Council Rock Status Update

Transcription

1 Council Rock Status Update 10/22/ W. Broad Street, Suite 340, Bethlehem, PA

2 Organizational Background

3 3 Who We Are We are a privately held Registered Investment Advisor that specializes in consulting to successful institutions and wealthy families. We have been delivering a fiduciary decision making process for more than 30 years. We believe that an innovative process leads to superior results. We are focused on creating positive outcomes for our clients.

4 Our Experience $ 5.1 Billion 97 % Client Retention 30 + Professional Designations Industry Awards and Recognition We have more than $5 billion in assets under management* We have maintained greater than 97% client retention over the past 10 years Our team has over 30+ professional designations CFP CFA AIF CEBS CIPM CPA CRPS SM ChFC CASL TM CLU * Combined assets under management for both Cornerstone Advisors Asset Management, Inc. & Cornerstone Institutional Investors, Inc. as of 2015 Form ADV filing. ** For details on how the rankings were determined, please see the section entitled Rankings Explained Ranked as 38 th largest Registered Investment Advisor by Financial Advisor Magazine for 2015** Ranked #27 on the list of Forbes Top 100 Wealth Managers for 2015** Named to the 2015 Financial Times 300 Top Registered Investment Advisors** 4

5 5 Our Mission 1 Understand our clients and their unique situations. 2 Help our clients meet the highest fiduciary standards. 3 Recognize and responsibly manage risk. 4 Control overall costs. 5 Drive performance and results.

6 6 Open Architecture Solutions The separation of responsibilities creates greater accountability, transparency and reduces conflicts of interest. Consulting/ Cornerstone As a Registered Investment Advisor, we have no financial ties to anyone but our clients, eliminating bias and promoting decisions that are solely in their best interest. Custodian CLIENT Money Managers Brokerage

7 The Cornerstone Team

8 8 Thought Leadership Consultants Client Service Investment Analysts Core Services Malcolm L. Skip Cowen President Thomas J. Scalici Chief Executive Officer Tiffany A. Gilbert Principal & Senior Consultant Christopher W. Lakatosh Principal & Senior Consultant Brian D. Bobeck Senior Consultant Rita D. Miller Investment Operations Supervisor Matthew J. Zym Investment Operations Associate Angela N. Smolczynski Consultant & Marketing Manager Christopher G. Derocher Client Account Manager Kevin Karpuk, CFA Chief Investment Officer Ryan D. Wood, CFA Senior Investment Analyst Trevor M. Reid, CFA Senior Investment Analyst Whitney R. Bates Investment Analyst Christopher J. McKinley Director of Technology Chief Compliance Officer James H. Bennewitz Data Analyst Jessica M. Long Compliance and Operations Manager William M. Soberick Business Development Associate Tyler J. Papaz Senior Consultant Michael M. Straubel Senior Consultant Michael J. Zambelli Senior Consultant/ Participant Services Jennifer V. Bauder Client Account Manager Parag S. Joshi, CPA Staff Accountant Kim M. Smalley Executive Assistant Katie L. Kaplan Strategic Assistant Suzelle E. Olmos Office Administrator Ashley M. Hoffman Administrative Assistant

9 9 Malcolm L. Skip Cowen, II President EDUCATION AND ACCREDITATIONS BA, Business Administration, Gettysburg College, 1981 MBA, Business Administration, Lehigh University, 1987 Masters in Taxation, Villanova Law School, 1996 General Securities Principal, Series 24 Municipal Securities Principal, Series 53 FINRA Series 7, 63, 65 Licenses Life, Accident and Health Insurance License AIF, (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2015 EXPERIENCE Over thirty years of industry experience and a shareholder and co-founder of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. As Cornerstone s President, Skip works with institutional clients and wealthy families to help design, implement and monitor portfolios on their behalf. He is the chair of the Cornerstone Investment Policy Committee, which oversees all client assets. He has direct responsibility for client relationships as well as the overall direction of the firm. Skip became President of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. in Expertise Asset Management for Institutions and Affluent Families Fiduciary Investment Process and Governance Investment Performance Measurement Risk Assessment

10 10 Kevin Karpuk, CFA Chief Investment Officer EDUCATION AND ACCREDITATIONS BS, Economics, Lehigh University, Bethlehem, PA, 2000 MS, Economics, Lehigh University, Bethlehem, PA, 2001 CFA Charterholder, CFA Institute, 2005 AIF (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2012 Municipal Securities Principal, Series 53 Registered Options Principal, Series 4 FINRA Series 7, 66 Licenses CIPM (Certificate in Investment Performance Measurement) Certificant, CFA Institute Member of CFA Institute & CFA Society of Philadelphia EXPERIENCE Kevin has worked with Cornerstone since May 2000, has 14 years of industry experience and is a shareholder of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. Kevin is Cornerstone s Chief Investment Officer, specializing in asset allocation studies and managing due diligence and other special projects for a wide range of clients. Kevin became CIO of CAAM and CII in As such, his responsibilities include day-to-day management of client portfolios, research, having lead responsibility for Cornerstone s fixed income and alternative investments and also managing client relationships. Expertise Asset Allocation Asset Management Risk Management Manager Search / Selection Special Projects Public Funds Planned Giving

11 11 Tiffany A. Gilbert, AIF, CHFC, CASL Principal Senior Consultant & Director of Client Service Operations EDUCATION AND ACCREDITATIONS BS, Business Administration, Shippensburg University, 1993 ChFC (Chartered Financial Consultant), American College, Philadelphia, PA, 2008 CASL (Chartered Advisor for Senior Living), American College, Philadelphia, PA, 2008 AIF (Accredited Investment Fiduciary), The Center for Fiduciary Studies, University of Pittsburgh, 2002 FINRA Series 7, 63, 65 Licenses Life, Accident and Health Insurance License Registered Paraplanner EXPERIENCE Tiffany has worked with Cornerstone since August She has 19 years of industry experience and is a Principal of the organization. She consults with our investment clients and manages the service and operations teams for our firm. She serves as the liaison between our Investment Policy Committee and our Asset Management Group. She is responsible for the external and internal servicing of both CAAM and CII clients, which involves identifying client needs and solutions to ensure and promote client retention. Additionally Tiffany is one of five employees serving on Cornerstone s Lead Team. Expertise Portfolio Management Asset Allocation Asset Management for Institutions and Affluent Families Retirement Planning

12 12 Rita D. Miller Investment Operations Supervisor EDUCATION AND ACCREDITATIONS BS, Mathematics, Muhlenberg College, 2004, Summa Cum Laude MBA, Finance, DeSales University, 2009 FINRA Series 7, 66 Licenses EXPERIENCE Rita has been with Cornerstone since January 2005 and has ten years of industry experience. She currently oversees the operations of the Asset Management Team. Her responsibilities include coordinating all new business paperwork and ensuring the timely funding and transitioning of accounts. She is also responsible for the maintenance and ongoing servicing of client investment accounts. Expertise New Accounts Individual & Institutional Portfolio Transitioning and Implementation Client Servicing

13 13 Trevor Reid, CFA Senior Investment Analyst EDUCATION AND ACCREDITATIONS BS, Finance, Siena College, 2007 CFA Charterholder, CFA Institute FINRA Series 7, 66 Licenses AIF (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2011 Member of CFA Institute & CFA Society of Philadelphia EXPERIENCE Trevor has been with Cornerstone since December Prior to Cornerstone, Trevor provided trading support at Evergreen Investments, a former division of Wachovia. At Cornerstone, Trevor s main responsibilities revolve around performance reporting, client reporting and manager due diligence, specifically in the domestic large capitalization category. He is also a member of Cornerstone s Investment Policy Committee. Expertise Performance Reporting Portfolio Structure Manager Search/Selection Macroeconomic Research Liability Driven Investing

14 14 Ryan D. Wood, CFA, CIPM Senior Investment Analyst EDUCATION AND ACCREDITATIONS BA, Economics, Lehigh University, 2001 MS, Economics, Lehigh University, 2002 FINRA Series 7, 66, 86, 87 Licenses CFA Charterholder, CFA Institute Member of CFA Institute & CFA Society of Philadelphia CIPM (Certificate in Investment Performance Measurement) Certificant, CFA Institute AIF (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2011 EXPERIENCE Ryan has worked with Cornerstone since May 2002 and is a Principal of the Company. Upon completion of his Master's degree, Ryan began his career at Cornerstone as an analyst. He is responsible for portfolio design, reporting and research, and data analysis.. He is a member of the Investment Policy Committee, which makes decisions on investment-related research and due diligence. As a member of the Lead Team, Ryan plays a major role in the day-to-day operations of the business. Expertise Asset Management Risk Management Performance Reporting Portfolio Design Manager Search/Selection

15 Transition Timeline

16 16 CRSD Transition Timeline Consulting Retention (09/17/2015) Review and Consultation Meetings (Early October) Findings and Solution Meeting (Early November) Transition Review Meeting (Late December) Administrative Retention (09/17/2015) Information Gathering (Immediate) Document Review and Meeting (Early November) Transition of Assets (December 2015) Investment Retention (09/17/2015) Information Gathering (Immediate) Current Structure Review/ Manager Search (Early November) Transition of Assets (December 2015)

17 17 Current Projects 1. Investment Policy Statement 2. Collateral Report & PLGIT Review 3. Custodian Search 4. Management Search 5. Reporting Design and Implementation

18 18 Investment Policy Statement Specific Role of the Board Statement of Objectives Authority and Responsibilities Conditions and Assumptions Securities Guidelines Selection of Managers Control Procedures

19 19 Undivided Loyalty In everything we do, Cornerstone is guided by a set of core principles. Our commitment to these principles is reflected in our client-first approach to business. Our obligation of undivided loyalty is born from these principles and makes us a true fiduciary. Thought Leadership Cornerstone is engaged in thought leadership. It's the ability to clearly understand our clients' needs so we can provide solutions that meet their expectations. We have a diverse client base that provides insight into many industries and broadens our perspective. Working with so many providers gives us feedback on best practices, trends, process and product innovations. This enables us to make better decisions. Cornerstone's cumulative wisdom and experience inspire the innovative thinking that helps our clients. Culture of Achievement Cornerstone strives to create a culture of achievement. We foster a genuine commitment to exceeding expectations rather than just being in compliance. We define with our clients what success means to them and then strive to achieve that outcome. Our client retention rate in excess of 97 percent speaks volumes about their satisfaction level. In addition, every professional within the firm has accredited designations in his or her field as well as yearly educational goals. Cornerstone is proud of not only who we work for, but who we work with in our organization. True Open Architecture Cornerstone has a true open architecture business model. This allows us to work with almost any money manager, custodian, record keeper, product or service provider. No one firm is the best at everything. That's why we believe that having open architecture allows us to find world-class service providers that specialize in each part of a financial solution. It also means we can negotiate contracts, pricing and services independently at every level of the relationship. Cornerstone is dedicated to increasing the accountability of all parties involved. No Conflicts of Interest Cornerstone has no conflicts of interest. Individuals, committees, consultants and other parties who serve as fiduciaries are required to disclose any conflicts of interest in order to protect their portfolios. When they fail to identify conflicts, it's a breach of fiduciary duty and they're held personally liable. Cornerstone holds itself to the highest standard of legal and moral obligation to our clients. Transparency Cornerstone operates with the utmost transparency, openness, and accountability. Greater transparency allows for better decision-making and helps us to understand the variables that impact asset performance. With greater transparency, we make more informed decisions, which is one of the key responsibilities of a fiduciary. Cornerstone believes that this openness is a source of confidence that our clients rely on. Innovative Technology Cornerstone has innovative technology that is flexible, accurate and innovative. The technology we use to manage our business and support our clients is a combination of world-class sources such as Callan, Bloomberg, Schwab and others. This business visualization software provides global and client-specific reporting that is easy for them to use. Cornerstone understands the value technology has to offer it helps us to immediately respond to our clients' needs. Commitment to Client Service Cornerstone makes a commitment to client service. We're accessible, in person and on the phone, to answer your questions and fulfill your service needs. We're committed to providing outstanding, responsive customer service so we can address issues with an appropriate sense of urgency. Cornerstone believes that it's the personal relationships we have with our clients that make a difference.

20 20 Rankings Explained Inclusion in rankings and surveys does not imply anything about a particular client s experience or investment results with Cornerstone Advisors Asset Management, Inc. or Cornerstone Institutional Investors, Inc Financial Advisor Magazine (FA Mag) RIA Ranking FA Magazine invites all independent registered investment advisors to participate who meet certain criteria. Firms are ranked based on assets under management as of year-end 2014 ADV filings. To be eligible for the ranking, firms must be independent registered investment advisors and file their own ADV statement with the SEC and provide financial planning and related services to individual clients. Corporate RIA firms and investment advisor representatives (IARs) are not eligible for this ranking Forbes Top 100 Wealth Managers The Forbes Top 100 Wealth Managers list was aggregated using data from their partner RIA Database and was ranked by assets under management from year-end 2014 ADV filings. Members of the list must manage at least 50% of their assets on behalf of retail clients, cannot run a broker-dealer (they can be affiliated with one), cannot be a bank (trust companies are permitted), and must be performing wealth management services. Lastly, firms included on the list cannot have had any regulatory, civil or criminal disclosures Financial Times (FT) 300 Top Registered Investment Advisors The 2015 Financial Times Top 300 Registered Investment Advisors is an independent listing produced by the Financial Times (June, 2015). The FT 300 is based on data gathered from RIA firms, regulatory disclosures, and the FT s research. As identified by the FT, the listing reflected each practice s performance in six primary areas, including assets under management, asset growth, compliance record, years in existence, credentials and accessibility. Neither the RIA firms nor their employees pay a fee to The Financial Times in exchange for inclusion in the FT 300.

21 21 Disclosures Securities offered through M Holdings Securities, Inc., MEMBER FINRA/SIPC Investment Advisory Services offered through Cornerstone Advisors Asset Management, Inc. and/or Cornerstone Institutional Investors, Inc., which are independently owned and operated. Performance quoted is past performance and is no guarantee of future results. Unless otherwise noted, data obtained from Callan Associates. All indices are unmanaged and not available for direct investment. Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. have exercised reasonable care in the preparation of this presentation. Several portions of this presentation are obtained from third party sources. While we have attempted to verify all information within, we disclaim all responsibility for any errors that may occur due to third party information and data. The information is provided solely for informational purposes and therefore should not be considered an offer to buy or sell a security. Except as otherwise required by law, Cornerstone shall not be responsible for any trading decisions or damages or other losses resulting from, this information, data, analyses or opinions or their use. Please read the prospectus carefully before investing. It is not a replacement for any account statement or transaction confirmation issued by the provider. Please compare this document to your custodial statement for accuracy, as applicable.