Managed360™
Pershing’s scalable managed account solution
offered through Lockwood Advisors, Inc.
© 2015 Lockwood Advisors, Inc. is an investment advisor registered in the United States under the
Investment Advisers Act of 1940. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR
DISTRIBUTION TO THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
Our Shared Vision
BNY
Mellon
The Investments Company for the World
Pershing’s
Managed
Investments
Globally to provide an elegant advisory experience
that helps investors meet their financial goals
Lockwood
Advisors1
Your dedicated investment solutions partner
1 Lockwood
Advisors, Inc. (Lockwood) is an investment adviser registered in the United States under the Investment Advisers Act of 1940, an affiliate of Pershing LLC, and both wholly
owned subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon). Pershing LLC, member FINRA, NYSE, SIPC.
2
© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Managed360™: Continuing a History of Innovation
Jim
Lockwood
develops the
first wrap
account at
E.F. Hutton
1975
Lockwood
becomes #1
provider of
Separate
Account
services to
independent
financial
advisors*
Lockwood
founded
1992
Launch of the
first wrap
account at a
wirehouse
1995
1996
Lockwood
introduces
Separate
Account
platform for
independent
financial
advisors
1999
• Lockwood
integrated with
Pershing LLC
Lockwood
acquired
by The
Bank of
New York
2002
Launch of
Lockwood
sponsored
program –
open
architecture
SMA program
• Lockwood
introduces
alternative
investments
into various
strategies
2003
• Lockwood
becomes early
adopter of ETFs
for systematic
exposure
• Lockwood
launches UMA
2005
2007
Launch of
objectivesbased
strategies in
MF wrap
program
2009
Lockwood
aligned with
BNY Mellon
Wealth
Management
2010
2011
PNC Managed
Investments
integrated into
Lockwood
Lockwood
partners with
BNY Mellon
Manager
Research
Group to
conduct
ongoing
research for
Pershing’s
FundVest
200TM list
2013
2014
• Lockwood
formalizes
alignment with
BNY Mellon
Investment
Management
• BNY Mellon
Investment
Management
creates
centralized
manager
research
group
2015
Managed360™
is integrated
within
Pershing’s
technology
platform and
offered through
Lockwood
*Cerulli, 1999
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Managed360
Managed360 is an integrated
managed account solution available
to Pershing LLC1 clients offered
through Lockwood Advisors, Inc.2
1
2
Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is not a registered investment adviser and does not offer investment advisory products, programs or services.
Investment advisory and overlay services provided by Lockwood Advisors, Inc. Lockwood Advisors, Inc. is an SEC Registered Investment Adviser and an affiliate of Pershing LLC, each
subsidiaries of The Bank of New York Mellon Corporation. Pershing LLC, member FINRA, NYSE, SIPC.
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Growth of Managed Account Assets
Managed360™ Can Help Increase Advisor Participation
1600
Separate account programs
1400
Mutual fund advisory programs
1200
Unified managed account programs
1000
800
600
400
200
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014E 2015E 2016E 2017E
Note: “E” represents estimates.
Sources: J.P. Morgan Asset Management, Cerulli Associates (data published in The Cerulli Report: Managed Accounts 2014).
Analyst Note: Capital market assumptions based on J.P. Morgan Asset Management's projections. Mutual fund advisory program assets include ETF advisory program assets. Statements
of future expectations, estimates and other forward-looking statements are based on available information and our view as of the time of these statements. Accordingly, such statements
are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from
those expressed or implied in such statements.
Source: Cerulli Managed Account Survey (3Q 2014). Data is preliminary and subject to change.
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Exceptional Experience and Support for Managed360
• $1.7 trillion under
management1
• $1.5 trillion in global client
assets3
• $28.5 trillion under custody
and administration1
• One of the Industry’s largest
global outsourcing providers3
• Safest bank in the U.S. for
five consecutive years2
• An Industry-leading technology
and services platform
• $12.2 billion in advisory assets
under management, with more than
91,000 advisory client accounts4
• Industry-leading provider of portfolio
management and research solutions
• Managed investments pioneer founded
in 1995
• Providing advisory solutions for
investors exclusively through financial
institutions and advisors
• Primary location in King of Prussia, PA
1. The Bank of New York Mellon Corporation, Corporate Fact Sheet (Q4:2014). 2. BNY Mellon was ranked 29 (2013), 29 (2012), 24 (2011), 30 (2010) and 32 (2009) globally, and was the
first U.S. bank listed, on Global Finance Magazine’s “The World’s 50 Safest Banks” list. The rankings are selected through a comparison of the long-term credit ratings and total assets of
the 500 largest banks around the world. Ratings from Moody’s, S&P and Fitch were used. 3.PERSHING AT A GLANCE Fact Sheet (Q4:2014). 4. Lockwood Advisors, Inc. as of 12/31/14.
RATINGS AND RANKINGS ARE SUBJECT TO CHANGE.
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Managed360
Combines the Necessary Ingredients to Support Advisor Success
• Key managed account functions fully accessible and
integrated into NetX360®
• Can be quickly delivered with limited implementation
dependencies
• Provide Pershing’s managed investments platform on
your firm’s own books and records
• Comprehensive menu of investment solutions and
research capabilities
Investment
Solutions
and Research
• Saves time by allowing advisors to focus on
growing their book of business and deepening
relationships with their clients
• Dedicated sales support and advisory
consulting from experienced managed
account professionals
Education
and
Training
Technology
Sales
Support
• Continuous education and training
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Managed360 Integrated Managed Investments Platform
Proposal
Generation
Account
Maintenance
Portfolio
Analytics
Performance
Reporting
New Account
Opening
Billing
Investment
Solutions
and
Research1
Education
and Training
Lockwood receives certain research services from BNY Mellon’s Manager Research Group in manager research, due diligence, ongoing monitoring, creation and the preparation of this
report. Lockwood is an affiliate of Pershing, both wholly-owned subsidiaries of BNY Mellon. Pershing LLC, member FINRA, NYSE, SIPC.
1
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Segmentation
Flexible Solutions May Increase Your Value
Ultra-HighNet-Worth
SMA
Market Segment
Unified Managed Account
Third-Party Model Providers
Fixed & Flexible MF/ETF Wrap
Emerging
Investor/
Mass
Affluent
Advisor Flexibility to Select Allocations and Investments
No Flexibility
MF: mutual fund
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ETF: exchange-traded fund
Some
Flexibility
Greater
Flexibility
SMA: separately managed account
© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Managed360 Investment Solutions
• Access to leading third-party asset managers
Third-Party
Model
Providers
• More selections to manage a client’s portfolio
• Investment solutions starting at $25,000
Fixed
Mutual Fund/
ETF Wrap
Flexible
Mutual Fund/
ETF Wrap
Managed360
Unified
Managed
Accounts
Separately
Managed
Accounts
• Offering a series of multiple-style portfolios—each held in a
single account—affording the features of diversification and
professional management, starting at $50,000
• Provides the choice and flexibility in both portfolio construction
and investment selection
• Multi-asset class portfolios combining strategically driven asset
allocation, subadvisor and investment selection and portfolio
construction expertise in a single account structure
• Research covered managers1
• Open architecture2
• Tax-aware managers
1
Research Coverage—66 money managers and more than 136 options with traditional asset classes (as of February 18, 2015)
Open Architecture—156 money managers and 529 options with traditional asset classes (as of February 18, 2015)
Diversification and strategic asset allocation do not guarantee a profit or protect against a loss in declining markets.
2
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Third-Party Model Providers’ Advisory Solutions
in Managed360
Third-Party Model Providers
• Investment minimums
starting at $25,000
• Strategic and tactically
managed portfolios
• Retirement focused
portfolios
• Passively and actively
managed portfolios
Vanguard
Advisers, Inc.
Strategic ETF Models
BlackRock
Investment
Management, LLC
Target Income Models
Russell
Investments
Comprehensive Models
with Alternatives
Morningstar
Investment
Services, Inc.
Retirement Income
Newfound
Research LLC
Tactically Risk Managed
As of February 3, 2015
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Lockwood’s Advisory Solutions in Managed360
• Investment minimums starting at $50,000
• Retirement focused portfolios
• Access to more than 500 separately
managed account strategies
• Passively and actively managed portfolios
• Strategic and tactically managed portfolios
Lockwood
Asset Allocation
Portfolios
Lockwood
AdvisorFlex
Portfolios
Lockwood
Investment
Strategies
• Discretionary mutual
fund/ETF account
• Lockwood or advisordirected mutual
fund/ETF account
• Discretionary unified
managed account
• Professional
investment
management
• Objectives-based
investment strategies
• Ongoing portfolio
oversight
• Portfolios tailored to
meet investor needs
• Tax-sensitive
models available1
• Analyzes risk
exposure across
all holdings
Separately
Managed
Accounts
• Research coverage2
• Open architecture3
• Fixed income
strategies
• Expertise of
individual money
managers
1
Lockwood does not attempt to manage the impact of state, local or foreign government taxes, nor with respect to the alternative minimum tax (AMT), estate and gift or other taxes.
Lockwood is not a tax advisor, and is not responsible for, and does not guarantee, that it will minimize the investor’s tax liabilities.
2 Research Coverage—66 money managers and more than 136 options with traditional asset classes (as of February 18, 2015)
3 Open Architecture—156 money managers and 529 options with traditional asset classes (as of February 18, 2015)
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Sales Support, Training and Education
Our Commitment to Asset Acquisition
• Potentially increase revenues and
assets under management as highly
experienced regional consultants
within Lockwood work with advisors
• Practice management tools available
to advisors and firms to maintain a
sustainable business model and
remain competitive
• Continual training available for new
features and enhancements within the
platform to improve productivity and
scalability of advisor business
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
We Can Help
Regional Director, [Territory]
FirstName LastName
Business Development Associate
FirstName LastName
Telephone:
Telephone:
E-mail:
E-mail:
Business Development Team
Advisory Consulting Services1
Kevin St. Clair and David Little
Telephone: St. Clair: (484) 801-8127
Little: (484) 801-8825
(800) 200-3033
E-mail: St. Clair: [email protected]
Little: [email protected]
1 Advisory
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Consulting Services provided by Lockwood Advisors, Inc.
© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15
Questions?
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Important Disclosures
Lockwood Advisors, Inc. (Lockwood) is an investment adviser registered in the United States under the Investment Advisers Act of 1940. Lockwood
and Pershing LLC are each wholly owned subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their
respective owners.
This document contains proprietary information of Lockwood and is provided to you on a strictly confidential basis. This document and the information
contained herein should not be reproduced, communicated, or shared with any other party, either in whole or in part, without the express written consent
of Lockwood.
The views expressed represent the opinion of Lockwood, which are subject to change and are not intended as investment recommendations, a forecast
or guarantee of future results. Stated information is derived from proprietary and non-proprietary sources which have not been independently verified for
accuracy or completeness. While Lockwood believes the information to be accurate and reliable, we do not claim or have responsibility for its
completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on
available information and management’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are
based on assumptions which may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from
those expressed or implied in such statements. Past performance of various investment strategies, sectors, vehicles and indices are not
indicative of future results. There is no guarantee that investment objectives will be attained. Results may vary. There is no guarantee that risk can be
managed successfully.
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© 2015 Lockwood Advisors, Inc. All rights reserved. FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO
THE PUBLIC. Please see disclosures at end. Proprietary and confidential.
LKA-10346-15