Family Office Services Trust and Estate Planning Retirement Plans for both Individuals and Corporations Tax Preparation and Record Keeping Services

Transcription

1 HUDSON ADVISOR SERVICES, INC. OVERVIEW Hudson Advisor Services, Inc. provides investment advisory and family office services to individuals, families, and institutions. William N. Hudson, Jr., CEO, founded the firm in 1994 and was previously Executive Vice President for Investment Services at HSBC Bank. David Burrows, President, joined the firm in 2003 and was previously Managing Director and Chief Investment Officer for the Goldman Sachs Trust Company. We serve clients from multiple locations: Buffalo, NY, Greenwich, CT, Vero Beach, FL, Washington DC, and New York, NY. Hudson Advisor Services, Inc. is affiliated administratively with the firm of Miller, Gesko. The origins of Miller, Gesko trace back 70 years to the establishment of the private office of the Lang Miller family. The firm began to expand in 1971 and now manages assets for a diverse clientele. Hudson Advisor Services, Inc. and Miller, Gesko share office space and administrative support Hudson Advisor Services, Inc. also has an internal research committee. Investment Management Services Hudson Advisor Services, Inc. has developed focused investment strategies to both institutions and individuals. In addition to portfolio management, Hudson Advisor Services, Inc. provides full financial planning and recording reporting services including: Family Office Services Trust and Estate Planning Retirement Plans for both Individuals and Corporations Tax Preparation and Record Keeping Services Managed Account Portfolios While each client portfolio is customized to meet their individual needs, we offer three general portfolios and have a network of sub-advisors in all asset classes: Hudson Advisor s Large Cap GARV Portfolio Hudson Advisor s Multi Cap Growth Portfolio Hudson Advisor s Fixed Income Portfolio Hudson Advisor Services Inc. starts the portfolio construction process with the client completing a needs analysis questionnaire. Each portfolio is customized to meet the client s investment objective and risk tolerance. Our current clients have a broad range of investment goals and risk tolerances. Some clients seek current income and immediate liquidity while others have a time horizon of more than 15 years and seek aggressive growth. Our service begins and ends with the client s investment goals. Please see the included fact sheets for more details on each portfolio.

2 Family Office & Financial Planning Services Hudson Advisor Services, Inc. offers full financial planning and family office services. High net worth individuals and families can rely on us to provide record keeping and tax preparation for all family accounts and business transactions. Our firm can recommend accountants and attorneys to help setup and administer various trusts. Hudson Advisor Services, Inc. can perform the complex tax reporting necessary to run and administer trusts and foundations. Family Office Services We are an independent, personalized investment management firm for individuals, families, and institutions. Our specialty is serving intergenerational family needs what we sometimes call being advisor to the family web. Customized Services: We tailor what we do to what you need and that can include: Customized reporting presentations on your assets and transactions. Consolidated reports that can include all of your accounts and/or family members. Collection and disbursement of income. Preparation of tax filings: either in-house or in cooperation with your tax advisor. Trust and Estate Planning Transferring wealth through multiple generations involves intensive tax and estate planning. Each client has different goals regarding asset protection and asset transfers. Hudson Advisor Services, Inc. provides a need analysis and makes recommendations for the appropriate strategy. Retirement Plans Hudson Advisor Services, Inc. provides retirement plans for both individuals and corporations. The process starts with a retirement needs analysis and we make a recommendation for the appropriate retirement plan strategy. Some plans that we provide include: 401(k) s Pension and Profit Sharing Plans SEP and Simple IRAs Roth, Tradition, and Rollover IRAs Tax Preparation and Record Keeping Services For clients that want to be free of the burden of tax preparation and record keeping, we provide a complete tax reporting service. We can recommend an accountant or work with the client s existing accountant. All the Little Things : We will assist with whatever makes your life easier anything from paying bills to helping refinance a mortgage.

3 The Investment Process Everything we do at Hudson Advisor Services, Inc. begins and ends with our clients. We view the relationship as an active partnership that focuses our capabilities on your objectives. The relationship begins with the identification of your specific requirements and goals. We consider important issues such as current and future cash needs, time frames, multiple generations, inheritances and bequests, tax and estate planning, inflation, and tolerance for or aversion to risk. When necessary, we consult with your attorney, your accountant, and/or other professional advisors. Our approach as investment managers is to be growth-oriented but with a conservative and cautious attitude. We seek to provide strong returns for our clients while at the same time protecting them from the worst gyrations of the market. We emphasize diversification and longterm perspective, while avoiding overexposing our clients to any sector -- no matter how great the appeal of the moment. We look across the whole market to find good opportunities with current or future strength of investment return. Research: The heart of our investment process is thorough analysis and research done through our internal research process and through Miller Gesko Hudson Research, which relies upon information obtained from major Wall Street firms. We obtain and study the research from Wall Street and firms and we subscribe to various research services that provide an independent perspective. Equity Recommendations: Based upon our research, we maintain a buy list of stocks from individual companies for use in our core client portfolios. The choice of stocks for this list is driven by market and economic forecasting and, given our philosophy, represents an emphasis on diversification and long-term value. We also maintain a special list of stocks that we recommend for clients with an aggressive growth orientation. Where appropriate, we will utilize mutual funds to cover small-cap or international sectors. Fixed Income Instruments: We employ a fixed income strategy that focuses upon returns available from US Government, tax-exempt municipal and corporate bonds. Our usual approach is to emphasize intermediate versus longer-term maturities based upon the view that the interest rate differential seldom justifies the risks inherent in the longer time horizon. Other Investments: We have custody arrangements through Fidelity Investments, JP Morgan Chase, and TD Ameritrade that allow us to secure a broad range of other investment vehicles that includes venture capital investments, hedge funds, limited partnerships, and real estate investments. We do not discourage clients from diversifying their portfolios, but we prefer to monitor those investments on a non-supervised basis in order to reduce over/under exposure.

4 HAS Large Cap GARV Portfolio Investment Strategy: The Large Cap GARV (Growth at a Reasonable Value) portfolio offers management of Large Cap growth companies that are trading in the market at a reasonable relative value. The firm provides selection and construction of a core portfolio of GARV stocks based on the client s goals and risk tolerance; we tailor equity weightings around the core portfolio. The firm will manage the customized portfolio focusing on long-term capital appreciation, keeping in mind estate planning goals and taxation. Highlights of our general selection criteria include: Market Cap> $4 Billion Low P/E in relation to the relative industry Strong forecasted EPS growth Strong forecasted Revenue Growth Strong Balance Sheet Increasing Cash flow from Operations Corporate Financials- Low debt/ equity ratio, Positive Interest Coverage Ratio, Strong Quick Ratio. Valuation- P/E, PEG Ratio, Price to Book, Enterprise to EBITDA Comparables- Revenue/ Earnings, Margin Growth in relation to industry Objectives: The portfolio seeks to provide low tax exposure and in all markets, the portfolio seeks to outperform the S&P 500 by 1-2% a year. The portfolio will apply hedging strategies for clients that which to reduce volatility. Portfolio Managers: William N. Hudson Jr., William N. Hudson III, Jeremy C. Hudson, & David D. Burrows

5 HAS Multi Cap Growth Portfolio Investment Strategy: The HAS Multi Cap Growth Portfolio seeks to invest in companies that are experiencing a high rate of growth in earnings and sales. Companies that fit into this category typically include new companies that have unique products with pricing power, turnaround situations, and industry groups that are seeing strong pricing power and growth. Hudson Advisor Services, Inc., using a proprietary formula, weights companies on a combination of the following factors: Earnings Growth Rates Revenue Growth Rates Wall Street Estimates of Revenue, Earnings, and Cash Flow Growth Growth and Valuation rates relative to industry group Fundamental Analysis This strategy can target companies of any market cap but tends to have a mid-cap bias. Objectives: The portfolio seeks to outperform the S&P 500 by 1-2% a year and will apply hedging strategies for clients that which to reduce volatility. Portfolio Managers: William N. Hudson, III, Jeremy C. Hudson, & William N. Hudson, Jr.

6 HAS Fixed Income Portfolio Investment Strategy: We carefully evaluate fixed-income basics such as credit quality, principal payback date (including call features), and the instrument's cash flow and tax status. Bond holdings are structured along a bond maturity ladder over the short and intermediate term to provide portfolio income and stability. The firm, through its institutional relationships, has access to a wide range of corporate, municipal, and government issues. HAS opportunity set for Fixed Income Portfolio typically starts with bonds with a maturity equal to or less than 10 years. General selection criteria include: Corporate: A rated or better Strong Balance Sheets 15 years or less to maturity Municipals Both G.O. and Revenue Credit Quality A Rated or better Taxable/ Tax Exempt Federal Yield Curve Positioning The HAS Fixed Income Portfolio constructs portfolios based on the objectives of the end client. William Hudson has more than 30 years of experience in fixed income investments and at one time managed a $2 billion portfolio of bonds for HSBC bank. He uses this vast experience to find fixed income opportunities. For high tax bracket individuals, the portfolios will seek tax-free income sources. The portfolios will use a combination of G.O. and Revenue bonds to decrease inflation and credit risk. Diversification is applied to help reduce credit risk and laddered maturity dates help to reduce interest risk. For retired individuals, HAS Fixed Income Portfolio seeks to use a combination of corporate, US Treasuries, Government Agencies, and municipal bonds to generate income and preserve capital. For institutions, HAS Fixed Income Portfolio, structures portfolios starting with the firm/ endowment s investment policy statement. Objectives: This portfolio seeks to provide both taxable and tax free income to clients. Depending on the client s needs, the portfolio can provide any level of liquidity. The portfolio seeks to outperform bond indexes Portfolio Managers: William N. Hudson, Jr., William N. Hudson III, Jeremy C. Hudson, & David D. Burrows

7 Performance Summary Biographies William N. Hudson Jr. CEO Bill is the founder and principal of Hudson Advisor Services, Inc. Bill was formerly the Executive Vice President of the Investment Services Division of Marine Midland Bank (HSBC Bank, USA), with responsibility for estate, trust and investment management services. He was previously the Division Executive of the bank's Municipal Securities and Corporate Banking Division. In the community, Bill is a Trustee of the Buffalo Chapter of the American Red Cross, a Trustee of the Buffalo State College Foundation, a member of the Nichols School's Endowment Committee, a Director of International Dispensing Corporation, a Director of Curtis Screw Corporation, and a Director of Dunn Tire Corporation. In addition, Bill is on the board of the Humane Society of Vero Beach & Indian River County and serves on the Endowment committee. He holds a BA degree in banking and finance from the University of Florida, and is a graduate of both the Investment Banking Institute and the National School of Bank Investments. He was a captain and helicopter pilot in the U.S. Army Medical Service Corps during the Vietnam War. Bill and his wife Frances reside in Vero Beach, FL. David D. Burrows President David joined Hudson Advisor Services, Inc. in 2003 after working for Goldman Sachs, where he was Managing Director and Chief Investment Officer for the Goldman Sachs Trust Company. Prior to Goldman Sachs, he was a Managing Director in the Investment Management Division of J.P. Morgan and helped individuals and families with their investments as well as their trust and financial planning. During a career spanning 30 years in financial services, Mr. Burrows has lived and worked in France, Belgium, Singapore and Malaysia and has had responsibilities spanning banking, securities and project finance. He graduated from Columbia University in New York and has been a Co-Chairman of the American Banking Association Trust and Private Banking Committee. He is a trustee of the Winston Churchill Foundation and a director of the National Foundation for Teaching Entrepreneurship (NFTE). He and his wife Nanette have two daughters and live in Greenwich, Connecticut.

8 Jeremy C. Hudson Vice President Jeremy joined Hudson Advisor Services, Inc. in 1999 after earning a BS degree in finance from the State University of New York at Buffalo. He is responsible for day to day client service and portfolio administration. Jeremy oversees the financial operations of the firm. He also is responsible for operational efficiency of the firm through coordinating project management, company compliance, advertising, and client relations. As portfolio manager, Jeremy works with the investment committee to make asset allocation suggestions as well stock selection suggestions. Jeremy also heads up the review and due diligence of Alternative and L.P. investments. He also works with clients to provide general counseling on financial matters. Jeremy currently resides in Buffalo, New York with his wife and three children. Jeremy is a Board Member of the Financial Planning Counselors of Western New York, Past President of the Mid-Day Club of Buffalo, and serves on numerous local non-profit boards. Elizabeth Kisken Investment Consultant Prior to joining Hudson Advisor Services, Inc., Elizabeth (Liz) had a 20 year career in financial services at J.P. Morgan. While there, she worked in J.P. Morgan s Private Bank, and was part of the team that started up J.P. Morgan s equity business. Earlier in her career at J.P. Morgan, Liz built the programs for tracking credit exposure in the global swaps market and participated in managing credit exposure for J.P. Morgan. Liz has a BS and Master of Engineering from Cornell University -- as well as an MBA from Cornell s Johnson School of Management where she was a Lester B. Knight scholar. She is a CFA charter holder and a member of the CFA Institute. She also has completed course work in estate planning, taxation and retirement planning.

9 William N. Hudson, III CFP Investment Consultant Bill earned an M.B.A. from the University of Miami with a specialization in Finance and Telecommunications in 2000 and a B.A. from Denison University with a Major in Political Science and a Minor in Economics in Also, Bill has a certificate in Financial Planning from Boston University and has a CFP certification. Prior to Graduate School, Bill worked for Franklin Templeton, a mutual fund company based in the Bay Area. Bill resides with his wife and two daughters in the Washington DC Area.

10 Office Locations 237 Main Street - Suite 600 Buffalo, New York (716) Fax: (716) Toll Free: WHudson@HudsonAdvisors.com JHudson@HudsonAdvisors.com Additional Office Locations: 29 Hillside Drive Greenwich CT (203) Fax: (203) DBurrows@HudsonAdvisors.com 4445 North Highway A1A - Suite 233 Vero Beach, Florida (772) Fax: (772) Toll Free: Potomac, MD Phone Fax Bhudson3@hudsonadvisors.com Website: