Title: The Industry’s Diversity Challenge Speakers: Dave Giertz, Amanda Smith and Sam Guerrieri...

Title: The Industry’s Diversity ChallengeSpeakers: Dave Giertz, Amanda Smith and Sam GuerrieriLocation: Diplomat Ballroom 4Time: 1:00 – 2:00 p.m

The Industry’s Talent Diversity Challenge

Nationwide, Nationwide Financial and the Nationwide framemark are service marks of Nationwide Mutual Insurance CompanyNFM-12661AO(02.14)

Does your firm have strong, robust processes in place to build a diverse and inclusive

organization?


Why build a diverse workforce?

• A Diverse Workforce Drives Economic Growth– McKinsey Study: Women grew from 37% to 47% in the workforce in 40 years. This

accounts for a Quarter of Current GDP.*

• A diverse workforce increases market share• Recruiting from a diverse pool of candidates means a more qualified

workforce• Diversity fosters more creative and innovative teams.

– Forbes Study: 321 Global Enterprises surveyed, 85% strongly agreed that diversity is crucial in fostering Innovation

*http://www.mckinsey.com/client_service/organization/latest_thinking/unlocking_the_full_potential Nationwide, Nationwide Financial and the Nationwide framemark are service marks of Nationwide Mutual Insurance Company

NFM-12661AO(02.14)

http://www.mckinsey.com/client_service/organization/latest_thinking/unlocking_the_full_potential

Why build a diverse workforce?

• A diverse workforce may help to capture a greater share of the consumer market*

• Businesses need to adapt to our changing nation to be competitive in the economic market– Census data tell us that by 2050 there will be no racial or

ethnic majority in our country.

• Racial minorities make up one-third of the labor force and women 47%

*http://www.bls.gov/cps/cpsrace2012.pdfNationwide, Nationwide Financial and the Nationwide framemark are service marks of Nationwide Mutual Insurance Company

NFM-12661AO(02.14)

http://www.bls.gov/cps/cpsrace2012.pdf

National FinancialAmanda Smith, head of marketing

National Financial does not provide advice of any kind. You should conduct your own due diligence and analysis based on your specific needs.

Advisor 1.0

National Financial does not provide advice of any kind. You should conduct your own due diligence and analysis based on your specific needs.

We Believe the Delivery of Advice Is Evolving

• Solo practitioner

• Focused on stock picking and commissions

• 1:1 advice and communication

Advisor 2.0

Embraces technology

Works with a team

Leads with financial planning

Focuses on relationships

7

Higher AUM, as satisfied as male peers

Women Men

$63 $62

AUM ($Millions)

8

Female Advisors

Career Satisfaction

(Top 3 box)66% 65%

Average Compensation $200k $245k

Women Men

Source: Fidelity Advisor Insights Study, 2013

The 2013 Fidelity Advisor Insights Study was an online, blind survey (Fidelity not identified) fielded during the period of August 8-21, 2013. Participants included 813 advisors from across multiple firm types who work primarily with individual investors and manage a minimum of $10M in individual or household investable assets. Firm types included a mix of large and small IBDs, regional broker-dealers, RIAs, insurance companies, wirehouses and banks with findings weighted to reflect industry composition. Among the total sample 86 respondents were bank advisors. Bellomy Research, an independent third-party research firm not affiliated with Fidelity Investments, conducted the study.

65%

46%

55%

28%

56%

35%

38%

44%

What Did Female Advisors Do Differently?

9 Source: Fidelity Advisor Insights Study, 2013

Knows everything about a client’s financial AND personal life

Makes it a point to collaborate with younger clients

Aligns products/services with female investors’ needs

Selects investments without client input

Men DifferenceWomen

36%

Deeper, more collaborative relationships

16%

31%

45%

A Potential Opportunity for Female AND Male Advisors

1“Women of Wealth: Why Does the Financial Services Industry Still Not Hear Them,” Family Wealth Advisors Council, 2011.2 “How to give financial advice to women,“ Kathleen Burns Kingsbury, 2012

90%of married and single women don’t have a preference for the gender of their advisor1

3 in 4divorcees and widows do not feel strongly about the gender of their advisor1

The majority of women look for good chemistry.2

10

Do Female Clients Prefer Female Advisors?

“How does your client base break down in terms of gender?”

44%female clients

56%male clients

Male Advisors

47% female clients

53% male clients

Female Advisors


Female Advisors Are Targeting Female Clients


Top Investor Attributes Targeted by Male Advisors

1) Upper level of investable assets ($500k to $1M)

2) Baby Boomers

3) Professional occupation

4) High net worth ($1M+)

5) Medium level of investable assets ($100k to $500k)

13) Female investors

Top Investor Attributes Targeted by Female Advisors

1) Professional occupation

2) Female investors

3) Medium level of investable assets ($100k to $500k)

4) Baby Boomers

5) Career stage

Recruiting: Female Advisors Are In Demand

Despite demand, female advisors see barriers to entry

53% of female advisors felt it is difficult

for women to enter the profession

BUT

70% of female advisors believed there is

high demand for female advisors

“Why do you feel it is difficult for women to enter the financial advisor business?”

It’s a boy’s club

60%

Family demands

14%


Factors Influencing Decision to Enter Profession

Female advisors were motivated by professional interest


Female advisors were

most likelyto have entered the

profession because of

interest in the industry

Other key factors:

#2 Freedom/flexibility of schedule

#3 Income potential

#4 Opportunity to help people

Banks Are Leading the Industry with Hiring Female Advisors

RIA

IBD

Wirehouse

Regional

Insurance

Bank

9%

10%

12%

13%

17%

17%

91%

90%

88%

87%

83%

83%

Female Male

Banks had the highest composition of female advisors

Percent of Advisor Force, by Gender


What is the #1 action banks could take to encourage the success of female financial advisors?

Offer education, workshops, support just for women

Case Study: SunTrust Women Advisors Program

Leadership commitment

Organizationally integrated, strategically & technically

Culturally engrained training, education, events

National platform with grassroots engagement

Sources: 2013 Fidelity Advisor Insights Study and SunTrust proprietary data. The firm represented is an independent company and is not affiliated with National Financial. This example represents their unique experience. Their business needs and results may not reflect the experience of other National Financial clients.

“SunTrust Advisors" may be officers and/or associated persons of the following affiliates of SunTrust Banks, Inc.: SunTrust Bank, a commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., an SEC registered investment adviser and broker-dealer, which is a member of FINRA and SIPC, and a licensed insurance agency, and which provides securities, annuities and life insurance products, and other investment services.

SunTrust’s female advisors’ books are growing 13.2% more per year than the firm’s average advisor

Playbook

17%30%

Percentage of Female Advisors

Industry Average SunTrust Bank Average

16

https://www.suntrust.com/External?url=http://www.finra.org/

https://www.suntrust.com/External?url=http://www.sipc.org/

For broker-dealer or investment professional use only.

National Financial and Fidelity Investments does not provide advice of any kind. You should conduct your own analysis, review, and due diligence based on your specific situation.

You are responsible for evaluating your own specific needs and making appropriate decisions. Those decisions may be based on these and other factors you deem relevant. The information provided herein is not meant to be exhaustive of all possible options you may consider.

The 2013 Fidelity Advisor Insights Study was an online, blind survey (Fidelity not identified) fielded during the period of August 8-21, 2013. Participants included 813 advisors from across multiple firm types who work primarily with individual investors and manage a minimum of $10M in individual or household investable assets. Firm types included a mix of large and small IBDs, regional broker-dealers, RIAs, insurance companies, wirehouses and banks with findings weighted to reflect industry composition. Among the total sample 86 respondents were bank advisors. Bellomy Research, an independent third-party research firm not affiliated with Fidelity Investments, conducted the study.

The registered trademarks and service marks appearing herein are the property of FMR LLC.

National Financial is a division of National Financial Services LLC.

National Financial Services LLC, Member NYSE, SIPC200 Seaport Boulevard, Boston, MA 02210

© 2013 FMR LLC. All rights reserved.

638052.8.0

17

M&T Securities, Inc.Sam Guerrieri, Senior Vice President at M&T Bank & CEO of M&T Securities, Inc

Nationwide Financial ServicesDave Giertz, president, Nationwide Financial Services Distributors, Inc.


“Diversityis an opportunity

to be

leveraged.”


Success Share

• Military Veterans: 1,000 + in 5 years• Internal Sales and Service = Diversity

Recruitment=>Development Feeder Pool=>Career Path• National Black MBA Sponsorship: Career Fairs• Internships: Top University Partnerships (e.g., University of

Houston, UC Berkley, MMI)• National Hispanic Society Partnership: Career Fair


Success Share

• Diversity Learning Partners• HR Partnership and Specialty Recruitment Firms• Leverage Relationships: “Everyone is a Talent Scout”• “ABR” Always Be Recruiting


“Building” A Diverse Team = higher engagement, higher

productivity, robust discussions, more ideas,

innovation, and more fun.


QUESTIONS?


Title: The Industry’s Diversity Challenge Speakers: Dave Giertz, Amanda Smith and Sam Guerrieri...

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