Wealth & Investment Management - Banking, Credit Cards .
Wealth & InvestmentManagementJonathan WeissSenior Executive Vice PresidentMay 10, 2018 2018 Wells Fargo & Company. All rights reserved.
Wealth & Investment ManagementWe are a leader in managing the savings, investments and retirement assets of individuals andinstitutions across the United StatesWealth & Investment Management 17.1Brevenue 2.3T7MMclient assets14,400clientsfinancial advisorsWells FargoAdvisorsThe PrivateBankAbbotDowningAssetManagementTop 3Top 5Top 19RetailBrokerageFirm (1)WealthManagementFirm (2)“BestPrivateWealthManager inClientService” (3)FundManagerInstitutionalRetirementTop 7(4)InstitutionalRetirementPlan Recordkeeper (5)Wells Fargo Investment InstituteInvestment intellectual capital and acumenCore attributesClient-drivenOpen architectureDisciplinedCollaborativeRevenue for fiscal year 2017. Client assets and counts as of March 31, 2018. Retail Brokerage, Wealth Management, Abbot Downing and Institutional Retirementassets include deposits and Wells Fargo Fund holdings. Households (HHs) defined as an address-based account grouping with Wealth & Investment Managementproduct ownership. Relationships represent clients grouped by relationship manager and may include multiple households. (1) Company and peer data; based onfinancial advisors (September 2017). (2) Barron’s 2017 Wealth Manager survey (based on Retail Brokerage and Wealth Management assets in accounts 5MM).(3) Private Asset Management Awards: “Best Private Wealth Manager in Client Service over 5B” (February 2017). (4) Morningstar Direct (December 2017). (5)PLANSPONSOR magazine (June 2017).Wells Fargo 2018 Investor DayWealth & Investment Management 1
Helping clients succeed at every financial stageWealth & Investment Management extends across the Wells Fargo platform to provide the fulldepth of our offering to individual and institutional clientsMassEmergingaffluentAffluentHigh networthUltra-highnet worthInstitutionalComprehensive advisory, banking, fiduciary and investment dviceoffering witha lower-costservice modelConsumerWells Fargo 2018 Investor tedand tailoredservices andsolutionsBoutiqueoffering andexperienceArray of Wealth & Investment Management 2
Financial profileWealth & Investment Management has significant scale across multiple businessesAssets bybusiness (1)Wells FargoAdvisorsThe Private Bank 1.6TIn 2017, Wealth & Investment Managementcontributed 19% and 12% respectively, ofWells Fargo’s revenue and earningsShare ofWells FargoRevenue 195B 12.4BAbbot Downing 47B81%Wells Fargo AssetManagementNet InterestIncome 497B 17.1B Total Revenue 2.3T(2)Client assetsInstitutionalRetirement andTrust19%NoninterestIncome 4.7BWealth & InvestmentManagementWells Fargo & Company, excludingWealth & Investment Management 904BRecordkeeping andcustody assetsunderadministrationHigh Return on CapitalWealth & Investment ManagementFY2017 Return on Equity of 21% (3)(1) Asset balances as of March 31, 2018. Brokerage and Wealth Management assets include Wells Fargo Funds holdings and deposits. (2) Total Wealth & Investment Management Assets arecomprised of Brokerage and Wealth Management client assets (“Total Wealth & Investment Management Clients Assets”) and assets under management under Wells Fargo Asset Management.Wells Fargo Funds holdings held in Brokerage and Wealth client assets excluded upon consolidation of assets. (3) Return on equity (ROE) measures the operating segment’s net income applicableto common shareholders as a percentage of average operating segment allocated common equity.Wells Fargo 2018 Investor DayWealth & Investment Management 3
Results in 2017 build on strong performanceTotal Client AssetsAdvisory Assets(1)( in trillions) 1.612%11%40%41%20152016 42038%30%2017Fixed Income/OtherCash( in billions)20%80%2015 4645%6%30%6%63%65%2016201764%2015Equity 189 190 17431%Fixed Income/Other 602015 72 672016LoansCash2017DepositsPre-Tax MarginNet IncomeTotal Revenue 16.2( in billions) 54311%51%48%48%Equity( in billions) 1.9 1.7Average Loans & Deposits( in billions) 17.1 16.318%19% 2.6 16Recurring Revenue (2) 2.62017Non-Recurring(1) Total Client Assets reflect Brokerage and Wealth assets, including Wells Fargo Funds holdings and deposits. (2) Recurring revenue is defined as net interest incomeand fee revenue predominantly earned based on discretionary and non-discretionary client asset values across the Wealth & Investment Management businesses.Wells Fargo 2018 Investor DayWealth & Investment Management 4
Operating efficientlyExpense discipline is a key component of how we achieve financial targets and fund investmentsin the business( in billions) 12.6 Strong trackrecord ofexpensediscipline Commissionexpenseconsistent withsales revenuegrowth 6.9Indirectexpenses includeEnterpriseRegulatory andCompliancespend 3.5 3.4 1.6 1.7 1.9201520162017 12.0 12.1 7.0 7.1 3.6Other Direct ExpensesFA CommissionsOther Indirect ExpensesWells Fargo 2018 Investor DayWealth & Investment Management 5
Capturing StrategicOpportunities
Addressing a changing landscapeWealth & Investment Management is adopting strategies to meet the varied and changingexpectations of our clients and to drive profitable growthDriversClient expectationsStrategiesProfessional, tailored advice when,where and how the client wants it Segment differentiation Expanded delivery and distribution Workforce evolutionTechnologySimple, intuitive and innovativeexperiences Online investing capabilities expert advice Simplified integrated digital experiences Efficiency through automation and sharedplatformsCompetitionWorld-class service and value thatreflects a deep knowledge of clientgoals and aspirations Investment thought leadership Scale and reach in distribution Data and insights capabilitiesTransparency, security and trust Alignment of client needs and services Real-time information and client service Risk standards, processes and governanceDemographicsRegulationWells Fargo 2018 Investor DayWealth & Investment Management 7
An integrated offering tailored to the clientGoals-based planning is the first step in achieving client goals and performance tirementAdviseBankingBehaviorsMortgageDocument Understand client goals Develop and implement a plan to driveto desired outcomes Engage investment, wealth and bankingprofessionals based on client’s needs Provide best-in-class serviceWells Fargo 2018 Investor ercialBankingEquityCapitalMarketsWealth & Investment Management 8
A strong foundation in investment intellectual capitalWells Fargo Investment Institute is focused on developing and delivering the highest qualityinvestment strategy, research and advice to help our clients succeed financiallyCultivating investment excellence Unified strategy, research,insights, asset allocationand portfolio management Centralized portfoliomanagement functions for200 investment modelportfolios Open platform with timely,objective, actionable,customizable advice Performancealigned with riskobjectivesFoundational strengths and focusContinued focus on deepening capabilities,talent and platforms; growing investmentmanagement offering and ability to satisfyevolving client outcome-based needsDriving performanceHigh conviction research, strategyand execution 61% of funds on our managerresearch list outperformed theirMorningstar peer groups 87% of our actively managed globallyallocated portfolios outperformed theircomplex benchmarksBuilding a brand around investing Two Gramercy awards for financialmarketing content 1000 media references annually 1000 reports published annually 5000 reports shared with clients dailyData as of December 31, 2017.Wells Fargo 2018 Investor DayWealth & Investment Management 9
Advancing our brokerage model MassEmergingaffluentAffluentHigh networthWe continue to focus on advice and planning capabilities to deliver better outcomes andexperiences for all of our clientsBusiness focusDelivering on client standardsClientstandardsBest practices aroundadvice and service forclients that result inbetter outcomes andhigher levels ofsatisfaction and loyaltyOutcomesLoyalty: Betterclient serviceand advice leadsto more loyalclientsof clients report88% being loyal to WellsFargo Advisors (1)Plan: Planningleads to moreconfident clients91%of clients with a planfeel they have theguidance necessaryto succeedfinancially (1)Building on core foundational capabilities Envision Plan-to-Pie Enhancing digital capabilities: planning, advice,documentation and client reviews Focus on professional investment advice anddiscretionary solutions from the Wells FargoInvestment InstitutePerform: Betterreturns for wellallocatedportfolios alignedto investmentobjectives andrisk tolerances (2) 230bps(3)Not Well-Allocated Well-Allocated(1) 2017 Client Listening Program. (2) The definition of well-allocated is a measure of how closely a client’s actual asset allocation aligns with his/her strategicasset allocation; being well-allocated increases the probability of a client achieving his/her investment goals. (3) Outperformance is the difference between the 1year return of the well-allocated accounts net of fees, versus the 1 year return of the not well-allocated accounts net of fees, measured as of December 2017.Wells Fargo 2018 Investor DayWealth & Investment Management 10
