Products & Services Research Report Series. State of the Financial Products & Services Businesses: Rapid Evolution in Progress

Transcription

1 Products & Services Research Report Series State of the Financial Products & Services Businesses: Rapid Evolution in Progress November 2010

2 TABLE OF CONTENTS INTRODUCTION, KEY FINDINGS, & EXECUTIVE SUMMARY...36 THE FUTURE OF ADVICE: DEFINING THE WINNING PRODUCT, CHANNEL, & TACTICAL STRATEGIES EVOLUTION OF THE FINANCIAL PRODUCTS & SERVICES BUSINESSES Market History Early Phase Middle Phase Recent Phase Market Definition Investable Assets Lending Products Insurance Products Wealth Management Services Market Growth Firms Employees Clients Assets Under Management Revenues Net Profits Leading Financial Products & Services Companies Employees Clients Assets Under Management Revenues Net Profits STATE OF THE FINANCIAL PRODUCTS & SERVICES BUSINESSES Investable Asset Products Cash Investments & Bank Savings Products Evolution of Cash Investments & Bank Savings Products Market History Early Phase Innovation Phase Restructuring Phase Market Definition Cash Investments Bank Savings Products Market Growth Firms Accounts Assets Under Management Net Flows Revenues Net Profits Leading Cash Investments & Bank Savings Products Companies Accounts Assets Under Management

3 Net Flows Revenues Net Profits Market Segmentation Cash Investments Bank Savings Products Markets & Distribution Channels Direct Distribution Online Financial Services Financial Advisor Markets Retail Banks Full-Service Brokerage Fee-Based Financial Advisors Other Financial Advisors Life Insurance Companies & Agencies CPA Firms Property & Casualty Insurance Agents Mortgage Brokers Upscale Channels Private Banks Money Managers Investment Banks Sports Agents & Entertainment Managers Other Boutique & Upscale Firms Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Cash Investments & Bank Savings Products Slow Decline of Money Market Funds & Shift Back to Bank Savings Products Continued Evolving Product Structure Shifts Increasing Importance of Direct Distribution & Institutional Channels Individual Securities & Capital Markets Evolution of the Individual Securities & Capital Markets Industry Market History Early Phase Middle Phase Recent Phase Market Definition Securities Exchanges Specialists Market Makers

4 Electronic Communication Networks (ECNs) Technology & Data Service Providers Market Growth Firms Revenues Net Profits Leading Individual Securities & Capital Markets Firms Revenues Net Profits Market Segmentation Securities Exchanges Specialists Market Makers Electronic Communication Networks (ECNs) Technology & Data Service Providers Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Individual Securities & Capital Markets Impact of Switch to T+1 Settlement Impact of the Switch to Decimalization Emergence of After-Hours Electronic Trading Directed Brokerage & Soft Dollar Practices Under Attack Leveraging Portfolios through Securities Lending Technology Leading to Cost Reductions in Trade Execution Mutual Funds Evolution of the Mutual Funds Industry Market History Formation Early Expansion More Rapid Expansion Scandal & Commoditization Market Definition Open-End Mutual Funds Closed-End Mutual Funds Unit Investment Trusts Non-US Mutual Funds Market Growth Firms Accounts Assets Under Management Revenues Net Flows Net Profits Key Issues Product Structures Decreasing Investment Minimums Decreasing Fees Brokerage Firms Shift from Money Market Funds

5 Decreasing Redemption Rates Increasing Compliance Increasing Technology Innovations Mutual Fund Mergers & Acquisitions Evolving Independent Board Member Roles Leading Mutual Fund Companies Accounts Assets Under Management Revenues Net Flows Net Profits Market Segmentation Open-End Mutual Funds Closed-End Mutual Funds Unit Investment Trusts Non-US Mutual Funds Markets & Distribution Channels Mutual Fund Companies Direct & Discount Brokers Direct Distribution Direct to Consumer Discount Brokers & Mutual Fund Supermarkets Discount Brokers Mutual Fund Supermarkets Financial Advisor Markets Commission Mutual Fund Sales Mutual Fund Wrap Account Programs Fee-Based Financial Advisors Independent Reps Turnkey Asset Management Programs Retail Banks Insurance Agents Institutional Markets International Markets Future Predictions for Mutual Funds Moderate Industry Growth Interesting Investment Style Shifts Slower than Expected Exit from Equity Mutual Funds Exit from Money Market Funds Increased International Focus Evolving Investment Styles Evolving Product Structures Expansion of Share Classes Increased Utilization of Closed-End Funds Increased Utilization of Funds-of-Funds Increased Utilization of Mutual Fund Wrap Account Programs Increased Exposure of Unified Managed Account Programs Growing Popularity of Performance Fees Evolving Markets & Distribution Channels Increasing Importance of Distribution Networks Opportunities in the International Market Evolving Wholesaler Models

6 Brand Building Intellectual Wholesaling Increased Telephone & Virtual Wholesaling Strategies Distancing of the Leaders Bifurcation of the Industry Increased Focus on Value Declining Cost of Investment Products Increased Compliance Mutual Fund Scandals Consolidation of Mutual Fund Companies Large Company Market Mid-Size Company Market Small Company Market Fee-Accounts Evolution of the Separately Managed Accounts & Other Packaged Fee-Account Programs Business Market History Commissions Dominate Retail Business Introduction But Slow Growth Explosive Growth in Fee-Accounts Recasting of Fee-Accounts Regulatory Actions Against Fee-Based Brokerage Account Sponsors Key Driving Factors Fees Versus Commissions Fiduciary Responsibility Market Definition Proprietary Fee-Account Programs Turnkey Asset Management Programs Packaged Fee-Account Programs Fee-Based Financial Advisors Bank Trust Departments Separate Account Managers Market Growth Packaged Fee-Account Programs Packaged Fee-Account Clients Packaged Fee-Accounts Packaged Fee-Account Assets Packaged Fee-Account Revenues Packaged Fee-Account Profits Key Issues Client Profiling, Asset Allocation, & Proposal Generation Client Profiling Asset Allocation Proposal Generation Investment Vehicle & Manager Selection Ongoing Monitoring, Rebalancing, Performance Reporting, Billing, & Reallocation Ongoing Monitoring Rebalancing Performance Reporting Reallocation

7 Training, Payouts, Operations & Client Support, Technology, & Compliance Issues Training Payouts Operations & Client Support Technology Compliance Issues Leading Fee-Account Program Sponsors (Proprietary & TAMPs) Packaged Fee-Account Clients Packaged Fee-Accounts Packaged Fee-Account Assets Packaged Fee-Account Net Flows Packaged Fee-Account Revenues Packaged Fee-Account Profits Market Segmentation Proprietary Fee-Account Programs Turnkey Asset Management Programs Reasons to Use a TAMP Widespread Market Consolidation Explosive Assets Growth Intense Market Concentration Products Usage (Mutual Funds & Separately Managed Accounts) Product Segmentation Unified Managed Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Unified Managed Account Program Sponsors Clients Accounts Net Profits Separately Managed Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Separately Managed Account Program Sponsors Clients Accounts Net Profits

8 Multiple Style Portfolios Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Multiple Style Portfolio Program Sponsors Clients Accounts Net Profits Mutual Fund Wrap Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Mutual Fund Wrap Account Program Sponsors Clients Accounts Net Profits Annuity Wrap Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Annuity Wrap Account Program Sponsors Clients Accounts Net Profits ETF Wrap Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues

9 Net Profits Leading ETF Wrap Account Program Sponsors Clients Accounts Net Profits Broker Wrap Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Brokerage Wrap Accounts Program Sponsors Clients Accounts Net Profits Fee-Based Brokerage Accounts Market Definition Market Growth Programs Clients Accounts Assets Under Management Net Flows Revenues Net Profits Leading Fee-Based Brokerage Account Sponsors Clients Accounts Net Profits Markets & Distribution Channels Direct Distribution Financial Advisor Markets Wirehouses, Regional, & Boutique Brokerage Firms Independent Broker/Dealers Fee-Based Financial Advisors National, Regional, & Community Banks Insurance Companies CPA & Law Firms Other Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Management Sovereign Wealth Funds & Other Foreign Investors International Markets

10 English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Fee-Accounts Substantial Expected Growth for Both the Packaged Fee-Accounts & Broader Fee-Accounts Markets Growth in Seven of the Eight Types of Fee-Account Programs Broader Fee-Account Growth Projections Emerging Distribution Opportunities Expected Process Improvements Potentially New Pricing Models ETFs & Indexing Evolution of the ETFs & Indexing Industry Market History Indexed Separate Accounts Emerge Index Mutual Funds Emerge Indexing Growth & Product Innovation Exchange Traded Funds Emerge Market Definition Indexed Separate Accounts Index Mutual Funds Exchange Traded Funds Key Driving Factors Stock Analysts & Mutual Funds Scandals Market History Indexed Separate Accounts Emergence Phase Index Mutual Funds Emergence Phase Indexing Growth & Product Innovation Phase Exchange Traded Funds Emergence Phase Market Definition Exchange Traded Funds Index Mutual Funds Indexed Separate Accounts Market Growth Number of Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Key Issues Index Portfolio Strategies Core & Explore Completion Strategies Three Holding Pattern Strategies Sector Rotation Strategies Investment Styles Recent Innovations Lack of High-Yield, Municipal Bond, & Small Cap International Products

11 Admitting Defeat Ignores Corporate Governance Issues Leading ETF & Index Companies Products Assets Under Management Net Flows Revenues Net Profits Market Segmentation Indexed Separate Accounts Index Mutual Funds Exchange Traded Funds Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Brokerage Online Banking & Mortgages Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Independent Advisors Other Types of Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Other Markets Fee-Accounts & TAMP Programs International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for the Market-Linked Products Business Accelerated Growth in Market-Linked Products Continued Expansion of Exchange Traded Funds Reallocation Shift to Index Mutual Funds Increased Product Innovation in Indexed Separate Accounts Hedge Funds Evolution of the Hedge Funds Business Market History Emergence Phase Strategy Diversification Phase High Returns & Initial Collapses Phase Risk Management & Continued Collapses Phase Market Definition US Hedge Funds Managed Futures Funds

12 Hedge Fund Mutual Funds Non-US Hedge Funds Global Hedge Funds Market Growth Hedge Fund Managers Hedge Fund Clients Hedge Fund Accounts Hedge Fund Assets Under Management Hedge Fund Net Flows Hedge Fund Revenues Hedge Fund Net Profits Key Issues Hedge Fund Failures Evolving Role of Hedge Funds Limited Partnership Structure Various Investment Strategies Hedging Leverage High Investment Minimums High Fees Limited Transparency Limited Liquidity Inexperience Limited Data Integrity & Performance Reporting Internal Investment Increased Auditing & Regulation Leading Hedge Fund Companies Hedge Fund Firms Hedge Fund Partners Hedge Fund Employees Hedge Fund Accounts Hedge Fund Assets Under Management Hedge Fund Net Flows Hedge Fund Revenue Hedge Fund Net Profits Market Segmentation Investment Strategies Equity Strategies Emerging Markets Hedged Equities Equity Market Neutral Dedicated Short Selling Fixed Income Arbitrage Convertible Bond Arbitrage Statistical Arbitrage Event Driven Strategies Merger Arbitrage Distressed Securities & Bankruptcies Global Macro Strategies Multi-Strategy Funds-of-Funds Product Structures Hedge Funds-of-Funds

13 Hedge Fund Index Funds Registered Hedge Funds Mutual Funds with Hedge Fund Strategies Hedge Funds in Variable Life Wrappers Offshore Hedge Funds US Hedge Funds Managed Futures Funds Hedge Fund Mutual Funds Non-US Hedge Funds Global Hedge Funds Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Banking & Mortgages Online Brokerage Online Insurance Financial Advisors Markets Retail Banks Full-Service Brokerage Firms Discount Brokerage Firms Independent Reps Fee-Based Financial Advisors Upscale Channels Private Banks Family Offices Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Hedge Funds Continual Blow Ups But Still Steady Market Growth Continual Blow-Ups Steady Market Growth Disproportional Market Impacts Retailization of Hedge Fund Products Hedge Funds-of-Funds Hedge Fund Index Funds Registered Hedge Funds Mutual Funds with Hedge Fund Strategies Hedge Funds in Variable Life Wrappers Emerging Market Opportunities Emerging Affluent Consumer Households Increased Regulation

14 Institutionalization & Consolidation of the Hedge Funds Business Venture Capital & Private Equity Evolution of the Venture Capital & Private Equity Businesses Market History Early Days Private Equity Growth Venture Capital Prominence Private Equity Renewal Market Definition Venture Capital Private Equity Mezzanine Finance Market Growth Venture Capital & Private Equity Firms Venture Capital & Private Equity Funds Venture Capital & Private Equity Fund Flows Venture Capital & Private Equity Fund Assets Under Management Venture Capital & Private Equity Fund Commitments Key Issues Volatile Initial Public Offering Market Investment Product Polarization Emergence of Indices Emergence of Secondary Market Fees Vary Due Diligence & Manager Selection Liquidity Problems Retailization Larger Funds Internal Rate of Return New Firms Enter Industry Management Strategy Funds-of-Funds Contract Negotiation Performance Reporting Diversification Requirements Leading Venture Capital & Private Equity Firms Venture Capital & Private Equity Funds Venture Capital & Private Equity Fund Flows Venture Capital & Private Equity Fund Assets Under Management Venture Capital & Private Equity Fund Commitments Market Segmentation Venture Capital Private Equity Mezzanine Finance Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Venture Capital & Private Equity Impressive Industry Growth

15 Evolving Markets & Distribution Channels New Fund Structures Rise of Compliance Issues Evolving Investments Early Signs of Bifurcation Real Estate Evolution of the Real Estate Investment Business Market History Early Phase Middle Phase Recent Phase Market Definition Pooled Partnerships REITs Mortgage Backed Securities Direct Mutual Funds Market Growth Funds Assets Under Management Revenues Net Profits Key Issues Leading Real Estate Investment Product Companies Funds Assets Under Management Revenues Net Profits Market Segmentation Pooled Partnerships REITs Mortgage Backed Securities Direct Mutual Funds Product Segmentation Traditional Real Estate Timberland Farmland Energy Property Investments Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Banking & Mortgages Online Brokerage Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Discount Brokerage Firms Independent Reps Fee-Based Financial Advisors

16 Other Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Real Estate Stagnant Growth in the Real Estate Investments Business Slowed Growth in All Types of Real Estate Investments Emerging Market Opportunities Wine Investments Evolution of the Wine Industry Market History Early Development Phase Phylloxera Phase US Prohibition & World War II Phase Maturation Phase Market Definition California Wineries Other US & Canada Wineries France, Italy, & Other Europe Wineries Other New World Wineries Market Growth Growers Wineries Acres Cases Produced Revenues Net Profits Leading Wineries Acres Cases Produced Revenues Net Profits Market Segmentation California Wineries Napa Valley Sonoma Valley Mendocino & Lake Counties Livermore Valley & Central Valley Sierra Foothills Marin County Santa Clara & the Santa Cruz Mountains

17 Southern California Other US & Canada Wineries Oregon Washington Other American Wine Growing Regions France, Italy, & Other European Wineries France Bordeaux Cote d Rhone Loire Valley Provence Sauternes Italy Piedmont Tuscany Other European Wine Growing Regions Germany Spain Portugal Austria Other New World Wineries Australia New Zealand South Africa South America Chile Argentina Mexico Peru Brazil Uruguay Alternative Segmentations Varietals Red Grape Varietals Barbera Cabernet Franc Cabernet Sauvignon Carignan Charbono Gamay Grenache Malbec Merlot Mourvedre Nebbiolo Petit Verdot Petit Syrah Pinotage Pinot Noir Syrah Sangiovese

18 Tempanillo Zinfandel White Grape Varietals Albarino Chardonnay Chennin Blanc Gewurtzaminer Gruner Veltliner Malvasia Blanco Marsanne Muller-Tyurga Muscat Muscadet Pinot Blanc Pinot Gris (Pinot Grigio) Riesling Rousanne Sauvignon Blanc Semillon Viognier Vintages s s Early 1970s Late 1970s Early 1980s Late 1980s Early 1990s Late 1990s Markets & Distribution Channels United States Market Growth Market Size International & Import/Export Markets Argentina Canada Australia United Kingdom Chile France Italy Developing Countries Future Predictions for Wine Investments Continued Growth of High-End Wines Emergence of New World Wineries Emergence of New US Wine Growing Areas Reversal of Trends to Chardonnay & Merlot Streamlining of Distribution Production Careers Distribution Careers Retail Careers

19 Industry Consolidation Opportunities for Investing in the Wine Industry Vineyards Collections Futures Other Financial Alternative Investments Investment Product Polarization Evolution of Other Financial Alternative Investments Market History Early Phase Middle Phase Recent Phase Market Definition Old-Line Limited Partnerships Stock Market & Individual Stock Options Folios Structured Debt Treasury Inflation Protection Securities (TIPS) Bank Loan Funds Catastrophe Bonds Stable Value & Principal Protected Funds Structured Settlements Commodity & Financial Futures Market Growth Leading Firms Market Segmentation Old-Line Limited Partnerships Stock Market & Individual Stock Options Folios Structured Debt Treasury Inflation Protection Securities (TIPS) Bank Loan Funds Catastrophe Bonds Stable Value & Principal Protected Funds Structured Settlements Commodity & Financial Futures Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Other Financial Alternative Investments Other Financial Alternative Investments Will Grow in Popularity Other Non-Financial Alternative Investments Investment Product Polarization Evolution of Other Non-Financial Alternative Investments Market History Early Phase Middle Phase Recent Phase Market Definition

20 Commodities Fine Art, Antiques, & Collectibles Jewelry & Watches Coins & Stamps Antique & Racing Cars Baseball Cards, Comic Books, & Beer Cans Sports Teams Market Growth Leading Firms Market Segmentation Commodities Fine Art, Antiques, & Collectibles Wine Investments Jewelry & Watches Coins & Stamps Antique & Racing Cars Baseball Cards, Comic Books, & Beer Cans Sports Teams Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Banking & Mortgages Online Brokerage Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Discount Brokerage Firms Independent Reps Fee-Based Financial Advisors Other Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Other Non-Financial Alternative Investments Other Non-Financial Alternative Investments Will Grow in Popularity Lending Products Lending Services Evolution of Lending Services Market History Early Phase

21 Middle Phase Recent Phase Market Definition Credit Cards Mortgages & Home Equity Loans Specialized Lending Market Growth Companies Employees Clients Accounts Credit Card Loans Mortgage Originations Home Equity Loans Revenues Net Income Key Issues Growing Importance of Private Banking Services Growing Importance of Specialized Lending Leading Lending Firms Employees Clients Accounts Credit Card Loans Mortgage Originations Home Equity Loans Revenues Net Income Market Segmentation Credit Cards Mortgages & Home Equity Loans Specialized Lending Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Lending Services Impending Credit Card Crisis Continuing Mortgage & Home Equity Losses Insurance Products Insurance Products Evolution of the Insurance Business Market History Early Phase Demutualization Phase Recent Phase Market Definition Health Care Insurance Disability Insurance Long-Term Care Insurance

22 Property & Casualty Insurance Retirement Income (Annuities) Life Insurance Market Growth Insurance Companies Insurance Industry Employees Agents, Brokers, & Service Employees Number of People Insured Number of Policies in Force Amount of Coverage in Force Revenues Premiums First Year Premium Net Income Key Issues Leading Insurance Companies Employees People Insured Number of Policies in Force Insurance Liabilities Insurance Coverage in Force Assets Policy Holders Surplus Premiums First Year Premiums Revenues Losses Net Income Market Segmentation Health Care Insurance Disability Insurance Long-Term Care Insurance Property & Casualty Insurance Retirement Income (Annuities) Life Insurance Markets & Distribution Channels Direct Distribution Financial Advisor Channels Institutional Channels International Channels Future Predictions for Insurance Products Continued Overall Industry Growth Emerging Products in Annuities, Property & Casualty Insurance, & Life Insurance Product Commoditization & Focus on Cost Management Factors Driving Demand for Various Products Selective Health Care Opportunities Annuities Life Settlements Life Insurance Increasing Consumer Needs Driving Product Innovation

23 Lack of Wholesaling Model Disasters Impacting the Property & Casualty Market Decline in Reinsurance Market Evolving Markets in the Financial Advisor & International Markets Insurance Agents to Continue Entering Related Businesses New Distribution Channels Entering Insurance Industry Banks Full-Service Brokers Online Financial Advisors Independent Advisors Global Markets Evolving Industry Structure Due to Acquisitions & Demutualization Insurance Company Acquisitions to Continue Demutualization to Continue Regulations to Tighten and Possibly Move to the Federal Level Capture Increasing Share of Life Insurance & Annuities Premium Income..471 Wealth Management Services Aggregation & Financial Planning Services Evolution of Aggregation & Financial Planning Services Market History Early Phase Middle Phase Recent Phase Market Definition Aggregation Financial Planning Life Planning Market Growth Leading Aggregation & Financial Planning Services Firms Market Segmentation Aggregation Financial Planning Life Planning Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Wealth Management Services Future Predictions for Aggregation & Financial Planning Services Aggregation & Financial Planning Services Will Grow in Importance Plans Key Driving Factors Evolution of 529 Plans Market History Early Phase Dot Com Troubles Phase Recovery Phase Market Struggles Phase Market Definition Plans & State-Paid Tuition Programs

24 Coverdell Educational Savings Accounts Custodial Accounts Market Growth Firms Accounts Assets Under Management Net Flows Revenues Net Profits Leading Firms Accounts Assets Under Management Net Flows Revenues Net Profits Market Segmentation Plans & State Pre-Paid Tuition Programs Coverdell Educational Savings Accounts Custodial Accounts Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for 529 Plans Growth in 529 Plans Market Growth in National Plans Growth of Age-Based Investment Options Growth in ETF-Based Plans Growth in Direct Sold Plans Emergence of 529 Plan Comparison Tools Estate Planning & Charitable Giving Evolution of the Estate Planning & Charitable Giving Market Key Driving Factors Market History Creation Phase Estate Tax Additions Phase Estate Tax Modification Phase Market Definition Trust Services Revocable Living Trusts Testamentary Trusts Marital & Bypass Trusts Qualified Terminal Interest Property Trusts Bypass Trusts AB Trusts Grantor Trusts Qualified Personal Residence Trusts Grantor Retained Annuity Trusts Grantor Retained Unitrusts Private Annuities

25 Defective Grantor Trusts Dynasty Trusts Irrevocable Life Insurance Trusts Life Insurance Term Life Whole Life Variable Life Market Growth Leading Estate Planning & Charitable Giving Companies Market Segmentation Trust Services Revocable Living Trusts Testamentary Trusts Marital & Bypass Trusts Qualified Terminal Interest Property Trusts Bypass Trusts AB Trusts Grantor Trusts Qualified Personal Residence Trusts Grantor Retained Annuity Trusts Grantor Retained Unitrusts Private Annuities Defective Grantor Trusts Dynasty Trusts Irrevocable Life Insurance Trusts Life Insurance Term Life Whole Life Variable Life Markets & Distribution Channels Direct Distribution Financial Advisor Markets Retail Banks Full-Service Brokers Independent Advisors Fee-Based Financial Advisors Independent Reps Life Insurance Agents CPA Firms Estate Attorneys Real Estate Agents Private Banks Boutique Brokers Other Upscale Firms Future Predictions for Estate Planning & Charitable Giving Growing Estate Planning & Charitable Giving Market Return of Estate Tax Growth of Donor Advised Funds & Community Foundations Emergence of Independent Trust Companies Impact Investing Evolution of the Impact Investing Market

26 Key Driving Factors Market History Market Definition Market Growth Leading Impact Investing Firms Market Segmentation Socially Responsible Investing Community Lending Microfinance Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for the Impact Investing Market Institutionalization of the Business Emergence of Platform Development Increased Adoption by Brokerage Firms Reverse Mortgages Evolution of the Reverse Mortgages Market Key Driving Factors Market History Emergence Phase Growth Phase Stagnation Phase Maturation Phase Market Definition Federally Insured Reverse Mortgages Singe Purpose Reverse Mortgages Proprietary Reverse Mortgages Market Growth Companies Employees Clients Accounts Mortgage Originations Revenues Net Profits Leading Reverse Mortgages Firms Employees Clients Accounts Mortgage Originations Revenues Net Profits Market Segmentation Federally Insured Reverse Mortgages Market History Early Phase Middle Phase Recent Phase

27 Market Definition Market Growth Companies Employees Clients Accounts Mortgage Originations Revenues Net Profits Leading Federally Insured Reverse Mortgages Firms Employees Clients Accounts Mortgage Originations Revenues Net Profits Single Purpose Reverse Mortgages Market History Early Phase Middle Phase Recent Phase Market Definition Market Growth Companies Employees Clients Accounts Mortgage Originations Revenues Net Profits Leading Single Purpose Reverse Mortgages Firms Employees Clients Accounts Mortgage Originations Revenues Net Profits Proprietary Reverse Mortgages Market History Early Phase Middle Phase Recent Phase Market Definition Market Growth Companies Employees Clients Accounts Mortgage Originations Revenues Net Profits

28 Leading Proprietary Firms Employees Clients Accounts Mortgage Originations Revenues Net Profits Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Brokerage Online Banking & Mortgages Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Fee-Based Financial Advisors Independent Reps Estate Attorneys Real Estate Agents Mortgage Brokers Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for the Reverse Mortgages Market Short-Term Stagnation in Growth but Overall Long-Term Boom Emergence of Stricter Reverse Mortgage Standards Family Office Services Evolution of Family Office Services Market History Early Middle Recent Market Definition Tax Preparation Family Counseling Market Growth Firms Clients Accounts Assets Under Management Revenues Net Profits

29 Leading Family Offices Clients Accounts Assets Under Management Revenues Net Profits Market Segmentation Tax Preparation Family Counseling Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Family Office Services Increase Opportunities in Family Office Services FUTURE PREDICTIONS FOR THE INVESTMENT & WEALTH MANAGEMENT PRODUCTS & SERVICES BUSINESSES Consumers Risk Aversion Accelerating Product Shifts: Accelerated Growth in Exchange Traded Funds, Fee- Accounts, & Wealth Management Services Investable Asset Products Lending Service Products Insurance Products Wealth Management Services Predicted Products & Services Company Winners APPENDIX Profiles of Leading Financial Services Industry Companies Advisor Software History Early Development Phase Transition Phase Growth & Institutionalization Phase Re-Trenchment Phase Statistics Businesses Rules Based Platform Wealth Manager Financial Planning & Advice Solution Underlying Portfolio Diagnostic Tools Advisor Partners Organization & Ownership Alston + Bird History Early Phase Middle Phase Recent Phase Statistics Businesses Corporate & Finance Intellectual Property

30 Litigation Tax Legislative & Public Policy Enviornment & Land Development Life Sciences Industries Organization & Ownership Charter Financial Publishing Network (CFPN) History Early Phase Growth Phase Opportunities Phase Statistics Businesses Financial Advisor Magazine FA News FA Connection.Com Nick Murray Interactive Journal of Indexes Risk-Controlled Investing Organization & Ownership Dunham & Associates History Retail Phase Build Out Phase Institutional Ramped Up Phase Statistics Businesses Limited Partnerships Mutual Funds Mutual Fund Wrap Account Program Trust Company Dunham & Associates Securities Organization & Ownership Envestnet Asset Management History Portfolio Management Consultants Acquisition Phase Net Asset Management & Oberson Acquisition Phase Business Growth Phase Statistics Businesses TAMP Investment Management Licensing Organization & Ownership EverBank Financial History Early Phase Separate Alliance Mortgage & EverBank Years Combined EverBank Years Statistics

31 Businesses EverBank National Banking Group EverBank of Florida EverHome Mortgage Company BNY Mortgage Company Priceline Mortgage EverBank Specialty Lending Group EverBank Wholesale Lending EverBank National Home Loan Group EverBank Commercial Real Estate Lending Group EverBank Reverse Mortgage Group EverBank Correspondent Lending Group EverBank World Markets EverTrade Direct Brokerage Organization & Ownership Fidelity Investments History Management & Research Years Peter Lynch Domination Phase Rapid Growth Years Continued Growth & Executive Restructuring Phase Statistics Businesses Personal & Workplace Investing Fidelity Institutional National Financial Services Corporation Fidelity Institutional Wealth Services Fidelity Management & Research Fidelity Shared Services Organization & Ownership Fiserv Corporation History Initial Public Offering & Early Acquisitions Phase Les Muma & Late Stage Acquisitions Phase Jeff Yabuki, Check Free Acquisition, & Strategic Divestments Phase Statistics Businesses Process Outsourcing Core Systems Payments & Related Services Lending Services Corporate Banking Health Plan Services International Services Investment Services Organization & Ownership Genworth Financial History GE Financial Businesses Phase GE Financial Assurance Phase Genworth Financial Phase

32 Genworth Financial Acquisition Phase Statistics Businesses Protection Business Unit Mortgage Insurance Retirement Income & Investments Organization & Ownership Jefferson National History Inviva Term Life Business Phase Jefferson National Annuities Business Phase Statistics Businesses Jefferson National Life American Life of New York Organization & Ownership LPL Financial History Linsco Phase LPL Emergence & Expansion Phase Mark Casady Institutionalization Phase Statistics Businesses Core LPL Independent Broker/Dealer Bank Business Clearing Business Organization & Ownership Meridian-IQ History Early Phase Middle Phase Recent Phase Statistics Businesses Meridian-IQ RIA Meridian-IQ DHS Organization & Ownership News Corporation History Early Phase Middle Phase Dow Jones & Company Acquisition Phase Statistics Businesses Filmed Entertainment Television Cable Network Programming Direct Broadcast Satellite Television Integrated Marketing Services Newspapers & Information Services Dow Jones & Company

33 The Wall Street Journal Barron s Dow Jones Information Services Venture Edge Venture Capital & Healthcare Venture Capital & Information Technology Books Other Assets Organization & Ownership Penton Media History Early Phase Middle Phase Recent Phase Statistics Businesses Agriculture Business Aviation Commercial Aviation Commercial Real Estate & Finance Business Finance Lodging Hospitality National Real Estate Investor Retail Traffic Business Performance Management Design Engineering Digital Media & Communications Electronics Electrical Systems, Energy, & Construction Food & Food Services Health Lifestyle IT & Developer Manufacturing & Supply Chain Marketing & Meetings Chief Marketer Multichannel Merchant Association Meetings Financial & Insurance Meetings Corporate Meetings & Incentives Religious Conference Manager Special Events Meetings Net Medical Meetings Mechanical Systems Public Infrastructure Wealth Management Registered Rep Trust & Estates Organization & Ownership Source Media History

34 Early Phase Middle Phase Recent Phase Statistics Businesses Accounting Accounting Today Banking American Banker US Banker Bank Technology News Credit Union Journal Benefits Employee Benefit News Employee Benefit Adviser Business Technology Health Data Management Information Management Insurance Networking News Traders Magazine Capital Markets The Bond Buyer Asset Securitization Report Bank Loan Report Investment Dealers Digest Investment Management Weekly Mergers & Acquisitions Magazine Money Management Executive Private Placement Letter Investment Advisors Financial Planning Magazine On Wall Street Bank Investment Consultant Mortgage Mortgage Servicing News Mortgage Technology National Mortgage News Origination News Payments ISO & Agent National Regulatory Services Securities Accuity Solutions Organization & Ownership State Street Corporation History Union Bank Phase Emergence Phase Expansion Phase Restructuring Phase Statistics

35 Businesses Investment Management (State Street Global Advisors) Investment Research & Trading Investment Servicing Organization & Ownership Sutton Place Associates History Founding Phase Reflow Introduction Phase Acquisitions Phase Statistics Businesses Forward Management Reflow Plump Jack Organization & Ownership TD Bank Financial Group History Canadian Banking Phase Maturation Phase US Acquisitions Phase Statistics Businesses Retail Banking Wealth Management TD Ameritrade Wholesale Banking Organization & Ownership The Charles Schwab Corporation History Early Discount Brokerage Firm Phase Bank of America Subsidiary Phase Independent Pre-Web Years Phase Online Explosion Years Phase Retrenchment & Resurrection of Chuck Schwab Phase Statistics Businesses Schwab Investor Services Corporate & Retirement Services Schwab Institutional Schwab Financial Products Charles Schwab Bank Organization & Ownership Duplication or distribution of this report, and/or the data in this report, is strictly prohibited without the written consent of Tiburon Strategic Advisors, LLC 35