Chicago Financial Advisors Symposium October 2007

Chicago Financial Advisors Symposium October 2007 Methodology During the Financial Advisors Symposium held October 8-10, 2007 in Chicago, 72 attendees completed a written questionnaire regarding their business characteristics and expectations, licenses and affiliations, sources of information, and impressions of the Financial Advisors Symposium. To get a higher response rate, incentives were publicized in the form of a drawing for a $250 cash grand prize and other prizes of nominal value. Attendees did not have to be present to win. The maximum margin of error for the survey is plus or minus 11.3%. Key Findings Attendees of the Financial Advisors Symposium tend to have many years of experience in the industry. The average time spent in the industry is nearly 16 years, and the median is 14 years of financial industry experience. Fourteen percent have been in the business for five years or less, 28% have six to ten years, 27% have 11 to 20 years, and 31% have more than 20 years of experience. Nearly all the financial advisors attending indicate that their firms are doing better than last year. More than nine of ten attendees (94%) indicate that that their firm s total revenues will be up in 2007 over 2006. Just 4% of attendees say their revenues will be down from the prior year, while 2% believe revenues will stay the same. Two-thirds of attendees (68%) expect growth of more than 10% over 2006 revenues. Attendees have thriving businesses with wealthy clients. The median number of clients served in a year is 60 clients. The average account size is about $515,800, and the total asset value of all of their accounts averages $82 million. Nine of ten attendees (88%) say their clients average portfolio size increased in the past 12 months, while 12% say their clients portfolio size has stayed about the same, and none decreased. Seven of ten attendees (70%) say that they have increased in the number of clients served, while just 4% decreased, and one-fourth (26%) remained about the same. Six of ten (59%) increased their client base by 10% or less, and 23% increased 11% to 50%. Half of attendees (51%) have income from both fees and commission, 43% have fee only/salary income, and 6% have commission only (no fee income). While one in ten (10%) derives no feebased income, another 9% obtains up to 25% of their income from fees, 27% earns between 26% to 60%, and 13% earn 61%-99% of their income from fees. Another four of ten (41%) obtains 100% of their income from fees. The median level is 70% of income coming from fee-based services. Three-fourths of attendees (73%) are primarily Financial Planners/Advisors, 7% are Accountants, 6% are Investment Managers, 6% are office managers or administrators, 3% are Insurance Agents, while 2% have other positions. Nearly all attendees are involved in recommending, specifying, or approving the purchase or use of Mutual Funds (94%). About seven in ten each recommend, specify, or approve the purchase of Annuities (72%), Exchange Traded Funds (69%), Insurance (69%), or Large or Small Cap Mutual Funds (68%). About six of ten each are involved with REITs (63%), Advisory Services (58%), and Investment Management (57%). Over half suggest bonds or common stocks (55% each). Other products/services are mentioned by less than half of attendees. Chicago Financial Advisor Symposium October 2007 Page 1

