1 2 SERVICES 4 PROCESS 6 INVESTMENTS One Point Wealth Management Group at Morgan Stanley
2 227 West Monroe Street Suite 3400, Chicago, Illinois / andrew griffo / alan GUERNSEY / andrew rothstein / kevin crain
3 FOCUSING ON YOUR TOMORROW, TODAY As your financial life gets more complex, traditional advisory services may no longer be sufficient. You benefit from working with advisors who know how to put your entire picture in the right perspective, and who understand that investments are only one important piece of your overall strategy. At One Point Wealth Management Group, our approach is to be the primary coordinator and connector for our clients most important wealth planning and life-event needs. Money management, retirement planning, estate planning, insurance, taxes, business succession planning we will bring together all of these elements into a cohesive and integrated financial plan that will help you enhance and preserve your wealth while enjoying the lifestyle it affords. Our goals are to both simplify your life, and increase the odds of your financial success.
4 WEALTH MANAGEMENT SERVICES Morgan Stanley s world-class resources mean that One Point Wealth Management Group can deliver personalized investment and wealth management services, along with executive management services, coupled with tailored in-depth financial advice. We utilize a wide range of professional services and resources targeted to the singular needs of senior executives and affluent investors. The depth of One Point s offerings allows us to serve as your single point of contact for all aspects of your financial profile. And with one team giving you across-the-board oversight, you will be assured of optimal efficiency and integration across all components of your financial plan. Investment management Portfolio construction and management Money manager due- Tax-efficient asset allocation diligence research Open platform Morgan Stanley proprietary investment opportunities Alternative investments Performance management Financial planning Goals-based planning Cash-flow planning Retirement planning Educational planning Consolidated financial picture (OneView ) Corporate and executive management services Directed shares, stock plans, 10b5-1 programs Capital markets and investment banking interaction ERISA 401(k) plan advisory Non-qualified deferred compensation Estate and legacy planning Wealth transfer and trust strategies Current will, trust and insurance review Trust services Charitable giving strategies Coordination with outside legal and tax advisors Risk management Hedging strategies Concentrated/restricted stock advice Interest rate risk management Insurance solutions Risk analysis (WealthBench) Lending and financing Access to banking and lending services Debt restructuring Securities-based lending Strategic consulting and transactions Succession planning Cash management services* 2 Morgan Stanley * The term cash management services does not imply that investments are managed by your Financial Advisor.
5 Executive Wealth Management Corporate executives face special challenges in managing corporate wealth. When equity is awarded to you as part of your overall compensation package, it needs to be managed in the context of your bigger financial picture, all while supporting your investment objectives and tying into a comprehensive wealth management strategy. As your dedicated advisory team, we will help you determine how your company stock can be used for liquidity, asset protection and wealth transfer. One Point Wealth Management Group 3
6 INVESTING WITH DISCIPLINE AND DILIGENCE 1 Discovery process We will start by learning all we can about you: What motivates you each day? What does your ideal retirement look like? Do you have any charitable goals? Answers to these questions and others will serve as the foundation for the plan we will develop together, because they allow us to customize your financial strategies to your specific objectives and requirements. Each family s situation, objectives and risk tolerance are unique. By taking the following steps, we will learn what matters most to you and your family then we can propose the strategies we believe will help you achieve your goals for your future and your legacy. 6 Ongoing assessment of wealth management needs By continually reviewing and adjusting your financial strategies in light of your changing needs, we seek to enable your long-term success. 4 Morgan Stanley
7 2 Financial analysis Next, we will evaluate key components of your financial profile, paying close attention to the areas that will be crucial to your ability to preserve and grow wealth, including your investments, insurance coverage and qualified retirement plan. We will also review your future intentions for gifting to descendants, titling of assets, charitable giving and other estate-related issues. 3 Creation of customized investment strategy In order to provide a comprehensive financial plan that effectively manages your wealth, we develop a customized and broadly diversified portfolio of investment products across multiple asset classes. This portfolio will incorporate your risk considerations, tax issues and time horizon while seeking to meet your individual lifestyle and estate planning goals. 4 Integration of tactical asset allocation 5 Investment strategy implementation Once we have determined an appropriate investment strategy and asset allocation model, we conduct comprehensive due diligence and analysis of projected performance outcomes for your portfolio across a range of market scenarios. Then, using Morgan Stanley s global investment platform, we create a portfolio that includes proven financial strategies and solutions developed by the world s most respected money managers. Within your portfolio, our recommended asset allocations are both strategic and tactical, establishing a long-term approach but including the flexibility to enable you to potentially take advantage of uncommon investment opportunities arising from temporary market circumstances. One Point Wealth Management Group 5
8 MANAGING YOUR INVESTMENTS Diversification does not guarantee a profit or protect against a loss. We believe your path to financial success begins with a consistent core investment strategy that emphasizes diversification. Because diversification has historically been a key component in generating steady portfolio returns over the long term, we will position you in a blend of traditional equity and fixed-income investments often supplemented by a conservative portfolio of alternative investments to help you avoid excessive exposure to any single area of the market. While all our clients maintain exposure to multiple asset classes, we will personalize your portfolio s weightings to reflect your unique time horizon, tolerance for risk, tax considerations and estate planning needs, among other factors. Through broad diversification and customized asset allocation, we have been successful in helping our clients reduce volatility within their portfolios. 1 Strategic asset allocation First, we coordinate with other professional advisors to integrate your trust, tax and estate planning needs with your financial holdings to create a comprehensive asset allocation model. 6 Morgan Stanley
9 2 Tactical asset allocation 3 Manager selection We choose from an open architecture of the world s leading money managers, each of which has been thoroughly evaluated and met our rigorous standards for performance and consistency. 4 Portfolio construction Your portfolio will include an array of managers whose diverse areas of specialization provide a balance of experience and perspectives. Your core asset allocation strategy will allow you to explore any unique and timely market opportunities that may benefit your portfolio s long-term performance. 5 Performance and risk monitoring We will continually analyze and review these manager selections to ensure their ongoing performance and maintenance of style criteria. ONE POINT wealth management GROUP 7
10 MEET THE PROFESSIONALS RECOGNITION AND AWARDS One Point Wealth Management Group has received significant recognition from national and local sources. We re proud of these independent awards not just for their own sake, but because we believe they show how committed we are to helping clients achieve their goals for their future. Andrew Griffo: Illinois Top 100 Financial Advisors Barron s Alan Guernsey: Five-Star Wealth Manager Chicago Andrew Rothstein: Five-Star Wealth Manager Chicago Top 1000 Financial Advisors Barron s Top Ranked Teams in America Research Top Ranked Teams in America Research Five-Star Wealth Manager Chicago Top 100 Brokers Barron s Top Ranked Teams in America Research Andrew D. Griffo Managing Director Wealth Management Sports and Entertainment Director Family Wealth Director Corporate Client Group Director Financial Advisor Andrew entered the investment business in 1985 and has spent his entire investment career with Morgan Stanley and its predecessor firms. He was named Managing Director and has earned the titles of Senior Family Wealth Director, Corporate Client Group Director and Senior Institutional Consultant. He serves on several Morgan Stanley committees and councils. His outside business affiliations include the National Association of Stock Plan Professionals, the Investment Management Consultants Association and the Association of Professional Investment Consultants. Andrew is a graduate of Fairleigh Dickenson University with a B.S. degree in business and finance. He focuses on private wealth management, corporate and executive benefit solutions, and stock plan services. He has been recognized as one of the top advisors in Illinois by Barron s. His team has also been recognized as one of the country s top investment advisory teams by Research magazine. Andrew is a sports enthusiast and enjoys golf, tennis, and spending time with his wife and family. 8 Morgan Stanley
11 Alan S. Guernsey, CIMA Managing Director Wealth Management Family Wealth Director Corporate Client Group Director Senior Institutional Consultant Financial Advisor Andrew G. Rothstein, CFP First Vice President Wealth Management Senior Investment Management Consultant Professional Alliance Group Director Financial Advisor Kevin J. Crain Second Vice President Wealth Management Investment Management Specialist Financial Advisor Al joined Morgan Stanley and its predecessor firms in 1968 and has spent his entire career at the firm. He has received the Certified Investment Management Analyst SM professional designation from the Wharton School of the University of Pennsylvania. A member of the Investment Management Consultants Association and founding member of the Association of Professional Investment Consultants, Al has served on such Morgan Stanley committees as the 401(k) Advisory Committee and Director s Advisory Group. He has been working as an investment management consultant with individuals and ERISA plans since Al is a graduate of Alfred University, with a B.S. degree in ceramic engineering. He focuses primarily on ERISA plan consulting, wealth strategies and asset allocation strategies. From 2004 to 2006, he was named one of the country s top 100 brokers in Barron s annual survey. Andrew has been serving the financial needs of wealthy families for more than 20 years. Currently, he is a Senior Investment Management Consultant, with responsibility for his clients financial planning needs and asset allocation strategies, as well as manager research. He is actively involved in client relationship management and intergenerational wealth transfer. Before coming to the group in 1999, Andrew worked for Morgan Stanley s Consulting Group as a Senior Investment Analyst and Assistant Vice President. He joined the Consulting Group in 1994 to focus on portfolio performance measurement, portfolio optimization and asset manager research. Andrew began his career in 1992 at SEI Corporation on the international performance measurement team. Andrew received a B.S. in finance from Indiana University and an M.B.A. from DePaul University, where he also earned the Certified Financial Planner designation after completing the Financial Planning Certificate Program. He and his wife live with their four children in Park Ridge, where Andrew is actively involved in his children s sports and activities. Kevin entered the investment business in 1985 and has spent his entire career with Morgan Stanley and its predecessor firms. He focuses on the investment needs of individuals, closely-held businesses, nonprofit and public organizations. Currently, he is an Investment Management Specialist who specializes in high net worth clients, as well as public and corporate retirement plans. Kevin Graduated from the University of Illinois at Urbana-Champaign with a B.S. degree in economics. Since 1996, Kevin has been a member of the Illinois Public Pension Fund Association as well as the Illinois Professional Firefighters Association. Kevin was also a trustee with the Westmont Police Fund for over five years. He lives in Lisle with his wife and two children. ONE POINT wealth management GROUP 9
