro earned a Bachelor of Arts degree from Ithaca College. She holds the FINRA Series 7, Series 24, 51 and U63 registrations.
Ms. Nigro's comments included:
- "We have already moved to relationships."
- "Money is not a person, you cannot hurt its feelings" If you don't like what your investments are doing, change them -- but don't be too hasty. Evaluate your investment strategy by taking another look at your current situation, future goals and appetite for risk."
- "Do the demographics because it makes business sense".
- "You are (to the audience) the key keepers four your customers."
- "We"re helping our advicers, and therefore our clients, to deal with changes".
- "You are (to the audience) the key keepers four your customers."
Russ Norwood
(Founding Partner, Venturi Wealth Management)
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Tiburon CEO Summit XXXI |
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Russ Norwood is a Founding Partner for Venturi Wealth Management. Russ provides investment guidance and wealth management strategies to highly affluent clients, with particular depth in discretionary portfolio management, alternative investments, and estate planning. He has significant experience providing planning and investment advisory services to clients with concentrated wealth, predominantly from the ownership of closely held businesses or equity ownership in a publicly traded company. A strategic thinker, Russ is adept at connecting a client’s long-term wealth management needs with his or her near-term investment selection and structure. Prior to founding Venturi Wealth Management, Russ spent more than 23 years at Merrill Lynch, where he was a Managing Director and Private Wealth Advisor within the Private Banking and Investment Group. Russ has worked in financial services since 1986. He began his career at Prudential Bache in the Corporate Executive Services Department. Russ earned his B.A. in Business Economics from the University of Texas at AustinBarron’s magazine has named Russ one of the Top 1,000 Financial Advisors in America from the inception of the accolade in 2009 through 2015, inclusively.* Russ has served on a number of boards ranging from large-budget social service organizations to his school district’s education foundation. An Instrument-Rated Private Pilot and an avid aviator, he flies volunteer missions for Angel Flight, an organization that provides free medical transportation to patients battling cancer and other serious illnesses. In his free time, he enjoys hunting, fishing, tennis, and golf. Russ lives in Lakeway, Texas, with his wife Kelly and their two daughters.
Mr. Norwood"s comments included:
- "The breakaway process is too difficult for most advisors. Less than 5% of advisors at wires are equipped to face the challenge. This favors independent firms or platforms that can create the right culture."
- " To win more business in the UHNW market, custodians and vendors should focus on market segmentation. ."
- "At Venturi Wealth Management we are bringing together professionals with deep experience and expertise that are focused on building an exceptional firm for our clients and our advisors without the pressures and conflicts of a traditional Wall Street Firm."
- "In a venturi, convergence creates acceleration and a lowering of pressure."
- "The RIA/Breakaway market is ripe for a technology aggregator. Technology delivery is very fragmented."
Josh Pace
(CEO, Trust Company of America)
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Tiburon CEO Summit XXXI |
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Mr. Pace's comments included:
- "Independent advisors are somewhat under siege. There are some advisors who can"t keep up with the competitive threat that your custodian is your archrival. The frustration is palpable in the advisor community."
- "An open architecture style platform provides advisors with the greatest flexibility to manage their businesses their way."
- "Our integration with Riskalyze enables advisors to be more efficient as they assess the risk levels of client portfolios, as well as their own investment models as they construct suitable investment strategies."
- "An advisor who is working in the best interest of their clients understands that each investor's set of financial goals is unique -- and must be treated as such."
- "Investors have their best shot at a good financial outcome by working with an advisor."
Alex Potts
(CEO, Loring Ward Group)
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Tiburon CEO Summit XXXI |
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Alex Potts is the CEO of Loring Ward Group as well as CEO of the SA Funds " Investment Trust. Previously, he was the Chief Operating Officer of LWI Financial. He has also served as Chief Executive Officer of RNP Advisory Services, a registered investment advisory firm. Potts started the SA Funds " Investment Trust and founded Loring Ward Securities (formerly Assante Capital Management). In addition, he served as Executive Vice President and General Manager of LWI Financial. (formerly Assante Asset Management) Potts earned a Bachelor of Science Degree in Economics from Santa Clara University. He holds General Securities (Series 7), State Law (Series 63) and General Securities Principal (Series 24) licenses.
Mr. Potts" comments included:
- "We believe clients are lucky to have a trusted advisor in their lives, looking out for them."
- "That is really resonated. The days of the traditional Merrill Lynch broker are gone" The idea of independent financial advisers who keep consumers' best interests is here."
- "The advisors need to move past just the investment solution. The more they understand the relationship and manage the behavioral aspect of the client, the more it gives them an opportunity to succeed in the relationship and to establish the trust."
- "I believe fiduciary standards will massively change our industry"for the better."
- "We are driven to improve the financial aspects of people's lives and the possibilities this enables."
Lowell Putnam
(CEO, Quovo)
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Tiburon CEO Summit XXXI |
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Lowell Putnam is CEO of Quovo, an investment insights company that empowers investors by reimagining elite portfolio analytics as one simple, intelligent platform. Quovo's proprietary technology combines big data horsepower with elegant simplicity, enabling investors of any size or sophistication level to make smarter investment decisions. Mr. Putnam previously worked at Lehman Brothers.
Mr. Putnam's comments included:
- "We can use data to tell a story or unlock an insight."
- "There is even more opportunity today than there was two years ago, because the incumbents are looking for change."
- "There is a really fine line between collecting hunches and collecting valid opinions."
- "The old model of crowd sourcing online would just say, aggregate as many voices as possible. We"re trying to refine that a little bit through more rigorous analysis."
- "Most advisors are small or medium size and trying to grow, most endowments are small and can"t afford a big solution."
Todd Ruppert
(Founder, Ruppert International & Venture Partner, Greenspring Associates)
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Todd Ruppert has over 30 years of experience in the financial services industry. He retired from T. Rowe Price, the global asset management firm with $775 billion under management, where he established the firm's intermediary business, led the US institutional business, incepted the firm's international business, was board member, CEO and president of T. Rowe Price Global Investment Services, board member and co-president, T. Rowe Price International, and a member of the operating steering committee of the T. Rowe Price Group. He is currently a venture partner at Greenspring Associates, a US based venture capital firm with over $4 billion under management. He is the founder and CEO of Ruppert International, a firm with diversified interests globally in various fields including education, financial services, disruptive technologies, publishing, arts and entertainment, and strategy consulting. He is president of London's Royal Parks Foundation (USA), global ambassador for the Duke of Edinburgh's Award, and a board member of the Rock & Roll Hall of Fame. His numerous board and advisory board roles are for the following organization's located around the globe: Education: INSEAD business school, Duke University, Kenyon College, Furman University, MPowerFinancing, Maryland Academy of Sciences, Cal Ripken Sr. Foundation Financial Services: Athena Capital, inStreamSolutions, SPQ Asia Opportunities, Tandem Bank, Trinity Street, Green Visor Capital, SenaHillPartners, Q Ventures, Nutmeg, Seedrs, Osmosis Investment Management, Brazilinvest Disruptive Technologies: Symbiont.io, AirexMarket, Trov, Tengi.org, Hubub, WISeKey Publishing: Investments & Pensions Europe, Funds Europe, Funds Global, Top 1000 Funds Arts and Entertainment: Pall Mall Art Advisors, Round World Entertainment, Bottletop.org, Iconic Images.net, Infinity Creative Media, Luxios Strategy Consulting: Gold Mercury.org, Laurel Strategies Todd is the executive producer of three documentary films "A Year in Burgundy, A Year in Champagne and A Year in Port. He was the co-producer of the musical, Happy Days.
Mr. Ruppert's comments included:
- "We have to increase the need for illiquid investments in clients portfolio."
- "While it is never easy to walk away from something that has been such a integral part of your life, I am now very much looking forward to devoting energy to my many other passions"
- "The Canadian market has undergone significant changes in recent years, and we find that there is good alignment between what clients are looking for and what T. Rowe Price is able to deliver, hence our desire to expand our efforts in the market at this time."
- "There are a lot of opportunities out there not only in fintech companies."
- "It's difficult for individual customers to have access to private companies as hedge funds do and this doesn"t make them happy."
Steve Savage
(CEO, Litman Gregory Asset Management)
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Tiburon CEO Summit XXXI |
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Steve joined Litman Gregory in 1999, became a principal in 2003, and became CEO in 2010. In addition to overall business management responsibilities, he directly oversees the Litman Gregory Masters Funds mutual fund business. Prior to joining Litman Gregory, Steve founded and served as executive director of both Value Line's mutual fund research and electronic publishing divisions. In addition to business management, Steve directly oversees research publishing operations including AdvisorIntelligence and the No-Load Fund Analyst. Steve is recognized in the national media for his industry expertise and has over 30 years of experience in mutual fund and investment research.
Mr. Savage's comments included:
- "We recognize that younger people would prefer a forward-thinking culture to one that is stodgy and conservative - this is easier to find in the tech world than the financial world but we see it as a way to differentiate in a very positive way."
- "Being forward-thinking means taking advantage of the flexibility that technology allows."
- "We chose Rosemont after due diligence that included talking to many of their competitors and many of the firms they"ve invested in."
- "There are serious problems in the way the industry balances its motives against shareholder interests."
- "Unique isn't necessarily all tech and social media."
Skip Schweiss
(President, TD Ameritrade Trust Company)
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Tiburon CEO Summit XXXI |
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Skip Schweiss serves as President of TD Ameritrade Trust Company at TD Ameritrade Institutional. Mr. Schweiss is responsible for TD Ameritrade Institutional's Retirement Plan Services platform. Mr. Schweiss serves as Managing Director of Advisor Advocacy & Industry Affairs. In this role, he is charged with increasing TD Ameritrade Institutional's participation and voice in the financial services industry, and identifying key issues of importance to advisors and their clients. He served as an Executive Vice President of Fiserv Health. Prior to this appointment, he held a variety of management positions at Fiserv Investment Support Services. He holds Series 7 and 24 securities licenses and is a member of the Financial Planning Association. He has completed the Securities Industry Institute program, sponsored by the Securities Industry and Financial Markets Association (SIFMA) at the Wharton School of Business. Mr. Schweiss holds a B.S. in business administration from the University of South Dakota and a M.S. in finance from the University of Colorado..
Mr. Schweiss" comments included:
- "While our industry has made great progress, RIAs still have much work to do helping policy makers and investors understand that it matters a great deal from whom you get your investment advice."
- "Any recommendation for compensation makes you a fiduciary."
- "While our industry has made great progress, RIAs still have much work to do helping policy makers and investors understand that it matters a great deal from whom you get your investment advice."
- "You can almost always cut the cost of a retirement plan (for the plan sponsor) in half, just through better investment options."
- "ERISA-like fiduciary protections now apply toIRAs, and to IRA rollovers."
Mike Sha
(CEO, SigFig)
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Tiburon CEO Summit XXXI |
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Mike Sha is CEO of SigFig. Prior to SigFig, Mr. Sha held senior roles at Amazon where he launched and built the Amazon Visa Card into one of the fastest growing consumer loyalty cards in history, was one of the original inventors of Amazon's Prime program, as well as built sophisticated fraud detection models that leveraged statistical data analysis in preventing online fraud. Mike has a BA in Apllied Math and an MS in Computer Science from Harvard.
Mr. Sha"s comments included:
- "In next couple of years is when robo advisors will grow up."
- "The scale will come up when putting robo technology in big institutions of the industry".
- "It is an honor to have been selected by a company with the reach and stature of UBS Wealth Management Americas for this strategic alliance. In today's market, it is increasingly important for financial firms to have access to the best technology possible."
- "If you look at the state of retail banking, it is not like companies who were first with online banking won that game."
- "Technology can help to run the business more efficiently."
Erik Strid
(CEO, Concentus Wealth Advisors)
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Tiburon CEO Summit XXXI |
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Erik is one of the co-founders of Concentus Wealth Advisors and currently serves as the CEO of the firm. With over 25 years of industry experience, Erik guides the firm's overall strategy. Erik currently holds his general securities registrations and insurance licenses, as well as CERTIFIED FINANCIAL PLANNER" and Chartered Financial Consultant designations. In addition to his formal designations, Erik has appeared on CNBC's Worldwide Exchange, Fox News" America's News HQ, Live Well's Mary on Money, CN8's Money Matters Today and The Real Estate Connection. In 2012, Erik was one of thirteen advisors named to Main Line Today's Top Financial Advisors list. Erik's career in the financial services industry is based on two key principles: putting the client's interests first and providing exceptional personal service. Through the personalized service that has become Erik's trademark, he takes the time to prepare and educate our clients so that they feel more confident with each decision they make. His commitment to identifying specific investment needs"combined with outstanding personalized service"has resulted in many satisfying, long-term relationships for the firm.
Mr. Strid"s comments included:
- "It's important the client knows what rate he is paying for financial advising and what rate for money investment."
- "When you have talked a lot to people, they ask you: "Are you guys really serious?"."
- "It is a tough challenge as a lot of people do not success."
- "Concentus Wealth Advisors was built around our desire to deliver independent, integrated and comprehensive wealth management advice and planning solutions to the families we serve. Our clients are notable for their expertise at creating and accumulating wealth. They"re dedicated to building businesses, raising families, shaping communities and creating lasting, meaningful legacies."
- "We built this family business with the mission to help these families manage the complexity and responsibility of their wealth. We are looking forward to significantly growing our business as an independent RIA."
Ron Suber
(President, Prosper Marketplace)
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Tiburon CEO Summit XXXI |
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As President of Prosper Marketplace, Ron is responsible for developing and executing the business development strategy to attract borrowers to the site, as well as ensure a balance between institutional and retail investors on the Prosper platform. He brings more than twenty years" experience in sales, marketing and business development across the hedge fund, broker dealer and registered investment advisor industries. Before joining Prosper, Ron was Managing Director at Wells Fargo Securities. Prior to Wells Fargo, Ron served as the Head of Global Sales and Marketing and Senior Partner for Merlin Securities. Ron also served as President of Spectrum Global Fund Administration, and spent 14 years at Bear Stearns where he served as Senior Managing Director and Manager of Global Clearing Sales. Ron earned a B.A. in Economics from the University of California, Berkeley.
Mr. Suber's comments included:
- "Think of money as you think of Uber and Airbnb."
- "The real threat are the messaging companies managing financial transactions."
- "Fifteen years ago over $2 trillion were concentrated in companies where just one was a tech company (Microsoft). Today are concentrated on top five tech market companies: Apple, Alphabet, Microsoft, Amazon and Facebook."
- "Google Venture is gonna make some important acquisitions soon."
- "There are many critical factors to consider before advising a company: The team members, their ability to build solutions, execute and the Total Addressable Market."
