FSG. Front Street Group at Morgan Stanley

Transcription

1 Front Street Group at Morgan Stanley

2 Providing an exceptional level of service to an exceptional group of clients Front Street Group manages over $1.2 billion for 35 families with a combined net worth in excess of $1.85 billon. * Our clients include: Founders and CEOs of Fortune 500 companies Executives representing 15 Different Industries Founders of large, privately held enterprises Managing partners of multibillion-dollar private equity firms Heirs of multigenerational family fortunes * As of August 2014

3 Comprehensive planning for successful families In working with some of the most affluent families in the United States, we have seen that money, in and of itself, does not create the skills needed to manage it. Addressing the multifaceted issues generated by significant wealth calls for a very specific set of talents, not to mention a considerable amount of time to devote to the effort. At Front Street Group, we help families like yours address these challenges every day. We translate the most complex issues into clear and simple choices, helping you understand your options and explore the implications of your decisions. Under the experienced leadership of Anthony DiValerio, one of the industry s top financial advisors according to Barron s, we work with ultra high net worth individuals, affluent families and institutions. We are well versed in the specialized needs of executives and entrepreneurs, from intergenerational wealth transfer to diversification of concentrated positions even the public perception of personal financial decisions. We will invest the time to understand your needs and preferences, and work with you to formulate a strategic vision and develop a systematic methodology to help achieve your goals. Together, we will draw a roadmap for your financial future, promote an enduring family legacy and encourage responsible stewardship across generations. All of us at Front Street Group are committed to helping you protect and grow your assets, while inspiring a level of confidence that allows you to focus on the people, causes and activities you care about most. We are the speed dial number you push for access to broad experience, deep resources and the timely, unbiased advice you need to address any financial matter. Our goal is not just to help you invest your money; it is to help you enjoy your life with the confidence that your financial well-being is secure. front street Group 3

4 Our Philosophy a disciplined approach to creating a customized plan The professionals at Front Street Group have spent a combined 80 years helping high net worth families, individuals and select institutions navigate multiple market cycles. In these dynamic, ever-changing markets, education is critical. It is our strong conviction that the long-term success of our relationships is a direct function of thorough knowledge, steadfast guidance and unwavering discipline. We believe that proactive client service, timely communication and open platforms are the foundation of a positive client experience. We concentrate intently on building a plan for your life financial, personal and social and developing customized strategies to help you achieve your short and long-term objectives: from retirement planning to wealth preservation, tax efficient investing to wealth creation opportunities, family wealth distribution to business financial services. 4 Morgan Stanley

5 Financial strategies for life The financial markets are unpredictable. We work to counter that inherent uncertainty by taking a proactive, consultative approach rooted in a deep knowledge of your short and long-term needs and objectives, your tolerance for risk and your time horizon. We understand that asset management can be overwhelming and time-consuming, and work to make it simpler by presenting clear choices and straight advice. We are dedicated to building a satisfying, long-lasting relationship with you based on confidence, mutual respect and integrity. Drawing on our own view of the markets, as well as Morgan Stanley s venerable global research, we are able to make informed recommendations and design a flexible investment management plan that is uniquely yours. A platform to support unbiased advice Morgan Stanley s openarchitecture platform frees us to recommend world-class products and services that best suit your situation and goals. No matter what your needs, you benefit from the same global access and innovation the firm provides to corporations, governments and institutional investors. Investing with discipline and diligence We align potentially suitable strategies with your unique priorities. You can rely on our team to work diligently to acclimate ourselves to your needs and provide complete transparency to establish a relationship built on trust.

6 Our process a disciplined approach to creating a customized plan We follow a carefully prescribed process to creating a highly customized, comprehensive wealth management plan one that addresses your precise objectives and reflects your values and preferences. We invest considerable time at the beginning of our relationship, learning about you, your family, your work and leisure activities and anything else about your unique situation you wish to share. It s the only way we feel sure that we can provide the kind of customized, personal attention you demand and deserve. 1 Initial Assessment We gather all of your documents to gain a detailed understanding of your current financial picture and determine whether your affairs are in order. This includes a review of your tax returns, brokerage statements, mortgage statements, financial statements, life insurance illustrations, retirement plan and deferred compensation summaries, wills and trust documents, cash flow projections, bank statements and asset titles. 5 Refine Investment Strategy We craft an investment policy statement for your approval and finalize your investment strategy. 6 Morgan Stanley

7 2 3 4 Discovery Meeting This is an in-depth discussion designed to help us understand you and your family as people, and your unique family story. We talk about your values, goals and concerns, and determine your tolerance for risk. Develop Investment Strategy We help you develop a formal asset allocation based on both strategic and tactical considerations and develop preliminary portfolio recommendations. Investment Strategy Meeting We discuss our recommended strategy and coordinate our efforts with other advisors, such as attorneys and CPAs Begin Investment Process Our team opens accounts, transfers existing assets, creates custom client service models, establishes online access and begins the initial investment process. Our service model is as customized as our portfolios so we can address your needs how, when and where you prefer. Begin Wealth Planning We evaluate existing estate planning strategies, convene a wealth planning meeting, identify risk exposures and collaborate with estate attorneys to review and update your tax, trust and estate planning. We focus equally on both sides of your balance sheet, identifying opportunities to use the most efficient loans and credit lines. Ongoing Monitoring and Service We oversee the performance of your investments on a daily basis, reporting back to you as you require. This includes formal performance reviews, regular communication, timely research and ongoing planning.

8 comprehensive capabilities By combining the vast global resources of Morgan Stanley with the deep experience of our team, we provide access to the full range of capabilities you need to address all of your financial challenges, tailored to your preferences. We utilize a fully open architecture to provide appropriate recommendations to balance risk, reward and liquidity. From the most sophisticated investment and lending strategies to the most basic service request, we operate on a simple principle: If you need it, we ll either do it or find someone who can. Capability Highlight: Portfolio Loan Accounts Over the past five years, our team has helped clients establish approximately $300 million * of securities-based lines of credit, gaining access to more competitive rates, greater flexibility and more efficient underwriting than many other forms of financing. These credit lines can be an effective and flexible tool for financing private transactions, such as the purchase of yachts, art, real estate or private equity commitments. Once you have established a securities-based loan, you have access to liquidity while keeping your overall investment strategy intact. Capability Highlight: 10b5-1 Trading plans In the process of working with some of the country s most successful public company CEOs, we have gained deep experience in the various strategies used to diversify concentrated equity positions in a tax-savvy and shareholder sensitive manner. Among these are Rule 10b5-1 trading programs. These systematic selling programs allow you to set future sales of shares on specific dates at preset prices. Put in place at a time when you are permitted to divest, the program allows you to diversify without regard to corporate blackout periods while providing an affirmative defense against allegations of insider trading. They can be used with restricted stock. * As of August Morgan Stanley

9 wealth management services Asset Management Equities, including Separately Managed Accounts, Discretionary Managed Equities and Syndicate Fixed Income, including Municipal, Investment Grade Corporate, High Yield Corporate and Mortgage-Related Structured Investments Hedge Funds & Fund of Funds Private Equity Foundation & Trust Asset Management and Consultancy Income and Cash Flow Planning Aircraft / Yacht Ownership and Financing Cash Flow and Charter Analysis Search and Selection of Aviation and Maritime Attorneys Coordinate Transactions and Delivery Management of Concentrated Positions 10b5-1 Trading Plans Rule 144 Stock Sales Variable Prepaid Forward Strategy and Implementation Secondary Stock Offerings Liability Management Securities-Based Lines of Credit Management of Intra-Family Mortgages Home Loans Estate & Tax Planning Involvement Intergenerational Planning Coordination and Ongoing Dialogue with Estate Attorneys Pre-IPO / Private Transaction Planning Gifting Strategy, Tracking and Implementation w Trusts w Family Foundations w Philanthropic Planning Estate Tax Funding Strategies Insurance Analysis, Replacement and Monitoring Utilization of Transfer Techniques, such as CRUTs, GRATs and QPRTs Ongoing Family Education and Meeting Coordination Private Investment Evaluation Real Estate Hard Assets Venture Opportunities front street Group 9

10 TALENT AT YOUR DISPOSAL A financial advisory practice is only as strong as its financial advisors and only as credible as the advice it offers. We strive to earn your confidence by giving you our straight and honest opinion on any financial matter, and by meeting every service request quickly and competently. We limit our practice to a very small number of clients, so we can give each the attention they deserve. If you are among them, you have our complete commitment to helping you live the life you intend. 10 Morgan Stanley

11 Left to right: Anthony J. DiValerio, Jr., Maryann A. Erieg, Elizabeth Thompson-Ambrose, Jeffrey M. Levinsohn front street Group 11

12 Anthony J. DiValerio, Jr. Executive Director Senior Portfolio Manager Corporate Client Group Director Wealth Advisor Jeffrey M. Levinsohn Associate Vice President Financial Advisor Drawing on over 25 years of financial industry experience, Anthony works with our clients to create integrated wealth plans focusing on fixed income management, private equity and risk management strategies for concentrated positions. Anthony has been recognized by Barron s Magazine as one of America s Top 1,000 Advisors for four consecutive years, 2011 through * Prior to joining Morgan Stanley in 2008, Anthony worked as a Private Banker at UBS, also serving as a member of the Advisory Council to Management, the Global Circle of Excellence, the UBS Chairman s Council and the Dow Jones Wealth Management Advisory Council. He joined UBS from Donaldson, Lufkin & Jenrette/Credit Suisse s Corporate Services Group, where he was a Regional Director and served on the Corporate Advisory Council. Earlier in his career, Anthony worked with select family groups at Tucker Anthony and Bear Stearns. He earned a B.S. in Business Management and Economics from Bloomsburg University. Anthony serves on the board of directors and is an Executive Committee Member of Bringing Hope Home, a charity that provides financial assistance to families receiving cancer treatment. He previously served as a trustee at the Malvern Preparatory School. Anthony lives in Malvern, Pa. with his wife, Linda, and their three children anthony.divalerio@morganstanley.com I ve been privileged to manage many unique requests ranging from hard asset evaluation and modeling to complex financial strategies. This gives our team perspective and experience that we can share with our client families. Jeff focuses on helping clients clarify their financial goals, develop wealth allocation plans and implement personalized solutions. Prior to joining the team in 2009, Jeff was a Senior Associate at CMS Companies, where he advised clients on the construction of alternative investment portfolios including private equity, real estate and specialty finance. He counseled clients on the use of tax-advantaged intergenerational and charitable planning techniques. Jeff graduated with a B.S. in Behavioral Science and Law from the University of Wisconsin-Madison and subsequently obtained an integrated JD/MBA graduate degree from Temple University s Beasley School of Law and Fox School of Business and Management. He is a member of the Pennsylvania Bar. Jeff is actively involved with Settlement Music School in Philadelphia, where he serves as a member of the Investment Committee, Chair of the Communications Committee, and Board Member of the Mary Louise Curtis Branch. He is also a drummer in the band Cabin Dogs, which has released four albums of roots and blues-based rock and roll. Jeff lives in the Philadelphia suburbs with his wife and three children jeffrey.levinsohn@morganstanley.com As with a successful musical collaboration, my role requires active listening and teamwork with a close-knit group working toward a common goal. I ensure that we move at the right pace and that everyone is working together. 12 Morgan Stanley

13 Maryann A. Erieg Senior Registered Client Service Associate Elizabeth Thompson-Ambrose Senior Registered Client Service Associate Maryann is responsible for overseeing client relations and ensuring the proper execution of administrative processes. She assists clients in many aspects of their financial experience, including: trading, cash management and reconciliation, account management and coordinating portfolio review meetings. Prior to joining Morgan Stanley in 2008, Maryann was a Client Service Administrator at UBS for 10 years, where she received the Service Excellence award in 2007, granted to only one Client Administrator each year. She was selected to serve on the Private Client Advisory Board and worked closely with senior operational management to improve client experience. She has worked with Anthony for the past 16 years, overseeing all of the team s administrative and service functions. Maryann received an Associate Degree in Business Management with a minor in Accounting from Delaware County Community College. Maryann resides in Ridley Park, Pa. with her husband, Ray, and mother, Anna. She has three daughters, a granddaughter and two grandsons, all residing close to her home. Maryann enjoys traveling and the arts, especially theater and dance maryann.erieg@morganstanley.com Through working with our clients and assisting them with their needs as efficiently as possible, I have established many great relationships over the years, so much so, they are like my extended family. Elizabeth is an industry veteran with 18 years of experience in financial services operations, client service and compliance. As a dedicated Senior Registered Associate, Elizabeth assists clients in many service areas, including: account setup and maintenance, cash management and reconciliation, online account access, trading, meeting coordination and report preparation. She is also responsible for managing content on the team s website. Prior to joining the team in 2013, she worked for Boenning and Scattergood and Janney Montgomery Scott. Elizabeth is the third generation of her family to specialize in the financial services industry, following in the footsteps of both her parents and grandmother. Elizabeth attended the University of Alabama. She resides in Malvern, Pa. with her husband, Jamie, and her daughter, Nina. She is involved with local community activities including Home of the Sparrow, a charity for women in transition elizabeth.ambrose@morganstanley.com I enjoy assisting clients and value my relationships with them. I always strive to ensure that requests are handled in a timely and responsive manner. front street Group 13

14 Our COMMITMENT Our clients are members of an exclusive group, where their needs are anticipated, their preferences are understood and they have opportunities to make connections and share experiences with other successful people. Should you decide to join this select group, we will work diligently to understand and address your needs, so you are free to enjoy the lifestyle and the opportunities you have worked so hard to create for yourself, your family and your community. We look forward to meeting you and your family. 14 Morgan Stanley

15 100 Front Street One Tower Bridge, Suite 600, West Conshohoken, Pennsylvania / Main / fax morganstanleyfa.com/frontstreetgroup

16 Securities-based Lending Risks: Borrowing against securities may not be suitable for everyone. You should be aware that securities-based loans involve a high degree of risk and that market conditions can magnify any potential for loss. Most importantly, you need to understand that: (1) Sufficient collateral must be maintained to support your loan(s) and to take future advances; (2) You may have to deposit additional cash or eligible securities on short notice; (3) Some or all of your securities may be sold without prior notice in order to maintain account equity at required collateral maintenance levels. You will not be entitled to choose the securities that will be sold. These actions may interrupt your long-term investment strategy and may result in adverse tax consequences or in additional fees being assessed; (4) Morgan Stanley Bank, N.A., Morgan Stanley Private Bank, National Association, or Morgan Stanley Smith Barney LLC (collectively referred to as Morgan Stanley ) reserves the right not to fund any advance request due to insufficient collateral or for any other reason except for any portion of a securities-based loan that is identified as a committed facility; (5) Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; and (6) Morgan Stanley reserves the right to call your securitiesbased loan at any time and for any reason. Morgan Stanley Smith Barney LLC ( Morgan Stanley ) is a registered Broker/Dealer, member SIPC, not a bank. Where appropriate, Morgan Stanley has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Unless specifically disclosed in writing, investments and services offered through Morgan Stanley are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, a bank and involve investment risks, including possible loss of principal amount invested. The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor s individual circumstances and objectives. Since life insurance is medically underwritten, you should not cancel your current policy until your new policy is in force. A change to your current policy may incur charges, fees and costs. A new policy will require a medical exam. Surrender charges may be imposed and the period of time for which the surrender charges apply may increase with a new policy. You should consult with your own tax advisors regarding your potential tax liability on surrenders. An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Some of these risks may include: loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices; lack of liquidity in that there may be no secondary market for the fund and none is expected to develop; volatility of returns; restrictions on transferring interests; potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; absence of information regarding valuations and pricing; complex tax structures and delays in tax reporting; less regulation and higher fees than mutual funds; and manager risk. Individual funds will have specific risks related to their investment programs that will vary from fund to fund. Actual results may vary and past performance is no guarantee of future results. Source: Barron s Top 1,200 Advisors, February 24, 2014, as identified by Barron s magazine, using quantitative and qualitative criteria and selected from a pool of over 4,000 nominations. Advisors in the Top 1,200 Financial Advisors have a minimum of seven years of financial services experience. Qualitative factors include, but are not limited to, compliance record and philanthropic work. Investment performance is not a criterion. The rating may not be representative of any one client s experience and is not indicative of the financial advisor s future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pays a fee to Barron s in exchange for the rating. Barron s is a registered trademark of Dow Jones & Company, L.P. All rights reserved Morgan Stanley Smith Barney LLC. Member SIPC. CRC CS /14