How Over 1,000 Advisors are Increasing AUM with Account Aggregation. Presenters: Cynthia Stephens, Vice President of Marketing, ByAllAccounts

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5 How Over 1,000 Advisors are Increasing AUM with Account Aggregation Presenters: Cynthia Stephens, Vice President of Marketing, ByAllAccounts

6 Cynthia Stephens, VP of Marketing, ByAllAccounts 15+ years in marketing and research Proven track record developing high-impact marketing initiatives to build market visibility, acquire new clients and grow existing account relationships. Oversees marketing of the firm s financial account aggregation services to investment management and advisory firms. Previously, Director of Marketing at Compete, one of the 50 fastest growing technology companies in New England.

7 Agenda 1 The Benefits of Account Aggregation (to Advisors and Your Clients) 2 Client Success Stories and Case Studies 3 How it Works 4 Getting Started 5 Q&A Session

8 ByAllAccounts The Professional s Choice for Financial Account Aggregation 10-year proven track record in account aggregation Industry recognized leader in Investment News Survey Voted #1 Account Aggregation 7 th ranked technology product cited by advisors Over 1,000 Advisory Firms as Clients Hundreds of Billions of Dollars Flow through Our Aggregation Engine Daily (Billions of dollars in assets under aggregation)

9 The Benefits of Account Aggregation (to Advisors and Your Clients)

10 What does account aggregation do for you? ByAllAccounts provides you with A Comprehensive View. A holistic top-down view of your clients entire financial picture Daily access to all of your clients account data including held-away accounts such as 401(k)s and annuities Customizable Alerts. Alerts feature will notify you of significant account activity Allowing you too Act Faster. Identify risks and investment opportunities at first sign and take immediate action Provide more timely advice Provide better asset allocation advice Better service

11 Benefits to Your Client A total financial picture in a single report Peace of mind that all of their accounts are being monitored daily especially in times of economic turmoil. More accurate and timely advice on the holdings within their 401k, other retirement accounts and held away accounts without having to wait for statements. Better diversification through comprehensive advice and an asset allocation based on all assets not just a subset.

12 Benefits for the Advisor Keeping clients highly satisfied by streamlining operations and spending more face-to-face time has enabled me to get more referrals and boost AUM by about 40% since the beginning of the year. Loyalty & more Referrals Higher client retention rate High operational efficiency (eliminate manual entry) Faster service for clients on the fly Better allocation advice to increase revenues Competitive advantage New revenue stream (billing on held away assets) Michael Andries Managing Member of mabc Advisors, LLC

13 How are advisors benefiting from it? On average, how much do you bill on held-away assets? (Response percentages) 29.4% 18.8% 17.3% 19.9% 6.6% 8.1% 25 basis points 50 basis points 75 basis points More than 100 basis points Bill as part of larger financial plan Other

14 Five reasons why you should be compensated 1. Due Diligence 2. Providing valuable advice and better service 3. Proactive alerts and recommendations (quarterly to daily) 4. Doing it manually free of charge is not scalable 5. Over half of a typical advisor s clients have held-away assets which represent between 20% - 40% of total portfolio. ByAllAccounts clients receive very little to no push back from endclients when they began billing on held away assets.

15 Client Success Stories Implementing ByAllAccounts had a massive impact on our efficiency and ability to spend more time with clients and less on back-office functions. Andy Seth, Managing Partner, Lotus Group Advisors

16 Client Success Story Kenjol Capital Management I haven t heard the word scalability used. That s really what ByAllAccounts allows us to do. It allows for the process to be scalable and takes a lot of the manual labor out of the equation. About $8 million, or 10 percent of our business is assets that are in ByAllAccounts today. -David Levy, Kenjol Capital Management About Kenjol Capital Management: RIA founded in 2001 with a focus on high net worth individuals Most clients in their mid 50 s heading for retirement. Challenge: Need to Increase Assets Under Management Add more value for clients by providing holistic management. Solution: With account aggregation we can connect very easily now and grab those assets in annuities, as well as qualified benefit plans to actively manage them for our clients Benefits: Increased AUM More timely investment advise for clients Eliminated manual labor and made practice scalable Holistic view of accounts to show the way various elements of the client s financial picture fit together rather than looking at it in separate silos.

17 A Client Success Story Asset Strategy Consultants - Boston About Asset Strategy Consultants- Boston: $ 150 million in AUM. Provides investment management consulting services for fiduciaries of endowments, foundations, and retirement plans with over $8 Billion AUM This value-added service has enabled us to increase our AUM by 40% to 50% for clients by actively soliciting their held-away assets. -Kent Fitzpatrick, Managing Director, Asset Strategy Consultants Situation: Client with a deceased spouse Spouse held money at wirehouse and widow was inclined to leave it there Solution: Research/ Analyzed the wirehouse assets by using BAA to aggregate the held-away assets and performed analysis using Envestnet I Vantage reporting capabilities Results/Benefits Assets not consistent with the client s objective Happy client asked her accountant to move all of the deceased spouses investments to ASC doubling the business she had with them. Client s accountant decided to move their own assets to the firm as well.

18 Client Success Story: RINET Company About RINET Company LLC: Independent fee-based investment advisory firm founded in 1974 based in Boston, MA. Focused primarily on HNW client relationships Keeping track of a client s assets is always difficult. It s very labor-intensive getting statements and plugging things into Excel spreadsheets and making sure formulas are correct and market values are correct. -Brian Rivotto, CEO, RINET Company, LLC Challenge: Need to eliminate errors and time required for manual data entry Immediate need to hire additional full time employee for data entry. Clients each have several accounts not managed directly by the firm not scalable Need for timely consolidated reporting Benefits: Competitive Advantage Increased Client Retention Significant Operational Cost Savings

19 How it Works If I have to wait for a periodic review of an account or for a quarterly statement, it doesn t allow me to opportunistically look at things and make changes. Monica Ness, Principal, Seascape Capital Management, LLC

20 Data Gatherer Semantic Integrator * Custodial Integrator DataConnect API Patented Product Platform Data can be integrated from multiple sources 3,600+ Online Financial Data Sources Raw Data OFX QIF XML ASCII HTML TBD Extracted Data Enhanced Data Trust QCOM Buy 100 shares Buy 200 shares IBM Sell 300 shares Retirement Plan FDEGX Buy 10 shares FAGOX Buy 20 shares Custom Application Quote Service Fundamentals Previous Data Manual Data System Rules Account Rules Business Rules Custodian Rules Back-Office Financial System Data can be Augmented *Patent received 12/29/2009

21 How does it work? ByAllAccounts named as agent Credentials placed directly into our system Automated retrieval process mimics person: Logs in Navigates to appropriate locations Captures files, pages, or data streams Automated extraction process Automated cleansing and enrichment process Customer-driven delivery process

22 With ByAllAccounts Advisors still use their feeds ByAllAccounts provides supplementary feed Clients authorize advisors to use ByAllAccounts ByAllAccounts provides template letter Advisors register access information they have, or Clients register access information directly Existing access / retrieval mechanisms used; custodian involvement not required

23 Security and Privacy Secure data center: SunGard provider SAS-70 Type II compliant 24 x 7 guards, video monitoring, access controls All components dedicated to ByAllAccounts service Strict security and privacy policies No individual information sharing Limited production access; complete change control Sensitive information encrypted Employee criminal background and credit checks Watch our Security Video

24 The Bottom Line Single feed covering thousands of sources Balance, holding, and transaction detail Consistent across sources Technology foundation facilitates rapid coverage expansion Data ready for reconciliation Data suited for target system Special knowledge institutionalized Manual data acquisition and manipulation minimized

25 30-Minute Daily Process 1. Data Gathering 2. Import Data 3. Export data to Portfolio Management System or CRM 4. Accept data in Custodial Integrator (CI) 5. Review transactions and post to accounts 6. Run the reconciliation report in back office system 7. Run your monthly/quarterly client reports

26 Getting Started

27 Using ByAllAccounts RIAs that use ByAllAccounts typically: Use a portfolio management system or CRM Have 25+ accounts to aggregate Fee-based business Do performance reporting Reconcile data daily or weekly

28 We Partner with the Leading RIA Platforms We know your sources: 3,800+ FI connections already available (1-2 added every day) We know your platforms: 40+ integration partners

29 Get Started for $250 Per Month Use us in-house OR use us via your outsourcer

30 Questions? Justin Shepard ByAllAccounts ext Option x2