Product Management Past, Present and Future

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Product ManagementPast, Present and Future
Marketrends December 10th, 2004 Hyatt Regency
Financial District Boston, MA
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Distinguished Panel

• Gabe Altbach, Pioneer Investments
• Vice President, Head of Product Management
• Bill Hunter, Fidelity Investments
• Vice President, Mutual Funds Annuities
• Howard Present, Helicon Partners
• Principal
• Moderator - John Benvenuto, CFA, FRC

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Setting the Stage
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Growing Complexity

• Client Sophistication
• Distributor Dynamics
• Product/Investment Tools
• Pricing/Wrapper Variations
• Increasingly Competitive Market

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Investor Progression
Portfolio of Prop. Mutual Funds
Mutual Fund Wrap Program
MDP Solution
SMA Program
Multi- Product Wrap Program
Source FRC
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Distribution Progression
Planning
Packaging
Total Merrill
Product
Financial Planning
WRAP / Asset Allocation
Multi-Product
Retirement
Separate Accounts
Individual Funds Sales
3rd Party
Mutual Funds
Prop Mutual Funds
Stock-of-the-Day
VA
VA
UITs
ETFs
C-E
C-E
Hedge
Individual Stocks
Stocks
1970 1975 1980 1985 1990 1995 2000 2005 2010
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Growth Projections
5-Year CAGRs for Assets (2004-2009)
Excerpted from FRC Monitor, August 2004
Source Financial Research Corporation (FRC)
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Pricing/Wrappers

• Mutual Funds -
• A,B,C,I,R,529
• VITs -
• Multi-class
• Sub-advisory
• Separately Managed Account
• Commingled Trust/Institutional SA

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Competitive Environment

• Regulatory Changes
• Mergers Acquisitions
• Self Image
• Profit Margin Pressure
• Concentration of Flows

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Q A
John Benvenuto, CFA Director of Mutual Fund
Research Financial Research Corp Boston,
MA www.frcnet.com