MMI Fall Solutions Conference 2013 Grand Hyatt New York October 15 16, Advisory Solutions: Seizing the Opportunity. Agenda

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1 Tuesday, October 15, 2013 MMI Fall Solutions Conference 2013 Grand Hyatt New York October 15 16, 2013 Advisory Solutions: Seizing the Opportunity Agenda 12:00PM 1:00PM 1:00PM 1:15PM Registration and Credential Pickup Welcome and Opening Remarks John Moninger, Chairman of the Board of Governors, Money Management Institute Christopher Davis, President, Money Management Institute Fall Solutions Co-Chairs Steve Seifert, Principal - Investment Advisory & Mutual Funds, Edward Jones Bob Tousignant, Senior Vice President, Director of National Accounts, Federated Securities Corp. 1:15PM 2:15PM The Disruptive Demographics of Aging Populations: A Call for Innovation Across the world, aging populations are having a pronounced impact on national economies, creating both unprecedented problems and opportunities. In this session, Dr. Joseph F. Coughlin, Director of the MIT AgeLab, explores how the disruptive demographics of aging populations represent a major call for innovation that will challenge government, business and societal assumptions of what aging entails and how it is best accommodated. Dr. Coughlin will examine the emerging social trends and new technologies associated with aging that will shape future innovation in the public and private sectors and discuss how businesses, in particular, need to rethink their definition of the marketplace s senior segment and work to develop new sets of products and services that deliver value by supporting quality of life. Dr. Coughlin will present research findings on demographic, societal and behavioral trends that are determining how consumers are 'framing' the issues associated with aging and how it affects their decision making. For financial services providers, the opportunity to improve the future quality of clients lives awaits, but clearly so do the challenges. Topics discussed will include: Effective strategies for engaging people in retirement planning and adopting health practices that will lead to well-being across a lifespan

2 Product and service design considerations for meeting the needs of older consumers without alienating younger buyers or older customers who remain youthful The challenge of having fewer family caregivers and working-age adults to support an aging society New services needed to support the oldest among the aging and their caregivers how will they be delivered and paid for? Managing a three- or four-generation flexible workforce while still retaining the lost knowledge that employees take with them into retirement How this generation of retirees differs from their grandparents better educated, higher expectations, and a lifetime of experience with the promise of technology Dr. Joseph F. Coughlin, Ph.D, Director of the Massachusetts Institute of Technology AgeLab 2:15PM 3:15PM Shifting Gears: Pivoting a Practice Towards Client Retirement Across the financial services industry, the transition from retirement savings to retirement income generation and distribution is proving to be an unexpectedly difficult challenge for both clients and advisors. In this session, three leading financial advisors discuss how they shifted their practice orientation from the asset accumulation phase to decumulation and retirement-specific income generation. Topics to be discussed include: How conversations with clients change when venturing into retirement planning discussions The most difficult obstacles both clients and their advisors must overcome in undertaking retirement planning New skill sets advisors should acquire to be of greater help to their clients in what for many is a difficult and often emotionally charged life transition The importance of adopting a holistic view of clients accumulated assets and accounts and the tax consequences of the drawdown phase Whether mass media coverage of retirement issues and options confuses or adds clarity to clients understanding of the dynamics of moving into retirement Ron Fiske, Managing Director, Strategic Partnerships Envestnet Mary Deatherage, Managing Director, Wealth Management Wealth Advisor, Senior Investment Management Consultant, Morgan Stanley Samuel M. Kiefer, Director of Wealth Management, Partner, Risk Paradigm Group, LLC Michael Lodes, Financial Advisor, Edward Jones

3 3:15PM 3:45PM Refreshment and Networking Break with Exhibitors 3:45PM 5:00PM Break-Out Sessions Choose 1 of 3 1. Fear, Finance and the High-Anxiety Client The effects of fear and anxiety on consumer behavior and decision making are a current focus of a multi-year cooperative research project between the Hartford Funds and the MIT AgeLab. Expanding on the themes presented in Dr. Joseph Coughlin's opening keynote session, this breakout will focus on how the environment of apprehension rooted in the 2008 financial crisis has influenced the behavior and decision making processes of financial services consumers. While Dr. Coughlin's discussion speaks to the volume, velocity and complexity of the issues financial services clients face today, this presentation will delve deeper into the effect of the high-anxiety atmosphere in which decisions are being made. The discussion will include the initial findings of the project, plus: Anxiety its characteristics and prevalence The general impact of crises and the particular lingering effects of the 2008 financial crisis Behavioral outcomes Methods to encourage more rational decision making John Diehl, Senior Vice President, Strategic Markets, Hartford Funds, Massachusetts Institute of Technology AgeLab 2. The Advisory Trend Line: The Impact of Increasing Discretion The move toward increasing advisory discretion has gained a good deal of momentum in the last few years. Of the $24.3 billion in industry-wide net flows for mutual fund and ETFs during the first nine months of 2012, 84% ($20.4 billion) was associated with fee-based platforms. Since the end of 2008, the market share of advisor-directed discretionary assets has risen from 14% to 21% at the close of the first quarter of One direct result has been a number of changes in how mutual funds are built, packaged and distributed. To frame an overview of the nature of these changes, this breakout session brings together experts from the principal vantage points advisor, asset manager, dealer, and wholesaler to discuss how the shift in advisory relationships is being addressed in each of their areas. Specific topics include: Advisors A look at how advisors view themselves in the new Rep as PM role: Is this a cyclical phenomenon or a permanent change? Do they seek and have the ability to be tactical? Is the approach to research and establishing leverage points changing? Asset managers Are they approaching the space differently and what has the impact been on their existing business models? Has the

4 sales cycle changed, are new skill sets needed, and what are the compensation issues? A comparison: Rep as PM turnover rates vs. institutional turnover rates Broker-dealers How are they managing growth and defining benefits to clients? Does paying a load disappear, and what is the current industry advisory sales percentage? Developing oversight models, setting up the qualification and accreditation process, and having the hard discussion is everyone cut out to be a Rep as PM? Home office models What does their 2.0 version look like? The issues: Sub-advised or not? Movement toward an outsourced CIO model? Competition and conflicts with Rep as PM? Regulatory changes will advisors be pushed toward models controlled by research teams vs. 5,000-fund open architecture? Lorna Sabbia, Head of Managed Solutions Group, Bank of America Merrill Lynch Jeff Duckworth, CRPC, President of Distribution, John Hancock Funds Peter S. Izzo, Senior Vice President, Wealth Management Advisor & Portfolio Manager, The Izzo Group Dan Moorman, Managing Director, Wells Fargo Advisors 3. The Great Stampede: Alternative Asset Managers in Pursuit of the Retail Investor What s really happening here? Liquid alternative investment assets increased rapidly to reach $391 billion, an annualized five-year growth rate of 28%, at the end of 2012, and MMI research predicted a near doubling of the segment by 2016 to $721 billion. More recent data, however, describes a segment whose growth rates have cooled considerably since 2010, suggesting the industry may be at a crossroads as advisors and their clients continue to struggle with the adoption and portfolio integration of liquid alternatives. This session provides an overview of the current state of the alternative investments industry and its prospects, specifically examining a number of topics: The 40 Act structure: Is the current surge the real thing? If so, what types of firms will remain standing and which will fall by the wayside? Defining alternatives: Definitions abound muddying the waters and confusing investors and advisors alike. How can the industry best move toward a workable and generally accepted definition? Fitting in: The role of boutique firms in the liquid alternatives space Changing one s spots: The trust dilemma faced by firms that have traditionally run private vehicles The credibility gap: Can traditional managers be viewed as alpha generators? Are alternative managers really able to provide liquidity to the retail investor?

5 The repercussions: What are the risks to all stakeholders as alternatives evolve to a core holding in individual investor portfolios? John Barbo, Head of Global Bank Platforms, Apollo Global Management LLC Michael Gaviser, Managing Director, Client & Partner Group, KKR & Co. LP Bradford W. Godfrey, Vice President, Institutional Portfolio Specialist, Eaton Vance Colbert Narcisse, Managing Director & Head of Global Alternatives, Morgan Stanley 5:00PM 6:30PM Reception and Networking with Exhibitors Wednesday, October 16, :00AM 8:30AM 8:30AM 8:45AM Breakfast and Networking with Exhibitors MMI Industry Data Update With a goal of keeping members abreast of changes in the rapidly evolving managed solutions landscape, this session will highlight recent industry developments and emerging trends using proprietary MMI research data. In addition to an overview of the current market environment, there will be a presentation of findings from an upcoming MMI research paper on the ETF marketplace. Joseph Schultz, Senior Vice President, Head of Intermediary Sales, American Century Investments Rick Ledbury, Vice President, Data Services, Money Management Institute 8:45AM 9:30AM Rising Rates: Investing in a More Balanced Global Economy In recent years, global markets have been shaped by two major forces: the financial crisis of 2008/2009 and the fiscal and monetary stimulus deployed in its wake. In the United States, this stimulus is now being removed with the economy responding well to lower budget deficits and higher interest rates. In global markets, a transition is also occurring with signs of recovery in Europe but a slowdown in emerging markets. The overall pattern, however, is one of a global investment environment moving back to balance. The key for investors is to recognize this movement towards normalization and to position portfolios to take advantage of it.

6 In this presentation, Dr. David Kelly will provide perspective on the shift back to global balance and discuss investment opportunities across asset classes. Dr. David Kelly, Chief Global Strategist & Head of the Global Market Insights Strategy, J.P. Morgan 9:30AM 10:00AM 10:00AM 11:00AM Refreshment and Networking Break with Exhibitors Is Boutique Better?: A Look at Strategies for Emerging Managers Never, it seems, have so many investors been actively reconsidering ways to achieve uncorrelated sources of alpha, diversification, and risk exposure management. This thirst for fresh answers has created opportunities for boutique asset managers, whether they are independent or part of a larger group. Their competitive advantage lies in their ability to offer specialist capabilities and a degree of freedom in their investment process that gives investors exposure to fast-growing markets. But the challenges including managing complexity, gaining scale, and penetrating platforms are also considerable and can limit growth possibilities. Our panel will examine the issues and opportunities that boutique managers face today and discuss best practices of successful managers. Carolyn Clancy, Executive Vice President, FundsNetwork, Fidelity Investments Cooper Abbott, Co-Chief Operating Officer & Executive Vice President of Investments, Eagle Asset Management Matt Embleton, Principal, Director of Mutual Funds Research, Edward Jones Mark A. Meisel, Senior Vice President, Northern Trust Global Investments 11:00AM 12:00PM Repositioning Fixed Income Allocations: Strategy Development in Anticipation of Rising Interest Rates It is now a widely held belief that interest rates, which have already begun to creep up from what were 60-year lows, are going to rise meaningfully, and the big questions are when rates will begin to spike and how best to prepare clients and their portfolios for what will be a true sea change. Because fixed income returns have traditionally been a major source of retirement income, these questions take on particular importance given the wave of Baby Boomers currently entering retirement. In what promises to be a compelling closing panel, topics to be discussed include: A look at products likely to be introduced given the intense focus on providing sustainable retirement income

7 Portfolio construction in the face of rising interest rates sectors to be targeted and a broad overview of strategies likely to be adopted Whether bank loans if they are to be used at all are appropriate vehicles in the design of an investment strategy With all the talk about bubble/leverage in the high-yield bond market and the increase in more speculative issues at the beginning of this year, how does today s environment compare with 2007/2008 in terms of the perceived level of risk? Liquidity in credit-sensitive fixed income sectors a reason for fear or a potential investor opportunity? Whether convertible bonds make sense as a strategy or whether the sector is too equity-sensitive? The pros and cons of using bonds or currency from developed countries to help offset interest rate risk Anthony Valeri, Senior Vice President, Fixed Income Strategist, LPL Financial Services Brad Beman, Chief Investment Officer, Director of High Yield, Aegon Asset Management Robert Boyda, Head of Global Asset Allocation, John Hancock TP Enders, Managing Director, Portfolio Strategist, Goldman Sachs 12:15PM 1:30PM Executive Networking Luncheon Forming new relationships and rekindling old ones is an important part of any MMI meeting. This is a final opportunity for you to visit the Exhibit Hall and explore the latest technology and service solutions that can help drive your business, discuss questions raised during the conference with panelists and speakers, or simply enjoy a leisurely lunch with colleagues from across the industry and the country. Two winners will be selected at random during the final luncheon to receive a complimentary pass to the 2014 MMI Annual Convention a $1,150 value. You must be present to win so plan to join us. 1:30PM Adjournment