The most commonly held licenses and designations by attendees include: CFP (58%), insurance license (55%), annuities license (52%), NASD Series 7 (51%), Registered Investment Advisor (RIA) (35%), NASD Series 65 (35%), NASD Series 63 (33%), and Investment Advisor Representative (32%). Over half of attendees belong to the Financial Planning Association (FPA) (56%). The next most frequently mentioned trade organizations are AICPA (18%), NAIFA (10%), the CFA Institute (8%), the Estate Planning Council (8%), and the International Association for Registered Financial Planners (IARFC) (8%). Nearly half of attendees (48%) are independent broker/dealers. One in ten is primarily either a wirehouse or regional broker/dealer (8%), or an insurance broker/dealer (7%). Two percent are bank brokers/dealers. Over one-third (35%) have no broker/dealer affiliation (use third-party provider). Newspapers and magazines read most often by attendees for their business practice include: Financial Advisor magazine (76%), Financial Planning magazine (63%), The Wall Street Journal (56%), Investment Advisor magazine (50%), Journal of Financial Planning (49%), Forbes (33%), local or regional newspapers (31%), Investment News (27%), and Money magazine (26%). Most often mentioned software packages or Web sites regularly used to advise clients or help manage their practice include: Yahoo! Finance (50%), Morningstar/Principia Pro (38%), MorningstarAdvisor.com (30%), QuickBooks (30%), BigCharts.com (27%), (Charles) Schwab.com (23%), Bloomberg.com (22%), and DST Vision (20%). The average personal income of attendees is $181,500, while the median is $147,100. One-fourth of attendees (25%) earn $250,000 or more. Two-thirds of attendees (66%) had not attended an InterShow event before, while one-third (33%) had previously attended an InterShow event. Over half of attendees (55%) have heard of Intershow s web site called MoneyShow.com. Nearly nine of ten are likely to view a Webcast on MoneyShow.com if they could earn CE credits. Two-thirds of attendees (67%) have attended other events like the symposium in the past 12 months. One-fourth attended one event (24%), another quarter (24%) attended two, and 9% each attended three, or four or more other events in the past 12 months, respectively. Among attendees of other events, the most frequently attended events were for the Financial Planning Association (33%), or a Broker Dealer Conference (27%). Attendees were asked their interest in attending various sessions if they came to another symposium. Nine of ten said they would be likely to attend sessions about Practice Management (64% very likely, 25% somewhat likely),followed by Fundamental Analysis (41% very likely, 38% somewhat likely), Technical Analysis (21% very likely, 41% somewhat likely), Options (16% very and 33% somewhat likely), Futures (10% very and 26% somewhat likely), and Currency Trading (11% very and 24% somewhat likely). Janet Goodfriend, President of MarketSmart Services Prepared by MarketSmart Services The survey data was analyzed by Janet Goodfriend, President of MarketSmart Services, a market research firm operating in St. Petersburg, FL since 1993. Janet earned her MBA from the University of South Florida and has been working in the market research industry for over 20 years. She is a member of the AMA (American Marketing Association) and SCIP( Society of Competitive Intelligence Professionals), and adheres to the Council of American Survey Research Organizations (CASRO) Code of Standards and Ethics for Survey Research. 2007 InterShow. All rights reserved. This survey was produced for InterShow, the world's leading producer of investment trade shows and cruises. Visit www.intershow.com for more information. Chicago Financial Advisor Symposium October 2007 Page 2

SURVEY RESULTS There are 72 respondents to each question unless shown otherwise. Q1. How many years have you been working in this industry/business, not necessarily working for your present company? 14% 1-5 years Mean = 15.7 years 28% 6-10 years Median = 14 years 13% 11-15 years 14% 16-20 years 17% 21-25 years 14% 26+ years (71) (BASE) Q2. By year end, how do you expect your firm's total revenues for 2007 to compare with that of year 2006? Will 2007 be 68% Up more than 10% over 2006 revenues? Total up = 94% 22% Up 5% to 10% Same = 2% 4% Up, but less than 5% Down = 4% 2% Exactly the same as last year 3% Down 5% to 9.9% 1% Down more than 15% (68) (BASE) Q3. What is the approximate total asset value of all of your accounts? 7% $500 million or more Mean: $81.7 million 0% $250 - $499.9 million 11% $100 - $249.9 million 20% $50 - $99.9 million 21% $25 - $49.9 million 19% $5 - $24.9 million 10% $2 - $4.9 million 11% Less than $2 million (70) (BASE) Q4. What is the approximate account size of your average client? 5% Less than $50,000 Mean: $515,800 6% $50,000 - $99,999 16% $100,000 - $199,999 14% $200,000 - $299,999 14% $300,000 - $499,999 22% $500,000 - $999,999 23% $1,000,000 or more (64) (BASE) Chicago Financial Advisor Symposium October 2007 Page 3

Q4a. Has the average size of your clients portfolios increased or decreased over the past 12 months? 88% Increased 0% Decreased 12% Stayed about the same (67) (BASE) Q5. What is the approximate number of clients you serve in a given year? 29% 25 or less Median = 60 clients 15% 26 50 14% 51 75 12% 76 100 13% 101 200 17% More than 200 (66) (BASE) Q5a. Has the number of clients you now serve increased or decreased over the past 12 months? 70% Increased 4% Decreased 26% Stayed about the same (69) (BASE) Q5b. By what percentage has your client base changed? (61) (BASE) Increased Decreased Stayed Same 33% Up to 5% 1% Up to 5% 12% No change 26% 6% - 10% 3% 11% or more 20% 11% - 20% 3% 21% - 50% 0% 51% - 99% 0% 100% or more Q6. What is your income source? 6% Commission only 43% Fee only/salary 51% Fee & Commission (67) (BASE) Q7. What percentage of your practice income is derived from fee based services? 10% None Median = 70% 5% 1% - 10% 4% 11% - 25% 10% 26% - 40% 17% 41% - 60% 6% 61% - 75% 6% 76% - 90% 1% 91% -99% 41% 100% (71) (BASE) Chicago Financial Advisor Symposium October 2007 Page 4

Q8. Do you view your custodian as a more viable competitor (for the type of clientele that you serve) than you did one year ago? 32% Yes 37% No 31% Not sure (70) (BASE) ABOUT THE ADVISOR/ATTENDEE Q9. What area of responsibility or job title best describes your primary job function? 73% Financial Planner/Advisor 7% Accountant 6% Investment Manager 6% Office manager, admin., HR, back office 3% Insurance Agent 3% Bank representative 2% Other (72) (BASE) Q10. Are you involved either as an individual or as a member of a group or committee in advising, recommending, specifying, or approving the purchase or use of the following products or services? 94% Mutual Funds 72% Annuities 69% Exchange Traded Funds 69% Insurance 68% Large or Small Cap Mutual Funds 63% REITS 58% Advisory Services 57% Investment Management 55% Bonds 55% Common Stocks 46% Wrap Accounts 43% Pension/Retirement Products/401k 38% Sector Mutual Funds 38% Separately Managed Accounts 31% Educational Services 29% Closed-End Mutual Funds 26% Customized Portfolios 25% Limited Partnerships 23% Trust Services 22% Broker/Dealer Services 14% Hedge Funds 9% Private Equity 9% Third Party Custody & Clearing (65) (BASE) Chicago Financial Advisor Symposium October 2007 Page 5

Q11. Which of the following licenses or designations do you hold? 58% CFP 55% Licensed to sell insurance (life or health) 52% Licensed to sell annuities 51% NASD Series 7 35% Registered Investment Advisor (RIA) 35% NASD Series 65 33% NASD Series 63 32% Investment Advisor Representative 22% NASD Series 6 20% CPA 17% ChFC, CLU 17% Other 15% NASD Series 66 12% PFS - Personal Financial Specialist 10% CFA 10% NASD Series 24 6% Registered Financial Consultant 6% Enrolled Agent 4% CSA 4% NASD Series 3 3% CFS 3% NASD Series 64 3% Attorney/Juris Doctorate 1% CRC - Certified Retirement Counselor 1% NASD Series 51 1% Licensed to sell real estate (69) (BASE) Q12. To which of the following trade organizations do you belong? 56% Financial Planning Association (FPA) 18% American Institute of Certified Public Accountants (AICPA) - Personal Financial Planning 10% National Association of Insurance and Financial Advisors (NAIFA) 8% CFA Institute (formerly AIMR) 8% Estate Planning Council 8% International Association for Registered Financial Planners (IARFC) 5% National Association of Personal Financial Advisors (NAPFA) 3% American Society of Financial Service Providers 3% National Association of Enrolled Agents (NAEA) 2% Institute for Certified Investment Management Consultants (ICIMC) 2% Investment Management Consultants Association (IMCA) 21% None 16% Other (please specify) (63) (BASE) Chicago Financial Advisor Symposium October 2007 Page 6

Q13. Which of the following best describes your broker/dealer affiliation? 48% Independent broker/dealer 8% Wirehouse or Regional broker/dealer 7% Insurance broker/dealer 2% Bank broker/dealer 35% No broker/dealer affiliation (use third party provider) (60) (BASE) SOURCES OF INFORMATION Q14. Which newspapers and magazines do you read on a regular basis to help manage your practice and advise your clients? 76% Financial Advisor magazine 63% Financial Planning 56% The Wall Street Journal 50% Investment Advisor magazine 49% Journal of Financial Planning 33% Forbes 31% Local or regional newspaper 27% Investment News 26% Money 26% Wealth Manager 24% Kiplinger's 20% BusinessWeek 20% Morningstar Advisor 19% Journal of Accountancy 19% USA Today 17% Barron's 16% Worth magazine 14% Fortune 14% Registered Representative magazine 14% Smart Money magazine 13% Journal of Indexes 11% AAII Journal 10% Financial Analysts Journal 9% The New York Times 7% Financial Times 7% Futures magazine 7% Research magazine 7% The Economist 4% Investor's Business Daily 4% Senior Market 4% Stocks & Commodities 3% Active Trader magazine 3% Morningstar Investor 3% Trusts & Estates magazine 3% Value Line 3% Other (70) (BASE) Q15. Which of the following software packages or Web sites do you regularly use to advise your clients or help you manage your practice, whether free or paid? 50% Yahoo! Finance 38% Morningstar/Principia Pro 30% MorningstarAdvisor.com Chicago Financial Advisor Symposium October 2007 Page 7

30% QuickBooks 27% BigCharts.com 23% (Charles) Schwab.com 22% Bloomberg.com 20% DST Vision 17% ishares.com 17% Wall Street Journal Interactive 16% ACT! 16% Fidelity.com 16% MSN Money 14% Financial Profiles 14% Quicken.com 13% MoneyGuide Pro 13% Vanguard.com 11% Albridge Solutions 11% Google Finance 11% SmartMoney.com 9% Centerpiece 9% SunGard 8% Ameriprise Financial 8% Junxure-i 8% Money Tree 6% Advent's Software 6% Barron's Online 6% CNBC.com (New site) 6% MarketWatch.com 6% NaviPlan 6% Thomson Investors Network 6% ValueLine.com 6% Wiesenberger (Thomson) 5% Financeware.com 5% Frontier Analytic software 5% Ibbotson Associates 5% Zack's 3% Advisors Assistant 3% dbcams 3% Standard & Poor's Portfolio Advisor 3% TheStreet.com 3% Zephyr StyleADVISOR 2% America Online / AOL.com / AOL Quotes 2% Goldmine 2% Hoover's 2% Investor's Business Daily/Investors.com 2% Standard & Poor's Advisor Insight 8% Other (64) (BASE) Q16. Have you viewed a Webcast (or Webinar) presentation on your personal computer via the Internet in the last 90 days? 59% Yes 40% No 1% I don t know/i m not sure (68) (BASE) Chicago Financial Advisor Symposium October 2007 Page 8

Q17. Have you heard about InterShow s new Web site called MoneyShow.com? (It is the Web site offering Webcast presentations for viewing on your personal computer over the Internet) 55% Yes 45% No (67) (BASE) Q17a. After attending a Financial Advisor Symposium, how likely are you to view a Webcast presentation from that Financial Advisor Symposium, either because you missed attending the session at the Show, or because you attended the session and would like to see it again? 13% Very likely 53% Somewhat likely 21% Not at all likely 13% Not sure (68) (BASE) Q17b. How likely are you to view a Webcast on Moneyshow.com if you could earn CE credits? 40% Very likely 45% Somewhat likely 15% Not at all likely (68) (BASE) Q18. For the past 12 months, which range best represents your total personal income? 3% $500,000 or more Median = $147,100 10% $350,000-$499,999 Mean = $181,500 12% $250,000-$349,999 24% $150,000-$249,999 17% $100,000-$149,999 34% Less than $100,000 (59) (BASE) EVENT INFORMATION Q19. Is this the first time you have attended an InterShow event? 33% Yes 66% No 1% Don t know (64) (BASE) Q20. In the past 12 months, how many other events like this symposium, have you attended (national or regional) for your business? 33% None Mean = 1.99 events (among those who attend at least one) 24% One Median = 1 events 24% Two Maximum = 9 events 9% Three 9% Four or more (66) (BASE) Q20a. If you attended other events in the past 12 months, please mark those listed or write in the names of the events if not shown: 33% Financial Planning Association 27% Broker Dealer Conference 13% AICPA Conference Chicago Financial Advisor Symposium October 2007 Page 9

13% Financial Advisor Symposium (Las Vegas) 13% Schwab Conference 6% Ameriprise National Conference 6% ishare Conference 6% Money Show 6% Morningstar Conference 6% TD Waterhouse National / Regional Conference 4% Forex Trading Expo 4% NAIFA 4% Traders Expo 2% CSA Conference 2% NAPFA 27% Other (48) (BASE) Q21. If you came to another symposium, please indicate how interested you would be in attending if any of the following topics. Fundamental Analysis 41% Very likely 38% Somewhat likely 14% Not at all likely 7% Not sure (63) (BASE) Technical Analysis 21% Very likely 41% Somewhat likely 32% Not at all likely 6% Not sure (63) (BASE) Currency Trading (Forex) 11% Very likely 24% Somewhat likely 58% Not at all likely 7% Not sure (62) (BASE) Options 16% Very likely 33% Somewhat likely 45% Not at all likely 6% Not sure (64) (BASE) Futures 10% Very likely 26% Somewhat likely 51% Not at all likely 13% Not sure (61) (BASE) Practice Management 64% Very likely Chicago Financial Advisor Symposium October 2007 Page 10

25% Somewhat likely 6% Not at all likely 5% Not sure (63) (BASE) Q22. Did you visit the exhibit hall at the Financial Advisor Retirement Planning Symposium? 95% Yes (64) (BASE) Chicago Financial Advisor Symposium October 2007 Page 11