Andy Swan
(CEO, LikeFolio)
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Tiburon CEO Summit XXXI |
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Andy Swan is the CEO of LikeFolio. He is a technologist, entrepreneur, bourbon connoisseur, sports fan, and co-founder of LikeFolio. LikeFolio provides investors and companies with actionable research based on data derived from consumer actions on social media. LikeFolio scans Twitter for mentions of 30,000 brands and consumer products owned by over 2000 publicly traded companies. It scores those mentions on consumer sentiment and purchase intent. Through this unique process of gathering consumer data, LikeFolio's proprietary approach lends itself to providing accurate predictions of revenue reports, and ultimately the direction of a stock. In 2015, LikeFolio was named one of the Most Innovative Companies in Personal Finance by Fast Company.
Mr. Swan"s comments included:
- "Robo advisors buy advising for advisors. Help them to utilize their time focused on real opportunities with their customers."
- "It only made sense to turn to social media, which tells us so much about what companies young investors are connected with in real life. It allows them to feel more confident, because they understand what they are investing in".
- "Instead of asking yourself a question, ask your target audience a question "Will you buy this?"."
- "A lot of brokerages sell (their services) well to 55-year-olds who are close to retirement. But they had a hard time reaching out to investors under 35. It only made sense to turn to social media, which tells us so much about what companies young investors are connected with in real life. It allows them to feel more confident, because they understand what they are investing in."
- "By tapping into Twitter, we can read consumer confidence and be a leading indicator of where the market is going to go. We"re basically polling 20% of America every day: That's how many people use Twitter. We are able to search millions of mentions and pull together information in a way that investors can use."
Bill Van Dresser
(Managing Partner, Legacy Wealth Advisors)
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Bill VanDresser, previously Executive Vice President and Managing Director of Wealth Management at Gibraltar Private Bank & Trust in Coral Gables, Florida has more than 25 years of experience in the financial services industry. His background of more than two decades includes positions with Global Wealth Management Partners in New York and U.S. Trust Company in Connecticut.
Mr. Van Dresser's comments included:
- "The name Legacy Wealth Partners reflects our commitment to our clients and the growth and maturation of our own business"
- " The noose of compliance will choke away the ability to creatively serve
wealthy clients under the "big bank" or "big broker/dealer" model".
- "Give me liberty or give me…what?” Independence is tremendous untilyou find out what it costs…what does it cost, and is it worth it?”
- "I have had clients for many years, and they had fairly significant liquidity event" They asked me to open a multi-family office for them, so this is a new business with anchor clients"
- "HighTower's platform infrastructure and community of elite advisors augment our ability to deliver impeccable service to our clients and fuel the continued growth of our firm."
Tom Wagner
(Partner, Summit Wealth Group)
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Tiburon CEO Summit XXXI |
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Tom is a Partner of the firm. He is a CFP" professional. He is a graduate of the University of Vermont with a degree in math, and holds an MBA in Finance from Wichita State University. After six years in the Air Force as a Captain and ICBM launch officer, he began his financial career as an international banker with a major bank. Returning to Vermont he was a commercial lender with Vermont's largest bank, and later was a chief financial officer and chief operating officer of a manufacturing firm. Tom enjoys xc skiing, biking, swimming. He and his wife have two children and four grandchildren.
Mr. Wagner and others from Summit Wealth Group’s comments included:
- "Sophisticated wealth management and life planning make our clients have the confidence that we understand their situation better than anyone else, and that we are able to make a difference in their lives."
- "We have been proactive about expanding our locations. And what ensemble practices look like include a very heavy reliance on the support team."
- "More and more, you see sole proprietors merging with larger practices like ours, where teamwork is at a premium."
- "Our support team to adviser ratio, for example, is three to one, where you often see the inverse as true at other places. That results in things like less burnout for advisers, giving them room so they can focus on doing what they do best."
- "This merger produced a firm that is much stronger than the two separate firms. Our vision is that Summit Wealth Group will be know nationally as a leading provider of customized financial solutions, and this merger helps move us closer to that goal."
Jane Williams
(Chairman, Sand Hill Global Advisors)
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As Chair and co-founder, Jane Williams advances the business development goals and advises on the strategic direction of Sand Hill Global Advisors. She sits on the Executive Committee and is responsible for oversight of Sand Hill's compliance function. Jane participates in industry panels and organizations dealing with topics of best business practices; she is a member of the Fidelity Investment Advisors" Council, and is Vice Chair of the Board of Governors of the Investment Adviser Association (IAA) and a Chair of the Government Affairs Committee.With over 38 years of experience in the investment field, Jane is recognized as an expert for the work she has done with individuals " particularly women " and couples in financial transition. Serving the family court as a qualified expert in several San Francisco Bay Area counties, she testifies on topics ranging from prudent investment strategies, rate of return, and related financial topics. She served for seven years as a Board member of the Silicon Valley Community Foundation, and its predecessor, Peninsula Community Foundation, chairing the Investment Committee for most of her tenure. She served as a Trustee for the University of California-Santa Barbara Foundation, and was a member of the Investment, Finance, and Executive Committees. Currently, Jane serves on the Advisory Board for Ravenswood Family Health Center in East Palo Alto, and is a member of the Palo Alto Medical Foundation Philanthropy Advisors Council. Jane is a frequent speaker in a variety of settings, including the Stanford Charitable Giving Conference. In October 2010, Jane received the Charles Schwab & Co. IMPACT" 2010 Leadership Award. In addition, Jane has been listed as one of the 100 Most Influential Women in Business in the San Francisco Bay Area by the San Francisco Business Times and San Jose/Silicon Valley Business Journal. She was named to the Top 50 Women in Wealth by Wealth Manager Magazine in May 2010. Jane was named to the Barron's List of Top Women Financial Advisors in the nation in both 2014 and 2015. In September 2014, she was honored by the Palo Alto Chamber of Commerce with the Athena Award, which recognizes the achievements of outstanding professional and business women.
Ms. Williams" comments included:
- "We have to do something new and special for clients every day to keep the business and continue to grow."
- "We need to put client interests first " you can"t have a double standard for one group of advisors and another for brokers."
- "From the very beginning, we recognized that transitions at all stages of life affect the overall long term welfare of individuals and families."
- "Much of our work with women has involved educating, mentoring and advising them in cases where they must assume full financial responsibility during a transition such as marital dissolution or widowhood."
- "Members of the brokerage industry have to decide: Are their responsibilities to their firms or to their clients?"
John Wise
(CEO, InvestCloud)
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InvestCloud CEO, is a serial entrepreneur and CEO responsible for creating several companies including: Synergo Technology, the UK leading Agency Brokerage solution; TCA Syntec, the first EAI company in Europe; Netik, the securities market leading data warehouse and portal company responsible for 70 of the World's largest banks including: Citibank, UBS, PNC, SEI, Fortis, BNP, Scotia and Pershing. John received a double honors degree in Cybernetics and Computer Science, and is a Chartered Software Engineer.
Mr. Wise's comments included::
- "Apply what you know that works. Create leverage through open source and partnership programs. Avoid being a heavy coding shop and understand that offshore development can be a money pit and is likely to be a disaster due to proximity."
- "I know our clients in wealth management firms and financial institutions will welcome the opportunity to visit and collaborate on user-centric solutions in this innovative new space."
- "Accounting should be a commodity item. Most of the systems out there were created in the last century, quite a few of them not even in the 90s."
- "Too many visions will result in poor focus, poor quality, and horrible customer service. Don"t let any market bubble override common sense."
- "Understand the culture and financial drivers of a company and ensure that the vision and business models are directly in line."
Justin Wisz
(CEO, Vestorly)
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Justin Wisz is co-founder and CEO at Vestorly. Prior to this he has served as CEO for AdvisorLeap from October 2010 till November 2012. Mr Wisz was founder of ForwardPro Partners from March 2009 to October 2010.
Mr. Wisz's comments included:
- "Consumer behavior tracking online seems to be the norm in almost every industry except financial services communications. To question whether it's relevant in this industry is really questioning a much larger and demonstrated global truth about consumer behavior in the digital age."
- "People have come to expect real-time personalization and realize that this is not possible without data input for their behavior."
- "The currency of social media is content; the oil that runs the machine."
- "Advisors have no content. They hire a consultant or marketing assistant or an intern, or they spend hours trying to figure it out themselves and it never really leads to ROI."
- "When given a warm referral, some advisors are very good at converting them to clients and some are not."
Attendees
Tiburon is pleased to announce that the following 181 Tiburon clients attended Tiburon CEO Summit XXXI:
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Tiburon CEO Summit XXX: April 5-6, 2016
Tiburon CEO Summit XXX was held April 5-6, 2016, at the Ritz Carlton Hotel in New York, NY.
Tiburon CEO Summit XXX featured a keynote presentation by Tiburon Managing Partner Chip Roame regarding the state of the financial services industry, focused on the rapid evolution being driven all across the business value chain. This presentation served as the backdrop and overview of the entire Tiburon CEO Summit.
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Chip Roame (Managing Partner, Tiburon Strategic Advisors)
Tiburon Strategic Advisors is pleased to provide a summary of the content of its Tiburon CEO Summit XXX Keynote Presentation. Chip Roame (Managing Partner, Tiburon Strategic Advisors) gave 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 1,700 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 XXX Keynote Presentation
The objectives of the Keynote Presentation were to anchor Tiburon CEO Summit discussion on consumers; offer a broad view of the wealth management industry (with a new theme at each Tiburon CEO Summit), with the theme at Tiburon CEO Summit XXX being The Most Important Data Inflection Points; set a discussion agenda for Tiburon CEO Summit XXX (framing the dozens of “three big points” and introduce 40+ speakers); & address recent strategic activity. The basis of the Tiburon CEO Summit
XXX
Keynote Presentation is industry developments (“the news”), recent
Tiburon & third-party research findings, the Tiburon CEO Summit XXX content survey, & Tiburon CEO Summit XXX guest speaker presentations (and prior presentations).
Tiburon CEO Summit XXX --> Insights Behind The Most Important Data Inflection Points
Context Setting: Consumers & Their Money
Consumer households have $38.3 trillion investable assets, $59.4 trillion financial assets, $96.9 trillion total assets, and $85.7 trillion net worth. There are 10.1 million consumer households with over $1.0 million net worth, back above its prior peak of 9.2 million in 2007. Baby boomers will liquidate some portion of the $58.6 trillion in retirement plans, personal assets, & small businesses.
The Future Of Wealth Management: The Most Important Data Inflection Points
Exchange Traded Funds
Exchange traded funds have gathered $2.1 trillion assets under management, up from $102 billion in 2002. Exchange traded funds have $232 billion net flows, up from $29 billion in 2001. BlackRock is the leading investable assets firm in terms of assets under management with $4.7 trillion, with the three ETF leaders all in the top four. Index mutual funds have gathered $2.1 trillion assets under management, up from $384 billion in 2000. Index mutual funds’ assets under management have been primarily gathered in equity funds. The Vanguard Group has $216 billion net flows, up from $85 billion in 2010. The five largest stock mutual funds are all low cost Vanguard & American Funds mutual funds. The Vanguard Group has gathered over three-quarters on its assets under management in index mutual funds & exchange traded funds. The Vanguard Group has gathered one-third of its assets under management from financial advisors. Dimensional Fund Advisors has gathered $406 billion assets under management, up hugely since 1983. Dimensional Fund Advisors has gathered more than half of its assets under management from financial advisors. Dimensional Fund Advisors’ financial advisor channels business has gathered $165 billion assets under management, up from $13 billion in 2002.
Liquid Alternatives
Liquid alternative funds have gathered $309.2 billion assets under management, up from $174.6 billion in 2012. Liquid alternative funds’ net flows are $3.1 billion, down from their peak of $96.9 billion in 2013. Hedge funds have gathered $2.8 trillion assets under management, up from $491 billion in 2000. Hedge funds have $76.4 billion net flows, up from $23.3 billion in 2000 and -$131.2 billion in 2008. Hedge funds returned 3.3%, down from 9.1% in 2013. Hedge funds have not been performing as well as some low cost mutual funds that do some of the same things.
Robo Advisors
There are at least 46 online advice firms. All online advice firms have gathered $217.4 billion assets under management, up from $118.0 billion in 2012. Online advice firms can specifically be defined to include defined contribution plan focused firms & B2C focused firms. Online advice firms’ assets under management are dominated by the defined contribution focused firms. The leading online advice firms are the defined contribution plan focused firms & the large discount brokerage firms & mutual fund companies. Two-thirds of financial advisors believe that online advice firms will have no or little impact on their business. Motif Investing offers 100 pre-built motifs, up from 50 in 2011.
Break-Away Brokers
Two-thirds of wirehouse & regional broker/dealer brokers who move on their own in any year move to other wirehouses or regional broker/dealers. The bulk of the break-away broker movement really just goes in circles, with brokers moving from one wirehouse to the next for upfront payments. Wells Fargo Advisor Network’s share of financial advisors coming from wirehouses is 65%, compared to 12%-31% at some other leading independent broker/dealers.
Independent Advisors
The insurance & independent broker/dealer channels lead the financial advisor channels in terms of number of financial advisors with 74,804 & 67,290. The wirehouse channel leads the financial advisor channels in terms of assets under administration with $5.9 trillion. The five year CAGR of dually registered advisors is 9.0%. Primerica, Morgan Stanley, Bank of America Merrill Lynch, & Wells Fargo Corporation have the most financial advisors. Both the retail and financial advisor support models at both Fidelity Investments & The Charles Schwab Corporation are now amongst the leading financial advisor channel firms. Tiburon CEO Summit XXIX attendees said that LPL financial & The Charles Schwab Corporation have the most impressive financial advisor forces. Independent advisors can specifically defined to include independent reps & fee-based financial advisors (RIAs). Independent broker/dealer reps still account for the largest share of independent advisors, although both fee-based financial advisors & dually registered financial advisors are gaining market share. LPL Financial leads the independent reps market in number of financial advisors. LPL Financial also leads the independent broker/dealer market in assets under administration. 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, with 7,100, 5,000, & 3,300 respectively. Schwab Advisor Services & Fidelity Institutional Wealth Services are the leading fee-based financial advisor custodians in terms of assets under administration, with $1.1 trillion & $753 billion respectively. TD Ameritrade had a 229% change in fee-based financial advisor assets under custody from 2007-to-2014. Some analysts have huge predictions for the fee-based financial advisor market, with one suggesting 36,900 fee-based financial advisors by 2019.
Turnkey Asset Management Programs (TAMPs)
Envestnet has gathered $713.4 billion assets under administration & management, up 800% since 2007. FolioDynamix’s FDx platform has gathered $700 billion assets under administration, up from $445 billion in 2012. Loring Ward Group’s LWI Financial has gathered $13.0 billion assets under management, up from $1.6 billion in 1996. Dimensional Fund Advisors’ Dimensional Fund Advisors (US)’s fee-based financial advisor business’ TAMPs business has gathered $50 billion assets under management, up over 400% since 2005.
The Missing News Story: Financial Advisor Bifurcation
Financial Advisor Stagnation
Financial advisor channels firms have 301,126 financial advisors, down from its peak of 339,450 in 2004. Tiburon will seek to prove the financial advisor bifurcation; it is possible that a few dozen fee-based financial advisors are driving the markets’ growth. The mutual fund store has 133 offices, up from 73 in 2011. United Capital Financial Partners has 70 offices, up from fourteen in 2007. HighTower Holding has 49 offices, up from twelve in 2011. Edelman Financial Services has 41 offices, up from one in 2005. The Mutual Fund Store serves 37,000 clients, up from 30,000 in 2010. Edelman Financial Services serves 28,000 clients, up from 5,000 in 2003. Fisher Investments’ Private Client Group serves 27,000 private client group clients, up from 12,000 in 2004. Fisher Investments’ Private Client Group manages $35 billion in assets, up from $1 billion in 1997. Edelman Financial Services has gathered $14.9 billion assets under management & administration, up over 400% since 2003. Edelman Financial Services has $131.9 million assets under management & administration per financial advisor.
Differentiators
Edelman Financial Services’ average client has $522,000 assets under management & administration, up from $380,000 in 2009. Edelman Financial Services has 113 financial advisors, up from nineteen in 2003. Fisher Investments’ investment counselors, vice presidents, account executives, & client operations associates account for over half of its employees. Fisher Investments’ private client group creates over three-quarters of its leads from direct mail and web advertisements. Fisher Investments’ private client group attracts two-thirds of its clients to seminars each year. Edelman Financial Services will conduct over 600 seminars, up from 75 in 2012. And in a strange twist…financial advisor fees are down…err…up. Financial advisor average fees range from 1.26% to 0.66% based on portfolio size. Fisher Investments’ private client group’s pricing schedule ranges from 1.25% to 1.00%, and the firm uses a blended methodology. Edelman Financial Services’ pricing schedule ranges from 2.00% to 0.50%.
Strategic Activity
Financial Services Industry Venture Capital & Minority Growth Equity Investments
Venture capital firms raised $33.0 billion funds, up 75% since 2010 but down from $85.1 billion in 2000. Venture capital investment reached $48.4 billion, up from $30.0 billion in 2013 but down from its peak of $105.0 billion in 2000. SoFi has raised the most venture capital amongst financial services firms, with $1.2 billion. Wealthfront, Betterment, & Personal Capital Corporation have raised the most venture capital amongst the online advice firms.
Financial Services Industry Initial & Secondary Public Offerings
There were 275 initial public offerings in 2014, up from 222 in 2013 but down from its peak of 406 in 2000. Initial public offerings raised $85.3 billion in 2014, up from $54.9 billion in 2013 but down from its peak of $96.9 in 2000. There were 36 initial public offerings in the financial sector in 2014, down from 45 in 2013. Financial services industry public offerings included Worldpay, National Commercial Bank, & Medibank Private.
Financial Services Industry & Financial Advisor Mergers & Acquisitions
Financial Services Industry Mergers & Acquisitions
Mergers & acquisitions’ deal value was $3.5 trillion, up from $2.3 trillion. Private equity firms invested $12.0 billion in financial technology firms, up from $4.0 billion in 2013. Financial technology companies Sungard, Advent Software, Russell Investments, & SNL Financial all sold in the last year for large sums. Leading investment management firms mergers & acquisition deals included TIAA-CREF’s acquisition of Nuveen, Santander Asset Management’s Acquisition of Pioneer Global Asset Management, and the pending acquisition of Russell Investments. The leading public brokerage merger & acquisition deal was Stifel Financial Group’s acquisition of Sterne Agee for $150 million.
Financial Advisor Mergers & Acquisitions
There were 54 fee-based financial advisors mergers & acquisitions transactions in 2014, up 35% since 2006. There have been $32.6 billion fee-based financial advisors assets under management acquired through mergers & acquisitions transactions in 2014. Hellman & Friedman’s acquisition of Edelman Financial Services was the leading financial advisors acquisition at $14.8 billion.
Financial Services Industry Valuations & Activists Opportunities
Financial services firms account for 10%+ of the US economy and 20%+ of the Standard & Poor’s 500. Activist funds have gathered $120 billion assets under management. Activist hedge funds have $10.1 billion net flows, up from $3.4 billion in 2005. Carl Icahn & Southeastern are the leading activist investor funds in terms of value of disclosed US equities with $22.3 billion & $18.3 billion. The average net return among activist hedge funds outpaced the total hedge fund universe in both the short & long term. Financial services industry activist fund specific targets include American Realty Capital Partners, LPL Financial Holdings, State Street Corporation, & The Bank of New York Mellon Corporation.
Along with Tiburon's Managing Partner Chip Roame, Tiburon CEO Summit XXX included speakers Rob Arnott (Chairman, Research Affiliates), Don Phillips (Executive Vice President, Strategic Global Sales, National Financial Services), Luis Aguilar (Commissioner, Securities & Exchange Commission), Peter Algert (CEO, Algert Global), Anil Arora (CEO, Yodlee), Dave Barton (CEO, Mercer Advisors), Jud Bergman (CEO, Envestnet), Marty Bicknell (CEO, Mariner Holdings), Josh Brown (CEO, Ritholtz Wealth Management), Ryan Caldwell (CEO, MX Technologies), Eric Clarke (CEO, Orion Advisor Services), Alan Cohn (Co-President, Sage Financial Group), Steve Condon (President, Truepoint Wealth Counsel), Dean Cook (President, FTJ FundChoice), Ben Cukier (Managing Partner, Centana Growth Partners), Mike Durbin (President, Fidelity Wealth Technologies), Ric Edelman (CEO, Edelman Financial Services), Ed Forst (CEO, Lincoln Investment), Cody Foster (Co-Founder, Advisors Excel), Sherrie Grabot (CEO, GuidedChoice), Fred Jonske (CEO, M Financial Group), Richard Joyner (CEO, Tolleson Private Wealth Management), Roger Kafker (Managing Director, Asset Management, TA Associates), Kevin Knull (President, PIEtech), Charlie Kroll (President, Ellevest), Jeff Lovell (CEO, Lovell Minnick Partners), John Mauldin (Chairman, Mauldin Economics), Sean McShea (President, Ryan Lass Asset Management), Joe Mrak (CEO, FolioDynamix), Michael Nathanson (CEO, The Colony Group), Rogr Ochs (CEO, HD Vest Financial Services), Deval Patrick (Managing Director, Bain Capital Partners), Matt Patsky (CEO, Trillium Asset Management), Alex Potts (CEO, Loring Ward Group), Brad Pries (CEO, Sawtooth Solutions), Tony Salewski (Managing Director, Genstar Capital), Jeremy Schein (Managing Director, Corsair Capital), Aamir Sheikh (Managing Partner, Echelon Capital Strategies), Clara Shih (CEO, Hearsay Social), Andy Sieg (Business Head, Global Wealth & Retirement Solutions, Banke of America Merrill Lynch), Michael Stier (CEO, Adhesion Wealth Advisor Solutions), Scott Stuart (Managing Partner, Sageview Capital), Andrew Tsai (Managing Principal, Chalkstream Capital Group), & Anna-Marie Wascher (CEO, Flat World Partners). Tiburon CEO Summit XXX will also feature the firm's traditional client-centric panel discussions and two networking-based social events.
Rob Arnott
(Chairman, Research Affiliates)
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Rob Arnott is Chairman of Research Affiliates. Mr. Arnott founded Research Affiliates in 2002 as a research-intensive asset management firm that focuses on innovative products. The firm explores novel approaches to active asset allocation, optimal portfolio construction, efficient forms of indexation, and other quantitative strategies. Research Affiliates delivers investment solutions globally in partnership with leading financial institutions. He is also portfolio manager on the PIMCO All Asset and All Asset All Authority family of funds and a suite of PIMCO products based on the Fundamental Index approach. Over his career, Mr. Arnott has endeavored to bridge the worlds of academic theorists and financial markets, challenging conventional wisdom and searching for solutions that add value for investors. He has pioneered several unconventional portfolio strategies that are now widely applied, including tactical asset allocation, global tactical asset allocation, tax-advantaged equity management, and the Fundamental Index approach to investing. His success in doing so has resulted in a reputation as one of the world’s most provocative practitioners and respected financial analysts. Mr. Arnott managed two asset management firms before founding Research Affiliates. As chairman of First Quadrant, he built up the former internal money manager for Crum & Forster into a highly regarded quantitative asset management firm. He also was global equity strategist at Salomon Brothers (now part of Citigroup), the founding president and CEO of TSA Capital Management (now part of Analytic Investors), and a vice president at The Boston Company. Mr. Arnott has published more than 100 articles in such journals as the Journal of Portfolio Management, the Harvard Business Review, and the Financial Analysts Journal, where he also served as editor in chief from 2002 through 2006. In recognition of his achievements as a financial writer, Mr. Arnott's papers have received seven Graham and Dodd Scrolls, awarded annually by CFA Institute for top Financial Analysts Journal articles of the year. He also has received three Bernstein Fabozzi/Jacobs Levy awards from the Journal of Portfolio Management. He is co-author of The Fundamental Index: A Better Way to Invest.
Mr. Arnott's comments included:
- "Failure is probably the best gift someone can give you"
- "One thing we do is hold people accountable. We make sure everyone is in a position to be successful. Then, when you are not successful, we have to have a conversation. You need to hold up your end of the bargain. Sometimes you are not a good culture fit because you do not want to be held accountable, and sometimes you are a great culture fit and we just did not give you the right training, so we will do that. Sometimes you will make a mistake. Life happens. But let us not do it again. One of our mantras is, find it, fix it, prevent it"
- "In our world today, if you are not actively learning every day, you really are not competitive. There is too much going on. I can never know everything going on around me, so I need to know that there are people around me who are learning other things, so we create a more cohesive view"
- "The consultant community brings forward to their clients rosters of managers and strategies with great three, five, 10-year performance, and not one of them pairs that with whether the strategy is trading rich or cheap."
- "One of the things I keep telling our staff — and this is something I had to do — is that you have to do two jobs before you get the next job. You have to do your job really well and start doing the next job a little bit by, say, raising your hand for a project"
Don Phillips
(Executive Vice President, Strategic Global Sales, National Financial Services)
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Don Phillips is a Managing Director at Morningstar. Previously Mr. Phillips oversaw 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:
- "Docupace is dedicated to providing high quality, enterprise-class solutions for financial service firms. We have identified a need for complimentary cyber-security services that can be offered to firms of all sizes without diluting the service offering due to economic constraints. Together with Security Snapshot, we are excited to launch this new initiative to fill this critical need"
- "Our vision for the industry and overall solutions we can provide is perfectly aligned. We consider RCS Capital a perfect partner for us in future stages of our growth"
- "We are enhancing the depth and breadth of our ePACS productivity suite to bring added value to our current customers and the financial services industry at-large. Each of these new solutions leverages the strength and power of the ePACS technology platform, while addressing long-standing challenges for financial services firms"
- "Last month, when it was announced that Pershing had selected SIGNiX as the digital signature solution to be integrated into NetX360, we were extremely excited at Docupace. If Pershing's decision to move towards e-signatures was not a seismic shift in the industry moving toward STP, then I am not sure what is. This provides credibility that Straight-Through Processing is having a profound impact on the way the industry is progressing"
- "Docupace is very excited to partner with JP Turner and leverage the efficiencies of the Docupace STP Network for all of their advisors"
Luis Aguilar
(Commissioner, Securities & Exchange Commission)
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Luis Aguilar served as a Commissioner at the United States Securities & Exchange Commission from July 31, 2008 to December 31, 2015. He was originally appointed by President George W. Bush and was reappointed by President Barack Obama in 2011. Commissioner Aguilar became the eighth longest-serving Commissioner in SEC history, and was one of only three Commissioners to have been nominated by two U.S. Presidents from two different political parties. Commissioner Aguilar's tenure started only a few weeks before the collapse of Lehman Brothers and the financial turmoil that followed and only a few months before one of the largest financial frauds in U. S. history " the Bernard Madoff Ponzi scheme " was exposed. Consequently, the Commission entered into one of the most transformational periods in its history. During Commissioner Aguilar's service, the Commission underwent a significant internal restructuring by, among other things, creating a panoply of new Divisions and Offices, and substantially restructuring existing Divisions and Offices. In addition, the Commission entered one of its most active rulemaking periods, and promulgated or amended regulations that impacted almost all aspects of the capital markets. Commissioner Aguilar worked to modernize the SEC's rules to reflect the innovation and changes that had long transformed the capital markets. He was an early advocate for the importance of focusing on cybersecurity issues and led the effort to bring together public and private sector experts as part of the SEC's first Cybersecurity Roundtable held in March 2014. He is a recognized leader in the nexus of cybersecurity, investor protection, and publicly traded companies. Commissioner Aguilar represented the Commission as its liaison to both the North American Securities Administrators Association (NASAA) and to the Council of Securities Regulators of the Americas (COSRA). He has served as the primary sponsor of the SEC's first Investor Advisory Committee. Commissioner Aguilar served as sponsor of the SEC's Hispanic and Latino Opportunity, Leadership, and Advocacy Committee, the African American Council, and the Caribbean American Heritage Committee.
Mr. Aguilar's comments included:- "For RIAs, the change that would best fit this bill is for the rule [the Department of Labor's proposed fiduciary rule] to more clearly distinguish the special obligations attendant to advice on rollovers versus advice that involves ongoing conflicts of interest associated with variable compensation"
- "The rollover decision is a one-time event and the DOL should craft an exemption designed to handle the point-in-time situation when a fiduciary retirement adviser to a plan is called upon to assist a plan participant with a rollover decision"
- "The SEC exams tend to be thorough and effective; they are just not done often enough"
- "A lot of lobbying money comes from the financial services industry. Congress does not want to lose any power of the purse over the SEC"
- "Advisers who can successfully incorporate digital investment tools into an client-friendly customer experience will surely stand out in the crowded market of advisory services. To construct a successful hybrid model, advisers should be thinking about the human and computer interfaces they have with clients in at least four key aspects: access, consistency, literacy and trust"
Peter Algert
(CEO, Algert Global)
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Peter Algert is CEO of Algert Global. Mr. Algert established the firm with the goal of becoming recognized as "best-in-class" in systematic active equity investing. Founded in 2002, and 100% employee-owned, Algert Global focuses on managing global absolute return and active long-only strategies for both institutional and private investors. The core investment team has worked together since 2004 and each member can demonstrate a deep academic background in quantitative investing. Prior to creating Algert Global, Mr. Algert served as the Global Head of Research for Barclays Global Investors' stock selection strategies.
Mr. Algert's comments included:
- “We are in the early innings of our vision to transform financial services by improving and simplifying the lives of anyone with a financial account. As the leading financial cloud platform, there is a massive addressable opportunity to power digital financial solutions for over two billion financial users globally across both financial institutions and internet innovators”
- “Our growth is a function of executing on our stated three key strategies: one, growing our subscription revenue and increasing penetration at existing financial institutions, while adding new customers globally; two, driving user growth and subscription revenue with emerging Internet digital financial service providers who have enormous potential by adding new customers around the globe and with new used cases; three, leveraging our unique big data assets and analytics to further accelerate subscription revenue with existing and new customers. Our subscription revenue is experiencing strong growth driven by all three of these key strategies”
- “The most exciting aspect of our growth opportunity with financial institutions and internet innovators is that we believe that the best is still ahead of us”
- “One interesting example of the power of Yodlee data analytics is how we have worked closely with an innovative food company to develop their marketing strategy based on consumer spending trends. Their chief marketing officer shared with us that they have shifted the majority of their research spending to Yodlee data analytics due to the power of Yodlee data. For us, the data business is additive across the board. It is an incremental revenue opportunity with both existing and entirely new customers and perhaps as important it is sticky”
- “The Yodlee Financial Cloud is uniquely positioned to drive innovation and is transforming digital financial services among Financial Institutions as well as Internet innovators. We are excited about Yodlee's market opportunity, and our recent IPO was a seminal milestone for our company and provides the strategic position to continue to drive growth"
Anil Arora
(CEO, Yodlee)
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Anil Arora is CEO of Envestnet | Yodlee and Vice Chairman of Envestnet Board. Prior to the merger with Envestnet, Mr. Arora had been President and CEO of Yodlee since 2000. Under his leadership, Yodlee has been a disruptive catalyst for creativity and ingenuity in the financial industry by collaborating with leading financial institutions, entrepreneurs, and fintech developers to build and distribute data-driven financial apps used by millions of consumers and small businesses all over the world. Today, Mr. Arora is helping Envestnet | Yodlee lead the charge for better outcomes for both customers and advisors through innovative financial data and technology solutions. Mr. Arora has extensive experience building some of the world's most recognized brands at companies like General Mills, Kraft, and Gateway, as well as innovating new market strategies, and increasing the lifetime customer value for companies in a variety of industries.
Mr. Arora's comments included:
- "Our third quarter results were highlighted by subscription revenue growth of 28% and adjusted EBITDA growth of 83%, which resulted in record margins. Yodlee continues to grow driven by continued success powering the digital transformation of some of the world's leading financial institutions including banks, wealth managers and Internet innovators."
- "Financial institutions have craved the ability to accelerate innovation with both internal and external developers, but have never had a safe and effective way to do so....We are pleased to finally meet those needs with a revolutionary new approach that we believe will fundamentally change the paradigm for bank innovation and agility."
- "The addition of new customers in wealth management underscores the positive response Yodlee customers have had to the news that Yodlee reached a definitive agreement to merge with Envestnet Inc., a leading provider of unified wealth management technology and services to financial advisors during the third quarter."
- "As a group, we fully support the creation of an Open API framework to enable financial innovation and improve the financial health of consumers."
- "There is an enormous transformation going on in financial services, and we are going to accelerate that."
Dave Barton
(CEO, Mercer Advisors)
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Dave Barton is CEO of Mercer Advisors. Mr. Barton became a member of the California State Bar in 1992 and began his career at Mercer Advisors in 2000 as General Counsel. He has led and managed nearly all Mercer Advisors departments with great success. Mr. Barton was promoted to President in 2004, and became Chief Executive Officer in 2008. He has been a member of the Mercer Advisors Board of Directors since 2004. Prior to joining Mercer Advisors, Mr. Barton practiced as a trial attorney, specializing in commercial and securities civil litigation. Mr. Barton is currently responsible for the overall strategic vision, business plan development and execution, and organizational structure at Mercer Advisors.
Mr. Barton"s comments included:
- "Most hedge funds are not any good, but if you can identify talent early, when they are hungry, you have the potential to generate outsized performance"
- "Finding that young talent is always at a premium. You are seeing household name hedge funds becoming big institutions. It might be good for business but not for investors looking for differentiated returns"
- "Our thesis is we do not think that there are a lot of great hedge funds out there"
- "Our goal... is to remind investors to take a holistic look and to evaluate each investment within the context of the full portfolio"
- "There are some managers who buy and hold a position, sometimes for years, for very sound fundamental reasons. During bouts of volatility, you often see hedge fund managers without strong fundamental conviction about the stock sell off, while more fundamental managers tend to ride out the volatility"
Jud Bergman
(CEO, Envestnet)
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Jud Bergman is CEO of Envestnet. Mr. Bergman is responsible for leading the Envestnet organization, and is focused on guiding the company's strategy, as well as organizational and business development. Prior to founding Envestnet, Mr. Bergman was the managing director, Nuveen Mutual Funds, for Nuveen Investments, a diversified investment manager. 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 account business and helped guide the firm's expansion into a diversified investment manager beyond municipal investments.
Mr. Bergman"s comments included:
- "CAIS felt the need to broaden its lineup of structured offerings and have more companies competing against each other to fill an advisor’s order, resulting in better execution and pricing to the end user"
- "We look very carefully at the track record of the lead underwriter’s success and aftermarket performance. The banks we work with have very strong records of success with aftermarket performance of underlying securities"
- "CAIS adds value because we take the advisor’s request for the intended note and can have all of the different banks bid on filling that order, and the best price wins"
- "By having a more open-architecture platform, we are allowing advisors to see different credits of the banks and the pricing they come up with to fill the orders"
- "CAIS is a demand-based platform, and we are seeing a lot of RIAs and broker-dealers effectively utilize structured notes––mainly plain-vanilla ways to get access to indices and the like. But overall, we want to create a better forum for advisors to be able to access these products, and we are trying to lower the cost and increase transparency and education for advisors"
Marty Bicknell
(CEO, Mariner Holdings)
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Marty Bicknell is CEO of Mariner Holdings, the parent company of Mariner Wealth Advisors and Montage Investments. He serves on the board of directors for all of Mariner Holdings’ subsidiaries. Prior to forming the firm in 2006, Mr. Bicknell was senior vice president of investments at A.G. Edwards & Sons, where he led a staff of professional financial consultants in providing customized wealth management solutions for public and private corporations, high-net-worth individuals and their families and charitable organizations. Mr. Bicknell has provided counseling on a wide range of financial matters to small and medium-sized businesses. Mr. Bicknell serves on the board of directors for the Catholic Foundation of Northeast Kansas, the American Royal, the KU Advancement Board for the University of Kansas Medical Center and on the MRIGlobal Board of Trustees. He is a member of the Young Presidents Organization (YPO) and is a board member for the Civic Council of Greater Kansas City. He is also involved in supporting several organizations through his sponsorship and committee participation, including Marillac, the Juvenile Diabetes Research Foundation (JDRF), KU Med Cancer Care and Youth Entrepreneurs. Barron’s has ranked Mr. Bicknell and the teams at Mariner among the top financial advisors nationally for the past few years, including as the number one advisor in the state of Kansas for 2009, 2010, 2011, 2012, 2013 and 2014.
Mr. Bicknell's comments included:
- "The problem is not lack of opportunity. The problem is not lack of talent. The problem is, not in all cases, but in many cases, the structure of the mutual fund [regarding fund managers underperforming the market]"
- "We have gone to portfolio managers at some of the large-name fund companies in the world, but that is more the exception than the rule for obvious internal business reasons. If a portfolio manager is running a couple mutual funds with $10 billion, does their parent organization have a separate agreement with us where they are sending us their ten best ideas? That is going to be a rare circumstance whether they are going to be comfortable with that"
- "It would be interesting to know how many of the people who actually put their money into (the Voya Corporate Leaders Trust Fund) actually know what it is. In a lot of cases, I bet they do not"
- "Good managers can add an extra one percent to returns over time compared with an index-only strategy"
- "Most firms will tell you they are all about the client, and we are no different."
Josh Brown
(CEO, Ritholtz Wealth Management)
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Josh Brown is CEO of Ritholtz Wealth Management. Mr. Brown has spent his career helping people invest and manage portfolios. He is the creator of The Reformed Broker blog and was ranked as the number one financial person to follow on social media by Barron’s, the Wall Street Journal and TIME Magazine. Mr. Brown is the star of CNBC’s “The Halftime Report” and a featured columnist at Fortune Magazine. He is the author of the books Backstage Wall Street and Clash of the Financial Pundits. In addition to serving as CEO of Ritholtz Wealth Management, he is also on the advisory boards of Riskalyze and Brightscope, two of the leading financial technology startups bringing transparency and analytics to the investment business. In 2015, Investment News named Josh Brown to their “40 Under 40? list of influential financial advisors who represent the future of the wealth management industry.
Mr. Brown"s comments included:
- "With approximately $5.0 billion of assets under management, a unique suite of attractive investment products and several promising avenues for long-term growth, we are excited to deliver this transaction to our stockholders. We are partnering with a talented management team that is committed to the growth of the business and whose track record of developing innovative investment products and delivering superior investment results will deliver long-term value to both clients and stockholders of ZAIS"
- "The technicals on Twitter from short-term, intermediate-term, and long-term perspective are pretty terrible."
- "Automated allocation software is just a tool, employed by human firms, like email."
- "I think with Facebook, the thing to keep in mind, this is a stock that has only missed earnings once since it became public five years ago."
- "I can rattle off a half-dozen advisers who started blogs in the last five years who are now running businesses that are exclusively powered by social media."
- "The technicals on Twitter from short-term, intermediate-term, and long-term perspective are pretty terrible."
Ryan Caldwell
(CEO, MX Technologies)
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Ryan Caldwell is CEO & Founder of MX Technologies. Mr. Caldwell is a serial entrepreneur driven to transform industries. Currently, Mr. Caldwell directs the strategic vision for MX, a fintech company combining powerful data analytics with engaging technology to enable customer advocacy through a data-driven money management platform delivered through financial institutions. MX, has earned attention and investment from industry-leaders at financial institutions and within the fintech community. Prior to founding MX, Mr. Caldwell consulted in the US, Singapore and London for some of the world’s leading companies, including market leaders like Visa and Microsoft. He has also received multiple industry accolades, including being named to the Utah Business list of Forty Under 40, the v100 list of Top Venture Entrepreneurs and as one of the Utah Valley BusinessQ’s 10 Coolest Entrepreneurs.
Mr. Caldwell's comments included:
- "Since June, three separate clients have told us they compared Morningstar’s ByAllAcounts with Quovo and ByAllAccounts had superior data quality and consistency"
- "Finovate has been a wonderful springboard for MX, allowing us to highlight groundbreaking technologies and ultimately partner with leading financial services companies."
- "USAA is widely recognized as one of the most innovative banks in the world and we are honored to have them recognize and select us."
- "Thousands of firms and more than 40 redistributors rely on us to aggregate more than $1 trillion in investor assets from more than 12,000 sources every day. Clearly technology is important, and we continue to invest in technology to provide a great experience for our clients. Since becoming part of Morningstar, we have added Morningstar asset classes and security information that is not available through any other aggregator. In the end, it is all about the data and the client experience"
- “We are focused on super high-quality transactions. Yodlee is more consumer based. We are not competing day to day"
Eric Clarke
(CEO, Orion Advisor Services)
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Eric Clarke is the CEO and Founder of Orion Advisor Services, which develops solutions that improve advisors’ business operations and interactions with clients. The company’s current vision is to integrate its portfolio accounting system with CRM platforms to increase efficiencies for advisors. Mr. Clarke and his colleagues founded Orion’s predecessor company after they developed an off-the-shelf portfolio accounting system for advisors. Prior to starting Orion, Mr. Clarke served as chief operations officer for CLS Investments, an SEC–registered investment advisor. As an industry-recognized expert in portfolio accounting, Mr. Clarke has written articles that have appeared in Investment News, The Journal of Financial Planning, and others.
Mr. Clarke"s comments included:
- "We thank Norwest Equity Partners for being such supportive and collaborative partners with us over the years. We achieved a great deal of growth and success together. We are excited about carrying that momentum forward into our new relationship with Lightyear Capital, which will allow us to continue to deliver consistent growth in new markets as we build our firm into a top national wealth management and financial planning brand"
- "Strategically, we are looking to partner with firms that have demonstrated a commitment to growth and see value in integrating with our proprietary marketing capabilities for new client development and creating efficiencies by utilizing our centralized platform to gain investment management, planning and administrative leverage."
- "With Eclipse's customization and adaptability, advisors cannot only enhance their service to their clients, but also become more efficient at the same time."
- "Orion's priority is to ensure that advisers' businesses and workflows are efficient and that they have access to the latest and greatest technology."
- "Over the last eighteen months we started to pursue acquisitions, but the strategy is different from the aggregators. It is about an integration of services, not just the split on profit and then running the business autonomously. We have one RIA and a centralized investment management group. Unless you integrate, you cannot get that efficiency"
Alan Cohn
(Co-President, Sage Financial Group)
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Alan is Co-Founder and Co-President of Sage Financial Group, and is co-author of The Sage Guide to Mutual Funds. Mr. Cohn has been named one of the most influential people in the investment world by The Wall Street Journal and SmartMoney Magazine. He has been quoted in Money Magazine, Kiplinger’s Personal Finance and The New York Times. Additionally, Mr. Cohn was named one of the top 40 business leaders under the age of 40 by the Philadelphia Business Journal, and was recognized by Philadelphia Magazine as one of 100 People to Watch. Mr. Cohn co-founded Sage Online in 1995, a leading source of online mutual fund and equity information for individual investors. In March 2000, Multex, a global provider of investment information for the financial services industry, acquired Sage Online. Mr. Cohn is active in many civic associations and serves on the Board of Ben Franklin Technology Partners, is on the Advisory Board of Veritat Advisors, is on Penn Liberty Bank’s Advisory Board, is Chair of the Alex’s Lemonade Stand Foundation Development Committee, and is a member of the Jewish Federation of Greater Philadelphia’s Investment Committee.
Mr. Cohn"s comments included:
- "For years they [Advent Software] said, bundling is not a smart strategy; it is better to be great at one thing. They are right but that one thing is a platform."
- "It is not a sales process".they feel comfortable with us."
- "So my role as an advisor is going to be part psychological counselor and part tactical investment manager."
