wealth management trends 2016: findings from tiburon advisors

Wealth Management Trends:2016 Findings from Tiburon Advisors

Universal Points fromTiburon CEO Summit XXX

Keynote Presentation

16.04.05 – Hearsay Social Chip Roame Group Presentation © Tiburon Strategic Advisors, LLC™ 22

Tiburon – 18+ years; 400+ corporate clients; & 1,800+ projects

Tiburon CEO Summits – 30 events over 15 years; ~250 attendees each time (all clients and all EVPs+)

Content barometer

• FI Level issues - Wealth management #1 or #2 (payments)

• FA level issues - Sales & marketing #1 or #2 (succession planning)

Hearsay Social (Vanguard CEO Bill McNabb ~2013) Today… Universal points from the stage

Key product & channel issues at lunch (Break-Away Brokers; Independent Advisors; Online Brokerage; Indexing; Hedge Funds; SRI & II)

Context Setting

Context Setting


Tiburon CEO Summit XXX – A Dozen Tiburon Industry Views that May Impact Your Firm’s Strategy

Tiburon CEO Summit XXXA Dozen Tiburon Industry Views that May Impact Your Firm’s Strategy

Source: Tiburon Research & Analysis

1. Continuing Low Interest Rates Depressing Industry Profitability by 5%-15%

2. The Most Important Statistics: Consumer Wealth ≈ $80 Trillion & Expected Liquidation ≈ $30 Trillion

3. Break-Away Brokers Trend Stagnate at ≈ 100

4. Independent Advisors > $3.5 Trillion Assets Under Management & Administration

5. Discount & Online Brokerage Firms > $5.0 Trillion Assets Under Management & Administration

6. Robo Advisors > $250 Billion Assets Under Management

7. Indexing > $4.5 Trillion Assets Under Management

8. Hedge Funds & Liquid Alternative > $3.0 Trillion Assets Under Management (But Continue to Stumble)

9. Socially Responsible Investing & Impact Investing > $6.0 Trillion Assets Under Management

10. Non-Whites, Women, & Millennials Each > 50% of the Population

11. TAMPs > $3.0 Trillion Assets Under Management & Administration

12. Multiple Huge Impacts of the Coming Fiduciary Standard









8. Hedge Funds & Liquid Alternative Mutual Funds > $3.0 Trillion Assets Under Management (But Continue to Stumble)





Outline


Source: 4/5/16 Tolleson Wealth Management Presentation; 3/31/16 The Wall Street Journal; 3/30/16 Insurance News Net; 3/15/16 CNBC; 3/10/16 Federal Reserve Flow of Funds Report; 10/13/15 Financial Engines Presentation (Jones); 10/13/15 United Capital Financial Partners Presentation (Brown); 9/21/15 FSI News Brief (Federal Reserve Flow of Funds); 9/19/15 Wall Street Journal (Federal Reserve Flow of Funds); Tiburon Research & Analysis

The Most Important Statistics: Consumer Wealth ≈ $60 Trillion & Expected Liquidation ≈ $30 Trillion

The Most Important Statistics: Consumer Wealth ≈ $60 Trillion & Expected Liquidation ≈ $30 Trillion

ConsumersConsumers: 318.9 million

Persons per household: 2.6Consumer households: 122.7 million

Investable Assets & Financial Assets$38.6 trillion investable assets, $21.0 trillion

retirement plan assets, & $59.6 trillion financial assets

$98.0 trillion household assetsPotential to reach $100 trillion in 2016

depending on stock & real estate markets (and Tiburon tweak to remove non-profits)

$14.5 trillion debt$83.5 trillion net worth

Rich FolksGrowing numbers of wealthy households

1,826 billionaires 132,000 with $25 million 1.2 million with $5 million 10.1 million millionaires

Fun… and useless… facts Average consumer household:

$315,000 investable assets, $486,000 financial assets, $799,000 total assets, & $681,000 net worth

Seriously!


Consumer Households Have $38.6 Trillion Investable Assets, $59.6 Trillion Financial Assets, $98.0 Trillion Total Assets, and $83.5 Trillion Net Worth…

Consumer Households Net Worth

($ Trillions)

Source: 3/10/16 Federal Reserve Flow of Funds Report; 9/21/15 FSI News Brief (Federal Reserve Flow of Funds); 9/19/15 Wall Street Journal (Federal Reserve Flow of Funds); 9/18/15 Federal Reserve Flow of Funds Report; 3/12/15 Federal Reserve Flow of Funds Report; 12/11/14 Federal Reserve Flow of Funds Report; 3/31/14 Federal Reserve Flow of Funds Report; 3/25/14 Federal Reserve Flow of Funds Report; Tiburon Research & Analysis

$98.0

$59.6

$83.5

$14.5

$21.0

$27.7$10.7

FinancialAssets

RetirementPlan

Assets

PersonalAssets

SmallBusiness

Valuations

TotalAssets

Liabilities Net Worth

$38.6

InvestableAssets

16.04.05 – Hearsay Social Chip Roame Group Presentation © Tiburon Strategic Advisors, LLC™ 7Source: 3/15/16 Tiburon CEO Summit XXX Content Survey Data; 9/2/15 Tiburon CEO Summit XXIX Content Survey Data; Tiburon Research & Analysis

Tiburon CEO Summit Attendees Continue to Estimate that ~50%-75% of Financial Advisor Clients are Baby Boomers, with ~75% the More Common Answer

Tiburon CEO Summit AttendeesBy Estimated Share of Financial Advisor Clients

Who are Baby Boomers

7

7%

40%

53%

0% 0%

3%

23%

74%

Tiburon CEO Summit XXIX Tiburon CEO Summit XXX

~50% of Financial Advisor Clients





Baby Boomers will Liquidate Some Portion of the $59.4 Trillion in Retirement Plans, Personal Assets, & Small Businesses

Source: 3/10/16 Federal Reserve Flow of Funds Report; 9/21/15 FSI News Brief (Federal Reserve Flow of Funds); 9/19/15 Wall Street Journal (Federal Reserve Flow of Funds); 9/18/15 Federal Reserve Flow of Funds Report; 3/12/15 Federal Reserve Flow of Funds Report; 3/3/15 New York Times; 2/10/15 BenefitsPro (Cogent Reports); 12/11/14 Federal Reserve Flow of Funds Report; Tiburon Research & Analysis

Consumer HouseholdsAssets

($ Trillions)

$98.0

$59.6$21.0

$27.7$10.7

FinancialAssets

RetirementPlan

Assets

PersonalAssets

SmallBusiness

Valuations

TotalAssets

$38.6

InvestableAssets














Outline


Source: 4/7/15 TD Ameritrade Presentation (Bradley); 4/7/15 LPL Financial Presentation (Casady); 4/5/15 Fidelity Investments Email (Birke); 4/4/15 TD Ameritrade Email (Bradley); 4/4/15 Fidelity Investments Email (Canter); 3/17/15 Fidelity Investments Web Site; 3/9/15 LPL Email (Kloman); 2/25/15 RIA Biz; 10/13/14 Wall Street Journal (Fidelity Investments); 7/21/14 Barron’s (Scorpio Partnership); Tiburon Research & Analysis

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

Leading Financial Advisor Channel Firms By Assets Under Administration

($ Billions)

$591

$771

$1,000

$1,107

$1,353

$1,447

$1,522

$1,600

$1,900

$1,900

Edward Jones & Company

Ameriprise Financial

UBS Wealth Management Americas

Schwab Advisor Services

Schwab Investor Services

Fidelity Custody & Clearing

Fidelity Investments Retail

Wells Fargo Advisors

Bank of America Merrill Lynch

Morgan Stanley














Outline


Robo Advisors 45 online advice firms $217.4 billion assets under management, up from $118.0 billion in 2012

Narrowly defined robo advisors have gathered just $7.2 billion Raised $540 million venture capital (three > $100 million) (Betterment >

$200 million) Huge predictions

SigFig: $1.0 trillion in 2021 Citi: $5.0 trillion in 2024 Deloitte: $6.0 trillion by 2025

Predictions Robo advisors each generate $10 million or less revenues Challengers

Financial Engines• Grew $10.5 billion assets under management in 1H/15 (greater

than all robo advisors’ assets under management)• Acquired The Mutual Fund Store & adding video service

The Vanguard Group’s Personal Advisor Services business• Lowered minimum from $100,000 to $50,000• Quickly gathered $31.0 billion assets under management (still

in pilot phase; no paid advertising) The Charles Schwab Corporation

• No separate fee for investment advice• Allocates 6% to 30% of assets to cash• Quickly gathered $6.5 billion assets under management

TD Ameritrade• Amerivest (Tom Bradley: that is our robo; $25,000 minimum;

$100,000 average; $11.0 billion AUM; now actively selling) Fidelity Investments

• Announced available to public in beta test (Fidelity Go)• 35-39 basis points

Robo Advisors > $250 Billion Assets Under Management

Robo Advisors > $250 Billion Assets Under ManagementSustainable Impacts Creates price pressure on all channels

Commoditization of basic asset allocation & investment management (25 bps)

Ric Edelman says kiss the 1.00% goodbye Raises importance of financial education & financial planning Also shines light on user experience & digital tools Requires omni channel delivery

Digitization will force everybody to change Combination of fintech & human intervention will win in the

delivery of financial advice to consumers Only 3% of financial advisors offer online advice services to

clients, and only 11% plan to offer online advice services to clients in the next twelve months

Role of human advisors is still critical & valued Holy grail is ability to cost efficiently serve mass market (face-to-face

via video; financial advice for episodic events) Financial advisors will need to deliver real value beyond investments Financial advisors will converge & coexist Models expanding

Targeting baby boomers: Personal Capital Corporation; The Vanguard Group

Developing financial advisor models: Betterment; The Charles Schwab Corporation

Developing 401K plan models: Betterment; Personal Capital Corporation

Outcomes: 5-10 will survive; 10-15 will sell; 15-20 will die

Source: 4/6/16 HD Vest Financial Services Presentation (Ochs); 4/6/16 Sageview Capital Presentation (Stuart); 4/6/16 FolioDynamix Presentation (Mrak); 4/5/16 Adhesion Wealth Advisor Solutions Presentation (Stier); 4/5/16 Ellevest Presentation (Knoll); 4/5/16 Guided Choice Presentation (Grabot); 4/5/16 Sage Financial Group Presentation (Cohn); 4/5/16 Ritholtz Wealth Management Presentation (Brown); Tiburon Research & Analysis

12


Online Advice Firms Include Betterment, FutureAdvisor, Personal Capital Corporation, & Wealthfront

Online Advice Firms

13

Source: 11/21/15 Wall Street Journal; 11/3/15 The Charles Schwab Corporation Email (Bettinger); 11/2/15 Investment News; 10/14/15 Hellman & Friedman Presentation (Thorpe); 10/13/15 Marstone Presentation (Hartigan); 10/5/15 Fidelity Investments Email (Langlois) (Cerulli Associates); 10/4/15 Fidelity Investments Email (Langlois); 10/2/15 TD Ameritrade Email (DeFreitas); Tiburon Research & Analysis

Acorns Advisor Software

GoalGetter & Goalgami Aegon

Transamerica Robo Advisor (NextCapital)

Asset Builder Betterment Holdings

Betterment Betterment Institutional

BlackRock FutureAdvisor

BOM Financial Group Harris My CFO

Brinker Capital Retirement Advice Business

CircleBlack Decimal Software Edelman Financial Services

Edelman Online Ellevate Envestnet

Upside Holdings Financial Engines FMR (Fidelity Investments)

Fidelity Go Strategic Advisor-W

Guided Choice

Savant Capital Management Savant Portfolios Management

Searcy Financial Services Allos Investment Advisors

SheCapital SigFig Stadion Money Management Standard

Mainspring Management TD Bank Financial Group

TD Ameritrade (Amerivest) The Bank of New York Mellon Corporation

Pershing Robo Advisor (Marstone) The Charles Schwab Corporation

Intelligent Portfolios Institutional Intelligent Portfolios

The Vanguard Group Personal Advisor Services

Trizic Wealth Access Wealthfront WiseBanyan Worthfm

Hedgeable Interactive Brokers Group

Covestor Jemstep Liftoff Mariner Holdings

First Point Financial Market Riders Marstone Morningstar

Retirement Advice NextCapital Northwestern Mutual Life

LearnVest Personal Capital Corporation ProManage RebalanceIRA Russell Investments

Russell Adaptive Retirement Accounts (NextCapital)

Riskalyze Autpilot


All Online Advice Firms Have Gathered $217.4 Billion Assets Under Management, Up from $118.0 Billion in 2012

Online Advice FirmsAssets Under Management

($ Billions)

Source: 10/14/15 Hellman & Friedman Presentation (Thorpe); 10/5/15 Fidelity Investments Email (Langlois) (Cerulli Associates); 10/2/15 TD Ameritrade Email (DeFreitas); 10/1/15 Fidelity Investments Email (Langlois); 10/1/15 Morningstar Email (Phillips); 8/5/15 MarketWatch Web Site; 7/15 Morningstar Fact Sheet; 6/5/15 RIA Biz; 4/7/15 Betterment Presentation (Stein); 4/7/15 FTV Capital Presentation (Bernstein); Tiburon Research & Analysis

$118.0

$154.6

$186.5

$217.4

2012 2013 2014 2015


Online Advice FirmsMarket Definition

Online Advice Firms can Specifically be Defined to Include Defined Contribution Plan Focused Firms & B2C Focused Firms

Source: Tiburon Research & Analysis

Robo AdvisorsDiscount Brokerage

Firms & Mutual Fund Companies

Online Advice Firms

Market Definition

Defined Contribution Plan

Focused FirmsB2C Focused Firms


Defined Contribution Plan Focused Firms

86%

Robo Advisors3%

Discount Brokerage Firms & Mutual Fund

Companies11%

16

Online Advice FirmsAssets Under Management

By Market Segment

Online Advice Firms’ Assets Under Management are Dominated by the Defined Contribution Focused Firms

Source: 3/31/16 MyVest Corporation Email (Honikman); 10/14/15 Hellman & Friedman Presentation (Thorpe); 10/5/15 Fidelity Investments Email (Langlois) (Cerulli Associates); 10/1/15 Fidelity Investments Email (Langlois); 10/1/15 Morningstar Email (Phillips); 8/5/15 MarketWatch Web Site; 6/5/15 RIA Biz; 2/27/15 Main Street Web Site; Tiburon Research & Analysis


$3.0

$3.9

$3.8

$6.5

$11.0

$12.3

$12.4

$31.0

$38.7

$114.5

Wealthfront

Betterment

Stadion Money Management

The Charles Schwab Corporation

TD Ameritrade (Amerivest)

Fidelity Investments (PAS-W)

Guided Choice

The Vanguard Group (Personal Advisor Services)

Morningstar (Retirement)

Financial Engines

The Leading Online Advice Firms are the Defined Contribution Plan Focused Firms & the Large Discount Brokerage Firms & Mutual Fund Companies

Source: 4/6/16 Morningstar Presentation (Phillips); 3/30/16 Financial Times; 10/14/15 Hellman & Friedman Presentation (Thorpe); 10/13/15 Financial Engines Presentation (Jones); 10/5/15 Fidelity Investments Email (Langlois) (Cerulli Associates); 10/2/15 TD Ameritrade Email (DeFreitas); 10/1/15 Fidelity Investments Email (Langlois); 10/1/15 Morningstar Email (Phillips); 8/5/15 MarketWatch Web Site; Tiburon Research & Analysis

Online Advice FirmsBy Assets Under Management

($ Billions)


Betterment Has Raised the Most Venture Capital Amongst the Online Advice Firms with $205 Million

Online Advice FirmsVenture Capital Raised

($ Millions)

Source: 3/30/16 Brinker Capital Email (Coyne); 3/30/16 The Wall Street Journal; 10/1/15 CrunchBase Web Site; 9/30/15 CrunchBase Web Site; 9/2/15 RIA Biz; 3/30/15 Investment News (CrunchBase); 3/26/15 Envestnet Edge (Aite Group); 2/12/15 RIA Biz; 2/6/15 Silicon Valley Business Journal; 10/8/14 Venrock Presentation (Ascher); 10/8/14 Foundation Capital Presentation (Moldow); 9/15/14 Think Advisor; Tiburon Research & Analysis

$15

$15

$22

$24

$24

$32

$69

$104

$130

$205

SigFig

Jemstep

FutureAdvisor

Covestor

Autopilot

Acorns

LearnVest

Personal Capital Corporation

Wealthfront

Betterment

https://www.wealthfront.com/














Outline


Non-Whites, Women, & Millennials Each > 50% of the Population

Non-Whites, Women, & Millennials Each > 50% of the Population

Non-Whites The United States of America’s ethnic composition will see an increasing decline

of white majority

Women Women are more likely to rely on financial advisors Women value the opinions of financial advisors more than men when they are

picking mutual funds Men tend to have bigger retirement accounts due to higher salaries The average 401K balance for men is $121,000 compared to women at $78,000 Women are 10% more likely to enroll in workplace plans Women save at higher rates (up to 12%) Just 56% of women own mutual funds & stocks in their accounts versus 73% of

men Women will receive 70% of inheritances and this will continue to be true for the

next 40 years 92% of women become the primary decision maker at some point in their lives Nearly all women are single by age 65 Women are underserved by financial advisors

Millennials Generational transformation from baby boomers to millennials (but not so fast!) Baby boomer & Gen X will control the vast majority of assets for several decades

Millennials are a huge population but it will take time for them to control assets

Three-quarters of each generation look for brokers that offer a variety of tools Roughly half in each generation prefer their accounts be a balance of human &

robo management Over half in each generation report evaluating their portfolio at least weekly Almost half of millennials use an investing & trading app on their smartphone once

a week or more Over three-quarters of millennials strongly or somewhat agree that the ability to

monitor their investments on the go is critical Over two-thirds of millennials strongly or somewhat agree that it is important that

their brokerage’s app has robust capability that rival the web site experience Over two-thirds of millennials strongly or somewhat agree that they plan to use

their mobile device to manage their portfolios more frequently in the next year Less than half of millennials strongly or somewhat agree that they are interested in

using wearable technologies, like smart watches, to monitor portfolios Millennials make up one-quarter of the population Millennials question the financial services industry because they became adults

during the time of the financial crisis, bank failures, & the foreclosure boom Almost half of Millennials consider themselves to be conservative investors More than one-quarter of Millennials would get a second opinion before taking a

financial advisor’s advice Millennials are four times more likely than older generations to consult with other

sources before taking the advice of a financial advisor Millennials are looking to their peers for money guidance over financial advisors Almost half of Millennials believe that they spend a lot of time researching

alternatives before making major purchase decisions

Source: 4/6/16 HD Vest Financial Services Presentation (Ochs); 4/6/16 Sageview Capital Presentation (Stuart); 4/5/16 Ellevest Presentation (Knoll): 1/11/16 E*Trade Financial StreetWise Report; 4/7/15 Advisor Software Presentation (Rudd); 4/7/15 Pax World Investments (Keefe); 4/5/15 EverBank Financial Email (Trotter); 3/11/15 The Ark (The Vanguard Group; New York Times); Tiburon Research & Analysis


The US Population is Expected to Grow More than 20% Over the Next 30 Years, with Non-Hispanic Whites Becoming a Minority

United States of America Residents By Ethnicity

Source: 3/29/16 EverBank Financial Email (Trotter); 11/24/15 The Wall Street Journal (US Census Bureau); 4/18/14 The Wall Street Journal (Pew Research); Tiburon Research & Analysis

85%

64%

43%

10%

12%

13%

4%

16%

31%

1%8%

13%

1960 2010 2060

Whites

Hispanics

Blacks

Asians & Other

21


No83%

Yes17%

Source: 3/14 Retirement Advisor; Tiburon Research & Analysis

Less than One-Fifth of Financial Advisors Use Marketing & Sales Strategies that Target Multicultural Prospects

Marketing & Sales StrategyBy Propensity to Target Multicultural Prospects


Women are More Likely to Rely on Financial Advisors

Source: 2/14 Worth.Com (Merrill Lynch; Prudential); Tiburon Research & Analysis

InvestorsBy Financial Advisor Reliance

By Gender

Do Own Research & Buy Directly 54%

41%

33%44%

12% 15%

Men Women

Rely on Financial Advisor Input But Make

Own Decisions

Base Decisions Mostly on Financial Advisor

Recommendations

23


InheritancesBy Destination

Women will Receive 70% of Inheritances and this will Continue to for the Next 40 Years

Source: 10/14 Retirement Advisor; Tiburon Research & Analysis

Women70%

Other Destination30%


Women ConsumersBy Propensity to Fire their Financial Advisor within One

Year of Being Widowed or Divorced

Almost Three-Quarters of Women Fire their Financial Advisor within One Year of Being Widowed or Divorced

Source: 1/19/14 Investment News (Pershing); Tiburon Research & Analysis

Fired Financial Advisor

70%

Did Not Fire Financial Advisor

30%


ConsumersBy Propensity to Believe that they

Spend a Lot of Time Researching AlternativesBefore Making Major Purchase Decisions

Almost Half of Millennials Believe that they Spend a Lot of Time Researching Alternatives Before Making Major Purchase Decisions

33%37%

44%

Baby Boomers Generation X Millenials

Source: 10/2/13 HighTower Email (Weissbluth); 9/13 HighTower Email (Weissbluth); Tiburon Research & Analysis


Over Three-Quarters of Millennials Strongly or Somewhat Agree that the Ability to Monitor their Investments on the Go is Critical

GenerationsBy Agreement that Ability to Monitor Investments

On the Go is Critical

27

76%

66%

51%

Millennials

Gen X

Baby Boomers

Source: 1/11/16 E*Trade Financial StreetWise Report; Tiburon Research & Analysis














Outline


Source: 4/6/16 HD Vest Financial Services (Ochs); 4/5/16 FTJ FundChoice Presentation (Cook); 4/5/16 Guided Choice Presentation (Grabot); 4/5/16 Lincoln Investment Email (Forst); 4/5/16 Loring Ward Group Presentation (Potts); 4/5/16 M Financial Group Presentation (Jonske); 4/5/16 PIEtech Presentation (Curtis); 4/5/16 Sawtooth Presentation (Pries); 4/5/16 Tolleson Wealth Management Presentation (Joyner); Tiburon Research & Analysis

The Fiduciary Standard

The Fiduciary Standard

Fiduciary Standard One of biggest changes since 1940 Act Goal to lessen commissions & fees that cost savers billions of dollars

each year UK mixed results Drawn substantial opposition from the industry Will massively change the industry for the better

