Private Client Services

Transcription

1 Private Client Services Helping you plan now with confidence in the future Helping preserve, grow, and transfer wealth to the people and causes you care about

2 Contents 1 Personalized services delivered by an experienced team 2 Disciplined investment philosophy and process 4 Fiduciary care: The standard of care you deserve 5 Trusts for your specific needs 6 Your choice of trustee 7 Individual or professional trustee? 8 Start a discussion with us today. You ve worked hard to achieve success, and now your finances are more complex and come with additional responsibilities to take care of those who depend on you. You deserve a dedicated professional team that can develop a customized investment plan and provide a variety of personalized and trust services all while adhering to one of the highest standards of financial responsibility, called fiduciary care. The MassMutual Trust Company, FSB, offers an array of personalized services, delivered by a team of highly qualified professionals who work with your financial professional. Our professional team helps you provide financial security for you and your family. And, as a fiduciary, we always act with your best interests in mind.

3 Personalized services delivered by an experienced team Building the right relationships can be critical in maintaining financial success and preserving wealth. Through its team of experienced professionals in the areas of trust management, investments, tax regulations, and state laws, 1 the MassMutual Trust Company partners with MassMutual financial professionals to help clients who want to provide financial security for their families now and for future generations. We deliver high-end concierge services for a variety of needs, including: customized investment strategies, with ongoing oversight, prudent risk management, objectivity, and tax efficiency cash management services and access to secured lending 2 estate plan execution including legacy planning trust document reviews investment portfolio reviews multi-generational planning and wealth transfer strategies family wealth stewardship, family meetings charitable giving strategies, including donor-advised funds ongoing account administration We become part of your team, working with your existing financial team during the planning process and throughout the life of our relationship with you and your heirs. We employ an extensive discovery process and take the time to listen to your needs, wishes, and plans for your legacy. We also help to address any concerns about changing family dynamics such as disability, incapacity, divorce, aging, death, and blended family issues. In other words, we take a holistic approach in viewing and evaluating your current situation, in order to design solutions that are specific to your life, hopes and aspirations. 1 The MassMutual Trust Company, its employees and representatives are not authorized to give tax or legal advice and the information provided is not written or intended as tax or legal advice. Please consult your tax and legal advisors to determine how this information may apply to your own situation. 2 Loans and letters of credit provided by US Bank. 1

4 Disciplined investment philosophy and process Our investment philosophy has grown from our long experience with meeting client objectives in changing market conditions. Because our clients generally have plans that span multiple generations, we apply an investment philosophy and approach that provides a customized solution with prudent risk management. We carefully select only those asset managers whom we believe can deliver the expertise and experience that will help meet your long-term objectives. Then we carefully monitor both the managers and your individualized plan, to ensure they remain aligned with your long-term goals. Our process is centered around your goals We take the time up front to understand what is unique about you. Then we develop a customized investment strategy and document it in an investment policy statement. The investment policy statement outlines the portfolio s building blocks and tries to capture what you told us about yourself your time horizon, your need for income, your risk tolerance, need for liquidity, tax situation, and any other unique needs and circumstances. The investment policy statement will include the long-term asset allocation target, the investment strategy, and how the portfolio will be benchmarked and over what time periods. We regularly revisit this statement with you and your financial professional to ensure that we remain aligned with your wealth management objectives. Investment process A four-step investment process brings together your needs with our expertise and discipline to build a comfortable and successful wealth management strategy just for you. 1 Client profile Our investment approach begins with an understanding of your individual investment objectives, risk tolerance, time horizon, tax sensitivity, income and liquidity needs. 4 Monitor and adjust Allocations are monitored on an ongoing basis. As your needs and market conditions change, specific investments can be adjusted periodically to help manage risk. 2 Asset allocation Next, we implement a strategic asset allocation with diversification among asset classes and long-term and time-tested investment strategies. 3 Investment policy statement Our investment team then reviews and documents an investment strategy specific to your needs. 2