- "The number of RIA firms embracing Envestnet Tamarac's Advisor Xi solution continues to climb because we help them more efficiently serve their clients and in the process help build more profitable businesses. Advisors who have migrated to Advisor Xi stay there, which is why we have had a 97% client renewal rate for more than five years running while continuing to grow our client base with both large and small firms"
- "What we do is designed for a more scalable solution for advisors including proposal generation, research, rebalancing, reporting etc. All that plumbing is there but it’s not what the end investor sees. This Upside technology is the last mile and it allows us to offer the full spectrum"
Steve Condon
(President, Truepoint Wealth Counsel)
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Steve Condon is President of Truepoint Wealth Counsel. As Truepoint’s president, Mr. Condon is responsible for the firm’s day-to-day management, guiding the investment strategy, and introducing Truepoint to prospective clients and employees. ”My favorite thing about Truepoint is being part of a true team dedicated to our clients’ success and working with professionals who are not only enjoyable to be around, but also masters of their craft.” Mr. Condon attended OSU as a University Fellow, was a teaching assistant and worked with the OSU endowment fund. Mr. Condon was elected to the Beta Gamma Sigma and Phi Kappa Phi honor societies, and graduated as both a Fisher and Weidler Scholar. He also holds the Chartered Financial Analyst (CFA) designation. Mr. Condon is a member of the Institutional Advisor Council of Fidelity Investments, the CFA Institute and the CFA Society of Cincinnati. Mr. Condon is also a member of the Young Presidents’ Organization (YPO), a global network connecting chief executives. His volunteer work includes serving on the board of the Cincinnati Youth Collaborative and tutoring at Silverton Paideia Academy.
Mr. Condon'’s comments included:
- "Our goal is to become the largest financial life management platform in the country. We want to be the first billion-dollar brand in financial life management"
- "We used to call it wealth management like everyone else…but nobody understands what that means anymore. Everybody calls themselves wealth managers in our industry"
- "A financial life is not about money. It is about one’s entire life; all our industry talks about…is money"
- "Every major turning point is about having to make a trade-off. The thing that people remembered was that life was a choice; they could not have it all"
- “We are very big relative to any independent advisory firms. We do not have a lot of peers. We are large enough to make a difference, large enough to have a voice and be heard”
Dean Cook
(President, FTJ FundChoice)
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Dean Cook is President of FTJ FundChoice. Mr. Cook is focused on the development and implementation of strategic initiatives designed to assist advisors in simplifying their business through service, technology, and product offering. Before becoming President in 2012, Mr. Cook directed the firm's national marketing and sales operations since 2005. Through his experience as a Registered Representative, Investment Advisor Representative and External Wholesaler, Mr. Cook has taken pride in adding unique insights to advisors as they build profitable advisory firms.
Mr. Cook’s comments included:
- "We are in the sixth year of a bull market, valuations are at historic highs, and we have uncertainty about the economy and interest rates. I think we will continue to see a lot of volatility"
- "Men [advisors] are talking to women [clients] the way they talk to men, and that is not going to work"
- "As it stands today, our director of marketing, female. Our director of research, female. Our director of planning, female. Our CFO, female. It just so happens that that is how the firm was built out because of the qualifications of the women. As we look at it today, 65% of our firm roughly is female, which is really different from the industry"
- “The conversation tends to be a little bit different when thereis a woman in the room. It [having more women in the firm] has allowed us to bring more women clients to the table, or spouses of clients to the table"
- "Diversity of degree and education is extremely important, and we promote whatever educational path people want to go down. We are huge proponents of education. We have somebody who is studying for their divorce degree in financial planning, and somebody who is studying for the CAIA [chartered alternative investment analyst]"
Ben Cukier
(Managing Partner, Centana Growth Partners)
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Ben Cukier is a Managing Partner at Centana Growth Partners. Mr. Cukier founded Centana Growth in 2015. Before founding Centana Growth, Mr. Cukier spent over twenty years in growth equity and finance. Mr. Cukier has developed a keen understanding of the key players, regulatory environment and complexities of the asset management sub sector, as well as the broader financial services world. He previously led investments in companies including Aspire, Cloudmark, ETF Securities, IndexIQ (acquired by NYLife), Powershares (acquired by Invesco), Swan Global, and VelocityShares (acquired by Janus). Mr. Cukier spent sixteen years at FTV Capital, a $2 billion growth equity fund, where he was an equity partner, served on the management committee and led investments in financial services. Before FTV, Mr. Cukier served on the telecommunications and media team at Madison Dearborn Partners in Chicago and was a consultant at McKinsey & Company.
Mr. Cukier"s comments included:
- "When most people hear the words financial planner, they immediately assume that what is really meant is investment advisor. We place the emphasis on integrated financial planning and view investment management, retirement planning, estate planning, asset protection, etc. as subsets of financial planning"
- "Vanguard's rock-bottom fee absolutely should cause [financial-planning firms] to justify to the client the extra expense of what they are doing"
- "It is very concerning the lack of literacy that people have. It is not taught in our schools and where it is taught, it is not taught as well as it could be. We need to raise public awareness"
- "The biggest lesson I have learned is to listen to the wisdom of the board and not hear echoes of your own voice in your head. The collective wisdom is the voice that needs to be heard. On boards it is hard sometimes to listen, but that is what I try to do. But I have found with the boards, especially with non-profits, the right people seem to be in the room at the right time"
- "I have been a CFP for 24 years and I think it’s helped from the standpoint of continuing education. It forces me to remain current with what is happening and apply new thoughts and ideas to solutions that I deliver to client"
Mike Durbin
(President, Fidelity Wealth Technologies)
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Mike Durbin is President of Fidelity Wealth Technologies, a unit of Fidelity Investments that drives and delivers digital solutions across Fidelity Investments and throughout the financial advice industry. Fidelity Investments is a diversified financial services firm that makes financial expertise broadly accessible to people investing their life savings, businesses managing their employee benefits and advisors investing their clients" money. Since 1946, Fidelity has been helping people live the lives they want through its customer-centered approach, innovative technology and investment solutions. In addition to his role as president of Fidelity Wealth Technologies, Mr. Durbin is also serving as interim chief executive officer of eMoney Advisor, a wealth planning and management solutions provider for financial advisors, which is part of the Fidelity Wealth Technologies portfolio. Mr. Durbin joined Fidelity in February 2009 as president of Fidelity Institutional Wealth Services (now part of Fidelity Clearing and Custody), a Fidelity Investments company that serves registered investment advisors, including strategic acquirers and professional asset managers, as well as retirement recordkeepers. In that role, he was responsible for the oversight and growth of the business by providing clients access to a flexible, open-technology environment, extensive practice management resources and wealth management investments and related execution and custody services.
Mr. Durbin"s comments included:
- "In many of the strategies in alternatives, there is capacity constraint and there are already examples in the marketplace where funds have taken on a lot of capacity because they are very good marketing machines. The returns have decreased and, in the end, it has not been a good thing for the investors. At 361 we are very focused on capacity and making sure we limit capacity within our funds"
- "Long/short equity is the largest category in Morningstar’s classification of alternative mutual funds, but there is currently a shortage of quality funds with track records. By partnering with a proven manager like Analytic Investors, we are able to meet a real need in the marketplace."
- "To the extent a household comes in at $25,000 that may emerge down the road as a $250,000 household, there is a seamless transition, and you can graduate households, and you can also un-graduate households to a digital-solution if necessary."
- "Calling it a robo takes the element of the human out of it; I actually like the term bionic, because it melds human and machine."
- "Macroeconomic issues and concerns about volatility are pushing investors into liquid alternative mutual funds. Individual investors are seeking out liquid alternatives because they are less expensive than hedge funds, yet offer much greater transparency and liquidity"
Ric Edelman
(CEO, Edelman Financial Services)
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Ric Edelman is CEO of Edelman Financial Services. Mr. Edelman has been three times ranked the #1 Independent Financial Advisor in the nation by Barron's. In 2012 RIABiz.com named Mr. Edelman one of the "ten most influential figures" in the investment advisory field. Mr. Edelman is a member of the Financial Advisor Hall of Fame sponsored by Research magazine and the CNBC Digital Financial Advisors Council. Edelman Financial Services was named by Inc. magazine as one of the fastest growing privately held financial planning firm in the country for three years in a row in the late 1990's. In 2014, Mr. Edelman was named among the "Heavy Hundred" in the radio industry by TALKERS magazine. Mr. Edelman's television show, The Truth About Money with Mr. Edelman Edelman, airs on more than 200 public television stations across the country and has won 8 Telly Awards. Mr. Edelman has testified before Congress three times, participated in an SEC Roundtable and appointed by Presidents Bill Clinton and George W. Bush as a delegate to all three National Summits on Retirement Savings. Mr. Edelman taught personal finance at Georgetown University for nine years, publishes an award-winning 16-page monthly newsletter and his website offers comprehensive and free personal finance education. Mr. Edelman served five years on the board of the United Way of the National Capital Area, including two years as Chairman. He serves on the Southeast Board of The Boys and Girls Clubs of America, is a member of The Boys and Girls Clubs of Greater Washington Foundation Board and served on the BGCGW Metropolitan Board of Directors for seven years and serves on the BGCGW Leadership Council. He is a Policy Board Member of the American Savings Education Council. and is on the Foundation Board of Directors for the Wolf Trap Foundation for the Performing Arts.
Mr. Edelman"s comments included:
- "The odds are that if you are alive in 2030, then you will live forever."
- "All the big brokerage firms and banks have chosen not to serve the $5,000 client, but they will over time out of necessity."
- "We leverage technology and build great tools and products for investors who are self-directed or who need a little guidance. For clients who require or want a more high-touch experience, we refer them to an independent RIA. We believe in this model because we understand that investors want objectivity and the flexibility to choose the solution that is right for them."
- "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."
Ed Forst
(CEO, Lincoln Investment)
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Ed Forst is CEO of Lincoln Investment. Mr. Forst is a Certified Financial Planner certificant and has been dedicated to helping individuals with all aspects of financial planning since 1980. As President and CEO of the Lincoln Investment Companies, Mr. Forst oversees 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 235,000 individual investors, representing over $24.7 billion in assets. For almost 50 years, Lincoln Investment has been committed to helping individuals and families achieve long-term financial well-being through the expert guidance of independent financial professionals.
Mr. Forst's comments included:
- "If you think about it, just with the DOL and technology, there are two [areas] that are going to be more expensive"
- "We are excited to welcome The Legend Group's financial advisors to Lincoln Investment as it pairs two well-resourced partners who share a longstanding commitment to the retirement plan market."
- "Capital Analysts" leadership in the high-net-worth investor market is a critical strategic fit with Lincoln Investment's long-standing success in the mass affluent investor space."
- "The plan we have in place led us to Capital Analysts. We remain privately owned and truly independent. That's very appealing to Capital Analysts' advisers."
- "We are very excited to complete this transaction, which reinforces Lincoln Investment's leadership position in the market for retirement plan advice. We welcome The Legend Group's financial advisors to the Lincoln Investment community, and we look forward to supporting them in growing their businesses by effectively providing the professional advice their mass affluent and high net worth clients need."
Cody Foster
(Co-Founder, Advisors Excel)
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Cody Foster is Co-Founder of Advisors Excel, an industry-leading marketing organization assisting independent insurance agents and financial advisors around the country. Immediately out of college, Mr. Foster joined the financial services arena as the Director of Marketing for a corporately-owned, national field marketing organization. With a passion to pursue something larger and help others succeed, he and close friends David Callanan and Derek Thompson opened the doors to Advisors Excel in 2005 - chasing a dream to redefine their industry.
Mr. Foster"s comments included:
- "The retirement system in the United States is in chaos. Government retirement vehicles are grossly underfunded, most companies have dropped their defined benefit pension plans, and for those fortunate enough to have a 401K, the savings and investments are at the mercy of their employer's plan administrator. Our nation's approach to retirement is ripe for change, and it would be inspiring to see the president or Congress offer some viable alternatives"
- "Rather than merely tinkering with our current system, I think it is time for drastic measures. I believe the time is right to decouple retirement savings from our employers"
- "Does it really make any sense to tie our retirement savings to our employers? Our employers already provide our wages and, in most cases, our health coverage, as well. Why have employers been cast in the position of not only telling their workers how to invest their retirement dollars but of serving as the retirement-plan administrators as well? The entire approach is not only absurd, it also begs the question: when did we become so fragile?"
- "The downside of 401K plans is that the current system does not allow an employee any freedom. It does not allow the employee to invest his or her own saved dollars how he or she sees fit. Instead, employers throw together a limited menu of investment options, and the employee is left with very little choice. There is no option to choose a favorite investment company or a trusted relative or friend, nor is there the option of hiring an advisor. Let us be frank, here: when it comes to modern retirement plans, you and I are pretty much at the mercy of our employers"
- "It is time we allow the people who are actually saving for their own retirement to decide what is best for themselves. It is time to limit the power and influence of the employer, the Department of Labor and our elected officials. It is time to place the control of our futures, and of our retirements, back in the quite capable hands of the American people"
Sherrie Grabot
(CEO, GuidedChoice)
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Sherrie Grabot is CEO of GuidedChoice. Before founding GuidedChoice, Ms. Grabot developed some of the earliest technology systems for 401K plans at Apple, T. Rowe Price Group, and Trust Company of the West. With experience as both a former plan sponsor and plan provider, she has a strong understanding of what participants and retirement plans require to succeed, and continues to serve as a leader in the evolution of the 401(k).
Ms. Grabot"s comments included:
- "We need more tools to automate and scale our businesses. These businesses are hard to scale. Any tool to help the stay connected with clients I think is beneficial"
- "We are not here to disrupt advisors at all and is why we launched into the institutional space first. Marstone will educate investors through design"
- "There is a belief that the robo advisor will disintermediate traditional advisors from the planning process, but that is not true"
- "There are 50,000 fewer advisors in the industry today then in 2008. We need technology simply to handle the wealth transfer. This is why robo-advisors will complement, rather than replace, traditional advisors. Finance is intimidating for the majority of Americans, so they want the personal relationship, but it’s not a scalable business if it is purely human-driven. Technology devoid of humanity will not win"
- "Technological advancements have forever shifted consumer behavior, redefined our expectations of the companies we do business with, and fundamentally altered how we communicate with the world. Combining humanity with technology and design will result in deeper client engagement, retention and recruitment"
Fred Jonske
(CEO, M Financial Group)
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Fred Jonske is CEO & President of M Financial Group. Mr. Jonske joined M Financial in 1996 with 25 years of experience in the life insurance industry. He was previously President, Chief Operating Officer, and board member of Lincoln Benefit Life Insurance Company of Lincoln, Nebraska, and Surety Life Insurance Company of Salt Lake City, Utah. Mr. Jonske was also Vice President and a board member of Allstate Life Insurance Company, as well as a board member of Lincoln Benefit Financial Services. In 1971, Mr. Jonske began his career with Allstate Life Insurance Company and, prior to his election as President of Lincoln Benefit Life in 1982, held various actuarial positions in the individual and corporate areas. Mr. Jonske led M Financial's reorganization from a partnership to a member-owned holding company and remains focused on developing and executing a strategy consistent with the company's core values"innovation, collaboration, excellence, leadership, and advocacy"that enhances Member Firm competitiveness and drives overall growth. Mr. Jonske is Chair of the MFH Nominating Committee and the M Benefit Solutions Compensation Committee. He is a member of the Board of the American Council of Life insurers (ACLI), the University of Portland Board of Regents, and The American College Board of Trustees. He serves on the ACLI Financial Services Steering Committee, the American Academy of Actuaries, and AALU.