and our delivery channelsMassEmergingaffluentAffluentWe are focused on attracting next generation investors and adding new, next generationtalent to our existing force of financial advisorsNew business modelsNew advisor programsLaunched Intuitive Investor in 4Q17Increasing next generation talent 15%CAGR(2)Associate Financial Advisors Serving affluent and high net worthclients, where a junior Financial Advisoris mentored in a best practices teamFinancial Relationship Advisors Serving emerging affluent clients by asalary / bonus advisor with a moreprescriptive service and advice offeringDigital Financial Relationship AdvisorsOur long-term “robo” strategy to deliver scalabledigital investment human adviceAttracting the clients we are designing for (1)62%74%Gen X, Y or ZNew to WellsFargo Advisors72%ExistingCommunity Bankcustomers80%Customers withWells Fargo for7 years20152018(forecast) Serving mass market clients withIntuitive Investor with access to phonebased adviceMore diversity among our next generation advisorsNext generation36% Financial Advisorsare female3248%(3)Next generationFinancial Advisorsare ethnicallydiverseAverage age of anext generationFinancial AdvisorData as of March 2018. (1) Wealth & Investment Management Analytics. (2) Wells Fargo Advisors Finance. (3) Wells Fargo Advisors Next Generation Talent Programs.Wells Fargo 2018 Investor DayWealth & Investment Management 11
Differentiating for high net worth clientsHigh networthUltra-highnet worthSophisticated platforms and innovative solutions address the full spectrum of our high networth and ultra-high net worth clients’ needs through a personalized experienceProgress since 2017 Investor DayHighnetworth Increased the threshold for The Private Bank to 2.5MM andmaintained Abbot Downing at 50MM for ultra-high net worthsegment Expanded partnership with Wholesale Enhanced our investment platforms with innovative solutionsUltrahighnetworthStrategic focus areas Continued and increasing positive contribution to operatingleverage Launched Institute for Family Culture: first of its kind innovationin support of the role the family plays in ultra-high net worthwealth managementKey enablersUnparalleled client experience Client-to-advisor ratio geared to bespoke experience Custom credit, cash management and other liquidity solutions Full range of wealth planning solutionsOptimized resource management Local experts available in all major markets; new nationalservice models under development for less complex clients Expanding our practices devoted to multi-generational wealthInstitutional-grade ultra-high networth offering Institutional asset management platform, outsourced chiefinvestment officer service, foundations and endowmentsWells Fargo 2018 Investor DayWealth & Investment Management 12
Revitalizing Asset ManagementInstitutionalWe are reinforcing our position as a diversified asset manager and driving growthDiversified client baseAUM by client typeInternationalAUM CAGRAUM 497B(1Q 2018, th is recovering53%25%15%(1Q 2018, %)43% coverageof top 100 plansponsors (1)19992014#19 largest USFund Manager7%(2)13% Organic and acquisitiondriven growthDiversified investment capabilitiesAUM by asset type Industry headwinds(1Q 2018, %)Fundamental52%(3)LiquiditySystematic (4)Multi-AssetSolutions37%6% Performance challenges#1 largest US20152016provider of StableValue (5) Developed new strategicplan and increasedinvestment in thebusiness-2%#11 largest MoneyMarket fund family5%(2)Strong performancePeer percentile ranking(6)(1% highest; 10 Year, ending 2017; asset-weighted)Top 32%ReturnsTop 25%20171Q 20182% Executing on strategicplan to revitalize thebusinessRisk-adjusted returnsData as of March 31, 2018 unless otherwise stated. (1) Pensions & Investments and internal analysis; September 30, 2017. (2) Morningstar Direct. (3) Fundamental defined as nonquantitative long term strategies (4) Systematic defined as quantitative factor-based strategies. (5) eVestment Alliance. (6) Returns and risk-adjusted Sharpe ratio rankings based on longterm Wells Fargo Asset Management assets reported through eVestment Alliance excluding affiliate marketed Galliard and Rock Creek strategies, and asset-weighted; December 31, 2017.Wells Fargo 2018 Investor DayWealth & Investment Management 13