5 Prudent risk management Our investment team constructs a prudently well-diversified portfolio for each client, ensuring that there are no concentrations of risk in any one asset class, economic sector or individual security. As conditions change in the economy, the financial markets, or in your own individual circumstances, adjustments are made as needed. 3 Sub-advisor selection criteria We select investment sub-advisors who share our commitment to service, integrity, quality, discipline, oversight, and governance. Each sub-advisor has an experienced team of portfolio managers with a unique perspective to managing money for the long term and through all types of financial market cycles. We use non-proprietary asset managers, providing an additional layer of objectivity in managing your assets. Ongoing investment oversight MassMutual Trust Company investment professionals have a thorough, disciplined, and continual due diligence process to ensure sub-advisors continue to meet the needs of our clients. Our ongoing due diligence and investment oversight includes a number of checks and balances, including internal supervision by the Trust Company Investment Committee and Board of Directors. MassMutual Trust remains vigilant in watching for any changes in our sub-advisors investment philosophies, personnel policies, or organizational structures that may have an impact on our clients portfolios. We engage with only those sub-advisors whom we believe can deliver the expertise and experience that will help you meet your long-term objectives. 3 Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. 3

6 Fiduciary care: The standard of care you deserve Having accumulated higher net worth, you expect and deserve the highest levels of competency, service and care from your financial firm. The fiduciary standard of care is the pinnacle standard in the industry. The fiduciary standard of care is the framework used by the MassMutual Trust Company to build our service model and offer customized solutions so that decisions are made in your best interest. The fiduciary standard Our fiduciary standard means that we have the responsibility to act solely in the best interest of our clients, under circumstances that require the use of reasonable care, skill, prudent judgment and rigorous accountability on a continuing basis. How we provide fiduciary care A fiduciary has a number of responsibilities to consider when acting in your best interest. We construct a portfolio of investments customized to your investment goals, providing a careful analysis to balance risk against return, and diversifying assets to focus on the performance of the entire portfolio. Our responsibility is to monitor and continually adjust the portfolio as economic conditions change. At least once a year, our investment team formally reviews every account to ensure that the portfolio remains consistent with the client s financial goals. We provide full and fair disclosure of all material facts of each account, including a quarterly report of the account s performance. Notably, we choose to use non-proprietary investments in order to avoid even the appearance of any conflict of interest. In addition, we participate in mandated, regular, in-depth reviews by the Office of the Comptroller of the Currency (OCC). Oversight by the OCC is among the most rigorous applied to advisor relationships. What does it mean to be a fiduciary? A fiduciary must act with each client s best interests in mind. Any recommendations must be made in utmost good faith and with full disclosure of all material facts and conflicts of interest. A fiduciary must provide regular reporting of account financial information. The MassMutual Trust Company chooses to use non-proprietary investments to avoid potential conflicts of interest. The MassMutual Trust Company is overseen by the Office of the Comptroller of the Currency (OCC). Oversight by the OCC is among the most rigorous applied to advisor relationships and includes mandated regular in-depth reviews. A fiduciary reviews the portfolio regularly and makes prudent adjustments to match a client s current goals. 4

7 Trusts for your specific needs There are different types of trusts to meet a variety of goals. Trusts are designed to address your personal wishes and maintain control over how your estate is managed, preserved, and distributed. The MassMutual Trust Company can help you establish a trust with a dedicated Trust Officer who administers the trust and serves as your primary contact for ongoing trust management and any ad hoc requests or questions you may have. The chart below briefly outlines the different types of trusts available to you through the MassMutual Trust Company. What do you want to achieve? Have a plan in place should I become incapacitated Provide funds for estate settlement; asset and some creditor protection for beneficiaries Pass on assets to family; leave a legacy for your family Give to a favorite charity without endangering income to you or your family Provide care for a loved one with special needs Provide some financial security for your children after your lifetime What type of trust will get the results you want? Revocable Living Trust Manage some of life s unforeseen circumstances such as a disability Explain your wishes for your children when you are no longer in the picture Irrevocable Trust Pass on assets to family using gifting advantage without going through probate May reduce estate taxes on the appreciation of trust assets Irrevocable Life Insurance Trust Maximize life insurance benefits by providing liquid assets to maintain family lifestyle Charitable Remainder Trust Support your favorite charity Special Needs Trust Have peace of mind knowing that a loved one who may not be able to care for her/himself will be cared for Trust Under Will (Testamentary Trust) May perform many of the functions of other trusts Does not take effect until your death What is the benefit/feature of this trust structure? You can retain control of the trust and change or have it revoked during your lifetime Trust assets pass directly to beneficiaries without going through probate, which helps eliminate any challenges within an estate and maintains privacy An irrevocable trust and its provisions cannot be changed or modified once it is signed Provides beneficiaries with creditor protection Removes the life insurance death benefit from the estate, creating a tax-advantaged way to transfer wealth to your loved ones Allows you to enjoy an income stream while avoiding capital gains tax Provides an income tax deduction The trust is structured to continue the person s eligibility for government programs and benefits Provides for additional lifestyle needs Creates a trust at death under a will Changes can be made to the trust throughout your lifetime May be subject to public scrutiny as part of probate 5