Mr. Jonske"s 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"
Richard Joyner
(CEO, Tolleson Private Wealth Management)
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Richard Joyner is the President and CEO of Tolleson Wealth Management's Private Wealth Management Group. In this role, he is active in setting the vision and strategy for Tolleson Private Wealth Management. Mr. Joyner serves on the company's Board of Directors, Executive Committee and Investment Committee and leads the company's Family Education efforts. Mr. Joyner works with multi-generational families to address the complex issues of successful wealth transfer. His expertise encompasses such diverse areas as complex income and estate tax planning; family dynamics and education; and investment management. He facilitates numerous family meetings for clients each year, and speaks regularly to families that want to overcome the old adage of "shirtsleeves to shirtsleeves" in three generations. Over the years, Mr. Joyner has received a number of professional awards, including recognition by Worth Magazine as one of its Top Financial Advisers and by Barron's Magazine as one of the Top 100 Independent Financial Advisors in the U.S. He served nine years on the Board of Directors of the Investment Management Consultants Association (IMCA), including two years as its President (2002-2003). He has served on IMCA's wealth management committee for more than 10 years and teaches in the Certified Private Wealth Advisor (CPWA) program offered jointly by IMCA and the University of Chicago. In addition to being a Certified Public Accountant* (CPA), he holds the Certified Investment Management Analyst (CIMA), Certified Private Wealth Advisor (CPWA), Personal Financial Specialist (PFS) designations, and is a Certified Financial Planner" (CFP") practitioner.
Mr. Joyner"s comments included:
- "Tolleson appeals to clients as a family business, with the Tolleson family invested alongside its clients."
- "You can position yourself to serve the clients who are in the situation of transferring wealth in a case-by-case scenario"But I don't think you could stand back and say all you have to do is be in the right place and on Monday morning, $7 billion comes in, and you start getting transfers."
- "Charitable and estate planning laws are changing as new developments arise during election year in Washington."
- "If you are going to work with families, and have conversations that go beyond quarterly performance, the physical surroundings can make it easier or harder."
- "The ambience encourages conversation, particularly about things other than finance that affect a family's well-being."
Roger Kafker
(Managing Director, Asset Management, TA Associates)
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Roger Kafker is a Managing Director at TA Associates. Mr. Kafker focuses on investments in financial and business services companies with a focus on asset management and transaction processing. Mr. Kafker is a member of TA's Executive, Core Investment and Portfolio Committees. He joined TA in 1989 and has more than 26 years of experience in the private equity industry. Over his career, Roger has sponsored numerous investments in the asset management and transaction processing sectors. He has served on the board of seven investments in private companies that have gone public, raising well over a billion dollars of capital, including Affiliated Managers Group and ANSYS, both of which have market capitalizations of more than $5 billion today. Mr. Kafker has sponsored 30 investments, 26 of which are fully or partially exited, totaling over $2.2 billion of invested capital. He has significant experience investing in asset management companies having made eight investments in this sector. He has experience investing in transaction processing companies, including Cardtronics and BluePay Processing and helped source and close multiple acquisitions for both companies with an aim to accelerate growth by building scale. Mr. Kafker has served on the Board of Directors of numerous public companies. He is currently on the boards of BluePay Processing, Evanston Capital Management, Keeley Asset Management, & Stadion Money Management.
Mr. Kafker"s comments included:
- "FinTech entrepreneurs have a unique problem, which is the high cost of data to help them build applications. They raise $2 million of venture capital funding, and then spend $100,000 of it buying market data from Bloomberg or Thomson Reuters. Or they show up to customers, who say, nice app, but it has not been tested on robust data sets. We think that is a problem we can help solve"
- "Bankers will get direct feedback and much more frequent feedback from the startups in the Sandbox using their data. So if they value that proximity and ability to go in and talk to the founders of those companies, we will be able to give them that "
- "If you're a sizable firm with the right characteristics that fit the needs of large financial services companies, you're probably coming in for a fair amount of attention."
- "The transition from cash and check to electronic forms of payment continues to accelerate and offers significant advantages to patients and providers."
- "As a result of the quality of the leadership at TA asset management portfolio companies past and present, TA has had a long history of successful investments in the asset management industry. This conference was a terrific way for these industry thought leaders and key members of the TA team to meet and discuss the very latest in the asset management industry, paving the way for continued growth and success."
Kevin Knull
(President, PIEtech)
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Kevin Knull is President of PIEtech, creator of the industry's leading financial planning software, MoneyGuidePro. Mr. Knull works extensively with many of the nation's leading firms to develop and implement strategies to increase revenue, increase financial planning adoption, and dive greater efficiencies. Prior to joining PIEtech, Mr. Knull was Managing Director at Symetra Investment Management, Head of Registered Investments for Symetra Financial, and President of Symetra Services. In addition, Mr. Knull served as an officer in the United States Coast Guard as Commanding Officer.
Mr. Knull"s comments included:
- "Since MoneyGuidePro began, we have been focused on one key word: engage. We want to help you engage your clients."
- "Would you rather be saying to your client when the market drops 300 points, here is what your account value is, or would you rather center the conversation and say let us check and see if your plan is still on track?"
- " We will integrate with everyone. We are impartial."
- "Everyone is so focused on the portal and the vault. We do not necessarily believe that it is necessary to be built within the financial planning software. Why? Because you all should control the data at your firms."
Charlie Kroll
(President, Ellevest)
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Charlie Kroll is President & Cofounder of Ellevest Financial, a NYC-based online wealth management startup focused on women investors. Previously, he was founder and CEO of Andera, a venture-backed provider of customer acquisition solutions in the financial services industry, acquired by Bottomline Technologies in April 2014. He led all aspects of company growth from dorm room startup to profitable industry leader with over 100 employees, 3 offices, 500 financial institution customers, and $17MM in capital raised from angel, venture, and strategic investors including Intuit, Edison Ventures, Silicon Valley Bank, and New Markets Venture Partners. Over 10+ years under his leadership, the company adapted to multiple market changes and business cycles, including two major strategy changes and the acquisition of a competitor. Mr. Kroll is passionate about product design and company culture, and has expertise in Cloud, B2B, SaaS, and Fintech business models. He was named 2006 New England Young Entrepreneur of the Year by the United States Small Business Administration (SBA), and is a past Ernst & Young Entrepreneur of the Year finalist. He is also actively involved in the entrepreneurial community, as a founding board member of Venture for America, chair of the Brown University Entrepreneurship Program, and advisor to a number of startups.
Mr. Kroll's comments included:
- "Being a first-time entrepreneur, the stakes seemed really high."
- "What we found is that every bank almost without exception makes you visit a branch or download forms and fill them out. There is no reason for it to be that way."
- "A serial entrepreneur on his fifth company might have thrown in the towel. It was my first company, my first time with employees and benefits to pay for."
- "We bounced along the bottom for a couple years"But we ended up building a software product for one of our clients that ended up becoming a product to allow us to get out."
- "We thought there was a problem we could fix"So we transitioned out of the web design business into the software business. By 2006 we were firing on all cylinders."
Jeff Lovell
(CEO, Lovell Minnick Partners)
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Jeff Lovell is CEO & Co-Chairman of Lovell Minnick Partners and co-founded the firm in 1999. Mr. Lovell serves as chair of its investment committee. Prior to co-founding Lovell Minnick Partners, he co-founded Putnam Lovell Group in 1987. In his years at Putnam Lovell Group, Mr. Lovell served as president and vice chairman through its development from a single office, M&A advisory firm to a full-service investment bank with over 150 employees serving financial institutions worldwide from offices in the US and UK. Putnam Lovell Group became widely recognized as a prominent boutique firm in global financial services and Mr. Lovell served as the senior investment banker on numerous mergers and acquisitions. Prior to the founding of Putnam Lovell Group from 1976 through 1987, Mr. Lovell held executive positions at SEI Investments including managing director of SEI Financial Services (UK), western division manager and senior vice president of national sales. Mr. Lovell is a member of the boards of directors of Matthews International Capital Management and 361 Capital. Mr. Lovell is a board member emeritus of the Leeds School of Business at the University of Colorado and, most recently, was a member of the investment committee of the University of Colorado Foundation for over a decade. Among others, prior board positions include Duff & Phelps Corporation, Leerink Swann Holdings, Mercer Advisors, and Stein Roe Investment Counsel..
Mr. Lovell's comments included:
- "The restructuring of our business will keep intact our positive investor relationship with Putnam Lovell NBF and National Bank Financial, yet will provide for greater independence in our operation and freedom from concerns about conflicts of interest with their other activities."
- "Many of the largest institutions are handcuffed, creating opportunities for the smaller, more nimble companies"(It is) an area where we see continued opportunity on a forward basis."
- "[Genstar] has a long record of investing and growing their portfolio companies, and that's what we need"We've build the chassis, and it is a beautiful car, but it needs some gas."
- "361 Capital has a management team with a unique combination of proven success in alternative investing and considerable experience with mutual fund distribution. This gives us great confidence in their ability to execute their business plan and become a leader in the space, and we are pleased to partner with them in supporting their growth."
- "We see attractive opportunities across such themes as investment solutions, underserved credit markets, outsourcing, and consolidation. We look forward to building another portfolio of growing, dynamic companies where we can support management in realizing their strategic objectives."
John Mauldin
(Chairman, Mauldin Economics)
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John Mauldin is Chairman of Mauldin Economics, and economics publishing firm. Mr. Mauldin is also President of Millennium Wave Advisors which is an investment advisory firm registered with multiple states; and is also President and a registered principal of Millennium Wave Securities, a FINRA and SIPC registered broker/dealer. Mr. Mauldin is a renowned financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance " Thoughts from the Frontline"one of the most widely read investment newsletters in the world. Mauldin Economics publishes a growing number of investing resources, including both free and paid publications aimed at helping investors do better in today's challenging economy. In addition to publishing, John is cosponsor and host of the Strategic Investment Conference - an annual event for accredited investors that draws a faculty of some of the most respected investment and economic luminaries in the world. He is a frequent speaker at conferences around the world and consults with a number of private firms. He is also a sought-after contributor to numerous financial publications, as well as a regular guest on TV and radio. His books have appeared on the New York Times best-seller list four times.
Mr. Mauldin"s comments included:
- “Many, many Americans are concerned about stagnant wages. But more to the point, they are concerned about whether their income can meet their needs. If everyone’s income stayed about the same but the costs of living went down, it wouldn’t matter if incomes were stagnant – or at least it should not. There is substantial evidence that many of life’s necessities are getting either cheaper or not getting any more expensive”
- “The only thing that is clear about employment and wages, therefore, is the following: jobs in the United States are relatively plentiful but well-paying jobs are less so. And you had better pick a job in a rising rather than a declining sector, or you are screwed. Wages are booming for jobs that are attached to the evolving technology-infused economy of tomorrow; they are not booming and may be contracting for anything that can be done by almost anyone. As a result, wages may rise somewhat, but only because they are rising well above inflation for some and not much in real terms for most”
- “In the waning moments of 2014, something happened that had been a long-time coming but seemed it might never arrive: the public mood in America shifted, ever so slightly yet significantly, from negativity and pessimism about the arc of the economy to something approximately hope about the future”
- “United States stocks are now modestly positive for the year (the S&P 500 is up just shy of 1.5% as of February 12), while global equities are for the first time in a long while outperforming considerably. The lack of panic in the face of volatility and the modest start should be seen as quite positive signs. Equities are not galloping too far ahead, and fear seems as much in check as euphoria. That equilibrium rarely lasts, so we should use it well to position and tweak”
- “Active versus passive. No, it is not a debate to stir the passions of the public, but in the world of investing and deciding how to gain exposure to sectors, it is a rivalry up there with the Hatfields versus the McCoys, the North versus the South, the Yankees and the Red Sox... in truth, however, while the polarized positions speaks to different groups of managers battling for fund flows and for the upper hand in a market debate, most investors are best served not by an either-or approach. Instead, placing select bets on select active managers can and likely should be combined with select positions in select passive funds”
Sean McShea
(President, Ryan Lass Asset Management)
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Sean McShea is the President of Ryan Labs. He oversees the firm's investment management strategies for institutional clients, from pension funds and corporations to endowments and insurance firms. Mr. McShea has more than twenty years of experience with Ryan Labs Asset Management providing investment management and liability advisory services to the financial services industry. He is also a member of the Board of Directors. Mr. McShea is a frequent speaker at financial seminars on topics such as asset allocation, custom indices, performance attribution and risk management. Mr. McShea previously served as a management consultant at Accenture in their financial services practice.
Mr. McShea"s comments included:
- "Advisors today are spending 50, 60, 70 basis points on their clients’ money trying to manually manage the money and provide all of that client service. What Is incredible about Autopilot is that for 25 basis points that advisor gets to put all of their hassles of their business on autopilot – the trading; the rebalancing; the client-service calls, you know, the pedestrian client-service calls to liquidiate some money, withdraw some money, and transfer some money in. They get to put all of that on autopilot, and they get to get back to focusing on their clients and running their business”
- "The Autopilot platform is pretty unique in its ability to democratize access to advice, because, it really gives advisors the ability to profitably serve clients large and small"
- "When advisors have gone in to advise on a 401K plan they [are] usually … only focusing on the 5% of participants who have a lot of outside assets, but, with the Autopilot platform that advisor can profitably serve every single plan participant, which means every one of them is going to get higher quality advice overall. We think that is really important for advisors"
- "We went from the denial stage where advisors refused to believe it would affect their business to the alarmist stage, which we are in now, where suddenly they believe they have to become robo-advisors to survive. But we cannot out-robo the robo-advisors. In the race to depersonalize the investor experience, the venture capital-backed money will win"
- "Advisors say they want simplicity, and then they send us requests on a monthly basis to make it more complicated. We simply say no, because at the end of the day they still want simplicity, and it is something they love us for”
Joe Mrak
(CEO, FolioDynamix)
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Joe Mrak is CEO & Chairman of FolioDynamix. Mr. Mrak has led the company's growth from its inception in 2007 to its current position as a fast-growing leader and innovator in the wealth management industry. With 25 years in the industry, Mr. Mrak is an established thought leader and entrepreneur known for his vision and ability to evolve technology and investment products to meet the dynamic needs of leaders in the industry. The modular, seamless and scalable technology platform of FolioDynamix is quickly becoming the modern-day platform of choice for firms seeking to grow and lead in the new era of wealth management. Prior to launching FolioDynamix, Mr. Mrak co-founded Placemark Investments, the pioneer in overlay management and standards bearer in delivering highly customized account solutions. Mr. Mrak also served as general manager of BISYS WealthSolutions, now owned by Citigroup, and headed up product strategy for CheckFree Investment Services, now Fiserv, where he led product development for CheckFree APL. Mr. Mrak is an established authority in investment program design, wealth management technology, business process best practices, and front-, middle- and back-office operations. Mr. Mrak started his career working for top consulting firms including A.T. Kearney and Ernst & Young LLP, where he served as a financial services strategy consultant and gained critical insights into the complexities of the financial services industry.
Mr. Mrak"s comments included:
- Existing trusted product providers with the ability to add online robo-advice with zero operational overhead is the real game changer”
- “The combination of robo-advisor ease and convenience coupled with existing trusted brands and products is everything the majority of consumers will ever need”
- “Consumers need to feel an advisor is instantly on hand even though they do not want to have to call on it”
- "The contestable market for holistic advice is not where the growth is at present. The market that is not getting advice is those who want it online and with instant responses, with phone support an option"
- "When an advisor generates a piece of advice automatically out of Decimal it is totally produced from inside the system, it is all captured in a database – there is no word processor in sight. So a compliance officer can absolutely see in real time what has been done"
Michael Nathanson
(CEO, The Colony Group)
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Michael Nathanson is CEO, Chairman, & President of The Colony Group. Mr. Nathanson is widely regarded as a leader in the wealth management industry. Previously, Mr. Nathanson served as Chief Financial Officer and General Counsel of The Colony Group. Prior to joining the firm, he was a Senior Partner at the international law firm of Wilmer Cutler Pickering Hale and Dorr, where he held several leadership positions. Mr. Nathanson has been recognized eight times by Barron's magazine as one of the top 100 independent financial advisors in the nation and has been included in Worth magazine's list of the country's top 250 wealth advisors.* He also was selected six times as a "Super Lawyer," as published in Massachusetts Super Lawyers, while practicing at WilmerHale. He is committed to sharing his knowledge and experience with clients, colleagues, and the next generation of industry leaders and is a frequent speaker at industry conferences. He also has served on the Fidelity Institutional Wealth Services Advisor Council and the Schwab Advisor Services Advisory Board. Previously, he served on the Board of Advisors for Boston University's Program for Financial Planners and as Co-Chairman of the Boston Bar Association Tax Section. Mr. Nathanson has frequently been interviewed and published on a wide variety of financial, tax, and legal topics by many national and local news outlets, including Reuters, Dow Jones, the Wall Street Journal, Investment News, Financial Planning, the Boston Business Journal, and numerous journals and industry publications. Mr. Nathanson is also passionate about public service. He serves as the Chairman of the Board of Directors of the National Brain Tumor Society and also serves on the Boards of Cure GBM and Pediatric Cancer Cure. He is a member of the Israel Bonds National New Leadership Board and also has served as a member of the Investment Committee of the Massachusetts Service Alliance and as a Trustee and Director of the Needham Historical Society.
Mr. Nathanson comments included:
- "We treated our foreign team like Spock. All logic, zero emotion. When you treat people like robots, you do not inspire outstanding work, convey your vision, or instill passion"
- "A decade is a long time to get used to a global economy. Nonetheless, a Silicon Valley tech company, capable of easily knowing better, fell into the momentary trap of treating offshore people like machinery for the same reason you might: You are busy; it is easier to believe that clearly-worded commands solve everything. I get all that. But when it comes to building something awesome, you flat out need people who care deeply about you and your vision"
- "Is it over for the direct-to-consumer robo advisor? It is sure starting to look that way, despite the phenomenal success of the early robo advisors"
- "The biggest financial firms simply have too many financial resources and technology know-how to allow upstarts -- well-funded though they may be -- to undermine what has become a core business and earnings stream. As the largest banks, brokerages, wirehouses and asset managers begin offering digital investment advisory services, they will blunt the threat from stand-alone robo advisors and maintain their existing, significant market share. That is bad news for most of the robo advisors, whose business models are predicated on taking market share from the industry’s established players"
- "If the robo advisor is such a good idea, why have the biggest firms been slow to embraced it? It is true the largest financial institutions have been caught off guard by the success of the early robo advisors. That is normal when innovation disrupts the status quo. Change often surprises the incumbents. To their credit, the industry has moved quickly beyond whether a robo advisor is a good idea. They’re now true believers. It’s just a matter of implementation. Many of the largest players are convinced not only because of the early robo advisors, but because of the success of institutional players such as Charles Schwab"
Roger Ochs
(CEO, HD Vest Financial Services)
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Roger Ochs is CEO & President of HD Vest Financial Services. Mr. Ochs manages the day-today operations and directing the future of the firm, which has approximately 300 employees based in Irving, Texas. He has been with the firm since February 1987 and was named president in 1999. HD Vest provides innovative solutions and the latest tools to help HD Vest Advisors meet their clients" needs. Before becoming president of HD Vest, Mr. Ochs held multiple management positions within the organization, overseeing sales, marketing and technical support for Advisors. Prior to joining HD Vest, Mr. Ochs worked with Prudential-Bache Securities as a financial planner. Mr. Ochs served as the vice chair on the Independent Firms Committee of the Securities Industry and Financial Markets Association (SIFMA), is a member of the Texas Bar Association and the Dallas Bar Association, and is an associate member of the National Association of Enrolled Agents. He is licensed to practice law in the state of Texas, is a Certified Financial PlannerTM (CFP) professional, Chartered Life Underwriter, Chartered Financial Consultant and holds the Series 4, 7, 24, 53, 63, and 65 securities registrations.
Mr. Ochs" comments included:
- "HD Vest's brand, combined with its track record of growth and client service, firmly establishes the company's leadership in providing financial advice through the tax professional market. HD Vest's continued focus on tax professionals, and the specific needs they and their clients have, create a differentiated platform that we believe will thrive for years to come."
- "Financial education has been the key to our success. We reach consumers through radio, television, print, digital and seminars. By demonstrating our abilities and approach to personal finance, many of those whom we have educated turn to Edelman Financial for help with their finances."
- "HD Vest pioneered the idea of tax-smart wealth management services through tax professionals."
- "We have 4,600 advisors who work with clients and helping them will remain our core business."
- "We have an advisor in every market, so we have the opportunity to provide a live advisor, who by the way is a tax professional. When I think of robos, I think of them as not being real. You could say it is a competitor to the robo."
Deval Patrick
(Managing Director, Bain Capital Partners)
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Deval Patrick is a Managing Director at Bain Capital. Mr. Patrick joined Bain Capital in 2015 to found a new business that focuses on impact investing. Prior to joining, Mr. Patrick served as Governor of the Commonwealth of Massachusetts for eight years. Before entering public office, Mr. Patrick was Executive Vice President and General Counsel of The Coca-Cola Company. He also worked as Vice President and General Counsel of Texaco, and served on the company's Executive Council. Mr. Patrick was previously a Partner at Day, Berry & Howard and a Partner at Hill & Barlow. In 1994, he was appointed by President Clinton as Assistant Attorney General overseeing the Civil Rights Division of the U.S. Department of Justice.
Mr. Patrick's comments included:
- "The ability to transfer money on social media with just a hashtag is revolutionary for the financial technology sector – a space ripe for disruption"
- "Global financial services companies require the right application of technology, compliance and regulatory rigor, while also creating a compelling user experience. Payoneer continues to show it can excel in all of these areas, and continues to innovate and create compelling solutions for companies that need to make lots of payments or get paid in lots of places. It is a great leadership team, with a big vision, and I am excited to be part of it"
- "SigFig sees the extraordinary opportunity to marry scalable automated investment advising with mainstream financial institutions and their millions of customers who need easy access to high quality, affordable advice. Our model at Nyca consists of investing both our time and money in what we believe in. We believe in SigFig’s mission and are excited to be a part of their journey"
- "Technology advances in the consumer space have been breathtaking but in the institutional world, bank desktops are still dominated by legacy software. Banks clearly want to accelerate the development of financial applications, and OpenFin provides the technology to enable that to happen"
- "Unless you are a really big company, making cross-border B2B payments is a shockingly bad experience. Businesses pay opaque fees, and neither the recipient nor the payer has any idea when the payment will be credited. Align Commerce has low fees, real-time tracking, and complete transparency on foreign exchange costs. We invest in companies with innovative solutions to big problems in financial services. This is central to our business model, and Align accomplishes just that"
Matt Patsky
(CEO, Trillium Asset Management)
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Matt Patsky is CEO of Trillium Asset Management and a portfolio manager, leading our Sustainable Opportunities strategy. He joined Trillium 2009, and has three decades of experience in investment research and investment management. Mr. Patsky began his career at Lehman Brothers in 1984 as a technology analyst. In 1989, while covering emerging growth companies for Lehman, he began to incorporate environmental, social and governance factors into his research, becoming the first sell side analyst in the United States to publish on the topic of socially responsible investing in 1994. As Director of Equity Research for Adams, Harkness & Hill, he built that firm's powerful research capabilities in socially and environmentally responsible areas such as renewable energy, resource optimization, and organic and natural products. Prior to joning Trillium, Mr. Patsky was at Winslow Management Company in Boston, where he served as director of research, chairman of the investment committee and portfolio manager for the Green Solutions Strategy and the Winslow Green Solutions Fund. Mr. Patsky currently serves on the board of Environmental League of Massachusetts, Shared Interest, and Pro Mujer. He recently served on the board of US SIF and Root Capital. Mr. Patsky is a member of the Social Venture Network (SVN). He is a Chartered Financial Analyst charterholder and a member of the CFA Institute.
Mr. Patsky'’s comments included:
- "There is an ironic, philosophical gap between the creative idealism of the startup industry and the investors who fund them. Our industry, with its insatiable appetite for ideas that will change the world, is stuck in a traditional paradigm that does a regrettable disservice to the industry it claims to support"
- "Your career is a marathon, not a sprint. As you balance work and family, it may take you a little longer to achieve leadership roles than your male counterparts, but stay in the game and you will accomplish your goals"
- "Another constant source of hope: the next generation. Millennials are the most passionate, value-driven and brand-savvy people the industry has known. They display stalwart loyalty to brands that share their own values. They are also the most diverse generation in US history, so naturally, diversity is important to them"
- "The most successful female entrepreneurs are recruiting buy-in to their mission and culture"
- "I sincerely hope that millennials will apply their unique ethos to their funding strategies and career decisions. I hope they seek out and partner with venture capitalists who share their same values about gender diversity, who are unafraid to invest in woman-led startups, and who have women on staff throughout their ranks. I hope they will embrace the diversity that helps to define their generation"
Alex Potts
(CEO, Loring Ward Group)
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Alex Potts is the CEO & President of Loring Ward Group, as well as CEO & President of the SA Funds " Investment Trust. Previously, he was the Chief Operating Officer of LWI Financial. Mr. Potts has also served as CEO of RNP Advisory Services, a registered investment advisory firm. Mr. Potts started the SA Funds " Investment Trust and founded Loring Ward Securities (formerly Assante Capital Management). In addition, he served as Executive Vice President and General Manager of LWI Financial. (formerly Assante Asset Management). Mr. Potts holds General Securities (Series 7), State Law (Series 63) and General Securities Principal (Series 24) licenses.
Mr. Potts" comments included:
- "The moment you say index, you are telling the world you are going to be trading on this particular day. If you have zero flexibility when you trade, it is going to cost you money"
- "I think people have been a bit disappointed by stock picking so people are trying to move away from it"
- "Advisors are increasingly interested in moving towards making rational decisions based on very sound academic research, and that is what we provide"
- "Momentum factors last for a shorter period than value factors. When that downward momentum decays, if the stock is still a good value, we will consider buying"
- "We like to track the data on everything, so we can create a history, which could be useful if things change"
Brad Pries
(CEO, Sawtooth Solutions)
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Brad Pries is CEO of Sawtooth Solutions. Mr. Pries is responsible for all operations at Sawtooth Asset Management. Prior to founding Sawtooth, Mr. Pries was the president and chief communications officer of Redhawk Wealth Advisors, an SEC registered investment adviser located in Minneapolis. Prior to co-founding Redhawk, Mr. Pries was a senior vice president at Mt. Yale Capital Group where he headed up new product development. Prior to joining Mount Yale, Mr. Pries was the chief operating officer for MAI Advisors, an alternative investment firm specializing in the use of Index and Equity Option strategies. Mr. Pries was vice president of Integrated Portfolio Management from 1996 to 2003, a registered investment advisory firm based in Minneapolis. Prior to Integrated Portfolio Management, Mr. Pries was an owner and financial operations principal & general securities principal of Financial Management Services, a broker dealer. Prior to that, he was principal for Royal Alliance Associates, a large independent broker dealer, for whom he managed an office and had supervisory/compliance responsibility for fifteen brokers. Mr. Pries started his career as an asset manager for BEI/RITZ where he managed a $100 million tranche of a $2 billion portfolio of "distressed" assets.
Mr. Pries" comments included:
- "We have seen that our most successful inroads are through companies that are experiencing significant shifts in their business models or their ownership structure or organization"
- "People live lives that are tech-focused, and more and more they expect their financial advisors to be tech-focused, too."
- "We give advisors we work with technology that we call "lightly attended robo"It provides some automation, but with some personal interaction thrown in if it's needed."
- "Financial advisors who seize on technology's role are going to be able to service their clients more effectively."
- "With variable annuities, the contracts are more expensive and the riders are less attractive. It is more difficult for advisers to do 1035 variable annuity exchanges, and the new business is not as attractive"
Tony Salewski
(Managing Director, Genstar Capital)
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Tony Salewski is a Managing Director with Genstar Capital. Mr. Salewski helps to identify, evaluate and execute acquisition and investment opportunities. Prior to joining Genstar in 2007, Mr. Salewski was the Chief of Staff at Barclays Global Investors, where he executed strategic initiatives for the Executive Committee. Prior to BGI, Mr. Salewski was an Associate at Hellman & Friedman, a private equity investment firm in San Francisco. Mr. Salewski began his career in the investment banking division of Morgan Stanley in New York.
Mr. Salewski's comments included:
- “Envestnet provides advisors with flexible, efficient, and scalable access to intellectual capital from more than 60 institutional managers through the Envestnet Fund Strategist Network. We are offering a similar service for retirement plan advisors"
- "The ERS Fund Strategist Network enables us to provide the independent, unbiased fiduciary oversight and support that retirement plan sponsors, broker-dealers, and advisors are seeking. Given the adoption of the fiduciary standard and prudent investment practices in the retirement industry, we believe the Network can help broker-dealers, banks and trusts, and retirement advisors to truly act in the best interests of plan sponsors and participants"
- "Ascensus fits squarely within our approach of investing in leading businesses that provide critical tools and services to the investment management industry."
