1. Turning up the heat! Creating value for your HNW clients Anne Manson VP Strategic Business Development

2. Turning up the heat

3. How a little extra effort… Turning up the heat …can produce an incredible amount of value for clients.

4. What am I going to talk about?  What is steam (212 degrees)?  Why do advisors need to deliver steam?  How do clients assess the value of steam?  How do you turn up the heat?

5. What is steam (212 degrees)?

6. Improving as many aspects of a client’s life as possible. Improving as many aspects of a client’s life as possible. What is steam? Steam Improving some aspects of a client’s life. Improving some aspects of a client’s life. Hot Water Hot Water

7. What is steam? Cares for client as a client Cares for client as a client Cares for client as a person Advisor looks for ways to help the relationship continually evolve Advisor looks for ways to help the relationship continually evolve Advisor maintains friendly but mainly professional relationship Advisor maintains friendly but mainly professional relationship

8. Evolving Advisor Trusted Advisor What is steam? financial leader financial leader confidant wealth planner wealth planner concierge educator coach financial planner investment counselor educator Steam

9. Founding Advisor Financial Planning Evolving Advisor Case Study Retirement Consulting Healthcare Referral Practices Next Generation Retirement Boot Camps Wealth Planning Lifestyle Services Coaching and Support

10. Evolving Advisor Case Study BACKGROUND FACTS bought business in 2007 book was worth $97 million in 2007 completed transaction in 2010 book is worth $120 million at April 2012 the total number of clients is 150 families

11. Why do advisors need to deliver steam?

12. Environmental impact on clients Volatile Financial Markets Retirement Realities Industry Perception Media Hype Stagnant Economy More Choices Fee Scrutiny Poor Portfolio Performance Complex Lives

13. Value Gap Why do advisors need to deliver steam? The client “value gap” Standard needs and expectations More needs and heightened expectations Value of services provided (Includes Advice) Steam Services being provided Services and expectations not being met

14. Ignorance is bliss If a tree falls in the forest… and no one is there…does it make a sound? If a client doesn’t ask for steam…is it really that important to them? Why do advisors need to deliver steam? YES

15. Why do advisors need to deliver steam? Client articulated value Research confirms client value gap – top 6 of 16 Source: New world advisor 2010 – The Oechsli institute 1. Provide clear and timely communication 3. Focusing on my family affairs, not his/her practice 2. Resolving problems quickly and to my satisfaction 4. Meeting my investment performance expectations 5. Possessing a comprehensive breadth of knowledge & depth Average 52% deficiency 6. Always having my family’s best interests behind every decision Important to me Advisor is providing

16. Why do advisors need to deliver steam? Do Not Receive Excellent Value for Fees Charged 65% 35% Do Receive Excellent Value for Fees Charged Source: Institute for Private Investors Report, 2009. 7. Fully disclosing fees

17. Fee transparency is inevitable Why do advisors need to deliver steam? Legislation is coming Clients are becoming more educated Clients are reviewing their portfolios more often (43%) Competitors are promoting lower fees Source: Barclays Wealth Insights, 2010.

18. Why do advisors need to deliver steam? Unattended issues can have a financial impact Bad Relationships divorce business partner Expensive Lifestyle spender generous to a fault Financial Literacy economy markets split assets dwindle assets withdraw assets

19. Why do advisors need to deliver steam? Why clients left their advisors Source: CEG Worldwide LLC. Breaking Through – Building a world class wealth management business - 2008

20. How do clients assess the value of steam?

21. New equation for assessing value by HNWC financial leader confidant wealth planner concierge educator coach How do clients assess the value of steam? what am I getting? how much am I paying? =CPV

22. Relationship Not Valuable Invaluable Neutral Services Table- stake Services Builder Services What value do I place on the relationship? How do clients assess the value of steam? Client’s perception of relationship with Advisor Services offered and their affect on the relationship Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience

23. Examples of services Keeping accounts accurate. Keeping website updated. Preventing clients from being overzealous when markets are on the upswing. Neutral Services Table- stake Services Builder Services How do clients assess the value of steam? Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience”

24. What category does fee disclosure fall under? Fee disclosure How do clients assess the value of steam? Neutral Services Table- stake Services Builder Services Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience”

25. Solving Problems Personal Service Fee Disclosure Knowledge Distillation Communication Client’s perception of value is based on a combination of factors How do clients assess the value of steam? Knowledge Customized Communication Full transparency Client expectations

26. How do you turn up the heat?

27. 1. Shift your paradigm Rebuild your brand to represent the evolving advisor who is continually adding value to the client’s life.

28. 2. Customize the advice you provide to each client financial leader financial leader confidant wealth planner wealth planner concierge educator Coach Client #1 Client #2 How do you turn up the heat? financial leader financial leader wealth planner wealth planner concierge educator

29. 3. Conduct a steam test Are you delivering steam? Use the “steam test” tool to find out. Are you delivering steam? Use the “steam test” tool to find out. How do you turn up the heat?

30. 4. Implement new or improved services hone existing skills develop new skills establish partnerships tap into client base for experts How do you turn up the heat?

31. 5. Look for opportunities to add value Address the breadth of personal and professional needs. How do you turn up the heat?

32. Example 1: Client needed help managing selfish inheritors. Look for opportunities to add value

33. Example 2: Clients need help with their business. Business Coaching

34. Example 3: Client needed help making a personal decision. Look for opportunities to add value

35. Example 4: Clients need help educating their kids. Financial literacy workshops for children

36. Example 5: Client needs to solve family conflict. Look for opportunities to add value

37. Wrap up

38. Why are advisors the best people to deliver steam?

40. Disclaimer Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ® CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. Thank You