The Collision of Technology and Distribution

14 October 2008

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The Case for Technology in Distribution

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What Forces Are Driving Integration?

+ Revenue opportunities are being identified through technology

+ Competition is increasing online

+ Customers of investment management products are increasing online usage

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The Case for Distribution Scale+ Technology can help sales with professional buyers of investment

management products

Source: “Your Site Will Sell,Too” kasina. 2008.

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Technology Today: Separate and Less Important

Source: Elevating the Role of e-Business, 2008.

+ Firms do not currently value technology today

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Technology Tomorrow: Integrated and Very Important

Source: Elevating the Role of e-Business, 2008.

+ Change in importance indicates technology will be an area of greatest competitive change

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Anticipated Time Spent Online: Increasing Steadily

Source: What Advisors Do Online, 2008

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Advisors Want to Interact with the Web+ World War II generation of advisors is contributing content to Web sites:

Source: “What Advisors Do Online” kasina. 2008.

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Best Practices in Integration of Technology and Distribution

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Two Emerging Major Trends and Best Practices+ Firms are being more aggressive in selling their story online

Web sites are becoming more proactive CRM systems are finally getting integrated

+ Distribution models are evolving that will embrace technology more Hybrid Wholesaling has show financial success through technology adoption

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Making More Usable, Selling Web Sites+ Information on product pages flows from left to right to sell they story of its

products

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+ MFS is first using multimedia after inquiring about its funds, not its performance

Making More Usable, Selling Web Sites

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+ Calvert is a prime example of a brand-aligned value added program online Brand alignment – Attaches to Calvert’s SRI message Easy to be explained through any touchpoint (wholesaler, e-mail, etc.)

Making More Usable, Selling Web Sites

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CRM is Being Integrated to Dictate Sales+ Nuveen has seen 25% conversion rates in cross-selling funds to SMA clients

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The Big Picture: Sales and Scale+ Hybrid wholesaling seeks to answer two key questions for the Sales team

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Hybrid Models At-a-Glance+ Data across different hybrid implementations shows clear differences in:

Team size Time spent in the field Compensation Firm experience with the hybrid model

Compensation figures in USD

Hybrid Wholesaling At-A-Glance# of hybrids # of externals # of internals Avg Total Comp (k) % Travel Time w/ Hybrid Model

Firm 1 1 11 12 95-125 50% 3 yrsFirm 2 2 11 11 125 30% < 1 yrFirm 3 5 5 13 130 60% 3 yrsFirm 4 27 21 21 175-200 40-50% 4.5 yrsFirm 5 6 6 6 120-170 25% 1 yrFirm 6 11 18 18 125 25% 2 yrsFirm 7 6 76 65 100-150 25% 1.5 yrsFirm 8 10 90 90 160-180 17% 5 yrs

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Hybrid Role Logistics+ Time in the field among hybrid wholesalers varies significantly

Industry average is approximately 40% Range spans 20-70% Travel can vary within a single hybrid team based on location and territory objectives

+ Advisor coverage also exhibits differences across firms and models Firms may only define territory size (e.g., 2000 advisors) and nothing further Firms will infrequently specify hybrid effort allocated toward focus firms Overall, hybrid advisor coverage ranges anywhere from 50-200%+ compared to externals

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Hybrid Wholesaling Success+ 75% of firms report that hybrids are more profitable than traditional wholesaling

+ Firms experience improved behavioral results with hybrid wholesalers Sourcing from internal desks is a key factor CRM usage is a key area of improvement over externals

+ The cultural impact of hybrid wholesaling is largely positive Provides a career path for internals looking to get into the field Provides lifestyle and location flexibility

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About kasina

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About kasina

kasina also runs the kasina Youth Foundation.More information is available at

www.kasinafoundation.org

Our firm has a singular mission:Innovate distribution in financial services

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Our Clients+ kasina works exclusively with asset management firms solving global

problems in a variety of channels and countries

Pictet

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Mike MaPrincipal

e-mail: mwma@kasina.comphone: +1 646 257 4470 fax: +1 212 349 7413

Thank You.For more information, please contact:

581 Avenue of the Americas, 5th FlNew York, NY 10011 United States