Prior Tiburon CEO Summits (2016-2017)
Tiburon has held 35 prior Tiburon 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, 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: Videos
Videos coming soon.
Tiburon CEO Summit XXXIII: Photographs
Tiburon CEO Summit XXXIII pictures are available to all attendees and journalists.
Click here to view all photographs.
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
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.
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 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.
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:
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.
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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.
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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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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 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 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 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: