J.D. Power: Building Relationships That Drive Positive Financial Results Craig Martin, Director, J.D. Power

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1 2014 MMI Annual Convention Re-Engineering Managed Solutions and Client Relationships to Optimize Outcomes March 31 April 2, 2014 Hilton New York DRAFT AGENDA (as of 3/28/14) Monday, March 31, :30PM 1:45PM Welcome and Opening Remarks John Moninger, Chairman Emeritus of the Board of Governors, Money Management Institute Joe Schultz, Chairman of the Board of Governors, Money Management Institute Christopher Davis, President, Money Management Institute Convention Co-Chairs David Berkowitz, President, Lincoln Financial Network Larry Sinsimer, Senior Vice President, Practice Management, Fidelity Investments 1:45PM 2:45PM J.D. Power: Building Relationships That Drive Positive Financial Results Craig Martin, Director, J.D. Power This opening session centers on financial services industry customer satisfaction research conducted by J.D. Power, a premier global marketing information services company. At the midpoint of this decade, a rapidly changing world is reshaping investors needs, desires and expectations and there are important lessons to be learned with respect to those changes and their impact on creating lasting customer relationships. What investors value most in an investment relationship Lesson #1 is that building a relationship is not what it used to be. Sponsor firms and advisors must clearly understand the underlying fundamentals of strong client ties, shifts in customer perceptions and behavior, and the principal drivers of relationship effectiveness today. J.D. Power will focus on Key Performance Indicators (KPIs) related to the investor experience and how customer preferences differ from segment to segment of the population. The impact of shifting investor technology preferences Lesson #2 is that technology is altering the landscape for investors and the firms that serve them. J.D. Power s findings offer perspective on how technology is shifting investor preferences and expectations, reshaping traditional definitions of full service and self-directed, and changing the nature of investor/advisor relationships. 1

2 2:45PM 3:45PM Advisor Panel: Best Practices of Successful NextGen Advisors This panel, which includes representatives from various distribution channels, along with a firm offering an online, technology-driven advice platform, focuses on how up and coming advisors have been able to begin to build successful practices during a period of tumultuous change in the industry. The discussion will cover their approach to establishing relationships with the Boomer and post-boomer generations, how they see their practices differing from those of older colleagues both in terms of client goals and investment approach, and the particular challenges including non-traditional sources of financial advice they feel they will face in the second half of the decade. Moderator: David Berkowitz, President, Lincoln Financial Network Panelists: Eli Broverman, Co-Founder and COO, Betterment, LLC James J. Detterick, Managing Director, Senior Institutional Consultant, Corporate Client Group Director, Morgan Stanley Andrew J. Wigzell, Senior Financial Planner, Financial Services Representative, Investment Adviser Representative, Barnum Financial Group, an Office of MetLife 3:45PM 4:15 PM 4:15PM 5:30PM Refreshment and Networking Break with Exhibitors Industry in Transition, Asset Managers in Action As the industry orients toward a solutions-oriented advisory model, asset management firms are being challenged to rethink both traditional approaches to portfolio construction and the ways they sell to and support financial advisors. In today s changing investment environment, there is an enhanced focus on outcome-oriented investing, non-traditional alternative products, and customized, model-based portfolios. How are leading money managers aligning their product offerings, investment strategies, sales tactics and marketing messages in the context of goalsoriented investing? In this session, senior executives from some of the industry s most successful asset management firms will describe how their firms are adapting their investment, sales and support models for continued success in a less product-focused, more solutions-based world. Moderator: Mike Lewers, Managing Director, Head of U.S. Wealth Advisory Private Client Group, BlackRock Panelists: Frank Campanale, CEO, Lebenthal Wealth Advisors Mark Hancock, Managing Director, Goldman Sachs Carter Sims, Head of U.S. Intermediary Distribution, Schroders Kirk Strawn, National Director of Strategic Relationships, Altegris 5:30PM 6:30PM Reception and Networking with Exhibitors 2

3 Tuesday, April 1, :00AM 8:15AM 8:30AM 8:45AM 8:45AM 9:30AM Breakfast and Networking with Exhibitors MMI Industry Data Update Rick Ledbury, Vice President, Research and Data Services, MMI Money, Madness and the Markets: A Look at the Charts Jeffrey S. Weiss, Chief Technical Analyst, Tejas Securities Group, Inc. The difficult task of trying to predict stock market movements is part and parcel of the technical analyst s world, and Jeff Weiss will lead us on a guided tour of that landscape. To assess the market s technical position and condition, he will review key market charts to help us find clues as to whether the bulls or bears currently hold the upper hand. Mr. Weiss s presentation will also examine some of the most popular market axioms and argue that these innocuous sounding tenets, which have been around for decades, can prove highly toxic to a portfolio s performance. He will also offer a dose of risk management considerations, without which no market discipline can survive. Join us for a look at the stock market through the eyes of a technical analyst with four decades of experience, a veteran whose views were shaped by living through the bear market and who formerly ran the technical departments at Lehman Brothers, PaineWebber, and UBS. 9:30AM 10:00AM 10:00AM 11:00AM Refreshment and Networking Break with Exhibitors Goals-Based Wealth Management: The Next Big Game Changer in Retail Investing Retail investing has seen three major changes over the past 40 years. It began with the dramatic growth of mutual funds in the late 1970s, which was followed by the virtual disappearance of defined benefit pension plans as IRAs and 401k plans emerged in the 1980s. Most recently in the 1990s we have seen the advent of advisory programs. While history has yet to put a final stamp on the next big change, the largest sponsor firms are now building capabilities around Outcome- Based Management at the household level. Three former chairmen of MMI will discuss the challenges and opportunities of goals-based planning and investing in the context of multiple account management. A key topic for these thought leaders will be where they see the industry headed as investors and advisors alike recognize that every household asset is a retirement asset and that tax and cost alpha are as important as investment alpha. Moderator: Jack Sharry, Executive Vice President, Strategic Development, LifeYield Panelists: Jim Tracy, Director, Consulting Group Wealth Advisory Solutions, Morgan Stanley Wealth Management Len Reinhart, Executive Chairman, Wealthcare Capital Management Chuck Widger, Executive Chairman, Brinker Capital 3

4 11:00AM 12:00PM A Cross-Generational Approach to Developing and Selling Financial Products Marilyn Moats Kennedy, Chief Executive Officer, Moats Kennedy Inc. One size does not fit all has never been as important in the financial industry as it is today. Products must be designed to solve a generational problem as well as have an instantlyrecognized value. Today, there are four age cohorts with very different financial needs with a fifth coming on in the next two years. These groups are: Baby Boomers ( ), Cuspers ( ), Busters ( ) and Millennials ( ). A fifth group born since 1991(and tentatively called the Next generation) is in the wings, but its muscle will not be felt for another five years. In this presentation, Ms. Kennedy will look at the broad trends that affect each group and, using case studies, the best communication strategies for connecting with each. Among the topics to be covered: What each demographic group wants and needs to know financially. What they seek from an advisor is different than what mom and dad wanted they are more discerning shoppers, What financial advisers need to understand in communicating with each group, Why the group born since 1991 will provide the greatest opportunities and challenges for advisers, Advisor demographics it s a gray group, it s getting grayer, and it s shrinking. What does the landscape look like for the younger advisor generation?, and How can advisors replenish their books in an environment of faster draw downs? 12:00PM 1:30PM Executive Networking Luncheon 1:30PM 2:45PM Concurrent Breakout Sessions Choose 1 of 2 Breakout A: Impact Investing Portfolios: A Viable Solution? The level of discussion among investors and advisors around the topic of impact investment investing with the goal of generating measurable social and environmental impact along with financial return is clearly at a high watermark. Is it, as some believe, a silver bullet for generating new sales, calibrating for uncertain financial markets, and addressing staggering needs just around the corner? That, of course, remains to be seen. This session, building on an impact investing white paper recently released by MMI and Impact Economy, will seek to cut through the hype and focus on the actual opportunity for investors. Moderator: William Burckart, Managing Director, Impact Economy (North America) LLC Panelists: Amy Bell, Executive Director, Head of Principal Investments, Social Finance, JPMorgan Chase & Co. Joel Hornstein, Managing Director, American Dream Fund 4

5 Mark D. Sloss, Senior Portfolio Manager, Head of Premier Portfolio Services, UBS Wealth Management Americas Breakout B: A Deeper Dive with Marilyn Moats Kennedy Ms. Kennedy, a well-known speaker and career consultant, is an expert on managing different generational groups in the workplace as well as on the most effective ways to market and sell to various age cohorts. As an extension of her earlier general session presentation, she has offered to let the audience for this session determine its topic by choosing among the following: Generational Attitudes Toward Money Aging Populations and the Pension Crisis Millennials Look At Their Parents' Money Management Marilyn Moats Kennedy, Chief Executive Officer, Moats Kennedy Inc. 2:45PM 3:30PM 3:30PM 4:45PM Refreshment and Networking Break with Exhibitors Distribution Lessons from the Leaders Let s face it certain investment management firms are consistently recognized for their sales and distribution prowess. Their effectiveness can be measured not only in net sales, but by advisor loyalty and strong partnerships with key accounts. This panel of senior sales executives from leading asset managers will discuss best practices for structuring, training and rewarding top-performing sales teams and the tools they need to be equipped with for success. Discussion topics will include: Common traits of top distribution teams access to portfolio managers, market commentary and thought leadership how does your firm stack up? What type of distribution model do you have channelized, non-channelized, hybrid or other? What are you doing to maintain profit margins with distribution costs going up? What type of ongoing distribution training does your firm provide? Are wholesaler credentials important? Why and which ones? What do top-rated internal sales desks do differently than their competition? What is the role of social media in your distribution model? How do you handle compliance issues? Moderator: James Lyons, Head of RIA Advisory Sales & Western Division Manager, Allianz Global Investors Panelists: Paul Cahill, National Sales Director, Virtus Investment Partners John Moninger, Managing Director, Retail Sales, Eaton Vance Jim Supple, Executive Vice President, Fidelity Investments 5:00PM 6:15PM Cocktail Reception with Exhibitors 5

6 6:30PM 9:30PM Gateway to Leadership Industry Recognition Dinner Wednesday, April 2, :30AM 8:45AM 8:45AM 9:45AM Breakfast and Networking with Exhibitors New Approaches to Asset Allocation: Building Portfolio Resilience With problem solving as a goal, outcome-oriented portfolios are on the rise, demanding a different approach to asset allocation in a period marked by low returns and high volatility. Portfolio resilience matters in such an environment, and traditional investment strategies have struggled to hold value during volatile periods. This panel will offer a fresh perspective, examining a number of modern asset allocation strategies that seek to deliver improved portfolio efficiency. Topics will include: Managing risk and providing specific outcomes or return streams often drifting across traditional styles, asset classes or market caps, How new approaches challenge conventional wisdom and what financial advisors are doing to blend them into existing allocations, Investment solutions designed to improve the probability of financial success and lifetime income, A look at newly emergent retirement income strategies, and With interest rates near all-time lows for the safest fixed income investments, a discussion of how investors can be best positioned with respect to fixed income. Moderator: Christopher C. Thompson, Head of Intermediary Distribution, Marketing and Product, Columbia Management Panelists: Philip Camporeale, Executive Director, Client Portfolio Manager, Global Multi-Asset Group, JP Morgan Asset Management Jim Celico, Managing Director, Alternative Investments, F-Squared Alternative Investments Jeffrey Knight, CFA, Head of Global Asset Allocation, Columbia Management 9:45AM 10:45AM Concurrent Breakout Sessions Choose 1 of 2 Breakout A: The Continuing Evolution of ETFs: A Look Ahead In 2013, global sales of ETFs were just shy of $200 billion, new asset classes were added, and sponsors continued to bring more diverse products to market. This expert panel will walk through the two distinct factors driving this evolution product development and distribution. Topics will include: Who is buying and why?, The evolution of smart or strategic beta alternatives, 6

7 Which firms will become the big players in active ETFs will it be traditional active managers rolling out active ETFs or will these firms play a sub-advisory role for traditional ETF sponsors?, and Ownership trends who uses which products, how they are being employed, and how business intelligence is aiding in distribution. Moderator: Bobby Brooks, Executive Vice President, National Sales Director, Invesco PowerShares Panelists: Dennis Geelan, Senior National Accounts Manager, Intermediary Business Group, State Street Global Advisors Pete Quinn, President and Chief Operating Officer, RiverFront Investment Group Pete Thatch, Managing Director, Head of Third Party Programs, Merrill Lynch Paul Weisenfeld, Managing Director, Director of Funds, Morgan Stanley Wealth Management Breakout B: Outcome vs. Performance: The Mutual Fund Perspective on Goals-Based Investing Approaching goals-based investing from an investment perspective, this panel of mutual fund professionals will discuss in the context of building holistic solutions that align with client goals the fund solutions being tailored to fit into a goals-based portfolio construct. Topics to be covered include Is there an authentic shift in philosophy under way among advisors towards measurement by outcomes and away from evaluation by benchmarks?, If so, how are advisors implementing portfolios differently and how well does the advisory model meet goals-based planning needs, What they are hearing from the advisory community about clients attitudes toward goals-based investing, How quickly asset managers are developing and advisors adopting specific solutions that fit into a goals-based portfolio construct and the tools that advisors anticipate will be necessary, and How well investors and advisors understand the challenges involved in preserving and growing capital on an inflation-adjusted basis, mitigating volatility, principal risk and loss avoidance. Moderator: Paul Schieber, Regional Vice President, Principal Global Investors Panelists: Michael Kay, President, Financial Life Focus, LLC Alexandra Levi, Managing Partner, Element Financial Group Scott D. Zelniker, Senior Vice President, Wealth Management, Senior Financial Advisor, Senior Portfolio Manager, PIA Program, The Zelniker & Dorfman Group, Merrill Lynch Wealth Management 10:45AM 11:45AM Industry Outlook: The Future of the RIA Business The evolution of the RIA channel from a cottage industry to a significant force in the financial 7

8 advisory and wealth management space has been well documented. Experts representing brokerdealer, product manufacturer, and technology or investment supplier firms will debate the future of the RIA business from different viewpoints examining the forces driving the growth and how traditional distribution channels are responding. Discussion topics will include: The rationale for the continued expansion of the RIA channel, including the regulatory drivers and a look at current RIA data analytics, The Broker-Dealer perspective: How the wirehouse, independent and regional broker-dealers are adjusting their business models to provide reps with more flexibility and affiliation options, The RIA perspective: Tactical and strategic considerations when weighing the RIA model, decision criteria when evaluating custodian firms, what to look for in service provider partners, how best to evaluate them, and The Manufacturer and Service Provider perspective: What prompts a firm s decision to work with RIA firms, what are the distribution challenges, and how are the investment and service needs of RIAs different from those of traditional reps. Moderator: Kian Rafia, Vice President, Product Development, Cetera Financial Group Panelists: Michael Bryan, Senior Vice President, Advisory Services, Triad Advisors Michael Partnow, Director, Financial Solutions Consultant, Pershing LLC, a BNY Mellon company Mark Pennington, Partner, Global Relationship Management, Lord Abbett & Co. 11:45AM Closing Remarks & Adjournment 8