- "Asset International is a strong, vertically focused information services business that we have followed for several years, and it is an exciting platform from which to build a global leader in financial data and marketing services. We are pleased that Jim chose to partner with us and we look forward to working with him to capture additional customers, accelerate product innovation, and expand the geographic reach of the company. Given the significant fragmentation among information providers globally, we have also committed capital to pursue acquisitions."
- "Startup Village must be commented for its vibrant environment and the opportunities it was providing to youngsters and for bridging the gap between Silicon Valley and Kerala"
Jeremy Schein
(Managing Director, Corsair Capital)
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Jeremy Schein is Managing Director of Corsair Capital. Mr. Schein joined Corsair Capital in 2001 and is responsible for the origination, analysis, execution, monitoring and realization of fund investments. He has worked on transactions in the banking, insurance, financial technology, asset management and specialty finance sectors across the Americas, Europe and Asia. Mr. Schein is a director of NoteMachine Holdings, and acts as Corsair Capital's investment representative in many other transactions.
Mr. Schein's comments included:
- "Personal Capital is at the intersection of consumer technology and financial services, a sector we believe is poised for continued growth."
- "We are very pleased to be working with the management team of Personal Capital and to be investing alongside other experienced technology and financial services investors."
- "Certain investments are better suited for longer duration structures than what has been typically offered by private equity investors."
- "Incumbent financial services companies who embrace financial technology will benefit from the productiztation of technology and can compete effectively against new tech-based challengers."
- "Personal Capital is at the intersection of consumer technology and financial services, a sector we believe is poised for continued growth."
Aamir Sheikh
(Managing Partner, Echelon Capital Strategies)
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Aamir Sheikh is the Chief Investment Officer, Head of Research, and Managing Member at Echelon Asset Management. Mr. Sheikh joined Echelon from Bank of America, where he was Managing Director in the Enterprise Portfolio Management Group, part of the Corporate Investment Group. Prior to moving to the Corporate Investment Group, Mr. Sheikh was Managing Director of Portfolio Analytics in the Global Equities group of Merrill Lynch. From 1994 to 2005, Mr. Sheikh served in various roles at Barra, including Manager of Derivatives Research, Head of Enterprise Risk Management, Director of Research at Barra Rogers Casey, Director of Research and Head of the Content Group (Research, data development and maintenance, and model delivery), Head of Distribution (Sales, Marketing and Client Support), and President. Mr. Sheikh was an Assistant Professor of Finance at Indiana University from 1987 to 1994. Mr. Sheikh has numerous publications in both academic and practitioner journals.
Mr. Sheikh's comments included:
- "Marketplace lending offers a growing and nimble alternative financing solution."
- "Echelon Asset management offers access to highly selective consumer and small business credit strategies focused on marketplace and non-bank originators."
- "Technology is driving disruption in the consumer and small firm loan market."
- "The asset class has a multi-decade history of compelling returns that have been exclusive to the banking industry and unavailable to outside investors."
- "We are excited about the opportunity to manufacture Republic products, and work with the Republic sales, marketing and engineering team. This acquisition is an integral part of our focused strategic growth."
Clara Shih
(CEO, Hearsay Social)
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Clara Shih is CEO and founder of Hearsay Social, whose predictive analytics technology helps salespeople reach out to clients at the right time with the right message while staying in compliance with industry regulations. A pioneer in the social media industry, Ms. Shih developed the first social business application in 2007 and subsequently authored the New York Timesfeatured best-seller, The Facebook Era. Ms. Shih has been named one of Fortune's "Most Powerful Women Entrepreneurs," Fast Company's "Most Influential People in Technology," BusinessWeek's "Top Young Entrepreneurs," and both Fortune's and Ad Age's "40 Under 40." She was also named a "Young Global Leader" by the World Economic Forum, InvestmentNews" "40 under 40," and "5 to Watch" in ThinkAdvisor's 2015 IA 35 for 35. Ms. Shih is a member of the Starbucks board of directors and previously served in a variety of technical, product, and marketing roles at Google, Microsoft, and Salesforce.com. She graduated #1 in computer science at Stanford University, where she also received an MS in computer science. She also holds an MS in internet studies from Oxford University, where she studied as a U.S. Marshall Scholar.
Ms. Shih’s comments included:
- “We believe wealth is reliably created only through participation in profitable economic activity. Risk is unavoidable, but take it intelligently”
- “Because so much of the total wealth generated by a bull market comes at the very end of the cycle, reallocating away from equities due to client concerns about the current market environment can be a very costly strategy”
- “Remember that both advisors and clients evaluate their entire experience; we sometimes forget that an individual’s feelings are integral to the investment process”
- “Like Billy Beane [the general manager of the Oakland A’s], Savos’ job is to build a championship team. When we build a stock portfolio, our goal is to combine companies with appealing individual characteristics that also complement the other holdings”
- “Embrace volatility and look for undervalued areas of the market; for example, our research has indicated a significant current opportunity in high yield municipal bonds”
Andy Sieg
(Business Head, Global Wealth & Retirement Solutions, Bank of America Merrill Lynch)
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Andy Sieg is the Head of Global Wealth & Retirement Solutions at Merrill Lynch and is a member of the Bank of America Operating Committee. Prior to his career at Merrill Lynch, Andy served in the White House as an aide to the assistant to the President for Economic and Domestic Policy. In 1992, he joined Merrill Lynch as an analyst in the Global Wealth Management business, serving in senior strategy and field leadership roles during the next 13 years. Before rejoining the company in 2009, Andy led the Emerging Affluent Client Segment within Citigroup Global Wealth Management from 2005 to 2009. Andy was named an Alumni Fellow of Penn State in 2013, and is a member of the Schreyer Honors College External Advisory Board. He also represents Bank of America Merrill Lynch on the Advisory Board of the Global Coalition on Aging and the Stanford University Longevity Institute. In addition to his work at Merrill Lynch, Andy serves on the boards of ReadWorks.org, a nonprofit dedicated to ensuring that students in our nation's neediest public schools have literacy skills to compete and succeed in life. He's also a part of the Peter Westbrook Foundation that helps inner-city children develop life skills through the sport of fencing, academic support and mentoring.
Mr. Sieg’s comments included:
- "We are proud to have been part of Sheridan’s successful growth and transformation over the last seven years, and we look forward to the promising union of AMSURG and Sheridan. As an ongoing significant shareholder of the combined company, we are confident in the growth and expansion prospects of the new AMSURG and the opportunities we see for continued equity value creation"
- "We are focused on what our clients want from us in regard to their retirement accounts: that is to act in their best interest and minimize conflicts."
- "We may need to adjust the timelines for certain operational changes we have announced to ensure an orderly transition and a good client experience."
- "Not so long ago, impact investments were a small part of most goals-based discussions with clients"Today, however, there are more ways for clients to align their values with their investments, and they are proactively seeking information and opportunities during conversations with advisors."
- "We are focused on innovation as we develop our environmental, social and governance (ESG) capabilities, and going right where our clients are taking us."
Michael Stier
(CEO, Adhesion Wealth Advisor Solutions)
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Michael Stier is CEO of Adhesion Wealth Advisor Solutions. Mr. Stier joined Adhesion in 2000. He has 30 years of global financial services technology expertise, a unique background that combines asset management, strategic organizational leadership and business integration management. Mr. Stier was previously Senior Vice President, Asset Management Group, Bank of America; Technology Head, Worldwide Capital Markets Group, Goldman Sachs; and Senior Consulting Manager, Advanced Systems Group, Anderson Consulting (now Accenture) His functional expertise includes Technology leadership in private banking, trust, institutional and wealth investment management, brokerage, mutual fund businesses; strategic planning, technology infrastructure and organizational management; & enterprise-wide systems integration and acquisition management.
Mr. Stier’s comments included:
- "One component of the WealthADV overlay management value proposition is access to exceptional, "boutique" money managers, like Eagle Global, to which independent advisors do not typically have access through the traditional managed account platforms."
- "With the emergence of the 'Robo' advisor, financial advisors who are not providing a next-generation technology experience to their clients are at a real disadvantage. We designed our digital advice solution to give any advisor a significant edge in an era of rapidly evolving technology."
- "It takes seconds to embed this service into an existing advisor's website. Online clients can then capture their Risk Number", sync in their outside assets, open their new account with the firm, and e-sign the documents. Adhesion's digital advice solution opens a world of possibilities for advisors and clients alike."
- "We are thrilled to welcome Federated to the WealthADV Platform. Their addition reflects our commitment to providing independent investment advisors with access to the nation's leading money managers within a customizable unified managed account."
- "The industry is experiencing a series of events that will likely change it forever"financial crises, failed institutions, and regulatory changes; consolidation, breakaway brokers, and a "post-Madoff-wary" investor. There is a fundamental reshaping of the industry taking place, and Adhesion has created the solutions that will help RIAs thrive from the resulting opportunities."
Scott Stuart
(Managing Partner, Sageview Capital)
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Scott Stuart is Managing Partner of Sageview Capital. Mr. Stuart co-founded Sageview in 2005 and is based in Greenwich. He is currently the lead independent director at EverBank Financial and a director at Cadence Bancorp, Reflexis, and United Capital. Prior to founding Sageview, Mr. Stuart was a Partner at KKR serving on their investment committee from 2000 to 2005. He joined KKR's New York office in 1986 and became Partner in 1994, where he was responsible for the utilities and consumer products industry groups. Prior to joining KKR, Mr. Stuart worked at Lehman Brothers Kuhn Loeb in the mergers and acquisitions group. Mr. Stuart is also a member of the board at Memorial Sloan-Kettering Cancer Center.
Mr. Stuart’s comments included:
- "With interest rates poised to rise over the next few years, a large allocation to bonds, especially now, may result in significant capital loss"
- "It [changing interest rates] hits every aspect of your daily life, from student loans to adjustable rates on your mortgage to your credit card debt, so you want to be very careful, making sure you understand the impact"
- "If you think the Fed will indeed say yes to a rate hike in September, then you may want to take some of your allocation from your bond funds that are heavily exposed in a negative way to interest-rate increases"
- "We have always been passionate about building a highly intuitive trading platform and now we are extending that attention to single stock trading with real-time dollar-based trading. Most investors think of trading in terms of whole dollars -- with Motif you no longer have to settle for rounding up to whole shares, you can trade any dollar amount that you want"
- "It (Swell) is a way of getting market returns. You are investing in your retirement, your education and yourself personally and, while you are doing that, Pacific Life is doing something remarkable. I do not know of another fund that is investing 20% of its revenues to doing good"
Andrew Tsai
(Managing Principal, Chalkstream Capital Group)
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Andrew Tsai is the Managing Principal and Chief Investment Officer of Chalkstream Capital Group. Mr. Tsai co-founded Chalkstream Capital Group in 2004 with Peter Muller. He formed Chalkstream after a ten year career in finance, with various roles including the chief investment officer of Integrity Capital Management, as well as head of German Government Fixed-Income Trading at Lehman Brothers International in London. Mr. Tsai is on the board of trustees for both the Cancer Research Institute and The Brearley School.
Mr. Tsai’s comments included:
- "We have 80% of advisors now using our corporate RIA. Ten years ago, that number [was] the opposite. The regulatory climate is crazy. Three of our largest [independent] RIAs had the SEC show up at their doors in the last eighteen months. They had no fun [with] their audits"
- “We call them [Cambridge's three branches doing over $20 million in revenue] the B-Ds inside a B-D. They are successful organizations that add a lot of value to advisors who join. They are growing, and definitely here to stay"
- "Richer deals [recruiting deals at around 35% to 40% of annual production] may be a product of smaller pipelines, and firms do not feel they can back off"
- "It does feel that fee-based advisors are moving less and our business is more highly geared toward fee-based"
- "I do not think it is reasonable to assume that someone working under a suitability standard is a crook, and they should not have to tell a client they are. It is unfortunate that the policymakers are reading too much into what a regulation can do in the real world. Both sides can come to the table to do what is right for the client"
Anna-Marie Wascher
(CEO, Flat World Partners)
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Anna-Marie Wascher is CEO & Founding Partner of Flat World Partners. She previously served as a Director at Cantor Fitzgerald as a senior member of the Capital Introduction team. She launched Cantor's West Coast Capital Introduction Program as well as leading an initiative to support the capital development of minority and women run funds. She is a venture partner to Aera, a venture fund investing in high growth early stage ventures defined by both purpose and profit. She has worked as a member of investment teams for several family offices in the US and Europe. Ms. Wascher started her career with Accenture as a financial consultant in their London investment banking practice as well as supported Accenture's Socially Responsible business arm. In 2009 Ms. Wascher left Accenture to become Co-founder and COO of Malaika For Life, a nonprofit based in Tanzania. Ms. Wascher is a board member of the Michael J Fox Foundation Young Professionals group and a Young Collectors Committee Member of Henry Street Settlement, as well as a member of the Milken Young Leaders Circle.
Ms. Wascher's comments included:
- "Polled investors have good reason not to have high confidence in their retirement readiness. Many Americans unintentionally deplete their retirement savings by making three costly mistakes during their working lives: leaving 401K accounts behind when changing jobs; cashing out retirement savings accounts prematurely; & not informing prior employers' retirement plan record-keepers about address changes"
- "Our research demonstrates that if you change jobs and leave behind a 401K balance for the first time at age 25, and repeat this practice, by age 65 you will have paid more than $30,000 in unnecessary administrative fees"
- "Consolidating balances at the point when you switch employers ensures that you avoid the temptation to cash out, and saves you money you would lose on fees (and future earnings on compound interest) from multiple accounts. In addition, if all of your retirement savings balances are in your current employer's plan, then you can rest assured that your assets will not be unilaterally rolled over or cashed out (and you don't have to be bothered with calls to multiple plan record-keepers if you move"
- "Account consolidation benefits all parties in the retirement system—plan participants, sponsors, record-keepers and other service providers. More plan sponsors are promoting and facilitating roll-ins of accounts as a cost-effective way to improve plan performance metrics, as well as retirement outcomes for participants. As this trend gains further momentum, the benefits become more obvious to the industry"
- "We are proud to have helped so many retirement plan sponsors and participants achieve better long-term outcomes. We look forward to enabling more employers and employees around the country to experience the benefits of automated retirement savings portability and account consolidation"
Attendees
Tiburon is pleased to announce that the following 196 Tiburon clients attended Tiburon CEO Summit XXX:
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Prior Tiburon CEO Summits
As noted above, details on prior Tiburon CEO Summits are also available here:
Most Recent,
2024-2025,
2022-2023,
2020-2021,
2018-2019,
2016-2017,
2014-2015,
2012-2013,
2010-2011,
2008-2009,
2006-2007,
2004-2005, &
2001-2003.