the one eleven group at morgan stanley · the one eleven group at morgan stanley solutions to best...
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The One Eleven Group at Morgan StanleySolutions to Best Manage Your Assets
111 South Pfingsten RoadSuite 200, Deerfield, Illinois 60015
847-480-5416 / direct
800-543-3623 / Toll-Free 847-498-1546 / Fax
www.morganstanleyfa.com/111group
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There comes a point when managing your assets can easily turn into a full-time job or even become an overwhelming challenge. As your life evolves, not only does your financial strategy become more complex, but your options for implementing it increase as well.
Frequently, evaluating these options and choosing wisely among them may require the time and expertise of several financial professionals. In such situations, it can make sense to partner with a Morgan Stanley Financial Advisor who not only can understand your diverse financial needs, but has access to customized programs that can be utilized to provide you with “best-in-class” solutions.
As a designated Family Wealth Director, our mission is to provide you with advisory services that include, and extend beyond, investment management. We take pride in being able to offer our clients access to Morgan Stanley’s, and other third parties, skilled staff who specialize in disciplines such as wealth transfer, asset protection and philanthropic services.
Our goal is to understand your vision, preferences and unique circumstances so that we can work with you to help develop an overall wealth management strategy that meets your needs.
This brochure is designed to provide you with a brief overview of the types of services that we, and our external partners, offer. It touches on a number of topics, such as family governance and dynamics, trust services and various investment opportunities from which you can choose to help realize your overall goals.
We look forward to working with you to develop a personalized strategy that will help provide you with the secure financial future you need and deserve.
The One eleven GrOup
The One Eleven Group at Morgan Stanley
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The Strength of Global Morgan Stanley
Our clients have always been at the heart of everything we do and we continue to serve them with ingenuity, integrity and the highest standards of excellence. Thanks to the dedication and hard work of more than 60,000 Morgan Stanley employees, our premier client franchise is stronger than ever.
According to James Gorman’s 2012 Annual Letter to Shareholders, Morgan Stanley posted 2011 net rev-enues of $32.4 billion and reinforced our position in the marketplace as a trusted advisor to our clients. In 2011, Morgan Stanley was #1 or #2 in M&A and Equity Underwriting. The Firm ranked #1 in completed M&A, advising on eight of the top 10 transactions. We continue to be the underwriter of choice
for equity offerings and initial public offerings and led the largest U.S. equity offering and largest global IPO of the year. According to the Morgan Stanley 2010 Annual Report, Morgan Stanley Smith Barney LLC had over $1.7 trillion in client assets under management.
Indeed, if there is a single character-istic — more than any other — that has defined Morgan Stanley throughout the past 75 years, it is the quality of our people and the passion and excellence with which they have built the Firm and served our clients. That was the defining characteristic in 1935 when we opened for business and it is what defines us today with more than 1,200 offices in 42 countries.*
Since its founding in 1935, Morgan Stanley and its people have helped redefine the meaning of financial services. The Firm has continually broken new ground in advising its clients on strategic transactions and in providing new opportunities for individual investors.
*As of January 20, 2011
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Meet the Professionals
Left to right: Scott Berk, Paul Levitt, Darren Golde, Howard Felix
Darren Golde, CIMA® CPWA®Family Wealth DirectorExecutive Financial Services DirectorSenior Vice PresidentFinancial Advisor Darren has over 24 years of experience counseling business owners, corporate executives and wealthy families in the areas of wealth and retirement plan-ning, hedging and monetization, asset allocation and alternative investments. Darren has been in the financial ser-vices industry his entire career, start-ing in 1987 at Merrill Lynch. He joined Morgan Stanley in 1994. During his time with the firm, Darren has earned a number of designations that give him access to an uncommon assortment of resources and services.
Darren earned a B.A. in Psychology from Indiana University, and received advanced training at both the University of Pennsylvania’s Wharton School of Business and the University of Chicago’s Booth School of Business.
Darren lives with his wife and two children in Northbrook, IL. In addi-tion to attending his children’s various activities, Darren enjoys traveling and is an avid sports fan.
Paul is a seasoned professional with over 29 years of experience developing customized wealth planning strategies that assist business owners and high net worth families in meeting their life goals. Paul joined Morgan Stanley in 1990 after working as a financial advisor at Dean Witter. Prior to that, he was a licensed pharmacist.
Paul earned his B.S. in Pharmacy from the University of Arizona in Tucson, AZ.
Paul has two sons and frequently travels between his residence in Buffalo Grove, IL and his home in Boca Raton, FL. He enjoys golf, tennis and sailing.
Paul Levitt, CFP®Senior Investment Management ConsultantSenior Vice PresidentFinancial Advisor
Howard FelixSenior Portfolio Management DirectorFirst Vice PresidentFinancial Advisor
Howard has been managing equity and fixed income portfolios for individu-als and qualified retirement plans for over 31 years. He is a 36-year veteran of the financial services industry and has been with Morgan Stanley since 1991. He began his career as a financial advisor at Merrill Lynch in 1983 after working at Metropolitan Life as an insurance agent.
Howard has completed advanced training in portfolio management and technical analysis at the Dorsey Wright Institute of Technical Analysis.
In addition to being an avid Blackhawks fan, Howard is a voracious reader. He resides in Highland Park, IL with his wife. Howard has one son in college.
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Scott BerkInvestment Management ConsultantFinancial Planning SpecialistVice PresidentFinancial Advisor Scott has over 14 years of experience helping high net worth individuals and small business owners achieve their finan-cial goals. Scott joined Morgan Stanley in 1996 after two years as a teacher’s aide at Springman Junior High School. Although his career as an educator in the public school system was brief, he continues to take an educational ap-proach to his client relationships.
Scott earned a B.A. in education from Northern Illinois University.
Scott has been an active Red Cross volunteer since 1990. His interests in-clude travel, yoga and golf. He lives with his wife and two children in Arlington Heights, IL.
After teaching third grade during her first year out of college, Julie decided she might want to pursue a career as an air traffic controller. She passed the exam at the age of 22. Fortunately for The One Eleven Group, she joined Morgan Stanley shortly thereafter. Julie is a graduate of East Carolina Univer-sity. Julie loves to travel and spend time with her family. She resides in Hainesville, IL with her husband and their two children.
Julie EisermanSenior Registered Associate
Elizabeth joined Morgan Stanley in 2011 after receiving her B.S. in Commerce (now a B.S. in Business) from DePaul University where she graduated Cum Laude and is a member of the Golden Key International Honour Society. She is fully registered with her Series 7 and 66 securities licences and has completed advanced training from Morgan Stanley’s Consulting Group. She is an avid Bulls and Blackhawks fan and enjoys an active lifestyle. Eliza-beth currently resides in Chicago, IL.
Elizabeth DespainConsulting Group Analyst
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As your Financial Advisors, we will ask questions that help us find out about you, the kind of lifestyle you enjoy, what you want to accomplish for you and your family, what worries you and what you’re passionate about. And, to help you reach your overall wealth management goals, we are committed to providing you with the following:
Our Commitment to You
• Exceptional personal service• Commitment to objectivity• Dedication to simplicity• Meaningful integration of life and wealth• Exclusive client events
In the end, our aim is to provide you with an overall strategy where we:• Design comprehensive and customized investment strategies• Bring the specialists to you• Implement and monitor results
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Wealth Planning
While all client situations are unique, the Wealth Planning Process consists of the following four basic steps:
Morgan Stanley Financial Advisors have a long history of providing wealth planning for high net worth individuals and institutional clients. Our overall strategy involves an integrated approach covering such diverse topics as:
• Family governance and dynamics• Philanthropic services• Business succession• Wealth transfer• Personal asset protection*• Lifestyle advisory*• Private healthcare advisory*• Investment opportunities
We assist families with the goal of maintaining unity and affluence across generations. By providing you with personal-ized and consultative guidance throughout the process, we believe this goal can be achieved.
*Services provided by third parties, not Morgan Stanley. Morgan Stanley will not have any input concerning such services. For additional information, please contact your Family Wealth Director.
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1DiscoveryIdentifying your values and goals• Family• Risk tolerance
3ImplementationProviding access to services and providers• Trusts• Philanthropy• Family mission and bylaws• Asset management
2Analysis & RecommendationsHelping you to build an action plan• Identification of liabilities and risks• Coordination with outside advisors• Action plan – growth, preservation and /or wealth transfer
4MonitoringOngoing evaluation and reporting• Track progress toward goals• Set/follow guidelines for liquidity, asset allocation• Notification when portfolio strays outside guidelines• Performance reporting• Online access
The Wealth Planning Process
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Morgan Stanley has created formal arrangements with third-party corporate trustees to provide fiduciary services for client personal trust accounts. This arrangement enables our clients to work directly with their Morgan Stanley Financial Advisor and take advantage of the Firm’s first-rate investment management services for the trust’s assets.
Trust Services
Trustee services are available for a wide variety of personal trusts including:
• Living trusts• Irrevocable Trusts• Testamentary trusts• Marital and QTIP Trusts• Grantor trusts• Charitable trusts• Life insurance trusts• Special needs trusts
Our focus is to educate you on the potential benefits of various types of trust strategies and to help you select a corporate trustee that best meets your trust, estate planning and investment management needs.
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In conjunction with the Firm’s Consult-ing Group, founded in 1973, we will use a disciplined approach to establish your investment objectives, create custom-ized portfolios and select and monitor your investment strategies. Consulting Group offers a broad array of investment options in a range of risk categories to suit investor objectives of preserving or building wealth.
Investment Opportunities
The cornerstone of our consulting process is our objective advice and investment advisor research. Man-ager research reports from Consulting Group Investment Advisor Research are published solely for the use of our clients and are not sold or released to any other outside organization. These reports reflect rigorous reviews of in-vestment management firms using both quantitative and qualitative factors.
Of course, recommending the appropriate investments for your hard-earned assets is one of the most critical functions that we can perform. The investment consulting process focuses on investment goals, asset allocation, investment manager evaluation and portfolio performance.
Consulting Group is a business of Morgan Stanley Smith Barney LLC.
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As one of the world’s largest wealth management organizations, Morgan Stanley’s global network affords us the ability to offer suitable clients a vast number of alternative investment options. We leverage our unique position and our affiliates to source innovative strategies from among the best investment minds in the business. We employ rigorous due diligence to identify, evaluate and select each alternative investment product on our platform to assure that we only introduce our clients to what we believe are the best managers in the industry. Our alternative investments platform includes a variety of investment options that may be offered on a placement or advisory basis.
Each of the offerings listed on the following page is supported by a group of professionals who bring with them a combination of expertise and industry knowledge. Your choices will depend on your goals, objectives and risk tolerance.
Morgan Stanley Alternative Investments
private equity Private equity investments are capital invested in companies on a private placement basis and are not available in the public markets. Private equity investments run the gamut of corporate finance strategies, ranging from financing start-up companies to debt instruments in mature companies. Sub-categories that comprise private equity include: leveraged buyouts, venture capital, mezzanine financing, distressed debt, real estate, development capital and special situations.
hedge funds Hedge funds are one of the fastest growing investment alternatives to traditional equity and bond portfolios. The term “hedge fund” is applied to investment vehicles with a wide range of strategies and objectives. However, most hedge funds aim to generate positive returns independent of the market environment.
Hedge fund advisors have more flexibility than traditional advisors in structuring their portfolios due to limited regulatory and investment restrictions. Most hedge funds are able to use strategies such as purchasing currencies and futures contracts. As a result, skilled hedge fund advisors have the potential to enhance investment returns while striving to protect your capital in weak market conditions.
exchange funds Exchange funds allow investors a means to diversify a low-cost-basis and/or restricted stock position by pooling their low-cost-basis stocks in one fund without triggering a taxable event. In exchange for contributing their stock to the fund, each investor owns a pro-rata share of the fund.
After a set period of time – typically seven years – investors can redeem their interest in the fund. At that time, they will receive a non-taxable distribution of a diversified pool of stock from the fund’s portfolio.
real estate funds Real estate funds serve as a vehicle for pursuing a broad array of direct equity and debt investments in real estate assets, portfolios, joint ventures and operating companies. They may be designed to maximize current income or may be opportunistic in nature – such as the development of properties with turnaround potential.
© 2014 Morgan Stanley Smith Barney LLC. Member SIPC. CRC817598 CS 7842253 06/ 14
Risk Considerations for Alternative Investments. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatil-ity and risk of loss. Funds of hedge funds typically have higher fees than single manager vehicles as they are subject to an additional layer of fees charged by the fund of funds manager. Alternative investments involve complex tax structures, tax inefficient investing and delays in distributing important tax information. Alternative investment funds are often unregulated and are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. Individual funds will have specific risks related to their investment programs that will vary from fund to fund. Prospective investors of any alternative investment should refer to the specific fund’s offering memorandum, which will fully describe the specific risks and considerations associated with a specific alternative investment. This document is offered for informational purposes only and does not constitute an offer to buy or sell any securities, which will be made only through an Offering Memorandum or Prospectus and Subscription Agreement.
Investor Eligibility Requirements. For the types of alternative invest-ments discussed here, it is important to note that such investments are not suitable for all investors and, depending on the investment; they typically require the investor to be an accredited investor and/or a qualified client or purchaser. Diversification and asset allocation do not assure a profit or protect against a loss.
Morgan Stanley and its Wealth Advisors do not provide tax or legal advice. This material is not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals should consult
their personal tax and legal advisors before making any tax- or legal-related decisions. With respect to fixed income securities, please note that, in gen-eral, as prevailing interest rates rise, fixed income securities prices will fall. Investing in the markets entails the risk of market volatility. The value of all types of investments may increase or decrease over varying time periods. There is no guarantee that these strategies will succeed. The information is intended to illustrate products and services available. The strategies do not necessarily represent the experience of other clients, not do they indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor.
Morgan Stanley Smith Barney LLC and its affiliates (“Firm”) do not cur-rently offer the trust services discussed in this piece. The Firm has entered into formal arrangements with various trust providers to provide these ser-vices. Your Financial Advisor may refer you to one or more third-party trust providers (the “Service Provider(s)”) as appropriate. Any referral should in no way be considered to be a solicitation by the Firm for business on behalf of any Service Provider(s), or an endorsement of any Service Provider(s) by the Firm. The Firm makes no representations regarding the suitability or otherwise of the products or services provided by any Service Provider(s). There may be additional service providers who offer this service, and you may wish to identify such other providers for comparative purposes.
Tax laws are complex and subject to change. The Firm, its Financial Advisors and employees do not render advice on tax and tax accounting matters to clients. This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under US federal income tax laws. Clients should consult their own legal, tax investment or other advisors, at both the onset of any transaction and on an ongoing basis to determine the laws and analyses applicable to their specific circumstances.