More financial planning Cheaper annuities More robo advice (“savor of the robos!”) (other to follow

Betterment in seeking financing) Technology adoption

Three bills introduced to stop (February 2016) LPL Financial responded with lower fees & lower account minimums

Department of Labor Began in 2010

7,000 comment letters Due out tomorrow Eight months to comply Require deeper look at clients & paper trail

Financial planning to increase in use May jettison seven million & $250 billion low balance IRA

accounts (orphan accounts) (to robo advisors?) Rewrite of product sales deals

$2.4 billion revenues under threat (e.g continued distribution fees)

Variable annuities ($1.5 billion sales over past ten years) (50% into retirement accounts)

Rise of fixed or indexed annuities Force out same individual brokers Will lead to consolidations in broker/dealer market (especially of

smaller firms) (Met Life sold; AIG sold) Interesting one to watch… rollovers to fee-based financial advisors Also… Further challenges large DC plan economics ACLI threatens lawsuit

Securities & Exchange Commission SEC would diverge (Mary Jo White) Not likely under Mary Jo White


Tiburon CEO Summit Attendees Believe in the Need for a Fiduciary Standard

Tiburon CEO Summit AttendeesBy Belief in Need for Fiduciary Standard

74% 76%

26% 24%

Tiburon CEO Summit XXIX Tiburon CEO Summit XXX

Yes

No

Source: 3/26/16 Tiburon CEO Summit XXX Content Survey Data; 10/2/15 Tiburon CEO Summit XXIX Content Survey Data; Tiburon Research & Analysis


Full-Service Wealth ManagersIndividual Retirement Accounts (IRA) Account Size

Assets Under Administration($ Billions)

Hundreds of Billions of Dollars in Individual Retirement Accounts May be Orphaned Depending on New Department of Labor Fiduciary Standard Regulations

$115

$275

$580

<$25,000 <$50,000 <$100,000

Source: 10/30/15 Financial Services Observer (Morningstar); Tiburon Research & Analysis


Assets Under AdministrationShare that are Individual Retirement Accounts (IRA)

Individual Retirement Account Assets Under Administration Account for Almost One-Third of Industry Assets, Even More at Some Firms Such as LPL Financial Holdings

17%

52%

40%

26%

34%

21%

Bank of AmericaCorporation

LPL FinancialHoldings

Raymond JamesFinancial

Stifel Financial SIFMA Wells FargoCorporation

Source: 10/30/15 Financial Services Observer (SIFMA); Tiburon Research & Analysis

Average: 30%


-0.3%

-0.5%

-1.3%

-1.4%

-2.2%

-2.3%

-2.4%

-4.6%

-5.5%

-7.2%

Ameriprise Financial Has the Most Potential Earnings Per Share Dilution From the Department of Labor Fiduciary Rule at -7.2%

Department of Labor Fiduciary Rule ImpactPotential Earnings Per Share Dilution

By Company

Source: 3/23/16 Financial Times (Morgan Stanley); Tiburon Research & Analysis

Ameriprise Financial

Aegon (Transamerica)

Prudential PLC (Jackson National)

Provident Financial

Lincoln National Corporation

Voya Financial

Prudential Financial

Axa

Met Life

Allianz

16.04.05 – Hearsay Social Chip Roame Group Presentation © Tiburon Strategic Advisors, LLC™ 343434Source: Tiburon Research & Analysis

Tiburon Strategic Advisors

• Focus on corporate-level strategy- Serve senior executives only at financial

services companies- Key services: market seminars, market

research, & strategy consulting - Served over 400 corporate clients and

completed over 1,800 projects since 1998- Host semi-annual CEO Summits, offer free

weekly research releases, and offer free business benchmarking tools for all types of advisors

• Chip Roame background- McKinsey & Company- The Charles Schwab Corporation- Tiburon since 1998

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