The Seaview RED Group at Morgan Stanley

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1 The Seaview RED Group at Morgan Stanley

2 2400 East Commercial Blvd. 12th Floor, Ft. Lauderdale, FL / Main Robert.Lavin@morganstanley.com

3 The Seaview RED Group at Morgan Stanley Institutional Quality Fixed Income Investment Management Low Interest Rates Don t Necessarily Lead to Low Fixed Income Returns Successful institutional investors have long known that there are strategies to implement in almost any investment environment and that fixed income returns are not based on yield alone. Even in today s low interest rate environment, The Seaview RED Group at Morgan Stanley can help you manage the fixed income portion of your portfolio with strategies designed to: Reduce Interest Rate Risk Increase Principal Value Maximize Yield Maintain the Flexibility to Capitalize on Changing Market Conditions For more than 35 years combined, Robert Lavin and Christian Macellari, the principals of The Seaview RED Group, have helped corporations, financial institutions, and developers succeed in a variety of fixed income market conditions. In addition to institutions, their tax-efficient, customized approach is now available to family offices and individual investors seeking growth of principal, as well as enhanced yield. morgan stanley 3

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5 The SEAview RED group at Morgan stanley What Sets Us Apart We don t view the fixed income markets passively. Our clients are perfectly capable of clipping coupons on their own. We believe that a management approach should provide clients with: Tax-Conscious Perspective The Seaview RED Group offers both a taxable and tax-free strategy. Taxable accounts require attention to taxes that can erode even superior performance. We select bonds for your portfolio only after discussing with you potential tax consequences and how to mitigate them through asset structure and transaction timing. Portfolio Transparency You can provide us with specific instructions about what type of securities you would like to (or not like to) own. You will always know which securities are in your portfolio, what their cost bases are and how they are performing. Accessibility Unlike pooled funds managers, we are always available to discuss your overall strategy, comment on specific positions and help you evaluate your progress. Customized Strategies You are not part of a pool with other investors who may not have similar goals. Your assets are managed specifically with your needs in mind, and the securities we purchase on your behalf are owned by you. No Hidden Fees The fees we charge are based on a percentage of your assets and appear on your quarterly statements. As a result, you always know what you are paying. morgan stanley 5

6 The SEAview RED group at Morgan stanley A Closer Look at Portfolio Construction Increased principal leads to increased interest and continued growth for our clients. In our efforts to achieve these goals, our strategy is designed to: Maximize Yield While Maintaining Flexibility Your portfolio may contain municipal bonds, corporate bonds, preferred stocks, asset-backed or mortgage-backed securities and a variety of structures from floaters and step-ups to callable and interest-only or principal-only bonds. By taking advantage of the diversity offered by today s fixed income markets, we can anticipate and adapt to changing market conditions, interest rates and yield curves without sacrificing yield. Capitalize on Yield Curve Dynamics Trading spreads between municipal, corporate and mortgage-backed securities and U.S. Treasuries tend to narrow as bonds approach maturity. By employing a strategy known as riding the shoulder of the curve, we attempt to take advantage of tightening spreads, thereby increasing total return. Reduce Interest Rate Risk When rates increase, we often use defensive structures like floating rate and cushion bonds that enable us to generate additional yield, while protecting principal. Finally, we focus on liquidity in an effort to reduce bid-ask spreads, and we consider the effect of taxes when devising strategies for clients with taxable portfolios. 6 Morgan Stanley

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9 The SEAview red group at Morgan stanley Who is The Seaview RED Group? Robert C. Lavin Senior Vice President Portfolio Manager Financial Advisor With more than 20 years of experience advising banks, insurance companies and hedge funds on fixed income trading and asset/liability management, Rob Lavin has an extensive knowledge of appropriate strategies and products for the fixed income needs of discerning clients. Prior to joining Morgan Stanley, Robert was a Director in Deutsche Bank Asset and Wealth Management from 2009 to 2016, a Senior Vice President at UBS in the Regional Institutional Sales Group from 1999 to 2009, and prior to that, a Director at CIBC. In all capacities, he provided portfolio products including CDOs, CMOs, CLOs, MBS, ABS, CMBS, corporate bonds, municipal bonds, MBS options, and repo lending to the banks, insurance companies and corporate treasuries that he covered. His experience in fixed income products has also enabled him to advise family offices and high net worth individuals on portfolio management. Robert received a B.S. in chemical engineering from the University of Virginia and an M.B.A. in finance, accounting and marketing from the University of Chicago. robert.lavin@morganstanley.com Christian Macellari, CRPC Portfolio Manager Financial Advisor With over sixteen years of experience advising corporations including real estate developers on structuring business liquidity facilities, implementing securities based lending, and leveraging real estate portfolios, Christian Macellari offers valuable cash management skills for corporate entities. Prior to joining Morgan Stanley, Christian was a Financial Advisor and Investment Advisor at Merrill Lynch advising middle market companies on corporate retirement strategy, treasury management and commercial lending needs. Christian was part of a dedicated triage system of 8 investment professionals in the South East of Florida qualified to work with clients of Bank of America s Business Banking units. Prior to that Christian was a Sr. Mortgage Banker at JP Morgan Chase as well as having held management positions at Centex and Accredited Lenders. He often works in partnership with other areas of the firm including Investment Banking, Private Equity and Private and Commercial Banking, in order to deliver a truly comprehensive solution to his clients. Christian received a B.A. in Psychology and minor in Business from the University of Texas at Austin and is fluent in Spanish, Italian and proficient in the Dutch language. christian.macellari@morganstanley.com morgan stanley 9

10 The SEAview RED group at Morgan stanley Your Next Step As part of Morgan Stanley Wealth Management s Fixed Income Middle Markets Group, we can enlist the support of a global leader in fixed income research and trading to further the goals of our clients. To learn more about how you can benefit from fixed income management that has traditionally been available only to institutions, contact us at: The Seaview RED Group at Morgan Stanley 2400 East Commercial Blvd. 12th Floor, Ft. Lauderdale, FL / main 10 Morgan Stanley

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12 Important Risk Information for Securities Based Lending: Borrowing against securities may not be suitable for everyone. You should be aware that there are risks associated with a securities based loan, including possible margin calls on short notice, and that market conditions can magnify any potential for loss. 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 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 securities based 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 securities based loans at any time and for any reason. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment, insurance and annuity products offered through Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED NOT A BANK DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Bonds are subject to interest rate risk. When interest rates rise, bond prices fall; generally, the longer a bond s maturity, the more sensitive it is to this risk. Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date. The market value of debt instruments may fluctuate, and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit quality of the issuer. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer might be unable to make interest and/or principal payments on a timely basis. Bonds are also subject to reinvestment risk, which is the risk that principal and/or interest payments from a given investment may be reinvested at a lower interest rate. 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. 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 Morgan Stanley Smith Barney LLC. Member SIPC. CRC CS /17