Performance, capabilities and serviceInstitutionalWe are investing significantly in the businessAreas of long-term focus Continually improve on the consistencyand strength of client outcomesClientoutcomes &performanceTop 38%3YTop 35%Top 25%5Y10YPeer risk-adjusted percentile ranking (1)(1% highest, ending 2017; asset-weighted)Investmentcapabilities Develop additional investmentcapabilities in:- Multi-Asset Solutions- Systematic- Alternatives & Private MarketsClientservice &delivery Collaborate across Wells Fargolines of business Align distribution moreeffectively with client needsProgress since 2017 Investor Day Centralized Fixed Income research Began utilizing quantitative andmachine learning analytics Refreshed 50% of our multi-assetlineup Launched 12 new product strategies Created largest industry factor-basedtarget date series Hired 40 new professionals Reorganized distribution channels Hired 10 new sales professionals Enhanced client experience(1) Risk-adjusted Sharpe ratio rankings based on long-term Wells Fargo Asset Management assets reported through eVestment Alliance excluding affiliatemarketed Galliard and Rock Creek strategies, and asset-weighted; December 31, 2017.Wells Fargo 2018 Investor DayWealth & Investment Management 14
Meeting clients’ retirement needsInstitutionalWe are broadening our institutional retirement offerings, advice solutions and digital services tocreate lifelong Wells Fargo relationshipsInstitutional RetirementMissionHelp America’s diverse workforce preparefor a better retirementVisionBe the trusted advisor to improvefinancial health from the first day of workthrough retirement3.84.04.14.22014 2015 2016 20174.31Q20187407908952014 2015 2016 2017#9Defined Benefit Provider#5Executive Benefit Provider904 Target My Retirementbrings personalized,cutting-edgeinvestment strategiesat a competitive price1Q2018 Proprietary researchenabled a 42%increase in WellsFargo's Plan HealthIndex over the last 5years (2)Recordkeeping and custodyassets ( B)730Defined Contribution Recordkeeper (1)Thought leadershipand innovationParticipant and asset growthYear-end plan participantcounts (MM)#7(1)(1)Partnershipsand distribution Employing LocalMarket Approach Exploring additionalinnovations withWells Fargo AssetManagement Increasing WholesaleBank coverage(1) PLANSPONSOR magazine (June 2017, June 2016, May 2016). (2) Wells Fargo Institutional Retirement and Trust’s 2017 Driving Plan Health report.Wells Fargo 2018 Investor DayWealth & Investment Management 15
Delivering One Wells FargoOur internal partnerships have enabled us to serve our clients’ full range of financial needsand expand our businesses through a client-first approachConsumer partnershipsClient focus Mass Emerging affluent Affluent High net worthWholesale partnershipsConsumerBankingOutcomesOur services to Consumer Bankingclients 10.5B in closed referredinvestment assets in the lastyear (1)Consumer Lending’s services to ourclients 6.8B in referred mortgagebalances (2)Growth focus Affluent away outreach Intuitive Investor for newinvestors Virtual relationship teamWholesaleOutcomesOur services to Wholesale’sC-Suite clients 750MM AUM fromexecutives advised byinvestment bankers since2015 (3)Wealth &InvestmentManagementPayments,VirtualSolutions &InnovationClient focus High net worth Ultra-high net worth InstitutionsConsumerLendingM&A to Wealth & InvestmentManagement clients Transactions across multipleindustries and geographiesaveraging more than 400MMper transaction (4)Growth focus Increased coordination (e.g.,“roadshows”) Growing syndicate distribution(1) Closed referred investment assets for 2Q17 through 1Q18. (2) Based on balances referred 2Q17 through 1Q18. (3) Based on data 1Q15 through 1Q18.(4) Based on sell-side transactions closed 2Q17 through 1Q18.Wells Fargo 2018 Investor DayWealth & Investment Management 16
Investing in the futureWe are leveraging digital to enrich client relationships, focus our team members on highestvalue activities, and improve the efficiency/efficacy of our foundational systems and processesBuilding new experiencesEnvision “what if”scenario planningfor clientsPersonalizedexperience based onPredictive InsightsMobile textmessagingfor clientsSecure cloudbased documentsharingEnhancing our digital “baseline”Expanded digital moneymanagementDashboard for 401(k)plan participantsReimagined delivery of AssetManagement solutionsModernized cross-platform capabilities, platforms and processesWells Fargo 2018 Investor DayWealth & Investment Management 17
Positioning for efficiencyand growth
Driving transformation and cost savingsTargeting run rate savings of 600 million by 2020Reimagining our business andreshaping delivery Optimizing businesses based on clientsegmentation - 400MM Driving operational efficiencies throughBusiness Process Management androbotics, offshoring expansion andclient self service - 60MM Creating centralized “utilities” to beleveraged across the business whilereducing reliance on third parties (e.g.,project management, other operations)- 120MM Other opportunities - 20MMExample: Optimizing businesses basedon client segmentation - 400MM Driving better coordination and clientservice across our businesses throughimproved operating alignment:- Optimizing field managementstructure, operations andinfrastructure- Enhancing our service to clientsegments- Improving field risk supervisionand business developmentprocesses- Enhancing segment-led valuepropositions- Better leveraging support partnersWells Fargo 2018 Investor DayWealth & Investment Management 19
