Brokers Xpress: A Broker/Dealer Helping Independent Advisors Tiburon Research September 1, 2012
Dec 27, 2015
Brokers Xpress:A Broker/Dealer Helping Independent Advisors
Tiburon ResearchSeptember 1, 2012
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 22
Brokers Xpress
Source: Tiburon Research & Analysis
• Based in Chicago, IL• 125 employees• 55 rep offices• 95 reps• 22,500 accounts• $1.6 billion assets under administration• $100 million revenues• CEO: Blaine Schwartz• Web site: www.brokersxpress.com
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3
Early Phase
Approximate Dates: XXXX - XXXX
• XXXX: --
XXXX - 2012
Key Steps:
Brokers Xpress was Founded in XXXX and Has Evolved through Three Phases, Including its Early, Middle, & Recent Phases
Middle Phase
Brokers Xpress History
Brokers Xpress
Founded
XXXX 2012
Brokers Xpress TodayRecent
Phase
XXXX - XXXX
• XXXX: Brokers Xpress founded
• XXXX: -- • XXXX: --
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 44
Brokers Xpress was Founded in XXXX
Source: Tiburon Research & Analysis
• Based in Chicago, IL• CEO: Blaine Schwartz
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 55
Brokers Xpress Has 125 Corporate Office Employees, Consistent Since 2001
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Corporate Office
Employees
125 125 125 125 125
2001 2002 2003 2004 2005
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 66
51 49 4953 55
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers XpressRep Offices
Brokers Xpress Has More Than 50 Rep Offices, Consistent Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 77
8985 86
93 95
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps
Brokers Xpress Has 95 Reps, Up Slightly Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 88
1.7 1.7 1.7 1.7 1.7
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps Per Office
Brokers Xpress Has Nearly 1.7 Reps Per Office, Consistent Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 99
Registered Reps Only
Registered Reps & OSJ Managers
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps
By Role
Brokers Xpress Has One-Quarter of its Reps as OSJ Managers, Consistent Since 2001
25% 25% 25% 25% 25%
75% 75% 75% 75% 75%
2001 2002 2003 2004 2005
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1010
75% 75% 75% 75% 75%
25% 25% 25% 25% 25%
2001 2002 2003 2004 2005
Not Series 7 Licensed Reps
Series 7 Licensed Reps
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps
By Series 7 License
Brokers Xpress Has Three-Quarters of its Reps with Series 7 Licenses, Consistent Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1111
9 9 9 910
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps Who Produce More Than $100,000
Brokers Xpress Has Ten Reps that Produce More than $100,000 Per Year, Flat Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1212
Reps Producing Less Than $100,000
Reps Producing More Than $100,000
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps
By Production Level
Brokers Xpress Has 10% of its Reps Producing More Than $100,000 Per Year, Which Has Been Consistent Since 2001
10% 10% 10% 10% 10%
90% 90% 90% 90% 90%
2001 2002 2003 2004 2005
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1313
12.7 13.2
16.1
18.6
22.5
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Client Accounts
(Thousands)
Brokers Xpress Has More Than 20,000 Client Accounts, Which Has Grown Steadily Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1414
143155
187200
237
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Client Accounts
Per Rep
Brokers Xpress Has More Than 200 Client Accounts Per Rep, Which Has Increased Steadily Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1515
$839 $867
$1,118
$1,440
$1,615
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Assets Under Administration
($ Millions)
Brokers Xpress Has More Than $1.5 Billion Assets Under Administration, Up Significantly Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1616
$9$10
$13
$15
$17
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Assets Under Administration
Per Rep($ Millions)
Brokers Xpress Has More Than $15 Million Assets Under Administration Per Rep, Up Significantly Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1717
$76 $75$79
$93$100
2001 2002 2003 2004 2005
Note: Another source said that Broker Xpress generated $129 million revenues in 2005Source: 12/18/06 Investment News; 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment
News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; Tiburon Research & Analysis
Brokers Xpress Revenues($ Millions)
Brokers Xpress Generates $100 Million in Revenues, Which Has Grown Steadily Since 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1818
$854 $882 $919$1,000
$1,053
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Revenues
Per Rep($ Thousands)
Brokers Xpress Generates More Than $1 Million in Revenues Per Rep, Which Has Grown Steadily Since 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 1919
88% 88% 88% 88% 89%
0% 0% 1% 1% 1%12% 12% 11% 11% 10%
2001 2002 2003 2004 2005
Up-Front & Trailing Commissions Revenues
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Revenues
By Type
Brokers Xpress Generates Nearly All of Its Revenues From Commissions, Which Has Been Consistent Since 2001
Fee-Accounts Revenues
Hourly & Other Revenues
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2020
9.06%8.65%
7.06%6.46% 6.19%
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Return on Assets
Brokers Xpress Generates More Than 6.0% Return on Assets, Which is Down From 9.0% in 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2121
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Net Income($ Millions)
Brokers Xpress Earns $..., … Since 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2222
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Long-Term Debt
($ Millions)
Brokers Xpress Has $… in Long-Term Debt, … Since 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2323
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Shareholders Equity
($ Millions)
Brokers Xpress Has $… in Shareholders’ Equity
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2424
$1 $1 $1 $1 $1
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Net Excess Capital
($ Millions)
Brokers Xpress Has $1 Million Net Excess Capital, Which Has Remained Unchanged Since 2001
Data is estimated
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2525
Mutual Funds40%
Annuities30%
Fee-Accounts20%
Individual Securities, Insurance, Limited
Partnerships, & Other Products
10%
Brokers Xpress’ Reps Invest Client Assets in a Wide Variety of Products, Including …
Brokers Xpress Client Assets By Product Type
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2626
4% 4% 4% 4%15%
0% 0% 0% 0%
0%
0% 0% 0% 0%
0%
96% 96% 96% 96%85%
2001 2002 2003 2004 2005
Mutual Funds
Fee-Accounts
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Revenues
By Product Type
Brokers Xpress Generates Less than One-Fifth of its Revenues from Mutual Funds and Fee-Accounts; Nearly All of the Firm’s Revenues are Generated From Individual Securities, Insurance, Limited Partnerships, & Other Products
Annuities
Individual Securities, Insurance, Limited
Partnerships, & Other Products
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2727
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Mutual Fund Family Relationships
Brokers Xpress Offers Mutual Funds From … Mutual Fund Families
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2828
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Mutual Fund Offerings
Brokers Xpress Offers … Mutual Funds
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 2929
Brokers Xpress Offers … Proprietary Mutual Funds
Source: Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3030
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Mutual Fund
Assets($ Billions)
Brokers Xpress Has $… in Mutual Fund Assets
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3131
$3 $3 $3 $4
$15
2001 2002 2003 2004 2005
Brokers Xpress Has $15 Million in Mutual Fund Sales, Which Have Increased Sharply Recently
Brokers Xpress Mutual Fund
Revenues($ Millions)
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3232
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Variable & Fixed Annuity Provider
Relationships
Brokers Xpress Has Relationships with … Variable & Fixed Annuity Providers
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3333
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Variable & Fixed Annuity
Offerings
Brokers Xpress Offers … Variable & Fixed Annuities
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3434
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Variable & Fixed Annuity
Assets($ Billions)
Brokers Xpress Has $… in Variable & Fixed Annuity Assets
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3535
Brokers Xpress Offers … Proprietary Variable & Fixed Annuities
Source: Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3636
Brokers Xpress Does Not Generate Any of Its Revenues From Variable & Fixed Annuity Sales
Brokers Xpress Variable & Fixed Annuity
Revenues($ Millions)
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3737
2001 2002 2003 2004 2005
Source: Tiburon Research & Analysis
Brokers Xpress Fee-Accounts
Brokers Xpress Has … Fee-Accounts
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3838
$36$40
$49
$61
$83
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Fee-Account
Assets($ Millions)
Brokers Xpress Has More Than $80 Million in Fee-Account Assets, Which Has Grown Steadily Since 2001
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 3939
Brokers Xpress Has $1 Million in Fee-Accounts Sales, Which is Up Significantly Since 2001
Brokers Xpress Fee-Accounts
Revenues($ Millions)
$0.1 $0.1
$1.0 $1.0 $1.0
2001 2002 2003 2004 2005
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4040
29% 29% 29% 29% 29%
71% 71% 71% 71% 71%
2001 2002 2003 2004 2005
Do Not Utilize Fee-Accounts
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps By Utilization of Fee-Accounts
Brokers Xpress Has More than One-Quarter of its Reps Utilizing Fee-Accounts, Which Has Remained Unchanged Since 2001
Utilize Fee-Accounts
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4141
Brokers Xpress Fee-Account Programs …
--
Brokers XpressFee-Account Programs
-- --
• SMA
• UMA
• FBBA
-- --
• BW • MFWA
Brokers Xpress Fee-Account Programs
Source: Tiburon Research & Analysis
--
• MSP
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4242
Brokers Xpress Offers … Separately Managed Account Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4343
Brokers Xpress Offers … Multiple Style Portfolio Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4444
Brokers Xpress Offers … Unified Managed Account Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4545
Brokers Xpress Offers … Mutual Fund Wrap Account Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4646
Brokers Xpress Offers … Broker Wrap Account Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4747
Brokers Xpress Offers … Fee-Based Brokerage Account Programs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4848
Brokers Xpress Provides Guidelines for Discounting on Its … Program …
Brokers Xpress … Program Discounting Guidelines
Account Value Maximum Fee Minimum Fee
$0 - $250,000 -- --
$250,000 - $500,000 -- --
$500,000 - $1,000,000 -- --
$1,000,000 - $2,000,000 -- --
$2,000,000-$5,000,000 -- --
> $5,000,000 -- --
Source: Tiburon Research & Analysis
Create grid for each applicable fee-account
program;be sure to understand if
pricing is blended or cliff pricing
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 4949
Brokers Xpress RIA Policy …
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5050
100% 100% 100% 100% 100%
0% 0% 0% 0% 0%
2001 2002 2003 2004 2005
Do Not Provide Services Through Own RIA
Source: 6/05 Financial Advisor; 6/05 Financial Planning; 5/30/05 Investment News; 4/18/05 Investment News; 1/17/05 Investment News; 6/04 Financial Planning; 6/04 Investment Advisor; 6/04 Financial Advisor; 4/5/04 Investment News; 1/19/04 Investment News; 12/15/03 Investment News; 6/03 Financial Planning; 6/03 On Wall Street; 6/03 Investment Advisor; 6/03 Financial Advisor; 5/03 Ticker; 1/27/03 Investment News; Tiburon Research & Analysis
Brokers Xpress Reps
By Propensity to Provide Services Through Their Own RIA
Brokers Xpress Has all of its Reps Provide Services Through Their Own Registered Investment Advisor, Which Has Been Consistent Since 2001
Provide Services Through Own RIA
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5151
Stocks
• --
Brokers XpressIndividual Securities Offerings
Brokers Xpress Offers … Selection of Individual Securities
Bonds
• --
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5252
Brokers Xpress Clears Through Goldman Sachs
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5353
Brokers Xpress Has … IPO Access
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5454
Brokers Xpress Offers … Individual Securities Research
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5555
Brokers Xpress Offers … Mutual Funds Research
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5656
Brokers Xpress Individual Securities Commission Schedule …
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5757
Term Life
• --
Brokers XpressLife Insurance Offerings
Fixed, Whole, or Traditional Life
• --
Fixed Universal Life
• --
Variable Life
• --
Variable Universal Life
• --
Brokers Xpress Offers … Life Insurance Offerings, Including …
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5858
Term Life
• --
Brokers XpressProprietary Life Insurance Offerings
Fixed, Whole, or Traditional Life
• --
Fixed Universal Life
• --
Variable Life
• --
Variable Universal Life
• --
Brokers Xpress Offers … Proprietary Life Insurance Offerings, Including …
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 5959
Brokers Xpress Has … Policies Regarding Outside Direct Insurance Sales
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6060
Brokers Xpress Offers … Long-Term Care & Disability Insurance
• --
Disability Insurance
Source: Tiburon Research & Analysis
• --
Long-Term Care Insurance
Brokers XpressLong-Term Care & Disability Insurance Offerings
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6161
Hedge Funds & Managed Futures
• --
Venture Capital & Private Equity
• --
Real Estate
• --
Other Alternative Investments
• --
Brokers Xpress Alternative Investments
Brokers Xpress Has Expanded Its Alternative Investments Offerings to Include …
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6262
UITs
• --
Limited Partnerships
• --
CDs
• --
Other Products
• --
Brokers Xpress Other Products & Services
Brokers Xpress Also Offers … Other Products & Services (Page 1)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6363
Property & Casualty Insurance
• --
Banking Services
• --
Personal Trust Services
• --
Financial Planning Services
• --
Brokers Xpress Other Products & Services
Brokers Xpress Other Products & Services (Page 2)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6464
Brokers Xpress’ Payout Grid for Mutual Funds, Annuities, Life & Other Insurance Products, Individual Securities, Alternative Investments, and Other Products & Services …
Brokers Xpress Payout Grid
Rep Production Rep Payout
$0 - $50,000 80%
$50,000 - $100,000 85%
$100,0000 - $250,000 88%
$250,000 - $500,000 90%
$500,000 - $1,000,000 92%
>$1,000,000 94%
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6565
Brokers Xpress’ Fee-Account Administration Fees …
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6666
Annuities
• --
Individual Securities
• --
Fee-Accounts
• --
Mutual Funds
• --
Brokers Xpress Transaction Fees and/or Ticket Charges
Brokers Xpress’ Transaction Fees and/or Ticket Charges …
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6767
Monthly Administration
• --
Brokers Xpress’ Rep Fees Include …
Licensing & Renewal
• --
E&O or Bond
• --
Education & Training
• --
Technology
• --
Other Fees
• --
Brokers XpressRep Fees
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6868
Brokers Xpress’ Customer Service …
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 6969
Licensing
• --
New Accounts
• --
Account Transfers
• --
Legal & Compliance
• --
Brokers XpressOperations Departments
Brokers Xpress’ Operations Departments Include … (Page 1)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7070
Trading
• --
Commissions
• --
Statements
• --
--
• --
Brokers XpressOperations Departments
Brokers Xpress’ Operations Departments (Page 2)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7171
Mutual Funds
• --
Annuities
• --
Fee-Accounts
• --
Life & Other Insurance Products
