pancoe-nakovich wealth management at morgan stanley smith …€¦ · ·...

Pancoe-Nakovich Wealth Managementat Morgan Stanley Smith Barney

2 The Pancoe-Nakovich Advantage 5 Planning for Generations 8 Portfolio Management

70 West MadisonSuite 5450, Chicago, IL 60602

866-614-PNWM (7696) / MAIN

312-443-6300 / FAX

ms.com/pancoenakovich

The Pancoe-Nakovich Wealth Management team at Morgan Stanley Smith Barney provides a complete range of wealth management services to affluent individuals and their families—including prominent leaders in the business, health care, education, arts and philanthropic communities. Our practice is Chicago-based, and we have clients from coast to coast.

With roots dating to 1973, we have helped hundreds of clients build and maintain wealth over time. Our success has been the result of the disciplined investment process we have used for decades—for our clients and for our own portfolios.

Our clients span multiple generations, often from the same family. We work with retirees focused on leaving a legacy to their loved ones and favorite charities, mid- and late-career professionals planning the next chapter of their lives, and young families starting to accumulate sizable wealth for the first time.

Whatever your goals, we’ll work together to develop an individually tailored solution.

Generations of Success

3pancoe-nakovich wealth management

The Pancoe-Nakovich Advantage

In an industry filled with many skilled professionals, our team stands out.

morgan stanley smith barney4

RESPONSIBILITY

CONFIDENCE

INTELLECT

ACCESS

OUR CLIENTSKNOWLEDGE

We can handle all of your financial needs.

We’ll work to earnyour trust to manage your money.

We understand complex situations.

We learn all we can before we invest.

We regularly consult with leading industry experts.


RESPONSIBILITY

CONFIDENCE

INTELLECT

ACCESS

OUR CLIENTSKNOWLEDGE

We can handle all of your financial needs.

We’ll work to earnyour trust to manage your money.

We understand complex situations.

We learn all we can before we invest.

We regularly consult with leading industry experts.

INTELLECT

We bring substantial intellectual resources to the job of managing your wealth. Arthur Pancoe lectured in mathematics at Northwestern University. Steven Nakovich has taught a fixed-income course for the demanding and prestigious Chartered Financial Analyst program. Steven Goodwin speaks three languages. Jai Vishnubhakat, with a science degree from Cornell and graduate degrees in business and biotechnology from Northwestern, has been widely published in prestigious journals and is also fluent in Hindi.


Planning for generations

At Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney, we can help you handle all of your wealth planning concerns in a tax-efficient manner—from ensuring your loved ones are taken care of financially to helping you achieve your charitable goals.

Because our partners are all at different stages of their lives, we have great collective insight and empathy into the challenges our clients face. We will draw upon both our professional and personal experiences to help you craft custom solutions to these challenges.


future flexibilityNeeds change over time, sometimes unexpectedly. You’ll appreciate knowing that whatever financial challenges come your way, you’ll have access to the services and expertise you need to address them.

beholden only to youAs valuable as our connection to Morgan Stanley Smith Barney is, our investment choices are always fully independent. The only factor we consider when recommending a product is whether we believe it can help you reach your objectives.

services for individuals

Investments• Equities• Fixed-incomesecurities• Exchange-tradedfunds (ETFs)• Mutualfunds• Alternativeinvestments (e.g.,hedgefunds, managedfutures)• Options• Structuredproducts• Unitinvestmenttrusts (UITs)

Since 2008, Pancoe-Nakovich Wealth Management has been part of Morgan Stanley Smith Barney, one of the world’s largest and most respected financial services firms.

With this relationship, we can provide you with a nearly unlimited combination of financial services, tools and resources. From portfolio management to estate planning, charitable advice to insurance needs—we can help bring you closer to your financial goals, no matter how complex.

Backed by a global leader


Wealth planning• Financialplans• Annuities(variable,fixed andintermediate)• Insurance(disability,life andlong-termcare)• Charitablegiving•Familyfoundations•Trustaccounts•Delawaretrusteeservices•Wealthtransitionplans

Managed accounts•Mutualfundadvisory groupprograms•Separatelymanagedaccounts

Financial assessment •Assetallocationreview•Debtmanagementcalculators•Educationfundingcalculators• Insuranceneedscalculators•Retirementincomecalculators

Education planning services• 529collegesavingsplans

Foradditionalservicesnotlistedhere,pleasecallusat866-614-PNWM(7696).

Executive services• Stock-optionstrategies• Concentrated-stockservices (e.g.,selling,hedging)• Presetdiversificationprograms (10b5-1)• Restrictedsecurities (e.g.,liquidation,risk- managementalternatives)• Wealthplanningservices

Foradditionalservicesnotlistedhere,pleasecallusat866-614-PNWM(7696).

services for organizations and executivesComplex organizations—and their leaders—have complex financial requirements. We work with many businesses, nonprofits and individual executives to manage their needs.

Here are some of the specialized services we provide:

Institutional services• Successionplanning• Valuationreferralservices ( forsaleofacompany/estate andtaxplanning)• Cash-managementservices• Coordinated-saleprograms• Directed-shareprograms• Employeestockownershipplan (ESOP)transactionservices• “Keyman”insurance• Lendingservices(e.g.,linesof credit,commercialmortgages, termloans)• Lockbox,payrolland merchantpayments• Retirementsavingsplans (e.g.,401k,403band457plans)• Strategicadvisoryreferral services(e.g.,mergers, acquisitions,divestitures andprivateplacements)• Stock-planservices


equity management

Our stock portfolio management philosophy is to find stocks we be-lieve offer growth at a reasonable price. We invest in domestic and in-ternational companies and are mar-ket-cap neutral—meaning we own small-, mid- and large-cap stocks that we believe offer good risk-ad-justed performance potential. We diversify our clients’ portfoli-os across multiple asset classes, and in addition to managing portfolios of individual stocks, we also look to exchange-traded funds (ETFs) and mutual funds to achieve specific portfolio management objectives. The senior partners and portfo-lio managers of Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney are each re-sponsible for analyzing companies within certain sectors of the S&P 500 Index, and we discuss invest-ment ideas and share insights daily. Together, we evaluate prospective investments and reexamine exist-ing ones, ultimately determining the stocks that may be placed or main-tained in client portfolios. Our business began with an emphasis on pharmaceutical and biotechnology stocks—it’s how we earned our reputation. While our capabilities have expanded along with our business, we still look to this industry as a key source of added performance potential.

Our investment philosophy focuses on maintaining optimal asset allocation and reducing investment correlation through diversification.

We focus on generating solid long-term results, not on beating the market on a quarterly or even an annual basis. Some years we may outperform by a wide margin, while other years may test our patience. Our goal is to generate favorable performance over time without subjecting our clients to excess risk. We have historically been able to achieve this objective, although there is no guarantee we will continue to succeed.

We are fully accountable to our clients for all of our decisions, and we believe wholeheartedly in every investment recommendation we make. In fact, the partners of Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney own many of the same securities our clients do. We believe that if they’re good enough for your family, they’re good enough for ours.

A disciplined approach to portfolio management


ACCESS

To supplement our knowledge and help assess investment options for clients, we are fortunate

to work with some of the best minds in their respective fields, including a recent recipient of the Nobel Prize in medicine. Our personal

contacts are especially strong in the health care industry, where we first built our reputation.


fixed-income

Fixed-income securities are a criti-cal component of our clients’ portfo-lios, providing valuable diversifica-tion benefits and income to achieve clients’ financial goals. We are not bond traders—our fixed-income philosophy is to buy and hold. However, we understand the need to analyze and adjust our clients’ portfolios as credit and market fundamentals change. We believe bonds serve a specific purpose—to preserve your wealth and generate income. Additionally, this asset class can be useful in reducing your portfolio’s overall volatility. Our clients t ypically own a combination of municipal bonds, government-issued debt and investment-grade corporate bonds, and may also include fixed-income mutual funds and ETFs.

The Team

The Team

The four senior partners of Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney have worked together since 1999. Our two founding partners, Arthur Pancoe and Steven Nakovich, have been together for more than two decades.

Arthur PancoeSenior Vice President, Financial AdvisorSenior Portfolio Manager Arthur Pancoe is a founding partner of Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney, with more than $500 million in assets under management. Previously, Art was a senior managing director at Bear, Stearns & Co., where he established Pancoe-Nakovich Investment Management in 1994 after originally joining the firm as a stock broker in 1982. His investment career began in 1973 at Smith Barney (now Morgan Stanley Smith Barney), where he enjoyed success managing diversified portfolios for pri-vate clients and developed his specialty in pharmaceutical and biotechnology stocks.

Art received his B.S. in mathematics and physics from the University of Wis-consin and his M.S. in mathematics from Northwestern University, in addition to teaching mathematics at both schools. He is active in many of Northwestern University’s alumni affairs, serving as a member of the Weinberg College of Arts and Sciences Visiting Committee, the Kel-logg Graduate School of Management’s

Biotech Center’s advisory board, the Robert H. Lurie Comprehensive Cancer Center advisory board, the Technology Transfer Committee and the steering committee for the Center of Cancer Nanotechnol-ogy Excellence. He also established the Arthur and Gladys Pancoe Chair of Math-ematics at Northwestern University and endowed the building of the Arthur and Gladys Pancoe NorthShore University Health System Life Sciences Pavilion on Northwestern’s lakefront.

Art has been interviewed by numerous publications and media outlets through-out his career, including TheWallStreetJournal, BusinessWeek, Money, National Public Broadcasting (where he partici-pated in a televised debate regarding the patentability of genes), Town&Country and WallStreetTranscript.

With his late wife, Gladys, Art has two children, Mariann and Michael, and four grandchildren.

312-443-6213 [email protected]


The Team

Steve earned both his B.A. in finance/accounting and his M.B.A. in finance from Western Michigan University. He is an active member of the visiting committees for Biological Sciences and the Pritzker School of Medicine at the University of Chicago. Steve has been active in a variety of charitable endeavors, including serv-ing as a board member of the Catholic Health Partners Foundation, chairman of the Cenacle-Midwest Provincialate Investment Advisory Committee, and a key fundraiser for various healthcare institutions and organizations. He also established the Nakovich Fellows in the Section of Hematology/Oncology at the University of Chicago-Pritzker School of Medicine for 2004 thru 2006, and he actively contributes annual financial support to the Forefront Fund for the University of Chicago Medical Center.

Steve was featured in Crain’sChicagoBusiness’s annual survey of the city’s top business figures in 1992 and 1993, was recognized in 2010 as one of the Top 1000 Financial Advisors in the country by Barron’s. He is a member

of the Bond Club of Chicago. He and his wife, Janice, have two children, Lauren and Matthew, and six grandchildren.


Steven NakovichSenior Vice President, Financial AdvisorSenior Portfolio Manager Steven Nakovich, who partnered with Arthur Pancoe to found Pancoe-Nakovich Wealth Management, also previously worked at Bear, Stearns & Co. He started at the firm as an institutional corporate bond salesman in 1976, later becoming the manager of the institutional fixed-income department. Several years later he took on the additional responsibil-ity of the day-to-day management of the institutional equity department. This ultimately led to Steve becoming resident senior managing director of the Chicago office and Midwest region from 1988 to 1994. Prior to his tenure at Bear Stearns, Steve was a vice presi-dent in the fixed-income investments division with Continental Illinois Na-tional Bank and Trust Company after originally joining the firm as a credit analyst. He has also been an instructor for the fixed-income course with the Chartered Financial Analysts Society.


KNOWLEDGE

With decades of experience choosing stocks and fixed-income securities, we conduct our own exhaustive research. To reduce risk, we seek to learn everything about the companies and industries we invest in, and to get to know their business.

The Team

Steven GoodwinSenior Vice President, Financial AdvisorSenior Portfolio Manager Steven Goodwin has been a member of the Pancoe-Nakovich Wealth Management team at Morgan Stanley Smith Barney since 2008, and originally joined the team at Bear, Stearns & Co. in 2000. In addition to his portfolio management responsibilities, he has long focused on client service, performing regular portfolio reviews and heading new business development. His additional duties include analyzing specific in-dustry sectors and selecting equities to include in client portfolios. Steve also coordinates financial planning for cur-rent and prospective clients, including planning for the distribution of assets in retirement. To provide additional value, Steve also helps individuals make ap-propriate allocations for their company-sponsored retirement plans, to ensure those allocations are coordinated with the individuals’ overall financial goals.

Prior to joining the Pancoe-Nakovich team, Steve worked as a financial advi-sor with UBS Paine Webber in Chicago, developing wealth management strate-gies for the firm’s high-net-worth-client group and establishing retirement plans for small- and mid-sized companies.

Prior to his experience in the financial industry, Steve’s diverse work history included serving as a facility director for Plumfield Children’s Center, a resi-dential treatment facility for children in California under state protective custody; Onboard Services Manager for United Airlines; and an instruc-tor at the Berlitz Language Institute in Frankfurt, Germany, for corporate clients pursuing a greater understand-ing of English as a spoken language.

Steve attended the University of Oregon, studying political science and history. He is also a veteran of the United States Army, having served in the military from 1984 to 1988. During his tenure, he was promoted to the rank of sergeant within 22 months by order of the Secretary of

the Army. Steve also attended numerous leadership and tactical training courses. He is also recognized by the Dept. of the Army and holds the honor of “Dis-tinguished Member of the 17th Infantry Regiment” for displaying meritorious service and exemplifying “Esprit de Corps.” Steve currently serves as the Treasurer and General Quinn Schol-arship Chairman for the 17th Infantry Regiment Association. He is a volunteer mentor with American Corporate Part-ners, a nationwide career counseling and mentoring program for recently returning U.S. veterans returning to academia or the corporate workforce.

Steve and his wife, Lauren, have two children, Grayson and Sloane, and reside in the southwest suburbs of Chicago.



Jaideep (Jai) VishnubhakatSenior Vice President, Financial AdvisorSenior Portfolio Manager Jai Vishnubhakat is responsible for the research and analysis of equity holdings in the biotechnology and pharmaceuti-cal sectors, as well as several others. He has been part of Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney since the team’s move in 2008. He originally joined the Pancoe-Nakovich team in 2000 as an associate for Bear, Stearns & Co., serving as a portfolio manager and analyst with a focus on clinical trial data and emerging technologies. Previously, Jai worked as a medical researcher at Northwestern University, the Picower Institute for Biomedical Research and North Shore University Hospital. Jai’s work at the Picower Institute led to the publication of a seminal study, which he coauthored in Science magazine, describing HMG-1 as

mediator of sepsis. This work ultimately led to the founding of a now publicly traded biotechnology company. He also served as an emergency medical techni-cian for Cornell University’s Emergency Medical Services, and started a successful web-based jewelry retailing operation prior to entering business school.

Jai received his B.A. in neuro-biology and psychology from Cornell University and his M.S. in biotechnology and busi-ness from Northwestern University. He is currently a member of the steering committee for Northwestern Univer-sity’s Center of Cancer Nanotechnology Excellence, a junior board member for Children’s Oncology Services Inc.’s One Step at a Time program, and a volunteer for the Make-a-Wish Foundation and ApnaGhar, a domestic violence shelter in Chicago. In addition, Jai has published numerous articles in leading scientific journals regarding his medical research including Science,ShockandSurgery,

among others. He has also presented before the American College of Neu-rosurgeons. He and his wife, Heather, have a daughter, Eden, and a son, Kavi.



RESPONSIBILITY

When you talk with us, you won’t just be speaking with your financial advisor—we’re also your portfolio manager, your securities analyst and your client relationship manager, all in one.

Our clients are fortunate to be served by a dedicated and talented team of professionals, all of whom have worked with us for many years. They ensure our clients’ requests are met promptly and keep our office running smoothly.

Client Service Team

Deborah JonesClient Service

Carol PatrianakosClient Service

Barbara HoyClient Service


Recognition

Members of the Pancoe-Nakovich Group have been repeatedly recognized by leading industry publications for excellence in investment research and wealth management. You can expect the same high level of insight, experience and service when you become a client.


Alumni Medal, Arthur PancoeNorthwestern University

April 5, 2003

Top 1000 Advisors1, Steve Nakovich Barron’s Magazine

February, 2010

Please see the back cover for ranking criteria.

Your financial advisors. . .for generations

At Pancoe-Nakovich Wealth Management at Morgan Stanley Smith Barney, you’ll never lose your individuality as one of our clients— no matter what the size of your portfolio, we’ll customize a strategy that precisely reflects your individual goals.

Honesty, consistency, preservation of wealth and dedication to meeting your goals: these are the cornerstones of our practice.

We never lose sight of the fact that it’s a privilege—and an enormous responsibility—to manage our clients’ wealth. We have earned their confidence, and we hope to earn yours too. Whatever your needs and financial goals, we look forward to helping you pursue them.


CONFIDENCE

When we moved our practice to Morgan Stanley Smith Barney in 2008, virtually all of our clients made the move with us. We’re proud of this loyalty—it’s a testament to the close relationships we form with our clients and the confidence they have in us.


© 2011 Morgan Stanley Smith Barney LLC. Member SIPC. MSSB CS 6594925 09/11

Disclosures & Important InformationMorgan Stanley Smith Barney investment advisory programs require a minimum asset level and depending upon your specific investment objectives and financial position may not be suitable for all investors. Before making an investment you should obtain and read carefully the applicable Morgan Stanley Smith Barney Disclosure Document, any offering memoranda (prospectus, tailored invest-ment proposals, product placement memorandum, circular) and the marketing materials, which contain information needed to evaluate the investment and provide important disclosures regarding risks, fees and expenses.

Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice and are not “fiduciaries” (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise agreed to in writing by Morgan Stanley Smith Barney. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their tax or legal advisors before establishing a retirement plan and to understand the tax, ERISA and related consequences of any invest-ments made under such plan.

The Investment Management Services of Morgan Stanley Smith Barney and investment vehicles managed by Morgan Stanley Smith Barney or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above-market returns exposes the portfolio to above-average risk. Performance aspirations are not guaranteed and are subject to market conditions. High volatility investments may be subject to sudden and large falls in value, and there could be a large loss on realization which could be equal to the amount invested.

Life insurance, disability income insurance, and long-term care insurance are offered through Morgan Stanley Smith Barney’s licensed insurance agency affiliates.

Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

All commercial loans and lines are made by Citibank, N.A., equal opportunity lender. All credit products are subject to satisfaction of Citibank’s underwrit-ing guidelines and credit approval. Banking and credit products and services are provided by Citibank, N.A. (Member FDIC) and/or its banking or lending affiliates. Minimum balances and/or fees may apply to certain products – see your banker for details. 1 Source: Barron’s “Top 1,000 Advisors,” February 2010, as identified by Barron’s magazine, using quantitative and qualitative criteria and selected from a pool of over 5,000 nominations. Advisors in the Top 1,000 Financial Advisors have a minimum of seven years of financial services experience. Quali-tative factors include, but are not limited to, compliance record, interviews with senior management, 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 pay 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.

pancoe-nakovich wealth management at morgan stanley smith …€¦ · ·...

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