Continued progress towards long-term -6%RecurringRevenue (1)82%80% Pretax Margin26%30%Return onEquity (2)21%25% (1) Recurring revenue is defined as net interest income and fee revenue predominantly earned based on discretionary and non-discretionary client asset valuesacross the Wealth & Investment Management businesses.(2) Return on equity (ROE) measures the operating segment’s net income applicable to commonshareholders as a percentage of average operating segment allocated common equity.Wells Fargo 2018 Investor DayWealth & Investment Management 20
Biography
Jonathan WeissSenior Executive Vice PresidentWealth & Investment Management Jon started his career with Wells Fargo in 2005. Beginning in 2014, heserved as president and head of Wells Fargo Securities (WFS). From 2008 to2014, he was co-head of the Wells Fargo Securities Investment Banking &Capital Markets division. Before joining Wells Fargo, Jon spent 25 years at J.P. Morgan (and itspredecessors) in various roles — including head of JPM’s global financialsponsor business and head of investment banking in Asia Pacific for Chase,where he was based in Hong Kong. Jon’s early career at Chemical Bankincluded roles in the retail industries and loan syndications and acquisitionfinance groups, and he was assistant representative in Chemical Bank’sMexico City office. Jon earned his B.A. in Romance Languages from Princeton University. Heserves on the national advisory board of Youth, I.N.C., a nonprofit based inNew York City, and on the boards of One Goal‒New York and theLawrenceville School in Lawrenceville, New Jersey. He also serves as atrustee of the National Humanities Center in Durham, North Carolina. He isbased in New York City.Wells Fargo 2018 Investor DayWealth & Investment Management 22
Boutique offering and experience Institutional Array of asset management and retirement . digital investing. Wells Fargo 2018 Investor Day Wealth & Investment Management 3 4.7B 12.4B 81% 19% Assets by business (1) Wells Fargo Advisors 1.6T The Private Bank 195B Abbot Downing 47B Wells Fargo Asset .
1.2 The Scope of our Wealth Management Services 1.3 Components of Wealth Management 1.4 Process of Wealth Management 1.5 Need for Wealth Management 1.6 Expectation of Clients 1.7 Challenges to Wealth Management in India 1.8 Code of Ethics for Wealth Managers 1.9 Review Questions 1.1 Introduction to Wealth Management What is 'Wealth Management'?
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Wealth Management 3-1 3. Wealth Management Wealth Management or Investment Management is an important offering in a bank's product bundle. Wealth management services offered by banks usually involve risk profiling a client and recommending investments that suit the risk profile. Investments could be in multiple instruments
Wealth Management User Manual Oracle Banking Digital Experience Wealth Management 6 3. Wealth Management Wealth Management or Investment Management is an important offering in a bank's product
Pitch book template for investment banks. Investment banking pitchbook pdf. Investment bank pitch book. Pitchbook example investment banking. Bankers like to complain about almost everything, but near the top of the complaint list is "investment banking pitch books."Some Analysts claim that you'll devote all your waking hours to creating these documents, while others say they're time .
the top, and, thus, lower wealth mobility. Conversely, higher wealth mobility where self-made wealth replaces inherited wealth would result in more men at the top of the wealth distribution. Judged by this proxy, and corroborated by various data sources, wealth mobility decreased in the period 1925– 1969 and increased thereafter.
In this overview, we briefly define the concepts of "wealth" and "wealth creation", explain why a focus on wealth creation is important, discuss recent efforts to promote rural wealth creation, discuss what is known from past research about rural wealth creation, and introduce a conceptual framework for rural wealth creation and the theme
A Guide to WeALtH MANAGeMeNt 02 Contents 03 WeLCoMe The freedom to choose what you do with your money Welcome to A Guide to Wealth Management. As wealth grows, so too can the complexity of its management. However, one of the major obstacles to effective planning is the gap between the perception of wealth and reality of wealth.
