Harnessing the power of Salesforce.com to produce positive outcomes for wealth advisors.

1. LOOKINGINTOTHEFUTURE
OFWEALTHMANAGEMENT
HARNESSING THE POWER OF SALESFORCE TO MANAGE MULTIPLE GENERATIONS OF WEALTH

2. The Time For A Truly “Turn-Key”
Investment Solution Is NOW
As the psychic bruises from 2008-2009 fade, innovation in the for-
merly disruption-averse wealth management industry has started
accelerating again. We’re seeing firm after firm push corporate
transformation plans in order to get ahead of the biggest genera-
tional wealth transfer in history.
Those behind the curve are now staring at a race to the bottom
as emerging clients take trillions of dollars elsewhere. The winners
will reap the rewards. And with the clock starting to tick down,
speed is becoming the most critical competitive factor of all.
It’s not too late to catch the crowd. All you need is the courage
to embrace the future and a platform that won’t hold you back.
The next few pages contain all the information you need to seize
the opportunities ahead, without wasting the next year reinvent-
ing any wheels.
High Standards, Higher Stakes
Consulting firm Accenture estimates that $2 trillion will change
hands in the next five years, as the first wave of Baby Boom retir-
ees start transferring wealth to their heirs. That’s more than $1
billion transitioning every day between now and 2020.
Given that 90% of new heirs switch advisors when they receive
an inheritance, this transfer presents a competitive threat to firms
that are losing accounts as well as a game-changing opportunity
for those that can capture the flows. The winners will thrive. The
losers face a road to diminished relevance if not outright oblivion.
The good news is that it’s not hard to anticipate what the next
generation of investors is looking for in an advisor. For most ad-
visors, technological advancements have made changing their
business model easier now than ever before. These changes of-
ten revolve around a shift in the way you deliver advice to serve
this emerging client base. In the past, the barriers to entry were
relatively high in terms of technology investment, and early
adopters had to endure months if not years of upheaval before
reaping the ROI.
2

3. But to really grasp the disruptive ease with which wealth man-
agers can now adjust their advice delivery systems to satisfy a
new generation of clients, it’s crucial to understand the way the
system itself is evolving.
Outsourcing the Portfolio to the Cloud
Your older clients grew up in a world where each advisor handled
every aspect of the financial process personally or with the help of
a small support staff. Many of these tasks were routine, effectively
utility processes that were simply bundled in with the core work of
mediating between individual investors and the financial markets.
The last few years in particular have seen that business model
evolve as the advisor offloads those parts of the wealth manage-
ment process that are time-consuming and can be automated
or otherwise pushed out of the front office. We’ve already seen
the split between the front office where we meet with clients and
the back office where everything else happens grow wide enough
that the “back office” itself can be almost entirely virtual, domiciled
in the equivalent of a few servers and a call center that can be
anywhere on the planet. That’s Cloud Computing at its most basic.
This bifurcation suits the mindset of younger clients perfectly
because they are less focused on execution or any other utilitari-
an aspect of the wealth management process. They want results
and an open channel to you as the advisor they pay to make sure
all the systems run flawlessly in the background.
Where this gets interesting is that you probably shouldn’t care
about holding onto back office functions, either. With the excep-
tion of certain narrowly defined regulatory requirements, the back
office is almost entirely a commodity enterprise now. It’s a cost
center, part of the overall drag that every wealth manager needs
to cover in order to stay in business.
As such, many advisors have been eager to hand off an increas-
ing slice of the back office so they can focus on front-office activ-
ities where real value creation happens. Every minute you spend
scanning portfolios and checking trade activity is time spent away
from working with existing clients and prospecting new ones.
The process shift started small with tasks like account reconcili-
3
High-quality relationships. They’re tired of the fill-
in-the-blank marketing techniques that worked on
their grandparents. They demand that an advisor
have all the information at his or her fingertips and
then draw on it to establish a personal bond.
A team player. The new generation knows how to
Google up the expertise they need to answer a ques-
tion. They want you to take a similar approach and
reach out to specialist colleagues. Most of all, they
want you to put your professional ego aside: out-
sourcing is expected, cooperation is king.
Seamless interfaces. These are “digital natives” who
grew up in a world of data on demand. Give them a
fully integrated view of their finances that they can
access from any device and they’ll be incredibly loyal.
The human touch. Any number of automated
systems could get these clients decent outcomes.
They’re looking to you to tailor the systems to their
needs, drawing on personal experience that only a
human being can provide.
Goal-oriented service. If you know who they are,
you know what they want and how to use the finan-
cial products at your disposal to get it. They don’t re-
ally care about the products as long as the solutions
inspire confidence.
Years of industry surveys has told us
exactly what the next generation of
investors is looking for in an advisor:

4. ation. At this point, the entire job of populating and managing the
investment portfolio is now moving away from the advisor through
an array of separately managed wrap programs and multi-asset-
class vehicles known as unified managed accounts or UMAs.
While the specifics vary, in all cases, the principle amounts to
uncoupling the portfolio from the work you do in the front office.
Often the investment solutions that these programs provide
are as good as what you could offer on your own, but at a lower
delivery cost, liberating your personal time and attention to tasks
where you are truly indispensable. Oftentimes the program is
more sophisticated than anything you could offer on your own,
supporting a wide range of asset classes that are often accessible
to only the largest firms.
It’s best-in-market advice for your clients. That’s what they
really want, and as the money moves across generations, it’s
what they’ll go hunting for at the earliest possible opportunity.
Giving them the same elite back office as they’ll get anywhere
else gives you a chance to keep their accounts in your wealth
management practice.
While it should be a logical proposition, not every advisor has
embraced the approach yet. There’s the psychological hurdle
of letting go and delegating what was once the core of a wealth
manager’s professional identity: if you no longer “manage the
wealth” personally, what are you? When advisors see the value
they can create by spending more hours every day with clients
instead of behind a screen, they generally let that question pass.
Then there’s the matter of operational disruption. Even the
most deployment-ready asset management programs – often
marketed as “TAMPs” to reflect the “turnkey” approach – can
take months to get all the data lined up. It’s a long time to wait,
especially in unsettled markets like these. And meanwhile, those
next-generation clients are on the move, taking $1 billion per day
with them.
Plug and Play
In terms of time to market, the solution comes when we inte-
grate the capabilities that a TAMP opens up into a robust existing
4
MANY ADVISORS
HAVE BEEN EAGER
TO HAND OFF AN
INCREASING SLICE
OF THE BACK OFFICE

5. A GOOD CRM LIKE
SALESFORCE PRO-
VIDES EVERYTHING
NEXT-GENERATION
CLIENTS DEMAND.
technology platform. When an advisor is already on the platform,
migrating their accounts is really just a matter of pushing a but-
ton. Months can turn into days if not hours.
Previous approaches to technology development in the wealth
management space focused on pushing specific tasks – rebal-
ancing, portfolio construction, client relations – to a wide range of
specialized software tools. Every new tool on the desktop en-
hanced overall operating efficiency, but the fact that each applica-
tion evolved independently actually made successive efficiencies
harder to unlock as the desktop filled up.
Remember, each app was built by a different software compa-
ny and relied on its own data format and operating architecture.
They weren’t created to interact with each other. In many cases,
the programmers made sure that their best technology would
be difficult if not impossible to use alongside software from a
competing vendor. The ultimate goal was to squeeze rivals off the
desktop entirely.
Since then, consolidation in the industry has created several
vendors that each offer something like an integrated platform
of applications, but the evolutionary traces of their diverse ori-
gins remain. Data formats remain isolated and mutually incom-
prehensible, requiring extensive and often expensive transla-
tion in order to make sure data generated in one application
can be read by another.
Technology intended to simplify everyday wealth management
tasks ultimately became complicated enough to feed an entire
new class of software providers who do nothing but aggregate
the data and cycle it through the system in a format that each
independent application can work with. This data export, aggre-
gation, and translation process is what traditionally makes TAMP
deployment take so long.
The Core of the Front Office
Meanwhile, front office technology has been evolving into its own
platform approach, only from the client-facing side. This is where
integration with client relationship management (CRM) systems
becomes critical – and there’s no CRM with wider reach or a
5

6. 6
Data processing
and memory
are outsourced
to the Inter-
net to provide
on-demand
resources. You
can work from
New York,
Beijing, Los
Angeles or
Sydney and
always be able
to access a
client’s account
information.
Users do not
need to control
the specific
computing
environment
– unlike in an
office where an
IT department
manages the
systems. This
helps create a
more secure
solution than an
onsite network.
It is also a
preferred
solution for
disaster
management.
The cloud
provider offers
its services --
networks,
servers, storage
or applications
-- as a shared
pool for all
authorized
users. There’s
no need to
invest in expen-
sive hardware,
databases or
software for
each of your
locations.
Users log in
to their cloud
account from
any device that
has an Internet
connection,
such as a PC,
tablet or smart
phone.
THECLOUDBUSINESSPROPOSITION
Today, most businesses use a cloud-
based social, mobile and analytics-based
model. Leveraging those technologies is
critical to the success of wealth manage-
ment firms, especially when the wealth
transfer spans multiple generations.
Customer relationship management
solutions can help by offering a unified
view of all client and prospect interac-
tions, helping provide high-value services
that build client loyalty.
CLOUDCOMPUTINGCANHELPYOURFIRM:
Reduce costs. The cloud can cut your
expenses for equipment and applica-
tions, plus the costs to power, cool,
house and install them.
Become more efficient. The cloud
expands access to the latest updates,
enabling innovation. You can implement
applications faster and add capacity on
demand.
Raise productivity. The cloud simpli-
fies applications access, and reduces
mundane IT tasks. You can focus on
managing the business, not the
technology infrastructure.
WHY GO TO THE “CLOUD”?
CLOUDCOMPUTINGHASFOURKEYBENEFITS:

7. 7
deeper platform mentality than the one offered by Salesforce.
A good CRM like Salesforce© provides everything next-gen-
eration clients demand. It tracks their interactions with you
and ensures that they’re treated like individual people and not
interchangeable account numbers. In fact, the right CRM makes
all the back office outsourcing operationally possible because
it gives you the tools to mediate between the automated TAMP
and the human being who owns the assets. Your job is to trans-
late the portfolio into hopes and dreams. The CRM has all that
information.
Where Salesforce gets interesting is that if you’re using their
system, you already have the front office covered. You aren’t
going to migrate that data in the foreseeable future. Sawtooth
has built their TAMP back from that front end to handle every-
thing the back office will need, leaving the client-facing CRM
capabilities completely untouched.
With Sawtooth’s integrated technology approach, all of the
work feeds out of the Salesforce© screens. Every step of the
process, from prospecting new clients to bundling and storing
paperwork, is easily accomplished without having to use and
learn a number of new applications. It’s simple, intuitive and
because it’s already integrated into the Salesforce© ecosystem,
it’s easily extensible and customizable.
There’s no heavy lifting required. You can get out from be-
hind the screen and back in front of clients in a matter of days.
What’s holding you back?
The New Standard for Wealth Managers
With Sawtooth and Salesforce, there’s a new standard for
advisors. For one, the advisor’s desktop can be quickly updat-
ed. Many financial advisors have abandoned their stand-alone
legacy systems and have chosen a Salesforce© environment for
its next-generation advisor desktop, open platform, and easy
integration with market data and technology partners.
That is just one small part of what makes the Sawtooth and
Salesforce partnership so powerful -- having the flexibility to
tune and brand the front end while leaving all the backend
Gain a 360-degree view of the client – A client’s
complete profile can be accessed in CRM, from social
media to back-office financial data.
Analyze important data – Financial advisors can
gain powerful insights and real-time visualization to
help clients reach their individual goals.
Enable mobile functionality – Relevant and timely
data can be easy for financial advisors and clients to
access wherever they are.
Use collaboration tools to their fullest – Advisors
and their team have simple collaboration tools to
share data and documents, and to leverage every-
one’s expertise to meet a client’s goals.
Automate engagement tools – With these, a
firm can proactively communicate with new and
existing clients.
The world is your desktop. Use it to:

8. YOU CAN GET
OUT FROM BEHIND
THE SCREEN AND
BACK IN FRONT
OF CLIENTS IN A
MATTER OF DAYS.
8
complexity to the professionals. In one click an advisor can
view a client’s current holdings. In two seconds they can pull
a report. This eliminates hours of busy work and streamlines
operations.
Thanks to feedback and collaborations with leading wealth
management firms, Sawtooth’s solutions surpass those used in
the past and introduce new options for financial professionals.
Advisory teams find it simpler to manage clients with Salesforce
than using popular consumer web sites.
And because Salesforce is available across online and mobile
channels, advisors can deliver world-class service to an increas-
ingly wired client population.
The One Constant in the Wealth
Industry is Change
The rapid pace at which the changes are coming requires an
adaptive wealth management solution.
At Sawtooth, our consultative process, along with our best-of-
breed technology integration approach, makes us the perfect
partner in these times of change. Advisors need to consider a
custom-tailored, enterprise-wide solution that combines tech-
nology, personalized proactive advice and service, and dedicat-
ed support into a completely integrated service offering.

9. 9
About Sawtooth
Sawtooth provides registered investment advisors, broker-deal-
ers, trust departments, and banks with flexible solutions to
attract and retain the best advisors, enable more effective
business process management, accelerate client acquisition,
and gain end-to-end visibility into firm-level assets under man-
agement. The results are streamlined processes, predictable
recurring revenue and consistently excellent client service.
For more information
about Sawtooth, contact:
Erich Leidel
erichl@sawtootham.com
(952) 831-9359
www.sawtootham.com
The information, analysis, and opinions expressed herein are for general and
educational purposes only. Nothing contained in this document is intended
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opinion regarding the appropriateness of any investment, nor a solicitation of
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investor may experience loss of principal. Investment decisions should always
be made based on the investors’ specific financial needs and objectives, goals,
time horizon, and risk tolerance. The asset classes and/or investment strat-
egies described may not be suitable for all investors and investors should
consult with an investment advisor to determine the appropriate investment
strategy. Past performance is not indicative of future results.
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