• --
Brokers XpressProduct Support
Brokers Xpress’ Product Support Includes … (Page 1)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7272
Alternative Investments
• --
Financial Planning
• --
Insurance Planning
• --
Tax Planning
• --
Brokers XpressProduct Support
Brokers Xpress’ Product Support (Page 2)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7373
Ads
• --
Newsletters
• --
Brochures
• --
Direct Mailings
• --
Brokers XpressSales & Marketing Support
Brokers Xpress’ Sales & Marketing Support Includes … (Page 1)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7474
Conference Presentations
• --
Web Site Building
• --
Client Referral Programs
• --
--
• --
Brokers XpressSales & Marketing Support
Brokers Xpress’ Sales & Marketing Support (Page 2)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7575
Start-Up
• --
Brokers XpressBusiness Building Support
Marketing
• --
Staffing & Compensation
• --
Benchmarking
• --
Succession Planning
• --
Brokers Xpress’ Business Building Support Includes …
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7676
New Client Sales
• --
Brokers XpressTechnology Offerings
Calculators
• --
Financial Planning
• --
Asset Allocation
• --
Stock Quotes
• --
Brokers Xpress’ Technology Offerings Include … (Page 1)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7777
Data & Research Services
• --
Brokers XpressTechnology Offerings
Prospectuses & Applications
• --
Order Entry
• --
Portfolio Management
• --
Client Account Viewing
• --
Brokers Xpress’ Technology Offerings (Page 2)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7878
Statements
• --
Brokers XpressTechnology Offerings
Quarterly Client Reviews
• --
Contact Management
• --
--
• --
--
• --
Brokers Xpress’ Technology Offerings (Page 3)
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 7979
Source: Tiburon Research & Analysis
Top Producers’ Trips Annual Conferences Regional Meetings
Brokers XpressTop Producers’ Trips, Annual Conferences, & Regional Meetings
Brokers Xpress Has Top Producers’ Trips, Annual Conferences, & Regional Meetings
• -- • -- • --
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 8080
Brokers Xpress Has Online Training & Other Self-Study Offerings.
• --
Other Self-Study Offerings
Source: Tiburon Research & Analysis
• --
Online Training
Brokers XpressOnline Training & Other Self-Study Offerings
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 8181
Brokers Xpress Web Site is Organized into Four Sections, Including Ready to Switch?, The bX Advantage, Our Platform, & Powerful Tools
Brokers Xpress Web Site
Source: 5/24/12 Brokers Xpress Web Site; Tiburon Research & Analysis
Brokers XpressWeb Site
Ready to Switch? Our Platform Powerful ToolsThe bX Advantage
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 8282
Brokers Xpress is Led by Blaine Schwartz
Brokers Xpress Organizational Chart
--
Blaine SchwartzCEO
----
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 83
Brokers Xpress is Owned by …
• --
Comments
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 84
US Fiduciary
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• Formed though 2004 merger of Post Oak Capital, Vista Analytics, and West Hills
• Based in Sugar Land, TX• $800 million under management• Consults on an additional $1.2 billion in assets• CEO: Steven Graubart• Web Site: www.usfiduciary.com
CommentsUnbundle
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 85
Early Phase
Approximate Dates: XXXX - XXXX
• XXXX: --
XXXX - 2012
Key Steps:
US Fiduciary was Founded in XXXX and Has Evolved Through Three Phases, Including its Early, Acquisition, & Recent Phases
Acquisition Phase
US Fiduciary History
US Fiduciar
y Founde
d
XXXX 2012
US Fiduciary TodayRecent Phase
XXXX - XXXX
• XXXX: US Fiduciary founded
• 1996: Acquired Post Oak Capital
• 1997: Acquired Vista Analytics
• 1998: Acquired West Hills
• XXXX: --
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 86
US Fiduciary Received Only a Small $2.5 Million Initial Capital Infusion in 2004 from a Core Group of Friends & Family Investors
Source: 11/30/04 US Fiduciary Conversation (Graubart); Tiburon Research & Analysis
• Raised capital to fund the operations of the combined entities
• Tapped into a small pool of friends & family though Steven Graubart’s existing relationships
• Management retained 70% ownership• The acquisitions were structured utilizing earn
outs rather than up front cash• Intend to raise additional capital in 2005 to fund
expansion and provide additional working capital
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 87
US Fiduciary Was Formed by Merging Post Oak Capital, Vista Analytics, and West Hills to Create a Far More Complete Company
US Fiduciary Acquisitions
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• Founded 1997• Based in Sugar Land,
TX• $500 million AUM• Acquired in 2004
- Paid on earn-out- --
Vista Analytics
• Founded in 1998• Based in Chicago, IL• $300 million AUM• Acquired in 2004
- Paid on earn-out- --
West Hills
• Founded in 1996• Based in Houston, TX• Investment consulting
firm• CEO: Donald Graubart
(father of Steven Graubart)
• Acquired in 2004- Paid on earn-out- --
Post Oak Capital
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 88
US Fiduciary has $800 Million Under Management
$800
2002 2003 2004
US Fiduciary Assets Under Management
($ Millions)
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 89
US Fiduciary
-- -- ---- --
US Fiduciary Businesses
US Fiduciary Has a Number of Businesses
Source: Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 90
US Fiduciary’s $800 Million in Assets are Two-Thirds in Separately Managed Accounts
US Fiduciary Assets Under Management
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 91
US Fiduciary also Consults on an Additional $1.2 Billion
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
$1.2
2002 2003 2004
US Fiduciary Assets Under Administration
($ Billions)
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 92
US Fiduciary Now Has Three Core Businesses
• Serves third-party broker/dealers with fee-account offerings
• 90% of current business
TAMP
• Two businesses acquired are part of broader strategy
- Post Oak- West Hills
(proprietary assets)• Not core focus
Wholly-Owned Advisor Business
• Model similar to Powell Johnson, Cap Trust, and Lockwood
• Future focus of the firm
Fee Oriented Independent Broker/Dealer
US Fiduciary Businesses
Note: All of US Fiduciary’s operations are to be branded as US FiduciarySource: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 93
US Fiduciary’s Primary Business is a Turnkey Asset Management Program
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 94
US Fiduciary is Integrating its Vista Analytics and West Hills Product Offerings
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 95
US Fiduciary’s Planned Business Strategy Involves Transitioning from Predominantly a Turnkey Asset Management Program to an Organization Built Predominantly Around High-End Fee Oriented Independent Brokers
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 96
US Fiduciary Plans to Acquire Breakaway Brokers from Wirehouses
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 97
US Fiduciary’s Strategy Focuses on Evolving from a Turnkey Asset Management Program to a High-End Fee Oriented Brokerage Firm
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• Near-term goal of developing product offerings that would entice established brokers away from the wirehouses
• One component of strategy is offering brokers access to a broader range of investment products (e.g., hedge funds, fund of funds, and other alternative investments)
• The strategy is not predicated on capturing large numbers of breakaway brokers
• Bringing first breakaway broker on board in 2005• Smith Barney broker with $100 million book of
business
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 98
US Fiduciary’s Goal is to Evolve to Shift Its Business Mix to Focus on High-End Fee-Oriented Independent Brokers
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
US Fiduciary Business Composition
90%
50%
10%
10%
50%
90%
2004 Mid-Term Goal Ultimate Goal
High-EndFee-Oriented
Brokers
Turnkey AssetManagement
Program Clients
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 99
US Fiduciary Has a Small but Growing Client Base, Primarily Centered Around Its Turnkey Asset Management Program Business
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; 3/31/03 Investment News; 9/02 Registered Rep; 8/26/02 Investment News; 7/2/01 Trivium Research; Tiburon Research & Analysis
• Addison Avenue (Hewlett Packard Credit Union)
• Centaurus Financial • H. Beck (Capital
Financial Group)• NEXT Financial Group• Pro Equities• Stephens & Company• Sterne, Agee, & Leach• Walnut Street (formerly
Nathan & Lewis)
TAMP
• Post Oak Capital• West Hills Asset
Management
Wholly-Owned Advisory Business
• New ex-Smith Barney broker
Fee-Oriented IndependentBroker/Dealer
US Fiduciary Clients
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 100
US Fiduciary’s Four Larger Outside Clients Include H. Beck, NEXT Financial, Pro Equities, and Walnut Street
Source: 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
Selected US Fiduciary Clients
Pro Equities
• Founded in 1986• Based in Birmingham,
AL• Subsidiary of Protective
Life• Over 1,000 registered
representatives• Web Site:
www.proequities.com
NEXT FinancialGroup
• Founded in 2001• Based in Houston, TX• Over 500 registered
representatives• President: Jeff Auld• Web Site:
www.nextfinancial.com
H. Beck(Capital Financial
Group)
• Founded in 1954• Based in Rockville, MD• H. Beck is the securities
arm of Capital Financial Group
• Over 400 registered representatives
• Web Site: www.cfginc.com
Walnut Street(Nathan & Lewis)
Founded in 1985 Based in New York, NY Formed through merger
of Nathan & Lewis and Walnut Street Securities
Subsidiary of MetLife Over 2,200 registered
representatives Web Site:
www.walnutstreet.com
Not Tiburon format
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 101
US Fiduciary is Led by its CEO Steven Graubart
Steven GraubartCEO
PresidentUS Fiduciary Services
(TAMP)
PresidentUS Fiduciary Advisors
(RIA)
Austin PageCOO
Cindy BurnetteCFO
US Fiduciary Organizational Chart
US Fiduciary Securities
(Broker/Dealer)
Note: Steven Graubart was previously a Director of Post Oak Capital and held numerous roles in the portfolio companies of venture capital firm Sterling Capital including leading a franchise business in Baltimore; Scott MacKillop was previously President of Trivium Consulting and President of Portfolio Management Consultants, which was sold to Envestnet; Elliott Weissbluth previously led business development at CRA Rogers Casey; Austin Page co-founded Vista Analytics and was a Vice President for Paul L. Comstock; Donald Graubart founded Post Oak Capital and was previously a Partner at Kidder Peabody; Steve Billimack previously supervised due diligence for EVEREN Securities.
Source: 11/30/04 US Fiduciary Conversation (Graubart); Tiburon Research & Analysis
Elliott Weissbluth &
Scott MacKillop both left
Donald Graubart &
Steve Billmack?