8 Your choice of trustee One of the most important decisions that clients face when creating a trust is the selection of a trustee. A trustee is required to administer the trust to ensure that your wealth is managed and distributed according to your wishes as presented in the trust document, while keeping your beneficiaries best interests in mind. You have the ability to choose an individual, a professional trustee, or a combination of both for the role of trustee. Trustee responsibilities The overriding responsibility of a trustee is to safeguard the assets of the trust grantor (if living) and for the beneficiaries who will receive them after the grantor dies. Trustees must follow the instructions in the trust document and must fulfill certain duties such as: Invest assets in a prudent (conservative) manner, i.e. in a way that will result in potential reasonable growth with minimum risk. Treat multiple trust beneficiaries impartially (i.e. not favoring one over another), unless the trust allows the trustee to do so. Keep accurate accounting records of assets, liabilities, receipts, disbursements, and income, estate and gift taxes. Record trustee actions and routine trust actions. File tax returns. Report to the beneficiaries and communicate information to relevant parties as the trust requires. Keep personal accounts and assets separate from the trust assets, and ensure that trust assets are used only as intended in the trust document. Individual vs. professional trustees When selecting a trustee, many people consider a trusted family member or a close friend for the role. It is likely that an individual trustee will have a long and close history with the trust beneficiaries. While this can add a helpful element to the relationship, it can also cause critical issues to arise. The chart on the facing page outlines why you may want to consider a professional, corporate trustee, such as The MassMutual Trust Company. The MassMutual Trust Company can serve in a variety of roles relating to the responsibilities of the trustee as outlined below. Sole trustee: We assume all administrative responsibilities, investment management decisions, and discretionary distributions in accordance with the terms of the trust document. Co-trustee: We take care of the administrative and investment management responsibilities delegated to us. Discretionary decision-making responsibilities are shared with other co-trustee(s). Successor trustee: We assume trustee responsibilities when the current trustee is no longer willing or able to serve as trustee. Agent for trustee: We take care of the administrative and investment management responsibilities, while all discretionary decision-making responsibilities are handled by the trustee. In this role, a family member or close friend who is trustee hires MassMutual Trust Company to act as their agent. Critical and important responsibilities are delegated to us so that the trustee feels confident that fiduciary responsibilities and investment management activities are managed appropriately and in accordance with the trust document. 6

9 Individual or professional trustee? Resources Cost Individual acting as trustee (a family member or friend) May only be able to work part-time May have little to no experience or track record May need to separately employ specialists Fees of various other specialists increase overall cost of relationship Professional trustee (MM Trust) Has full-time, trained, professional and credentialed staff and specialists Has staff and specialists who have many years of experience administering trust accounts Offers multiple services at one fee Objectivity May have a conflict of interest due to familial relationships Is an impartial third party Continuity Service may be interrupted by illness, death or disability Service is provided by a wholly-owned subsidiary of MassMutual Life Insurance Company, a financial institution that has been in business for more than 163 years Investment Knowledge Communication May not be experienced in asset management May hold cash uninvested for periods of time, which may dampen long-term performance May communicate infrequently with beneficiaries and may not be able to address complex or emotional issues Substantially experienced in managing all assets including unique assets Reinvests cash daily Is committed to regularly communicating with beneficiaries, answering questions and discussing all issues with sensitivity and objectivity Speak with your MassMutual agent for more information about The MassMutual Trust Company and our personalized investment and trust services all with your best interests in mind. 7

10 Start a discussion with us today. For more information about the services offered by the MassMutual Trust Company, contact your MassMutual Agent or the MassMutual Trust Company toll-free at or via at info@massmutualtrust.com. 8

11 The MassMutual Trust Company, FSB is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C:

12 Fiduciary care: The standard of care you deserve It takes the right combination of hard work, insight and opportunity to achieve personal and financial success. Building the right relationships can prove to be critical in achieving financial success and preserving wealth. Having accumulated higher net worth, you expect and deserve the highest levels of competency, service and care from your financial firm. While there are many service models and standards of care that exist in the marketplace, it is the fiduciary standard of care that is the pinnacle standard in the industry. People like you look for this standard when making decisions about who to partner with to manage and preserve that wealth. The fiduciary standard of care is the framework used by the MassMutual Trust Company to build our service model and offer customized solutions so that decisions can be made that are in your best interest. This guide is designed to help you understand what a fiduciary is and what components make fiduciary care your desired and deserved standard of care. The fiduciary standard A fiduciary has the responsibility to act solely in the best interest of another, under circumstances that require the use of reasonable care, skill, prudent judgment and rigorous accountability on a continuing basis. There are other standards, the most common being the suitability standard. The suitability standard only applies at the time of the transaction and does not usually involve further oversight. Fiduciary standard of care. MassMutual Trust Company is a fiduciary. Action/Advice must be in your best interest: A fiduciary relationship requires that the fiduciary place the client s ongoing best interests above its own. Timing: A Fiduciary generally has a long term relationship with client. Accountability and highest level of oversight: A fiduciary must provide full and fair disclosure of material facts and conflicts of interest. A fiduciary must provide regular reporting of account financial information. The MassMutual Trust Company chooses to use non-proprietary investments to avoid some potential conflicts of interest. Oversight by the Office of the Comptroller of the Currency (OCC) is the highest standard applied to advisor relationships and includes mandated regular in-depth reviews. Regular monitoring of the portfolio: A fiduciary review of portfolio is performed regularly and prudent adjustments to match client s current goals are made accordingly.

13 How we provide fiduciary care A fiduciary has a number of responsibilities to consider when acting in your best interest. We construct a portfolio of investments customized to your investment goals, providing a careful analysis to balance risk against return and diversifying assets to focus on the performance of the entire portfolio. Our responsibility is to monitor and continually adjust the portfolio as economic conditions change. At least once a year, our investment team formally reviews every account to assure that the portfolio remains consistent with the client s financial goals. We provide full and fair disclosure of all material facts of each account, including a quarterly report of the account s performance. Notably, we choose to use non-proprietary investments in order to avoid even the appearance of a conflict of interest. Lastly, we participate in mandated, regular, in-depth reviews by the Office of the Comptroller of the Currency (OCC). Oversight by the OCC is the highest standard applied to advisor relationships. We believe that once you understand what a fiduciary is and what components make fiduciary care the pinnacle standard of care you will want your finances to receive fiduciary care. For more information For more information about fiduciary care or other services offered by the MassMutual Trust Company, contact your MassMutual Agent or the MassMutual Trust Company toll free at or via at info@massmutualtrust.com. The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. The Trust Company does not engage in banking activity (take deposits, make loans, give mortgages, etc.) and does not sell products. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Life Insurance Company. All loans and lines of credit are issued by either State Street Bank & Trust or City National Bank. Please note, IRAs and any plans subject to ERISA regulations are not eligible Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C:

14 A Strategy Spotlight for Individuals MainStreet Advisors Investment Philosophy and Management MainStreet Advisors (MainStreet) is focused on building efficient portfolios that are diversified across a broad range of asset classes and types of investments. The firm believes asset allocation is the key driver of portfolio performance and helps clients stay on track with their financial objectives. When building portfolios, asset allocation decisions are made by an investment committee consisting of seasoned portfolio managers. The committee meets regularly and uses primary and third-party research to review global economic and industry trends. Investment Strategy MainStreet uses a disciplined investment process that focuses on the client s long-term financial goals. The firm offers a series of risk-based asset allocation strategies and portfolios that can be customized to include individual equities, fixed income, mutual funds, exchange-traded funds, and socially responsible investments. The firm s investment managers combine both traditional and alternative investments to enhance diversification and manage risk. MainStreet Advisors is well equipped to assist clients in managing concentrated positions and developing transition plans to build out more diversified and appropriate allocations for the long term. Each client s goals and objectives are at the center of MainStreet s portfolio construction process. The firm s investment managers first develop the appropriate asset allocation based upon a client s time horizon, risk tolerance, and potential need for income. After establishing the overall asset mix, managers then determine sector allocation, individual security selection, and security weightings. Portfolios are monitored and evaluated on an ongoing basis, and MainStreet rebalances portfolios to maintain the appropriate risk profile for each client. About MainStreet Advisors MainStreet Advisors was founded in 2003 with the mission of providing quality and comprehensive advisory services to clients of trust companies, endowments, affluent individuals, and large institutions. Headquartered in Chicago, Illinois, MainStreet has $2.93 billion in assets, as of December MainStreet Advisors is an investment manager that follows a disciplined investment process focused on long-term financial goals. The firm provides an open architecture platform which provides unbiased access to high quality investments with no conflicts of interest. Among the many reasons the MassMutual Trust Company selected MainStreet Advisors as a strategic partner is the firm s comprehensive investment services from strategic asset allocation to individual security selection and ongoing monitoring. Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. Investment Strategies MainStreet Advisors tm

15 The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C:

16 A Strategy Spotlight for Individuals Roosevelt Investments Investment Philosophy and Management Roosevelt Investments (Roosevelt) has maintained their emphasis on risk management in seeking capital protection over the long-term throughout the firm s history. They view themselves as stewards of their clients wealth and strive at all times to enable their clients to meet their financial goals. Roosevelt embraces the importance of capital preservation and strives to provide a variety of investment strategies that can deliver diversification and insulation from downside market volatility through a benchmarkagnostic approach. They believe in the benefits of diversification in building durable portfolios, with the flexibility to invest across asset classes, sectors, market capitalizations, and investment styles. Investment Strategy Roosevelt offers an array of domestic equity, fixed income, and balanced strategies which are available in a separately managed account format. Additionally, the Roosevelt All Cap Core Equity Strategy is available as a mutual fund that is managed in a largely similar fashion to the separately managed accounts. The firm s actively managed domestic equity strategies generally employ a thematic approach to investing which aims to capitalize on global trends and act as a framework for their investment analysis. Using top-down continued Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. About Roosevelt Investments Roosevelt Investments traces its roots back to 1971 when P. James Roosevelt, a cousin of former President Theodore Roosevelt, founded the investment advisory firm P. James Roosevelt, Inc., which managed assets of individuals and institutional clients. The firm s name was changed in 1993 to The Roosevelt Investment Group, Inc. In 2002, the firm merged into Sheer Asset Management, Inc., an investment advisory firm founded by Arthur H. Sheer in 1990, and retained the name The Roosevelt Investment Group, Inc. ( Roosevelt Investments ). As a privately held and unaffiliated boutique investment management firm, Roosevelt Investments strives at all times to put their clients needs first. The firm is rooted in the principles of honesty, integrity, and professionalism, and is committed to delivering quality results to their clients with the highest level of transparency. The firm s total assets under advisement as of March 31, 2016 were approximately $3.4 billion, consisting of approximately $2.3 billion in assets under management, and approximately $1.1 billion in programs where they provide an investment model. Investment Strategies