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13 ONE SOURCE FOR A WORLD OF INVESTMENT PRODUCTS One Point Wealth Management Group s experience and dedication are backed by the vast global resources of Morgan Stanley, one of the world s largest financial institutions, with more than $2 trillion in assets under management. Over the past 75 years, Morgan Stanley has supported its clients with firsthand knowledge of world markets through its presence at the center of the global economy. The firm expanded its institutional-level capabilities to successful individuals and their families three decades ago, since earning the trust of generations of sophisticated clients. The powerful combination of One Point s outstanding personal service and Morgan Stanley s industry-leading money managers and financial resources gives you a premier advisory experience, with the specialized services and solutions needed to meet your complex requirements. ONE POINT wealth management GROUP 11
14 Left to right: Brendan Guernsey, Kara Tichawa, Drew Tichawa, Susan Roach, Andrew Griffo, Alan Guernsey, Andrew Rothstein, Angela Jackson, Teresa Sulo LEADING YOUR FINANCIAL RELATIONSHIPS The right financial plan considers all of your financial needs. Whether your goal is to build wealth, achieve financial independence, diversify a concentrated stock position, or pass along assets to future generations of loved ones, we can help you coordinate all of your financial relationships to ensure a consistent approach to your wealth. At One Point Wealth Management Group, we can help you identify both your greatest opportunities and challenges, and develop a unified plan to maximize your potential. We are always available to discuss your financial situation and look forward to hearing from you. Sincerely, Andrew D. Griffo Andrew G. Rothstein Alan S. Guernsey Kevin J. Crain 12 Morgan Stanley
16 Source: Barron s Top 1,000 Advisors, February 18, 2013, 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 1,000 Financial Advisors have a minimum of seven years of financial services experience. Qualitative 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 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. The Five Star Wealth Manager Award ( the Award ) is based on required eligibility criteria including, but not limited to: Active employment in the financial services industry for a minimum of five years and registrations as an investment adviser representative (or other accepted credentials), favorable regulatory/complaint history reviewed defined by Five Star as not having (1) been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine, (2) had more than a total of three customer complaints filed against them (settled or pending) with any regulatory authority or Five Star Professional s consumer complaint process, (3) individually contributed to a financial settlement of a customer complaint filed with a regulatory authority, (4) filed for bankruptcy, or (5) been convicted of a felony, fulfilled internal employer standards, and acceptance of new clients. The following evaluation criteria are also considered: 1-year and 5-year retention rate, administration of non-discretionary client assets, number of households serviced, and designations (e.g., professional, educational). The Award does not evaluate the quality of services furnished to clients and it is possible that the recipient may have received unfavorable ratings from those surveyed. Neither Morgan Stanley nor its Financial Advisors compensated any person or entity to be considered for the Award and the Award is not indicative of the Financial Adviser s future performance. Five Star Professional collected the information for this Award through surveys it conducted. Source: Barron s Top 100 Financial Advisors, April 15, Barron s Top 100 Financial Advisors bases its ratings on qualitative criteria: professionals with a minimum of seven years of financial services experience, acceptable compliance records, client retention reports, customer satisfaction and more. Financial Advisors are quantitatively rated based on varying types of revenues and assets advised by the financial professional, with weightings associated for each. Because individual client portfolio performance varies and is typically unaudited, this rating focuses on customer satisfaction and quality of advice. The rating may not be representative of any one client s experience because it reflects a sample of all of the experiences of the Financial Advisor s clients. The rating 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. 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 securitiesbased 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 securities-based 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. Tailored Lending is provided by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. All credit facilities are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association and other restrictions also may apply, depending upon the type of collateral securing the transaction. Please contact your Financial Advisor, Private Banker, or Lending Advisor for more details Tailored Lending may not be available in all locations, and may not be appropriate for all clients. Rates, terms and programs are subject to change without notice. The contents of this document should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is an Equal Housing Lender and member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. The proceeds of a Tailored Lending loan/line of credit may not be used to purchase, trade or carry margin stock, or to repay debt that was used to purchase, trade or carry margin stock and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. 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. Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. This material was not intended or written to be used, and it cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. 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. Trust and other fiduciary services are provided by third parties, including Morgan Stanley Private Bank National Association, a wholly-owned subsidiary of Morgan Stanley. 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, shortselling, 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 Morgan Stanley Smith Barney LLC. Member SIPC /15