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 102
US Fiduciary’s Advisory Board Members Bring Experience in Financial Services, Growth Capital, and Investments
Source: 11/29/04 US Fiduciary Web Site; Tiburon Research & Analysis
• Founder of Post Oak Capital
• Experience in investment consulting
• Former partner at Kidder Peabody & Company
• Former member of Senior Management Advisory Committee at UBS Financial Services
Donald Graubart
• Founder of Geometry Group
- Investment banking company
- $1.5 billion assets under management
• Former managing director at Morgan Stanley
James Lewis
• CEO of CapRock Communications
• Founder of Genesis Park private equity fund
• Formerly President of a division of First Data Corporation
Peter Shaper
• CEO of Constellation Energy Group
• Former Chairman of Deutsche Bank Alex Brown and Global Head of Investment Banking
• Director of Capital One and Gap
Mayo Shattuck
• Active investor in the field of meat proteins
• Formerly a Group President of Food Brands America
• Previously ran a $900 million revenue per year meat importing and processing company
Benjamin Warren
US Fiduciary Advisory Board
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 103
US Fiduciary’s Management Owns Almost Three-Quarters of the Firm
US Fiduciary Capitalization
Source: 11/30/04 US Fiduciary Meeting (Graubart); Tiburon Research & Analysis
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 104
US Fiduciary’s Business is Vista Analytics
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; 10/24/02 Vista Email (Skaggs); 10/21/02 Vista Email (Skaggs); 9/02 Registered Rep; 8/26/02 Investment News; 10/15/01 Vista Letter (Ridout); 7/17/01 Vista Analytics Conversation (Ridout); 7/2/01 Investment News; 7/2/01 Trivium Consulting Research; 6/1/01 Vista Email (Ridout); Tiburon Research & Analysis
• Founded 1997• Based in Sugar Land, TX• $800 million AUM• Provider of back office solutions and managed account
programs for financial advisors and broker/dealers• Focuses on consulting and separately managed
accounts• 14 employees• Searching for regional sales manager and research
analyst• Limited sales team; seek to work with the advisory
services department of independent broker/dealers• US Fiduciary is in the process of integrating and
rebranding all of Vista Analytics programs• Named to Houston 100 fastest growing private
companies• Web Site: www.vistaanalytics.com
CommentsNeeds to blend
in
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 105
US Fiduciary’s Vista Analytics Fee-Account Programs Include its Core Separately Managed Account Program Plus an MSP Program and a Mutual Fund Wrap
Core Select
Fee-Accounts Business
iMAP
• Separately managed accounts
• Multiple style portfolio
Source: 11/29/04 Vista Analytics Web Site; Tiburon Research & Analysis
Vista Analytics Fee-Accounts Business
ConsultsProgram
• Custom fee accounts consulting
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 106
US Fiduciary’s Vista Offers a Separately Managed Account Product Called iMAP
Source: 11/29/04 Vista Analytics Web Site; 9/02 Registered Rep; 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis
• Traditional separately managed account program• 60 managers• 100 products• $100,000 account minimum• Provides client profiling and risk tolerance tools• Advisors can create custom client portfolios or
utilize Vista Analytics model portfolios• Automates administrative functions such as
account set up, transfers, and distributions• Creates quarterly performance reports• Vista consolidates the multi-party billing process• Documentation is private labeled for advisors
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 107
US Fiduciary’s Vista’s iMAP Program Costs About 1.00% Before the Advisor and Custodial Charge
Source: 5/15/01 Vista Brochure; Tiburon Research & Analysis
Vista iMAP Pricing Estimates
Money Manager Fee
Vista Fee
Fee Before FA & Custodian
Low Average High
16 bps 50 bps 60 bps
15 bps 45 bps 50 bps
31 bps 95 bps 110 bps
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 108
US Fiduciary’s Vista Also Offers Hedge Funds
Source: 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 109
US Fiduciary’s Vista Introduced a Multiple Style Portfolio Called Core Select in 2002
Source: 11/29/04 Vista Analytics Web Site; 11/14/02 Vista Email (Skaggs); 10/24/02 Vista Email (Waller); Tiburon Research & Analysis
• Traditional multiple style portfolio program• Vista is overlay manager• $100,000 minimum• Serves as the equity component of a clients’
portfolio• Best utilized in conjunction with an overall asset
allocation strategy
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 110
US Fiduciary’s Vista’s Consults Program Allows Advisors to Individually Select Components from Vista’s Range of Services
Source: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis
• Permits advisors to customize a program for their clients’ individual needs
• Allows for a-la-carte selection from Vista’s range of products and services
• Priced on a flat fee structure, rather than percent of assets
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 111
US Fiduciary’s Vista Had Previously Considered Developing a Mutual Fund Wrap Account
Source: 7/17/01 Vista Analytics Conversation (Ridout); 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis
• Expert Comments• “Going to develop model portfolios”• “Can offer Dimensional Fund Advisors through
Schwab”
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 112
US Fiduciary’s Vista Promotes its Five Step Investment Process
Source: 5/15/01 Vista Brochure; Tiburon Research & Analysis
Client Profiling Asset AllocationManager
Selection & Access
Account Implementation
Portfolio Monitoring &
Ongoing Administration
Vista Five Step Investment Process
• Provides assistance to financial advisors in determining clients’ risk and return profile
• Builds foundation of portfolios using MPT
• Assists financial advisors in manager selection through concentrated diversification
• Assists financial advisors by coordinating the efforts of all partners in implementing the investment portfolio
• Provides quarterly in-depth analysis on client portfolios
KeySteps
Start End
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 113
US Fiduciary’s Vista’s Investment Policy Centers Around Concentrated Diversification
Source: 10/21/02 Vista Email (Skaggs); 5/15/01 Vista Brochure; Tiburon Research & Analysis
• Believes that most investors have over-diversified• Believes in the combination of various
concentrated style specific managers• Most easily applied with separately managed
accounts
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 114
US Fiduciary’s Vista is a Start-Up on CheckFree APL
Source: 7/31/01 Citigroup Conversation (Waller); Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 115
US Fiduciary’s Vista Horizons 401(k) Program Consists of Four Separate Portfolios Each Designed with Different Goals
Source: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis
• Offers four portfolios known as the Horizon Accounts
• Each portfolio constructed with a specific goal ranging from income to long-term growth
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 116
US Fiduciary’s Vista Sends Out a Quarterly Newsletter
Source: 10/15/02 Vista Email (Skaggs); Tiburon Research & Analysis
• --
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 117
US Fiduciary’s Vista is Continuing the Development of Phase III of its Online Proposal System
Note: The following information can be used to access Vista’s “proposal special:” user id: Vistatemp; password: specialSource: 11/29/04 Vista Analytics Web Site; 5/15/01 Vista Brochure; Tiburon Research & Analysis
• Developing Phase III of its online proposal system• Once completed would allow advisors the ability
to construct their own portfolios including the funds and managers they select
• Proposals provided at 35 basis points
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 118
US Fiduciary’s Vista Analytics is Led by…
Will Abbott --
Managing Partner
Emily Skaggs --
Source: 1/16/03 Vista Email (Skaggs); 10/24/02 Vista Email (Skaggs); Tiburon Research & Analysis
Vista Analytics Organizational Chart
Update or delete
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 119
US Fiduciary’s Vista Analytics Received Good Market Feedback…
Source: 8/16/01 AdvisorPort Conversation (DeAngelis); 8/8/01 Schwab Conversation (Turner); 8/8/01 Creating Equity Group Conversation (Bowen); 7/31/01 Citigroup Conversation (Waller); 7/17/01 Prima Capital Conversation (Watson); 7/17/01 Vista Analytics Conversation (Rideout); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis
Good Organization• “Profitable”• “Prudent business men”• “Not overspending in technology”
Good Offer• “Customize everything we do”• “Lot of flexibility in offering”• “Willing to build a platform, provide web sites, etc.”• “Can offer unbundled package for RIA or IBD”• “Private labeled”• “If the client just wants our billing and support, that’s ok”• “Can provide terrific technology”• “Willing to review managers off the beaten path”• “Do it all – performance reports, help advisors generate very nice
proposals”• “Like the whole package”• “Not shy in serving smaller accounts”• “Willing to unbundle”• “Builds around Charles Schwab”• “Also has a Pershing relationship”• “Plans to add Fidelity and Datalynx”
Comments
12.09.01 – Brokers Xpress © Tiburon Strategic Advisors, LLC™ 120
…But Some Comment That Vista Isn’t Well Known
Source: 8/16/01 AdvisorPort Conversation (DeAngelis); 8/8/01 Schwab Conversation (Turner); 8/8/01 Creating Equity Group Conversation (Bowen); 7/31/01 Citigroup Conversation (Waller); 7/17/01 Prima Capital Conversation (Watson); 7/17/01 Vista Analytics Conversation (Rideout); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis
Not Well Known/Small Shop• “They are a quiet shop”• “Not big and not growing”• “Source of their funds is unclear”• “They have about $1 billion in assets”
Problems With Manager List• “Managers not good”• “All managers based in Texas”• “Limited managers”
Other Comments• “Soliciting independent broker/dealers to let us help”• “Used to receive lots of Charles Schwab referrals”• “Wirehouse reps call us after they try to do it themselves”• “Don’t have a platform of mutual funds”• “Don’t have pre-selected mutual funds or established portfolios”• “Highly expensive; 40bps”• “Not sophisticated portfolio generation system”• “Owners deeply involved in the business”• “Not looking to make dollars via additional services”• “Focuses on the independent broker/dealers which don’t need extensive
training”• “Willing to compete on fees”
Comments
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US Fiduciary’s Vista Analytics Initially Grew at a Strong Pace Following its Founding in 1997 but Growth Slowed Prior to Being Acquired by US Fiduciary
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 Vista Analytics Web Site; Tiburon Research & Analysis
• In 2002, Vista Analytics placed 27th on the Houston 100 of fast growing companies
• The Houston 100 is an annual ranking of private businesses by the University of Houston Small Business Development Center and the Houston Business Journal
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US Fiduciary’s Business is West Hills
Source: 11/30/04 US Fiduciary Meeting (Graubart); 11/29/04 West Hills Web Site; 7/2/01 Trivium Consulting Research; 7/01 Investment Advisor; Tiburon Research & Analysis
• Founded in 1998• Based in Chicago, IL• Comprised of:• West Hills Asset Management• --• West Hills Institutional• --• Utilizes no-load mutual funds• President: Steven Billimack• 12 employees• Offers both separately managed accounts and
mutual fund TAMPs• US Fiduciary is in the process of integrating and
rebranding all of West Hills programs • Web Site: www.westhills.com
CommentsNeeds to blend
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US Fiduciary’s West Hills Fee-Accounts Programs are Centered Around Separately Managed Accounts and a Mutual Fund Wrap Program
--
Fee-Accounts Business
Select Strategic Portfolios
• Separately managed account
• Mutual fund wrap account
Source: Tiburon Research & Analysis
West Hills Fee-Accounts Business
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US Fiduciary’s West Hills Offers a Mutual Fund Wrap Account Which is its Core Offering
Source: 7/2/01 Trivium Consulting Research; Tiburon Research & Analysis
• Traditional mutual fund wrap account• Mutual funds used dependent on custodian• Seems to be primary product offer• Executive comments• “We specialize in managing portfolios of no-load
mutual funds and in providing access to separately managed accounts”
• “We search for established and emerging money managers with great track records and sensible consistent Investment styles”
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US Fiduciary’s West Hills Offers Mutual Fund Profiles Co-Branded With Morningstar
Source: 12/5/01 Trivium Consulting Presentation (MacKillop); Tiburon Research & Analysis
• --
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US Fiduciary’s West Hills Offers a Separately Managed Account Program Called Select Strategic Portfolios
Source: 1/6/03 Fund Marketing Alert; 10/01 Investment Advisor; 7/2/01 Trivium Consulting Research; 7/01 Investment Advisor; Tiburon Research & Analysis
• Traditional separately managed account program• 14 managers• Century Capital Management• 23 products• $100,000 account minimum
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US Fiduciary’s West Hills Has a Proprietary Reporting Software Called Portfolio Forum
Source: 12/5/01 Trivium Consulting Presentation (MacKillop); 7/01 Investment Advisor; 4/01 Investment Advisor; Tiburon Research & Analysis
• Allows financial advisor to generate professional reports tailored to each client
• Web site allows financial advisors to view daily portfolio values and comprehensive performance reports
• Recently released a feature that allows advisors to look at performance over any time period they designate
• Offers many types of reports
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US Fiduciary’s West Hills Allows Advisors to Access Client Accounts Daily Through the Web and Obtain Consolidated Client Account Information
Source: 4/01 Investment Advisor; Tiburon Research & Analysis
• Consolidated client account information available includes not only positions and transactions but also cost basis, gain-loss, cash flow, and asset allocation information
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US Fiduciary’s West Hills Has a Streamlined Executive Team and Taps into a Broader Investment Committee Made Up of Executives from Parent US Fiduciary
Note: West Hills was founded by John Mansueto who passed away in 2003Source: 11/29/04 West Hills Web Site; 10/1/02 IIR Conference Chairman Notes; 9/30/02 IIR Conference Brochure; 7/2/01 Trivium Consulting Research; Tiburon
Research & Analysis
Steven Billimack President
Quan DomalecznyPortfolio Analyst
West Hills Organizational Chart & Investment Committee
Steven GraubartCEO US Fiduciary
Elliott WeissbluthPresident USFA
Mary CampionCIO USFS
Scott MacKillopPresident USFS
Austin PageCOO US Fiduciary
Donald GraubartCEO Post Oak
Capital Advisors
Jennifer SchneiderResearch
Manager USFS
Eugene LeeResearch Analyst
USFS
InvestmentCommittee
Not Tiburon format
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US Fiduciary’s West Hills is Perceived to Have Some Competitive Advantages But Not Necessarily Collecting a Lot of Assets
Source: 8/16/01 Greenrock Conversation (Malone); 8/8/01 Creating Equity Group Conversation (Bowen); 7/26/01 RunMoney Conversation (MacIntyre); 7/17/01 Prima Capital Conversation (Watson); 7/10/01 Trivium Consulting Conversation (MacKillop); Tiburon Research & Analysis
Good Organization With Strong Offer• “Cool technology”• “Good separate account and mutual fund presence”• “Good fee schedule”• “Heavy technology thinkers”• “Close to the makings of a good business plan”• “Huge advertising budget; two page ad in every publication”• “Must be well capitalized”
Some Issues• “Trouble hiring people; one man band”• “Small shop in number of people”• “Got a young guy doing research on managers”• “Not produced assets”• “Don’t see training & education in the circles in their ads”
Not Well Known• “Never come up against them”
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Source: Tiburon Research & Analysis
Tiburon Strategic Advisors
• Focus on corporate-level strategy- Serve senior executives only at financial
services companies- Key services: market seminars, market
research, & strategy consulting - Served over 350 corporate clients and
completed over 1,500 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
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