Mutual Fund Wrap Account Programs: Mass Market Managed Account Programs Tiburon Research April 30, 2019

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs History Mutual Fund Wrap Account Programs was Founded in XXXX and Has Subsequently Evolved Through their Early, Middle, & Recent Phases Mutual Fund Wrap Account Programs History Mutual Fund Wrap Account Programs Founded Mutual Fund Wrap Account Programs Today Early Phase Middle Phase Recent Phase Approximate Dates: XXXX XXXX - XXXX XXXX - XXXX XXXX - XXXX XXXX Key Steps: XXXX : -- XXXX: -- XXXX: -- XXXX: -- Source: Tiburon Research & Analysis

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs can be Defined to Include Discretionary & Non-Discretionary Mutual Fund Wrap Account Programs Market Definition Mutual Fund Wrap Account Programs Market Definition Discretionary Non-Discretionary Source: Tiburon Research & Analysis 4 4 4

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

6 Mutual Fund Wrap Account Programs Market Growth Measures Mutual Fund Wrap Account Programs Market Growth can Specifically be Measured by the Number of Sponsors, and their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Programs Market Growth Measures Mutual Fund Wrap Account Programs Market Growth Measures Sponsors Financial Advisors Clients Programs Accounts Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 6

Mutual Fund Wrap Account Programs Sponsors There are 100 Mutual Fund Wrap Program Sponsors Mutual Fund Wrap Account Programs Sponsors Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Program Sponsors Offer 200 Programs, Up From One in 1991 But Down From 1,000 in 2006 Mutual Fund Wrap Account Programs Source: 6/02 Ticker; 5/23/00 AssetMark Presentation (Steiny); 4/98 Registered Rep; 2/5/98 Newscan Email (Clark); 1/95 Cerulli Associates Research Report; Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Financial Advisors Mutual Fund Wrap Account Programs Serve 20,000 Financial Advisors Mutual Fund Wrap Account Programs Financial Advisors Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Clients Mutual Fund Wrap Account Programs Serve 1.5 Million Clients Mutual Fund Wrap Account Programs Clients (Millions) Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Have Gathered 3.0 Million Accounts Mutual Fund Wrap Account Programs Accounts (Millions) Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Gather 300,000 Net New Accounts Mutual Fund Wrap Account Programs Net New Accounts Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Assets Under Management Mutual Fund Wrap Account Programs Have Gathered $1.4 Trillion Assets Under Management, Up from $1 Billion in 1990 Mutual Fund Wrap Account Programs Assets Under Management ($ Billions) Source: 4/1/18 Vestmark Press Release (Money Management Institute (MMI)); 6/16 Cerulli Associates Brochure; 12/1/10 My Vest Presentation (Cerulli Associates); 10/31/10 Google News Alerts (Cerulli Associates); 2/17/07 Investment News (Cerulli Associates); 2/12/07 Investment News; 5/1/06 Financial Planning (Cerulli Associates); 6/7/05 Wachovia Conversation (McElhaney); 5/31/05 Morgan Stanley Email (Altman); Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Gather $30 Billion Net Flows, Down from $50 Billion in 2000 & its Peak of $74 Billion in 2012 Mutual Fund Wrap Account Programs Net Flows ($ Billions) Source: 4/1/13 Envestnet Presentation (Crager) (Strategas); 5/1/06 Financial Planning (Cerulli Associates); 12/15/03 Investment News (Cerulli Associates); 3/19/01 Investment News (Strategic Insight); Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Generate $2.0 Billion Revenues Mutual Fund Wrap Account Programs Revenues ($ Billions) Source: Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Earn $1.0 Billion Mutual Fund Wrap Account Programs Net Profits ($ Billions) Source: Tiburon Research & Analysis

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

18 Mutual Fund Wrap Account Programs Leading Sponsor Measures The Leading Mutual Fund Wrap Account Programs Sponsors can Specifically be Ranked by their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Programs Leading Sponsor Measures Mutual Fund Wrap Account Programs Leading Sponsor Measures Programs Clients Accounts Financial Advisors Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 18 18

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs Have Two Market Segments, Including Discretionary & Non-Discretionary Mutual Fund Wrap Account Programs Market Segments Mutual Fund Wrap Account Programs Market Segments Discretionary Non-Discretionary Source: Tiburon Research & Analysis 20 20 20

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

22 Mutual Fund Wrap Account Discretionary Programs Mutual Fund Wrap Account Discretionary Programs Market Growth can Specifically be Measured by the Number of Sponsors, and their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Discretionary Programs Market Growth Measures Mutual Fund Wrap Account Discretionary Programs Market Growth Measures Sponsors Financial Advisors Clients Programs Accounts Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 22

23 Mutual Fund Wrap Account Discretionary Programs The Leading Mutual Fund Wrap Account Discretionary Programs Sponsors can Specifically be Ranked by their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Discretionary Programs Leading Sponsor Measures Mutual Fund Wrap Account Discretionary Programs Leading Sponsor Measures Programs Clients Accounts Financial Advisors Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 23 23

Mutual Fund Wrap Account Discretionary Programs’ Future Predictions Include… Discretionary Program Sponsors Future Predictions Mutual Fund Wrap Account Discretionary Program Sponsors Future Predictions Future Prediction #1 Future Prediction #2 Source: Tiburon Research & Analysis 24 24 24

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

26 Mutual Fund Wrap Account Non-Discretionary Programs Mutual Fund Wrap Account Non-Discretionary Programs Market Growth can Specifically be Measured by the Number of Sponsors, and their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Non-Discretionary Programs Market Growth Measures Mutual Fund Wrap Account Non-Discretionary Programs Market Growth Measures Sponsors Financial Advisors Clients Programs Accounts Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 26

27 Mutual Fund Wrap Account Non-Discretionary Programs The Leading Mutual Fund Wrap Account Non-Discretionary Programs Sponsors can Specifically be Ranked by their Number of Programs, Financial Advisors, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Non-Discretionary Programs Leading Sponsor Measures Mutual Fund Wrap Account Non-Discretionary Programs Leading Sponsor Measures Programs Clients Accounts Financial Advisors Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 27 27

Mutual Fund Wrap Account Non-Discretionary Programs’ Future Predictions Include… Non-Discretionary Program Sponsors Future Predictions Mutual Fund Wrap Account Non-Discretionary Program Sponsors Future Predictions Future Prediction #1 Future Prediction #2 Source: Tiburon Research & Analysis 28 28 28

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs Future Predictions Include Substantial Growth for Mutual Fund Account Programs Mutual Fund Wrap Account Programs Future Predictions Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds Source: Tiburon Research & Analysis 30 30 30

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

32 Mutual Fund Wrap Account Programs Market Growth Measures Mutual Fund Wrap Account Programs Market Growth can Specifically be Measured by the Number of Sponsors, and their Number of Programs, Financial Advisor Clients, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Mutual Fund Wrap Account Programs Market Growth Measures Mutual Fund Wrap Account Programs Market Growth Measures Sponsors Financial Advisor Clients Clients Programs Accounts Assets Under Management Revenues Net Profits Net Flows Net New Accounts Source: Tiburon Research & Analysis 32

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Program Sponsors will Offer 300 Programs by 2022, Up From 200 in 2017 Mutual Fund Wrap Account Programs Source: 6/02 Ticker; 5/23/00 AssetMark Presentation (Steiny); 4/98 Registered Rep; 2/5/98 Newscan Email (Clark); 1/95 Cerulli Associates Research Report; Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Assets Under Management Mutual Fund Wrap Account Programs will Have Gathered $1.6 Trillion Assets Under Management by 2022, Up From $1.0 Trillion in 2015 Mutual Fund Wrap Account Programs Assets Under Management ($ Billions) Source: 6/16 Cerulli Associates Brochure; 12/1/10 My Vest Presentation (Cerulli Associates); 10/31/10 Google News Alerts (Cerulli Associates); 2/17/07 Investment News (Cerulli Associates); 2/12/07 Investment News; 5/1/06 Financial Planning (Cerulli Associates); 6/7/05 Wachovia Conversation (McElhaney); 5/31/05 Morgan Stanley Email (Altman); 5/31/05 Trivium Consulting Analysis (MacKillop); 5/223/05 UBS Web Site; Tiburon Research & Analysis

Mutual Fund Wrap Account Programs Mutual Fund Wrap Account Programs will Gather $80 Billion Net Flows by 2022, Up From $30 Billion in 2017 Mutual Fund Wrap Account Programs Net Flows ($ Billions) Source: 4/1/13 Envestnet Presentation (Crager) (Strategas); 5/1/06 Financial Planning (Cerulli Associates); 12/15/03 Investment News (Cerulli Associates); 3/19/01 Investment News (Strategic Insight); Tiburon Research & Analysis

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs’ Second Future Prediction is Limited Manager Opportunities Comments -- Source: Tiburon Research & Analysis

Outline Mutual Fund Wrap Account Programs Market Evolution Market History Market Definition Market Growth Leading Mutual Fund Wrap Account Programs Sponsors Mutual Fund Wrap Account Programs Market Segments Discretionary Programs Non-Discretionary Programs Mutual Fund Wrap Account Programs Future Predictions Substantial Growth for Mutual Fund Wrap Account Programs Limited Manager Opportunities Increasing Market Share for Index & Other Low Cost Mutual Funds

Mutual Fund Wrap Account Programs’ Third Future Prediction is Increasing Market Share for Index & Other Low Cost Mutual Funds Comments -- Source: Tiburon Research & Analysis

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