On Tuesday, October 16th we were joined by a special guest, Jerry Michael of Smartleaf. In this webinar, we explored the massive changes in the wealth management landscape as well as the forces driving them. WEBINAR HIGHLIGHTS: How the core value proposition of wealth management has evolved Security selection and asset allocation in the current landscape The modernization of wealth management processes: Rebalancing portfolios Customization Tax management

1. 1© 2018 Windham Capital Management, LLC. All rights reserved.
Confidential. Not for redistribution. © 2018
1
Old vs. New Wealth
Management
Gerard Michael
Smartleaf
President and Co-Founder
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2. 2© 2018 Windham Capital Management, LLC. All rights reserved.
THE BIG PICTURE
The way portfolios are managed reimagined and re-engineered
Transformational improvements of:
● Efficiency
● Consistency & compliance
● Customization & tax management
UHNW levels of customization and tax management for all.
The new “tables stakes”
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3. 3© 2018 Windham Capital Management, LLC. All rights reserved.
THE OLD WEALTH MANAGEMENT
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Construct buy lists and set
asset allocation guidelines
Investment
Policy
Committee
Advisor
Gather information
from client to
design a
customized
solution
Select securities
from buy list
Create asset
allocation within
firm-set bounds
Invest & rebalance
Adjust trades as
needed for
customization &
tax

4. 4© 2018 Windham Capital Management, LLC. All rights reserved.
KEY ELEMENTS OF THE OLD
Advisor does almost everything
Customization and tax largely manual
Therefore customization and tax expensive implemented sparingingly.
Also, problematic for compliance
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5. 5© 2018 Windham Capital Management, LLC. All rights reserved.
THE NEW WEALTH MANAGEMENT
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Construct asset allocations and set limits on
modifications
Select product for each asset class, along with
approved alternate products
Investment
Policy
Committee
Advisor
Overlay
Manager
Select asset allocation and customize as needed
Enter customization and tax management
preference parameters
Gather
information
from client to
design a
customized
solution
Invest & rebalance each account in a manner that:
1. is faithful to each account’s customization
and tax management preference
parameters
2. follows the tactical asset allocation and
product selection guidance of the IPC

6. 6© 2018 Windham Capital Management, LLC. All rights reserved.
KEY ELEMENTS OF THE NEW
Unbundling of traditional advisor functions:
1. IPC: asset allocation + product + customization fences
2. Advisor: designing customized solutions
3. Overlay Manager: rebalancing
Parameterization of customization
Automation of rebalancing
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7. 7© 2018 Windham Capital Management, LLC. All rights reserved.
VALUE OF THE NEW
Efficiency
• 50K accounts/per overlay manager
Consistency & compliance
• 60% reduction in dispersion
• “Built in” compliance
Customization & tax management
• 60% reduction in taxes
• 100% of clients with customized models, ESG constraints, etc
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8. 8© 2018 Windham Capital Management, LLC. All rights reserved.
IMPLICATIONS
New “table stakes”:
• More customization: risk customization, social screens, choice of
product
• More tax efficiency: tax savings greater than fees
• Low cost UMAs and direct indexes
• More time with clients
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9. 9© 2018 Windham Capital Management, LLC. All rights reserved.
OLD VS NEW VALUE PROPOSITIONS?
● Old: product, trade and performance-oriented
● New:
○ financial planning and a focus on all aspects of client’s financial
well being
○ customization and tax management
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10. 10© 2018 Windham Capital Management, LLC. All rights reserved.
THE OLD VS. NEW WEALTH MANAGEMENT
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Providing holistic guidance that helps
clients meet their financial needs
Performance of the advisor’s active asset
allocation and security selection
Value Proposition
Construct buy lists and set
asset allocation guidelines
Construct asset allocations and set limits on
modifications
Select product for each asset class, along with approved
alternate products
Rebalance each account in a manner that:
1. is faithful to each account’s customization and
tax management preference parameters
2. follows the tactical asset allocation and product
selection guidance of the IPC
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11. 11© 2018 Windham Capital Management, LLC. All rights reserved.
Thank you!
Questions? Contact us at info@windhamlabs.com
and gmichael@smartleaf.com
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12. 12© 2018 Windham Capital Management, LLC. All rights reserved.
DISCLAIMER
The information contained in this presentation (the “Presentation”) is prepared solely for informational purposes. The Presentation is neither
an offer to buy or sell nor a solicitation of an offer to buy or sell any security, or interests or shares in any fund or strategy. Historical data and
other information contained herein is believed to be reliable but no representation is made as to its accuracy or completeness or suitability for
any specific purpose. Past performance is not indicative of future performance, which may vary. There can be no assurance that the
strategies’ investment objectives will be achieved. All strategies in this Presentation place investor capital at risk. Future returns are not
guaranteed and a loss of principal may occur.
References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are
provided for your information only. Reference to an index does not imply that the Windham portfolio will achieve returns, volatility or other
results similar to the index. The composition of a benchmark index may not reflect the manner in which a Windham portfolio is constructed in
relation to expected or achieved returns, investment holdings, portfolio guidelines, correlations or tracking error targets, all of which are
subject to change over time.
Prospective investors should not rely on this Presentation in making any investment decisions. Windham’s portfolio risk management includes
a process for managing and monitoring risk, but should not be confused with, and does not imply, low risk. Asset classes and proportional
weightings in Windham portfolios may change at any time without notice. Windham does not provide tax advice to its clients and all investors
are urged to consult with their tax advisors with respect to any potential investment.
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