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Chart 81: What do you expect to be the main driver of success for robo advisors? 50% 45% 40% 35% 30% 29% 20% 15% 10% 5% 0% A low and An efficient Advanced portfolio Department of Access toa transparent cost technology and construction that Labor fiduciary human in volatile structure interface platform — outperforms rule markets Source: BofA Merrill Lynch Global Research ¢ Finally, all of the panel participants believe that the DOL Fiduciary Rule will not be repealed by the new administration, although it may be delayed. In the end, this should benefit robo advisors, as most of the models have low fee structures and limited conflicts of interest. State of the Multifamily Market: Cooling or Collapsing? We hosted a panel to discuss the state and the outlook for the multifamily market following a year which has witnessed increased investor anxiety around multifamily loan growth and heightened scrutiny by banking regulators of multifamily loan portfolios, particularly at banks with a high concentration of multifamily loans. Our panelists included John Jardine, Co-CEO of Ares Commercial Real Estate Corp, David Brickman, Executive Vice President and the Head of Multifamily business at Freddie Mac and Alan Fishman, Chairman of the Board at commercial real estate investment trust Ladder Capital. = Multifamily on solid footing: The panelists view the multifamily market as having a solid foundation with most of the risk lying at the high end, class A properties in particular markets (New York, San Francisco). Even here, the panelists agreed that the issues at the high end segment were more likely to manifest themselves in the form of decelerating growth in rents (and increased incentives by landlords) as opposed to serious credit issues. Investors echoed this sentiment during a live audience poll with 60% of the investors seeing issues in the multifamily market limited to certain regions and at certain rental price points. Bankof America 2 2016 Future of Financials Conference | 17 November 2016 55 Merrill Lynch HOUSE_OVERSIGHT_014369