Managed Exchange Traded Funds (ETFs) Programs: Low Cost Managed Accounts Tiburon Research May 1, 2019

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs History The Managed Exchange Traded Funds (ETFs) Programs Market Emerged in the Early 1990s and Has Subsequently Evolved through its Emergence, Rapid Growth, & Dominance Phases Managed Exchange Traded Funds (ETFs) Programs History Managed Exchange Traded Funds (ETFs) Programs Emerged Managed Exchange Traded Funds (ETFs) Programs Today Emergence Phase Rapid Growth Phase Dominance Phase Approximate Dates: 1990 - 1993 1994 - 2004 2005 - 2014 2015 - 2019 2019 Key Events: Early 1990s: Managed exchange traded fund (ETF) programs emerged XXXX: -- XXXX: -- XXXX: -- Source: 4/17/16 Financial Advisor Magazine; 4/17/16 Investment Company Institute Email (Doe); 4/17/16 Investment News; 4/17/16 Wall Street Journal; 5/18/15 SmartLeaf Email (Michael); 1/18/13 Financial Times; 1/18/13 Wall Street Journal; 1/18/13 New York Times; 12/31/12 Barron’s; 12/28/12 ETF Trends; 12/15/12 The Wall Street Journal; 12/27/12 Index Universe Email (Doe); 12/23/12 Pensions & Investments; Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Managed Exchange Traded Fund (ETF) Programs can be Measured Many Ways, Including by the Number of Managed Exchange Traded Funds (ETFs) Programs Sponsors and their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Net Profits Revenues Net Flows Assets Under Management Net New Accounts Accounts Clients Managed Exchange Traded Funds (ETFs) Programs Sponsors Financial Advisor Clients Institutional Clients Source: Tiburon Research & Analysis 4 4

Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Fund (ETF) Program Sponsors Offer 200 Managed Exchange Traded Funds (ETFs) Programs, Up From 25 in 2008 Managed Exchange Traded Funds (ETFs) Programs Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 5

Managed Exchange Traded Fund (ETF) Programs Assets Under Management Managed Exchange Traded Fund (ETF) Programs Have Gathered $102 Billion Assets Under Management, Up From $2 Billion in 2003 Managed Exchange Traded Fund (ETF) Programs Assets Under Management ($ Billions) Source: 4/1/18 Vestmark Press Release (Money Management Institute (MMI); 6/16 Cerulli Associates Brochure; 9/11/12 ETF Trends (Morningstar); 12/1/10 My Vest Presentation (Cerulli Associates); Tiburon Research & Analysis 6

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs Market Definition Managed Exchange Traded Funds (ETFs) Programs can be Defined to Include Proprietary Managed Exchange Traded Funds (ETFs) Programs and Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Market Definition Managed Exchange Traded Funds (ETFs) Programs Market Definition Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Leading Managed Exchange Traded Funds (ETFs) Programs can be Ranked by their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Financial Advisor Clients Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 10

Managed Exchange Traded Funds (ETFs) Programs Assets Under Management F-Squared Investments and Windhaven Investment Management are the Leading Managed Exchange Traded Funds (ETFs) Program in Assets Under Management with $27.7 & $8.6 Billion, Respectively Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: 5/9/16 Barron’s; 5/10/16 ETF Trends; 5/9/16 ETF Trends; 9/8/14 Investment News; 8/14 F-Squared Investments ADV Part 2A; 5/14/14 Wall Street Journal; 4/6/14 Orion Advisor Services Email (Clarke); 4/6/14 Good Harbor Financial Email (Ingersoll) (Morningstar); 4/2/14 Advisor Software Email (Ringquist); 12/31/13 Morningstar Report; 3/13/13 Fidelity Investments Press Release; Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs Market Segments Managed Exchange Traded Funds (ETFs) Programs can be Segmented to Include Proprietary Managed Exchange Traded Funds (ETFs) Programs and Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Market Segments Managed Exchange Traded Funds (ETFs) Programs Market Segments Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Proprietary Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs can be Measured Many Ways, Including by the Number of Managed Exchange Traded Funds (ETFs) Programs Sponsors and their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Proprietary Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Proprietary Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Net Profits Revenues Net Flows Assets Under Management Net New Accounts Accounts Clients Managed Exchange Traded Funds (ETFs) Programs Sponsors Financial Advisor Clients Institutional Clients Source: Tiburon Research & Analysis 15 15

Proprietary Managed Exchange Traded Funds (ETFs) Programs Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs can be Ranked by their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Proprietary Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Proprietary Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Financial Advisor Clients Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 16

Proprietary Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs’) Programs Future Predictions Include Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Future Predictions Proprietary Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Propriety Managed Exchange Traded Funds (ETFs) Programs Future Prediction 32 Source: Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Third-Party Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs can be Measured Many Ways, Including by the Number of Managed Exchange Traded Funds (ETFs) Programs Sponsors and their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Third-Party Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Third-Party Managed Exchange Traded Funds (ETFs) Programs Market Growth Measures Net Profits Revenues Net Flows Assets Under Management Net New Accounts Accounts Clients Managed Exchange Traded Funds (ETFs) Programs Sponsors Financial Advisor Clients Institutional Clients Source: Tiburon Research & Analysis 19 19

Third-Party Managed Exchange Traded Funds (ETFs) Programs Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs can be Ranked by their Number of Managed Exchange Traded Funds (ETFs) Programs, Institutional Clients, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Third-Party Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Third-Party Managed Exchange Traded Funds (ETFs) Programs Leading Firms Measures Financial Advisor Clients Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 20

Third-Party Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs’ Future Predictions Include Substantial Growth in Third-Party Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Future Predictions Third-Party Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Third-Party Managed Exchange Traded Funds (ETFs) Programs Future Prediction #2 Source: Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Future Predictions Managed Exchange Traded Funds (ETFs’) Future Predictions Include Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs & Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Future Predictions Managed Exchange Traded Funds (ETFs) Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; 11/17/05 State Street Web Site; 11/9/05 Morningstar Web Site; 11/7/05 Investment News; 4/04 Financial Advisor; Tiburon Research & Analysis 23 23 23

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs)’s First Future Prediction is Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 25

Tiburon CEO Summit Attendees Tiburon CEO Summit Attendees Said that Exchange Traded Fund (ETF) Strategists will Grow Moderately or Hugely Over the Next Five Years Tiburon CEO Summit Attendees By Exchange Traded Fund (ETF) Strategists Future Prediction Over Next Five Years Huge Growth Moderate Growth Stagnate Source: 7/26/17 Tiburon CEO Summit XXXIII Content Survey; 3/9/17 Tiburon CEO Summit XXXII Content Survey; 3/30/16 Tiburon CEO Summit XXX Content Survey; 9/2/15 Tiburon CEO Summit XXIX Content Survey; 3/23/14 Tiburon CEO Summit XXVI Content Survey; Tiburon Research & Analysis 26

Managed Exchange Traded Funds (ETFs) Programs Assets Under Management Managed Exchange Traded Funds (ETFs) Programs will Gather $242 Billion Assets Under Management by 2022, Up From $43 Billion in 2015 Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: 4/1/18 Vestmark Press Release (Money Management Institute (MMI); 6/16 Cerulli Associates Brochure; 9/11/12 ETF Trends (Morningstar); 12/28/12 ETF Trends; 9/11/12 ETF Trends; 12/1/10 My Vest Presentation (Cerulli Associates); Tiburon Research & Analysis 27

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs) Programs Market Segments Managed Exchange Traded Funds (ETFs) Programs can be Segmented to Include Proprietary Managed Exchange Traded Funds (ETFs) Programs and Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Market Segments Managed Exchange Traded Funds (ETFs) Programs Market Segments Proprietary Managed Exchange Traded Fund (ETF) Program Third-Party Managed Exchange Traded Fund (ETF) Program Source: Tiburon Research & Analysis

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs)’s Third Future Prediction is Continuing Low Margins Comments -- Source: Tiburon Research & Analysis 31

Outline Managed Exchange Traded Funds (ETFs) Programs Market Evolution Market History Market Growth Market Definition Leading Managed Exchange Traded Funds (ETFs) Programs Product Markets Proprietary Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Managed Exchange Traded Funds (ETFs) Programs Future Predictions Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Continuing Low Margins Blending of Exchange Traded Funds (ETFs) Strategists and Managed Exchange Traded Funds (ETFs) Programs

Managed Exchange Traded Funds (ETFs)’s Fourth Future Prediction is the Blending of Strategists and Managed Exchange Traded Fund (ETF) Programs Comments -- Source: Tiburon Research & Analysis 33

Tiburon Strategic Advisors Comments Focus on corporate-level strategy Serve senior executives only at financial services companies Key services: market seminars, market research, & strategy consulting Served over 450 corporate clients and completed over 2,200 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 Charles Schwab & Company Tiburon since 1998 Source: Tiburon Research & Analysis