17 macro research, Roosevelt s investment professionals seek to identify significant structural changes which form the basis for long-term investment themes. Bottom-up fundamental research is guided by these investment themes and further analysis identifies potential investment opportunities. The synthesis of top-down and bottom-up research styles is fundamental to their investment process, as it allows their portfolio managers to promptly react to changing market conditions and benefit from a larger universe of investment opportunities. The firm s actively managed investment grade fixed income strategies employ a risk-oriented approach to investing, and seek to diversify across market industries, with the flexibility to over- or under-weight certain areas. Roosevelt s investment team evaluates the current credit market environment in seeking to determine optimal general construction parameters. Investment decisions are made as part of an ongoing analysis of a portfolio s yield versus competitive markets, its risk profile in terms of the team s macroeconomic analyses, and evaluation of the creditworthiness of individual issues. All positions are rated investment-grade at purchase. The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC5693f 516 C:

18 A Strategy Spotlight for Individuals OBS Financial Investment Philosophy and Management OBS Financial (OBS) uses a structured investing approach that draws on the research of some of the academic community s most innovative and respected thinkers and economists. The structured investing approach differs from other approaches by using a system of investing that structures strategies based on research, rather than speculation or commercial indices. As a result, investors achieve more consistent portfolio structure. This approach seeks to integrate portfolio design, management, and trading in order to maximize returns. It focuses on the belief that capital markets work, and the markets price securities fairly, then designs portfolios to pursue specific dimensions that have, based on academic research, demonstrated an ability to provide higher expected returns. OBS Financial combines the structured investing approach with an emphasis on client education to make superior service a priority. Investment Strategy The firm offers a unique series of model portfolios utilizing asset class funds that share a common goal: generate the highest returns for the lowest corresponding amount of risk. The core series of portfolios strives to reduce risk through diversification of asset classes, but can be modified to include a higher or lower percentage of exposure to small and value asset classes depending on client needs. About OBS Financial Founded in 2000, OBS Financial is a Registered Investment Advisory firm providing outsourced sub-advisory services to financial institutions and qualified plan providers throughout the country. Headquartered in Whitehouse, Ohio, the firm s approach provides a system of investing that is based on the science of capital markets thereby eliminating the emotional pursuit of trying to beat the market. Today, OBS works with over 80 financial institutions and has $2 billion in assets. OBS Financial offers a range of portfolio options backed by their strong service model. MassMutual Trust Company selected OBS Financial because of their structured investment approach that utilizes Dimensional Fund Advisors investment philosophy. This includes over 80 years of financial market data, Noble Prize winning economic research, and in-depth studies of investor psychology and behavior. The portfolios are inherently tax efficient because of the style of management and low turnover ratio. Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. Investment Strategies

19 The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC5693e 416 C:

20 A Strategy Spotlight for Individuals LMCG Investments Investment Philosophy and Management LMCG Investments (LMCG) follows a rigorous process in determining an optimal asset mix, selecting individual securities, and managing security selection in each portfolio on an ongoing basis. The firm believes asset allocation must reflect each client expectation for return and tolerance for risk. In executing the established asset allocation, the investment team leverages market opportunities and draws on the firm s investment specialists. The firm has investment professionals who specialize in specific asset classes, such as large-, mid-, and small-cap equities, international equities, emerging markets, liquid alternatives, structured credit, U.S. fixed income and a full spectrum of exchange-traded funds. LMCG investment professionals have strong academic and professional experience and average 20 years of industry experience. The firm prides itself on the ability to attract people with extraordinary talent and passion in all aspects of the investment process: research, investment analysis, security selection, and portfolio monitoring and reporting. Investment Strategy LMCG constructs its investment portfolios using a top down strategy for allocation decisions and a bottom up strategy for stock selection. The firm s research and analysis of the overall economy determines which asset classes it believes will outperform others over the next 18 months to three years. Once the investment managers select the asset classes to invest in, they evaluate individual companies in those asset classes. LMCG looks for companies with quality management, a proven history of earnings growth, a strong balance sheet and a high probability for success in the future. Risk management is an integral component of LMCG s strategy. Risk is managed through portfolio diversification across asset classes and economic sectors and in the selection of individual securities. About LMCG Investments LMCG Investments (formerly Lee Munder Capital Group) provides institutional and private clients with investment services across a wide array of equity and fixed income asset classes. Formed in 2000 and headquartered in Boston, Massachusetts, LMCG has continually developed and offered, via acquisition and organic growth, an expanded investment platform for its clients. As a result, the firm has enjoyed impressive growth. LMCG currently manages approximately $7.1 billion in assets under management. The firm is 38% privately-owned. One of the reasons why the MassMutual Trust Company selected LMCG is the firm s specialized and vertically integrated process in security selection analysis of the overall economy, identification of the most attractive sectors, and determination of asset allocation and security weightings by tenured investment specialists. Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. Investment Strategies INVESTMENTS

21 The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC5693d 416 C:

22 A Strategy Spotlight for Individuals Welch & Forbes Investment Philosophy and Management Welch & Forbes (W&F) focuses on managing investments for trusts and estates by combining wealth preservation and strategic growth strategies. Given the firm s long history as an investment adviser, W&F understands the need to balance risk and return for the long-term and through different market cycles. W&F employs a team approach to investment management with portfolio managers meeting frequently to discuss market conditions, developments in the companies they hold in client portfolios, and industry trends. W&F uses research from a variety of proprietary and third-party sources, in addition to regular meetings with senior managers of the companies in which they invest. The portfolio managers, as a team, must agree before an equity security is added to a portfolio. Investment Strategy W&F constructs highly diversified multi-cap portfolios. Their managers employ a bottom-up approach. They primarily focus on individual companies with a secondary focus on the sectors in which they compete. Macroeconomic conditions are also considered for global investment themes. Long-term equity investments typically have: financial strength represented by an attractive balance sheet, manageable debt and good credit quality; strong competitive position with pricing power in its product offerings; strong company management; revenue and earnings growth potential; low debt ratio; high cash flow to support expansion; liquidity to provide a cushion during challenging market conditions; high return on invested capital. W&F portfolios are primarily invested in domestic largecap equities with additional diversification through the inclusion of developed international equities, emerging market equities, commodity-based investments, and fixed income investments. The fixed income portion of the portfolios, often comprised of high-quality bonds, provides stability and income generation. About Welch & Forbes W&F enjoys a long history of investment advisory services. Founded in 1838, W&F has managed portfolios through all market cycles. The firm currently manages $4.1 billion (as of 3/31/16) in assets across approximately 750 client relationships and has over $100 million in charitable foundations and endowments. This private wealth management firm manages the financial interests of generations of families with a commitment to integrity, stability and accessibility. The average length of client relationships is more than 20 years. In addition to its long history in wealth management, one of the reasons why the MassMutual Trust Company selected W&F is the firm s comprehensive primary research capabilities in evaluating companies and the markets in which they compete. This analytical approach allows W&F to take advantage of market opportunities, as well as manage portfolios for long-term appreciation. Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. Investment Strategies

23 The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC5693c 516 C:

24 Private Client Services Cash Management Solutions With the MassMutual Trust Company s approach to Private Client Services, you can access a comprehensive suite of cash management and optional lending solutions all while staying invested in a way that fits your approach to risk and return. We ll monitor the cash that goes into your account, invest your assets, pay your expenses, and arrange for loans all in one consolidated account. Cash Business Income Employment Income Rental Income Retirement Income Insurance Premiums Tuition Charitable Donations Quarterly Taxes Account Transfers Loan Repayments Credit Card Payments Ad Hoc Disbursements Income and cash are actively managed with flexibility Your bills are paid automatically You can borrow money for a variety of purposes while staying invested Easy account access.

