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

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

Managed Exchange Traded Fund (ETF) Programs
The Third Type of Managed Account Program is Managed Exchange Traded Fund (ETF) Programs Managed Exchange Traded Fund (ETF) Programs Comments -- Source: 6/16 Cerulli Associates Brochure; 4/8/14 Dimensional Fund Advisors Presentation (Booth); 4/8/14 Good harbor Financial Presentation (Ingersoll); 3/25/14 Loring Ward Group (Potts); 10/8/13 First Republic Presentation (Watson); 10/8/13 Brinker Capital Presentation (Widger); 10/8/13 Envestnet Presentation (Crager); 9/24/13 Jefferson National Financial (Greenberg); Tiburon Research & Analysis 1 1

Managed Exchange Traded Fund (ETF) Programs Market Background
Comments -- Source: Tiburon Research & Analysis 2 2

Hypothetical Managed Exchange Traded Fund (ETF) Programs
Managed Exchange Traded Fund (ETF) Programs May Provide a Better Value, Due to their Elimination of Both High Management Fees & Tax Inefficiencies Odd layout Hypothetical Managed Exchange Traded Fund (ETF) Programs Cost Chain Savings (Basis Points) On this graph, the program fee is the maximum fee at four of the five wirehouses; the 250 basis points in capital gains costs is a figure often used by John Bogle 250 550 25 25 150 350 150 150 Proprietary Mutual Fund Estimated Total MFWA Estimated ETF Proprietary Estimated MFWA Manager Fee Short Term Cost to Client Short Term Management ETFWA Cost Savings Program Fee & 12b-1 Fees Capital Gains Capital Gains Fee Program Fee to Client Costs (100% Cost (10% Turnover Turnover ETF) Fund) Mutual Fund Wrap Account Cost Chain Managed Exchange Traded Fund (ETF) Program Cost Chain Source: 10/30/06 Bogle Markets Research Web Site; 2/24/06 Bogle Markets Research Speech (Bogle); Tiburon Research & Analysis

Factors Limiting the Growth of Mutual Fund Wrap Account Programs
Managed Exchange Traded Fund (ETF) Programs are Innovative Primarily in that they Solve Only One of the Four Limiting Factors of Mutual Fund Wrap Account Programs – Cost Factors Limiting the Growth of Mutual Fund Wrap Account Programs & Managed Exchange Traded Fund (ETF) Programs Stance on them Pricing Advisor Hesitancy Mutual Fund Wrap Account Program Limiting Factors Perceived to be rather high (1.50% maximum fee % manager fee + tax costs) Financial advisors think they can earn more by using C shares Managed Exchange Traded Fund (ETF) Programs Stance Fees are same, but eliminate 1.50% manager fees & tax inefficiency Financial advisors could certainly earn more with C shares 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 Have a History
Managed ETF Programs Market History Comments -- Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 6

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: 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 (Doe); 4/17/16 Investment News; 4/17/16 Wall Street Journal; 5/18/15 SmartLeaf (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 (Doe); 12/23/12 Pensions & Investments; Tiburon Research & Analysis

Managed Exchange Traded Funds (ETFs) Programs Emerged in…
Comments -- Source: 4/17/16 Financial Advisor Magazine; 4/17/16 Investment Company Institute (Doe); 4/17/16 Investment News; 4/17/16 Wall Street Journal; 5/18/15 SmartLeaf (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 (Doe); 12/23/12 Pensions & Investments; Tiburon Research & Analysis 8

Managed Exchange Traded Fund (ETF) Programs are Growing Quickly
Managed Exchange Traded Funds (ETFs) Programs Market Growth Comments -- 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 10

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 11 11

There are 100 Managed Exchange Traded Fund (ETF) Program Sponsors
Needs more complete data Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: Tiburon Research & Analysis 12

Managed Exchange Traded Funds (ETFs) Programs Sponsors
Managed Exchange Traded Funds (ETFs) Programs Sponsors Include Al Frank Asset Management, Good Harbor Financial, & Windhaven Investment Management Needs to align with prior page Managed Exchange Traded Funds (ETFs) Programs Sponsors Edward Jones & Company, Raymond James Financial Services, Ameriprise Financial, LPL Financial Holdings, The Charles Schwab Corporation, Fidelity Investmentsm, UBS Financial Services, Wells Fargo Advisors, Merrill Lynch, Morgan Stanley Astor Investment Management Churchill Management Group Clark Capital Management Confluence Investment Management Cougar Global Investments Fidelity Investments Strategic Portfolio Services F-Squared Investments Good Harbor Financial Innealta Capita Al Frank Asset Management JA Forlines Global Lazard Asset Management Morningstar River Front Investment Group Sage Advisory Services Stadion Money Management Stringer Asset Management The Charles Schwab Corporation Windhaven Investment Management 3 Edge Asset Management Managed Exchange Traded Funds (ETFs) Programs: Ameriprise Financial, Bank of American Corporation (Merrill Lynch), Credit Suisse Group, Envestnet ( ~%5 of assets under management), LPL Financial, Morgan Stanley, & Wells Fargo Corporation (AG Edwards) (AG Edwards’ especially Good Harbor & Invesco Power Shares) 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 (Clarke); 4/6/14 Good Harbor Financial (Ingersoll) (Morningstar); 4/2/14 Advisor Software (Ringquist); 12/31/13 Morningstar Report; 3/13/13 Fidelity Investments Press Release; Tiburon Research & Analysis 13

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 Needs update Managed Exchange Traded Funds (ETFs) Programs Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 14

Managed Exchange Traded Fund (ETF) Programs Institutional Clients
Managed Exchange Traded Fund (ETF) Programs Serve Institutional Clients Needs data Managed Exchange Traded Fund (ETF) Programs Institutional Clients Source: Tiburon Research & Analysis 15

Managed Exchange Traded Fund (ETF) Programs Financial Advisor Clients
Managed Exchange Traded Fund (ETF) Programs Serve 20,000 Financial Advisor Clients Needs more complete data Managed Exchange Traded Fund (ETF) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 16

Managed Exchange Traded Fund (ETF) Programs Serve 300,000 Clients
Needs more complete data Managed Exchange Traded Fund (ETF) Programs Clients Source: Tiburon Research & Analysis 17

Needs more complete data Managed Exchange Traded Fund (ETF) Programs
Managed Exchange Traded Fund (ETF) Programs Have Gathered 500,000 Accounts Needs more complete data Managed Exchange Traded Fund (ETF) Programs Accounts Source: Tiburon Research & Analysis 18

Managed Exchange Traded Fund (ETF) Programs Gather 50,000 Net New Accounts Needs more complete data Managed Exchange Traded Fund (ETF) Programs Net New Accounts Source: Tiburon Research & Analysis 19

Managed Exchange Traded Fund (ETF) Programs Assets Under Management
Managed Exchange Traded Fund (ETF) Programs Have Gathered $102 Billion Assets Under Management, Up From $2 Billion in 2003 Need to understand (or fix) big jump in 2017 Managed Exchange Traded Fund (ETF) Programs Assets Under Management ($ Billions) Alternative data ($ billions); 2017 ($300); 2018 ($300) 2012 = 3/12 2011 = 3/12 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 20

Managed Exchange Traded Fund (ETF) Programs Net Flows ($ Billions)
Managed Exchange Traded Fund (ETF) Programs Gather $30 Billion Net Flows, Up From $25 Billion in 2012 $50 billion projected for 2013 Managed Exchange Traded Fund (ETF) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; Tiburon Research & Analysis 21

Managed Exchange Traded Fund (ETF) Programs Generate $1.0 Billion Revenues Needs more complete data Managed Exchange Traded Fund (ETF) Programs Revenues ($ Billions) Source: Tiburon Research & Analysis 22

Managed Exchanged Traded Fund (ETF) Programs Earn $0.5 Billion
Needs more complete data Managed Exchange Traded Fund (ETF) Programs Net Profits ($ Billions) Source: Tiburon Research & Analysis 23

Managed Exchange Traded Funds (ETFs) Programs Market Definition
Comments -- Source: Tiburon Research & Analysis 25

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

Managed Exchange Traded Funds (ETFs) Programs Include 100 Sponsors, Including 50 Propriety Managed Exchange Traded Fund (ETF) Programs Sponsors Needs real data Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 27 27

Managed Exchange Traded Funds (ETFs) Programs Includes 200 Programs, Including 100 by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 28 28

Managed Exchange Traded Funds (ETFs) Programs Institutional Clients
Managed Exchange Traded Funds (ETFs) Programs Serve 100 Institutional Clients, Including 50 by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 29 29

Managed Exchange Traded Funds (ETFs) Programs Serve 20,000 Financial Advisor Clients, Including 10,000 by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 30 30

Managed Exchange Traded Funds (ETFs) Programs Serve 300,000 Clients, Including 150,000 by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 31 31

Managed Exchange Traded Funds (ETFs) Programs Have Gathered 500,000 Accounts, Including 250,000 Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 32 32

Managed Exchange Traded Funds (ETFs) Programs Gather 50,000 Net New Accounts, Including 25,000 by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 33 33

Managed Exchange Traded Funds (ETFs) Programs Assets Under Management
Managed Exchange Traded Funds (ETFs) Programs Have Gathered $102 Billion Assets Under Management, Including $51 Billion by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: 4/1/18 Vestmark Press Release (Money Management Institute (MMI)); 6/16 Cerulli Associates Brochure; 9/11/12 ETF Trends (Morningstar); 12/1/10 My Vest Presentation (Cerulli Associates); Tiburon Research & Analysis 34 34

Managed Exchange Traded Funds (ETFs) Programs Gather $30 Billion Net Flows, Including $15 by Billion by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; Tiburon Research & Analysis 35 35

Managed Exchange Traded Funds (ETFs) Programs Generate $1.0 Billion Revenues, Including $0.5 Billion by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Billions) Source: Tiburon Research & Analysis 36 36

Managed Exchange Traded Funds (ETFs) Programs Earn $0.5 Billion, Including $0.3 Billion by Propriety Managed Exchange Traded Fund (ETF) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Billions) Source: Tiburon Research & Analysis 37 37

Managed Exchange Traded Funds (ETFs) Programs Leaders
Managed Exchange Traded Fund (ETF) Programs Leaders Comments -- Source: Tiburon Research & Analysis 39

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 40

XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Sponsors by Number of Programs Needs data Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 41

Managed Exchange Traded Fund (ETF) Programs Institutional Clients
XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Programs by the Number of Institutional Clients Needs data Managed Exchange Traded Fund (ETF) Programs Institutional Clients Source: Tiburon Research & Analysis 42

Managed Exchange Traded Fund (ETF) Programs Financial Advisor Clients
XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Programs by the Number of Financial Advisor Clients Needs data Managed Exchange Traded Fund (ETF) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 43

XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Programs by the Number of Clients Needs data Managed Exchange Traded Fund (ETF) Programs Clients Source: Tiburon Research & Analysis 44

XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Programs by the Number of Accounts Needs data Managed Exchange Traded Fund (ETF) Programs Accounts Source: Tiburon Research & Analysis 45

XXXX & XXXX are the Leading Managed Exchange Traded Fund (ETF) Programs by the Number of Net New Accounts Needs data Managed Exchange Traded Fund (ETF) Programs Net New Accounts Source: Tiburon Research & Analysis 46

F-Squared Investments and Windhaven Investment Management are the Leading Managed Exchange Traded Funds (ETFs) Program in Assets Under Management with $27.7 & $8.6 Billion, Respectively Needs update Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Other Programs: ($ Billions): Well Fargo Advisors ($4.1); Buckingham Asset Management ($1.9); Raymond James Financial Services ($0.5); Janney Montgomery Scott ($0.5) 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 (Clarke); 4/6/14 Good Harbor Financial (Ingersoll) (Morningstar); 4/2/14 Advisor Software (Ringquist); 12/31/13 Morningstar Report; 3/13/13 Fidelity Investments Press Release; Tiburon Research & Analysis

XXXX & XXXX are the Leading Managed Exchange Traded Funds (ETFs) Programs in Net Flows Needs data Managed Exchange Traded Funds (ETFs) Programs Net Flows ($ Billions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Managed Exchange Traded Funds (ETFs) Programs in Revenues Needs data Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Managed Exchange Traded Funds (ETFs) Programs in Net Profits Needs data Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis

Managed Exchange Traded Funds (ETFs) Programs Products Markets

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

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 54

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Institutional Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 55

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 56

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 57

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Accounts Needs real data Managed Exchange Traded Funds (ETFs) Programs Accounts By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 58

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Needs real data Managed Exchange Traded Funds (ETFs) Programs Net New Accounts By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 59

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Assets Under Management Needs real data Managed Exchange Traded Funds (ETFs) Programs Assets Under Management By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 60

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net Flows Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Flows By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 61

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Revenues Needs real data Managed Exchange Traded Funds (ETFs) Programs Revenues By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 62

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net Profits Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Profits By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 63

Proprietary Managed Exchange Traded Funds (ETFs) Programs
Managed Exchange Traded Funds (ETFs) Programs’ First Market Segment is Proprietary Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 65

Proprietary Managed Exchange Traded Funds (ETFs) Programs Market Growth

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 67 67

There are __ Managed Exchange Traded Fund (ETF) Program Sponsors
Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: Tiburon Research & Analysis 68

There are __ Proprietary Managed Exchange Traded Funds (ETFs) Programs
Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 69

Proprietary Managed Exchange Traded Funds (ETFs) Programs Serve Institutional Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 70

Proprietary Managed Exchange Traded Funds (ETFs) Programs Serve Financial Advisor Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Proprietary Programs serve only own firm Source: Tiburon Research & Analysis 71

Proprietary Managed Exchange Traded Funds (ETFs) Programs Serve Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 72

Proprietary Managed Exchange Traded Funds (ETFs) Programs Have Gathered Accounts Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 73

Proprietary Managed Exchange Traded Funds (ETFs) Programs Gather Net New Accounts Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 74

Proprietary Managed Exchange Traded Funds (ETFs) Programs Have Gathered Assets Under Management Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis 75

Proprietary Managed Exchange Traded Fund (ETF) Programs
Proprietary Managed Exchange Traded Funds (ETFs) Programs Gather Net Flows Needs data Proprietary Managed Exchange Traded Fund (ETF) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; Tiburon Research & Analysis 76

Proprietary Managed Exchange Traded Funds (ETFs) Programs Generate Revenues Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis 77

Proprietary Managed Exchange Traded Funds (ETFs) Programs Earn $___ Millions Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis 78

Proprietary Managed Exchange Traded Funds (ETFs) Programs Leaders

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 80

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Sponsors by the Number of Programs Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 81

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs by the Number of Institutional Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 82

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs by the Number of Financial Advisor Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 83

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs by the Number of Clients Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 84

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs by the Number of Accounts Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 85

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs by the Number of Net New Accounts Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 86

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs in Assets Under Management Needs update Proprietary Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs in Net Flows Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net Flows ($ Billions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs in Revenues Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Proprietary Managed Exchange Traded Funds (ETFs) Programs in Net Profits Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis

Proprietary Managed Exchange Traded Funds (ETFs) Programs Future Predictions

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

Proprietary Managed Exchange Traded Funds (ETFs) Programs’ First Future Prediction is Substantial Growth in Proprietary Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 93

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 94 94

There will be __ Proprietary Managed Exchange Traded Fund (ETF) Program Sponsors by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: Tiburon Research & Analysis 95

There will be __ Proprietary Managed Exchange Traded Funds (ETFs) Programs by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 96

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Serve Institutional Clients by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 97

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Serve Financial Advisor Clients by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Proprietary Programs serve only own firm Source: Tiburon Research & Analysis 98

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Serve Clients by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 99

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Have Gathered Accounts by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 100

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Gather Net New Accounts by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 101

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Have Gathered Assets Under Management by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis 102

Proprietary Managed Exchange Traded Fund (ETF) Programs
Proprietary Managed Exchange Traded Funds (ETFs) Programs will Gather Net Flows by 2024 Needs data Proprietary Managed Exchange Traded Fund (ETF) Programs Net Flows ($ Billions) Source: Tiburon Research & Analysis 103

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Generate Revenues by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis 104

Proprietary Managed Exchange Traded Funds (ETFs) Programs will Earn $___ Millions by 2024 Needs data Proprietary Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis 105

Proprietary Managed Exchange Traded Funds (ETFs) Programs’ Second Future Prediction is Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 106

Third-Party Managed Exchange Traded Funds (ETFs) Programs
Managed Exchange Traded Funds (ETFs) Programs’ Second Market Segment is Third-Party Managed Exchange Traded Funds (ETFs) Programs Third-Party Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 108

Third-Party Managed Exchange Traded Funds (ETFs) Programs Market Growth

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 110 110

There are __ Third-Party Managed Exchange Traded Fund (ETF) Program Sponsors Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: Tiburon Research & Analysis 111

There are __ Third-Party Managed Exchange Traded Funds (ETFs) Programs
Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 112

Third-Party Managed Exchange Traded Funds (ETFs) Programs Serve Institutional Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 113

Third-Party Managed Exchange Traded Funds (ETFs) Programs Serve Financial Advisor Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 114

Third-Party Managed Exchange Traded Funds (ETFs) Programs Serve Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 115

Third-Party Managed Exchange Traded Funds (ETFs) Programs Have Gathered Accounts Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 116

Third-Party Managed Exchange Traded Funds (ETFs) Programs Gather Net New Accounts Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 117

Third-Party Managed Exchange Traded Funds (ETFs) Programs Have Gathered Assets Under Management Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis 118

Third-Party Exchange Traded Fund (ETF) Programs
Third-Party Managed Exchange Traded Funds (ETFs) Programs Gather Net Flows Needs data Third-Party Exchange Traded Fund (ETF) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; Tiburon Research & Analysis 119

Third-Party Managed Exchange Traded Funds (ETFs) Programs Generate Revenues Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis 120

Third-Party Managed Exchange Traded Funds (ETFs) Programs Earn $___ Millions Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis 121

Third-Party Managed Exchange Traded Funds (ETFs) Programs Leaders

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 123

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Sponsors by the Number of Programs Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 124

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs by the Number of Institutional Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 125

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs by the Number of Financial Advisor Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 126

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs by the Number of Clients Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 127

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs by the Number of Accounts Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 128

Third-Party Managed Exchange Traded Funds (ETFs) Programs by the Number of Net New Accounts Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 129

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs in Assets Under Management Needs update Third-Party Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs in Net Flows Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net Flows ($ Billions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs in Revenues Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis

XXXX & XXXX are the Leading Third-Party Managed Exchange Traded Funds (ETFs) Programs in Net Profits Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis

Third-Party Managed Exchange Traded Funds (ETFs) Programs Future Predictions

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

Third-Party Managed Exchange Traded Funds (ETFs) Programs’ First Future Prediction is Substantial Growth in Third-Party Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 136

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 137 137

There will be __ Third-Party Managed Exchange Traded Fund (ETF) Program Sponsors by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: Tiburon Research & Analysis 138

There will be __ Third-Party Managed Exchange Traded Funds (ETFs) Programs by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 139

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Serve Institutional Clients by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: Tiburon Research & Analysis 140

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Serve Financial Advisor Clients by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: Tiburon Research & Analysis 141

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Serve Clients by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Clients Source: Tiburon Research & Analysis 142

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Have Gathered Accounts by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Accounts Source: Tiburon Research & Analysis 143

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Gather Net New Accounts by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: Tiburon Research & Analysis 144

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Have Gathered Assets Under Management by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Assets Under Management ($ Billions) Source: Tiburon Research & Analysis 145

Third-Party Exchange Traded Fund (ETF) Programs
Third-Party Managed Exchange Traded Funds (ETFs) Programs will Gather Net Flows by 2024 Needs data Third-Party Exchange Traded Fund (ETF) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; Tiburon Research & Analysis 146

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Generate Revenues by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Millions) Source: Tiburon Research & Analysis 147

Third-Party Managed Exchange Traded Funds (ETFs) Programs will Earn $___ Millions by 2024 Needs data Third-Party Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Millions) Source: Tiburon Research & Analysis 148

Third-Party Managed Exchange Traded Funds (ETFs) Programs’ Second Future Prediction is…

Managed Exchange Traded Funds (ETFs) Have Future Predictions
Managed Exchange Traded Funds (ETFs) Future Predictions Comments -- Source: Tiburon Research & Analysis 151

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 Transition of financial advisors to fee-based business from commission-based business involves focus on new processes; developing asset allocation plan is one of processes; exchange traded funds make this step easier 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 Managed Exchange Traded Funds (ETFs) program managers will benefit from the growth of independent advisors and fee-accounts & turnkey asset management programs The independent advisors channel will increase its distribution of exchange traded funds (ETFs) as product sponsors finally shift some focus from marketing to them The unified managed accounts trend is good for four groups of industry players, including exchange traded fund (ETF) companies 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 152 152 152

Managed Exchange Traded Funds (ETFs)’s First Future Prediction is Substantial Growth in Managed Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 154

Managed Exchange Traded Fund (ETF) Programs Over the Next Five Years
Managed Exchange Traded Fund (ETF) Programs will Grow Hugely Over the Next Five Years Needs real data Managed Exchange Traded Fund (ETF) Programs Over the Next Five Years Source: Tiburon Research & Analysis 155

Tiburon CEO Summit Attendee Content Survey Feedback
Tiburon CEO Summit Attendees were Mixed on Managed Exchange Traded Fund (ETF) Programs (Page 1) Tiburon CEO Summit Attendee Content Survey Feedback Managed Exchange Traded Fund (ETF) Programs Over Next Five Years “Managed ETF programs will increase in popularity as they continue to find their way onto the 401K platforms” Mike Zebrowski eMoney Advisor Tiburon CEO Summit XXVII Source: 8/19/14 Tiburon CEO Summit XXVII Content Survey (Zebrowski); Tiburon Research & Analysis

Tiburon CEO Summit Content Survey Feedback Managed Exchange Traded Fund (ETF) Programs Over Next Five Years (Page 2) Tiburon CEO Summit Attendee Content Survey Feedback Managed Exchange Traded Fund (ETF) Programs Over Next Five Years “I would be curious to see latest statistics on managed ETF programs. Though there is some momentum, it has not had as big an impact as expected” Craig Wietz First Investment Systems Tiburon CEO Summit XXVII Source: 9/1/14 Tiburon CEO Summit XXVII Content Survey (Wietz); Tiburon Research & Analysis

Tiburon CEO Summit Content Survey Feedback Managed Exchange Traded Fund (ETF) Programs Over Next Five Years (Page 3) Tiburon CEO Summit Attendee Content Survey Feedback Managed Exchange Traded Fund (ETF) Programs Over Next Five Years “I think the bubble will burst for many of the Managed ETF providers, as they fail to sustain the outperformance that helped them gather assets” Daniel Kern Advisor Partners Tiburon CEO Summit XXVII Source: 8/19/14 Tiburon CEO Summit XXVII Content Survey (Kern); Tiburon Research & Analysis

Program Sponsors & Money Managers Ratings of the Future of
Program Sponsors & Money Managers Rate the Future of Managed Exchange Traded Fund (ETF) Programs a Surprisingly Low 6.3 Program Sponsors & Money Managers Ratings of the Future of Managed Exchange Traded Fund (ETF) Programs (1-10; 10 = High) Average 6.3 Source: 11/10/06 SEI Investments Conversation (Schaeffer); 11/10/06 Envestnet Conversation (Fowler); 11/10/06 Envestnet Conversation (Hardwick); 11/9/06 US Fiduciary Conversation (MacKillop); 11/9/06 Capital Markets Consultants Conversation (Mendelson); 11/9/06 Harpeth Partners Conversation (Johnson); 11/7/06 Envestnet Conversation (Harris); 11/7/06 Envestnet Conversation (O’Brien); Tiburon Research & Analysis

Program Sponsors & Money Managers Pointed to Lack of Early Results and Financial Advisors Need to be Active to Add Value as Reasons that the Future of Managed Exchange Traded Fund (ETF) Programs was Not Better Comments Positive Comments “ETFs are becoming more accepted” “This is where the world is going” “This is good asset allocation and portfolio management” “The is an improvement on traditional mutual fund wrap accounts; it is cheaper and easier to sell” “Low fees will help” “These can be used in a dynamic fashion as well” Negative Comments “We do not have many financial advisors who are interested” “We rolled out a product at Securities America that Morningstar managers; it has not got much traction” “Our Litman Gregory program does not get a lot of assets” “I have not read much” “I do not see them catching on as a stand-alone but they will be in the tool kit” “All ETFs is not exciting” “Independent reps believe that their value is in picking the active mutual funds” “Many will mess with the portfolios and ruin the investment returns” “There is less value for the TAMPs to provide because selections and combinations are easier” Source: 11/10/06 SEI Investments Conversation (Schaeffer); 11/10/06 Envestnet Conversation (Fowler); 11/10/06 Envestnet Conversation (Hardwick); 11/9/06 US Fiduciary Conversation (MacKillop); 11/9/06 Capital Markets Consultants Conversation (Mendelson); 11/9/06 Harpeth Partners Conversation (Johnson); 11/7/06 Envestnet Conversation (Harris); 11/7/06 Envestnet Conversation (O’Brien); Tiburon Research & Analysis

Full-Service Brokers’ Opinions
Full-Service Brokers Rate the Future of Managed Exchange Traded Fund (ETF) Programs as Only an Average of 7.4, With Varying Scores Full-Service Brokers’ Opinions About Future of Managed Exchange Traded Fund (ETF) Programs (1-10; 10 = High) Average 7.4 Source: 10/21/05 Legg Mason Rep Conversation (Jennings); 10/21/05 Legg Mason Rep Conversation (Freimen); 10/21/05 Legg Mason Rep Conversation (Donovan); 10/17/05 Legg Mason Rep Conversation (Rosenwald); 10/17/05 Legg Mason Rep Conversation (Strosnider); Tiburon Research & Analysis

Full-Service Brokers Mention Exchange Traded Funds (ETFs) in Fee-Accounts will Be a Bigger Part of Their Business In Future Years, But are Not There Yet Comments Bright Future “Exchange Traded Funds (ETFs) have a bright future” “They are more and more becoming in demand because of the good perception of indexing for lower costs” “I do not have any now, but certainly will in the near future” “Standard index Exchange Traded Funds (ETFs) serve a very valuable purpose in fee-accounts, and inexpensively at that” “The good part is that index Exchange Traded Funds (ETFs) will put pricing pressure on all other asset managers” Lingering Distaste “The proliferation of sector indices Exchange Traded Funds (ETFs) is dangerous, as they encourage sector speculation” “Exchange Traded Funds (ETFs) could certainly grow a lot bigger, but they’re not there yet” “Not for my business” “I have not done this, nor would I want to in the near future” Source: 10/21/05 Legg Mason Rep Conversation (Jennings); 10/21/05 Legg Mason Rep Conversation (Freimen); 10/21/05 Legg Mason Rep Conversation (Donovan); 10/17/05 Legg Mason Rep Conversation (Rosenwald); 10/17/05 Legg Mason Rep Conversation (Strosnider); Tiburon Research & Analysis

Ratings of Managed Exchange Traded Fund (ETF) Programs
Full-Service Brokers Anticipate that Managed Exchange Traded Fund (ETF) Programs will be One Way Around the Perceived High Costs of Mutual Fund Wrap Account Programs Full-Service Broker Ratings of Managed Exchange Traded Fund (ETF) Programs (1-10; 10 = High) Average 7.9 Source: 1/9/04 RW Baird Advisor Conversation (Farron); 1/8/04 RW Baird Advisor Conversation (Busey); 1/8/04 RW Baird Advisor Conversation (Michels); 1/8/04 RW Baird Advisor Conversation (Garrett); 1/8/04 RW Baird Advisor Conversation (Mertens); 1/8/04 RW Baird Advisor Conversation (Ater); 1/7/04 RW Baird Advisor Conversation (Zeidler); 1/7/04 RW Baird Advisor Conversation (Carter); Tiburon Research & Analysis

Some Full-Service Brokers Intend to Use Managed Exchange Traded Fund (ETF) Programs as Part of a Core & Explore Strategy Comments Core & Explore Strategy “The biggest reason to utilize any type of indexing product is its’ role in a core & explore strategy… index funds can cover the indexes, and I can fill in the gaps with other managers in specific areas as needed” “With an indexing core and some satellite managers, you can create a well-diversified portfolio; it is no surprise that these products should do well” Lower Costs “Indexing provides lower costs to the client though there will be some loss in performance” General Comments “Index funds are a great way to place assets in more esoteric markets such as China” “Index funds will be bigger than I would like to admit” “The trend to indexed products is troubling because the performance returns just will not be there” Source: 1/9/04 RW Baird Advisor Conversation (Farron); 1/8/04 RW Baird Advisor Conversation (Busey); 1/8/04 RW Baird Advisor Conversation (Michels); 1/8/04 RW Baird Advisor Conversation (Garrett); 1/8/04 RW Baird Advisor Conversation (Mertens); 1/8/04 RW Baird Advisor Conversation (Ater); 1/7/04 RW Baird Advisor Conversation (Zeidler); 1/7/04 RW Baird Advisor Conversation (Carter); Tiburon Research & Analysis

Exchange Traded Fund (ETF) Strategists
The Majority of Exchange Traded Fund (ETF) Strategists Believe that their Assets will Outpace the Exchange Traded Fund (ETF) Market Over the Next Three Years Exchange Traded Fund (ETF) Strategists By Expectations for Growth in Next Three Years Source: 9/9/13 Money Management Executive; Tiburon Research & Analysis 165

Several Attendees Noted that Exchange Traded Funds (ETFs) Need Better Distribution Models for Future Growth Tiburon CEO Summit Attendee Content Survey Feedback Exchange Traded Fund (ETF) Strategists Future Prediction Over Next Five Years “Huge growth has occurred...need better distribution models for future growth” Jim Ross State Street Global Advisors Tiburon CEO Summit XXVI Source: 3/23/14 Tiburon CEO Summit XXVI Content Survey (Ross); Tiburon Research & Analysis

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 167

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 168 168

There will be Managed Exchange Traded Funds (ETFs) Programs Sponsors by 2021 Needs data 2012 = 120 Managed Exchange Traded Funds (ETFs) Programs Sponsors Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 169

There will be Managed Exchange Traded Funds (ETFs) Programs by 2021
Needs data 2012 = 120 Managed Exchange Traded Funds (ETFs) Programs Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 170

Managed Exchange Traded Funds (ETFs) Programs will Serve Institutional Clients by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 171

Managed Exchange Traded Funds (ETFs) Programs will Serve Financial Advisor Clients by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 172

Managed Exchange Traded Funds (ETFs) Programs will Serve Clients by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Clients Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 173

Managed Exchange Traded Funds (ETFs) Programs will Have Gathered Accounts by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Accounts Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 174

Managed Exchange Traded Funds (ETFs) Programs Gather Net New Accounts by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 175

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 176

Managed Exchange Traded Funds (ETFs) Programs will Gather $__ Billion Net Flows by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Net Flows ($ Billions) Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 177

Managed Exchange Traded Funds (ETFs) Programs will Generate $__ Billion Revenues by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Revenues ($ Billions) Source: Tiburon Research & Analysis 178

Managed Exchange Traded Funds (ETFs) Programs will Earn $__ Billion by 2021 Needs data Managed Exchange Traded Funds (ETFs) Programs Net Profits ($ Billions) Source: 12/28/12 ETF Trends; 9/11/12 ETF Trends; Tiburon Research & Analysis 179

Managed Exchange Traded Funds (ETFs)’s Second Future Prediction is Primary Success by Third-Party Exchange Traded Funds (ETFs) Programs Comments -- Source: Tiburon Research & Analysis 181

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

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Needs real data Managed Exchange Traded Funds (ETFs) Programs By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 183

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Institutional Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Institutional Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 184

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Financial Advisor Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 185

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Clients Needs real data Managed Exchange Traded Funds (ETFs) Programs Clients By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 186

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Accounts Needs real data Managed Exchange Traded Funds (ETFs) Programs Accounts By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 187

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net New Accounts Needs real data Managed Exchange Traded Funds (ETFs) Programs Net New Accounts By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 188

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Assets Under Management Needs real data Managed Exchange Traded Funds (ETFs) Programs Assets Under Management By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 189

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net Flows Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Flows By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 190

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Revenues Needs real data Managed Exchange Traded Funds (ETFs) Programs Revenues By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 191

Proprietary Managed Exchange Traded Funds (ETFs) Programs Account for Half of Managed Exchange Traded Funds (ETFs) Programs Net Profits Needs real data Managed Exchange Traded Funds (ETFs) Programs Net Profits By Product Type Third-Party Managed Exchange Traded Funds (ETFs) Programs Proprietary Managed Exchange Traded Funds (ETFs) Programs Source: Tiburon Research & Analysis 192

Managed Exchange Traded Funds (ETFs)’s Third Future Prediction is Continuing Low Margins

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 196

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

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

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

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Presentation on theme: "Managed Exchange Traded Funds (ETFs) Programs: Low Cost Managed Accounts Tiburon Research May 1, 2019."— Presentation transcript:

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