25 Income and cash are actively managed with flexibility You can consolidate multiple accounts into one comprehensive, integrated cash management solution. Cash that flows into your account is professionally managed with prudent diversification and strategic asset allocation 1. We design a portfolio for each client and make portfolio adjustments as economic and financial market conditions change, or if there are changes in your individual circumstances. When disbursements, payments or transfers are made, we use available cash in the account first. Then, if we need to liquidate holdings, we do so over time in a tax-efficient and market-conscious manner. Direct deposits and transfers can be executed at your convenience to the account(s) of your choice. Your bills are automatically paid If you are like most people, you make regular payments to pay for insurance premiums, tuition payments, loan and mortgage payments, credit card charges, and federal and state taxes, just to name a few. This may be a time-consuming process for you. We have a solution that provides convenience and flexibility to manage everyday finances. We can personalize bill payment schedules based on your needs and cash flows. If you travel extensively, this service conveniently and reliably manages bill payments directly out of your account. And, if activated now, it may ease a future transition should you become incapacitated someday. In addition, through your dedicated Trust Officer, you can arrange ad hoc distributions or transfer money for any number of purposes such as vacations, family requests, down payments on major expenses, real estate, and home improvements, healthcare expenses, or anything that you think can improve your life and the lives of those you love. Borrow money for a variety of purposes, while staying invested For eligible accounts 2, credit strategies, such as secured loans and lines of credit for various purposes (some restrictions may apply), can be an attractive option for meeting your liquidity needs. With a secured loan, you can avoid immediately liquidating assets and incurring potential capital gains taxes, thus keeping your long-term wealth strategy intact. Your Trust Officer at MassMutual Trust Company works directly with the banks to establish the secured lending services and will help you with the necessary paperwork. 3 Strategic use of financing can help enhance your overall wealth management strategy. Used prudently, debt can actually help create financial flexibility, grow wealth and further long-term objectives. You may also be able to deduct the interest expenses on your taxes. 4 Account access You can access your account to view activity through our secure website at 24/7/365. We also provide consolidated transaction and performance reports at a frequency of your choice plus timely, easy-to-read, and comprehensive year-end tax information. You can also contact your personal Trust Officer who is knowledgeable about every aspect of your account. 1 Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the possible loss of principal. 2 IRAs and any plan subject to ERISA regulations are not eligible for loans and lines of credit. 3 Loans and letters of credit provided by US Bank. 4 The MassMutual Trust Company, its employees and representatives are not authorized to give tax or legal advice and the information provided is not written or intended as tax or legal advice. Please consult your tax and legal advisors to determine how this information may apply to your own situation. The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C:

26 Secured Lending Using MassMutual Trust Accounts As a MassMutual Trust Company, fsb client, we can help meet your borrowing needs quickly and easily, with the personal, responsive attention you deserve. We provide fiduciary care, which means you can rest assured we will always work with your best interest in mind. Secured lending via a MassMutual trust account is a sensible way for you to borrow for nearly any purpose unexpected expenses, weddings, home improvements or vacations. Offering clients the opportunity to obtain secured lending from participating banks. Here are some basic facts to help you consider secured lending via your MassMutual trust account. Service features Secured loans and revolving lines of credit are available for accounts of $1,000,000 or more. Your personal Trust Officer at MassMutual Trust Company works directly with the banks to establish the secured lending services and will help you with the necessary paperwork. Interest for loans and active lines of credit can be billed by the banks directly to your MassMutual Trust account. No processing or origination fees and no pre-payment penalties.

27 Account types Secured loans and lines of credit are available for: Individual Agency/Investment Management accounts Joint Agency Investment Management accounts Agent for Trustee accounts* Agent for Entity (some restrictions may apply) Collateral coverage requirements Collateral used to secure loans and revolving lines of credit must have a market value of at least 200% (for accounts of $1 million or more) of the loan or credit line maximum amount. All secured lending arrangements are considered non-purpose loans. (A non-purpose loan is a loan with securities pledged as collateral, but which cannot be used in securities trading or transactions). Rates** Interest rates for secured loans and lines of credit are based on the size of the request: Secured Loan or Line of Credit Amount Questions: Contact your MassMutual Agent or the MassMutual Trust Company for more information. Phone: Interest Rate $500,000 $999,999 1-month LIBOR % $1,000,000 $2,999,999 1-month LIBOR % $3,000,000 $4,999,999 1-month LIBOR % $5,000, month LIBOR % massmutualtrustcompany@massmutualtrust.com * Consult with your tax and accounting professionals for tax and legal ramifications. ** Rates subject to change based on the bank s underwriting review. The MassMutual Trust Company, fsb is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company is a wholly owned subsidiary of Massachusetts Life Insurance Company. Loans and lines of credit for accounts of $1,000,000 or more are issued by US Bank. Please note, IRAs and any plans subject to ERISA regulations are not eligible Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C: