The Beyer Stein Group at Morgan Stanley

Transcription

1 BSG The Beyer Stein Group at Morgan Stanley Global Multi-Asset ETF Portfolio Management An Efficient Approach to a Diversified Investment Plan

2 522 Fifth Avenue 15th Floor, New York, NY / Main / direct Toll-Free / fax David Beyer / senior portfolio management director Mitchell Stein, CFP / senior portfolio manager

3 Global Market Exposure in a Single Investment Account At The Beyer Stein Group, we have created a proprietary Multi-Asset ETF investment strategy * that is designed to provide global market exposure in a single investment account. Managed by David Beyer and Mitchell Stein, our strategy takes advantage of cost-effective, exchange-traded funds (ETFs) to efficiently incorporate multiple asset classes, including equities, fixed income, commodities and real estate. We draw on over four decades of combined investment experience to evaluate individual etfs and build portfolios that provide broad diversification in a highly efficient manner. We invite you to explore this opportunity as part of your overall wealth management plan. * As part of the Morgan Stanley Portfolio Management Program all our portfolios are managed individually on a fully discretionary basis. The beyer stein Group 3

4 Potential Advantages of ETFs The Expanding ETF Universe Diversification Low Cost Tax Efficiency Liquidity Transparency Low Tracking Error ETFs are baskets of securities that were traditionally built to replicate the performance of passively managed indexes like the S&P 500. There are currently more than 1,400 ETFs with over $2.0 trillion in combined assets. * ETFs now represent virtually every segment of the market, both in the U.S. and internationally. Not all ETFs, however, are created equal. While some ETFs are relatively straightforward, others have unusual investment objectives or use complex investment strategies. To determine the best of breed within each asset class, it takes careful research and extensive knowledge. That s where our experience, backed by the deep resources of Morgan Stanley, comes in to play. * Source: Morgan Stanley ETF Semi-Annual Review December 3, MorGAn Stanley

5 Building Global Multi-Asset ETF Portfolios Our approach to building ETF portfolios mirrors the strategy that has historically been employed by managers of large institutions with multibillion-dollar endowments. These managers work to gain broad investment exposure and limit downside risk by diversifying their investments across many asset types, geographies and styles of investing. They look to create a pool of widely varying asset types with low correlations to each other. The growth of ETFs provides a cost efficient opportunity to replicate this same approach for individual investors. We offer our discretionary ETF strategies on a fee-based structure. With no commission structure, our interests and priorities are aligned with yours. We seek only to preserve and grow your wealth. ETFs are subject to market risk and may fluctuate in value. Shares may be worth more or less than original cost when they are redeemed or sold. Frequent trading of ETFs may increase costs such that they offset any savings from low fees or expenses. The beyer stein Group 5

6 Constructing the Portfolio We start with a universe of over 1,400 U.S. Traded ETFs. We screen for those with low fees, liquidity, tax-efficiency and strong institutional support. We combine them in precise proportions to create Global Multi-Asset Class ETF Portfolios. U.S. Stocks Developed International Stocks Emerging Markets Stocks Commodities Real Estate Investment Trusts Fixed Income 6 Morga n Sta n le y

7 Diversification and etfs Diversification is the art and science of combining ingredients that are sufficiently different from each other so that the whole portfolio is greater than the sum of the parts. With the proliferation of ETFs, a far wider variety of investment assets have become investable. As a result, we can now build portfolios that can be more diversified and seek to reduce risk. Types of etf Asset Class Examples Equities, Fixed Income, Commodities, Real Estate, Currencies Geography Market Capitalization (Size) Style U.S., developed international, emerging Markets, Frontier Markets Large-Cap, Mid-Cap, Small-Cap Growth, Value, Dividend Sector Technology, Health Care, Basic Materials Industry MLPs, Biotechnology, Oil & Gas Exploration The beyer stein Group 7

8 Our Investment Process 1 Determine Portfolio Asset Allocation While many factors may impact the performance of an investment portfolio, one outweighs all the rest: asset allocation. In fact, studies have shown that asset allocation is responsible for 93.6% of a portfolio s return variation over time. 1 In other words, the better part of your returns is likely to depend on the percentage of funds in your portfolio devoted to different types of assets, like stocks, bonds, cash alternatives and physical assets like commodities and real estate securities. the weightings of asset classes in our portfolio reflect the current investment strategy of the Morgan stanley global investment Committee, and our own views, as well as capital market expectations, risks and correlations. We continually monitor and analyze global economic, financial, and market developments, as well as the performance of assets in the portfolio. Weightings are adjusted and portfolios are rebalanced semiannually, or as required by fundamental changes and market developments. Clients use our ETF strategy as the diversified core element that represents the equity or fixed income exposure in their overall portfolio. In addition to this portfolio, we can design a portfolio that accommodates existing holdings or addresses other specific needs. 1 Ibbotson, Robert, G. The Importance of Asset Allocation, Financial Analysts Journal, Vo. 66, No. 2. 2Select Best of Breed ETFs After determining a comprehensive asset allocation, we analyze over 1,400 ETFs to identify those that we believe most closely represent our investment criteria and objectives. We look for those with low fees, high liquidity, taxefficiency and well-established track records. We leverage relationships throughout the industry and the resources of Morgan Stanley s strategists to assess the best of breed etfs. Following a disciplined, transparent process, we determine which ETFs are best suited to fill the various positions in our asset allocation portfolio. Typically, our portfolios are comprised of 15 to 25 ETFs, each of which carries a tactical weighting. 8 MorGAn Stanley

9 3 Monitor Portfolio to Manage Risk We continually monitor the performance of your portfolio, adjusting allocations and swapping out ETFs where we find better opportunities. We are trained to question holdings and rigorously stress test portfolios using analysis of global economic, financial and market events. Our goal is to minimize volatility, while attempting to keep the portfolio on track with its objectives. We believe that risk is not something to be avoided, but something to be thoughtfully managed. Our approach to risk management begins with knowing what you own. In other words, we approach investment management with the goal of complete transparency, allowing us to fully understand every position and every exposure in our portfolios. To achieve that aim, we have a multitiered approach to risk management, deployed first at the portfolio level by the management team, then assessed by Morgan Stanley s Global investment committee, and finally utilizing the due diligence of Morgan Stanley s Portfolio Management group. The beyer stein Group 9

10 BSG The Benefit of Experience The Beyer Stein Group has an in-depth knowledge and expertise of most available ETFs and their composition, gained over years of experience investing in global multi-asset class ETF portfolios. We have no obligation or proprietary affiliation with any specific ETF provider, though we do have established working relationships with most. David Beyer Managing Director Wealth Advisor Senior Portfolio Management Director Mitchell Stein, CFP First Vice President Wealth Advisor Senior Portfolio Manager With over 30 years of experience in the investment and financial planning fields, David has established himself as one of the most dynamic and well respected financial advisors in the industry. In 2014 and 2015, David was named to Barron s America s top 1200 Advisors: State by State list. The Financial Times also recently recognized him as one of the Top 400 Financial Advisors in the United States for 2013 and David is the founding partner of The Beyer Stein Group where he coordinates and manages the day-to-day operations. David s focus on asset management, financial planning, concentrated equity and wealth transfer strategies has helped him earn and retain the trust and confidence of each and every one of his clients. David is a 2014 member of Morgan Stanley s prestigious Chairman s Club, an honor granted to the Firm s most accomplished financial advisors. Prior to joining Morgan Stanley, David worked at UBS for over 20 years where he was one of the pioneers of the Investment Consulting Process. He has been featured in multiple publications including the NY Times Business Section, Registered Rep Magazine, On Wall Street Magazine and has given presentations on a wide range of topics including portfolio and risk management. David maintains his Series 7, 8, 63, 65, as well as his Life Insurance and Variable Annuity licenses. He graduated from Hofstra University with a BBA in finance. He has three children Jared, Amanda, and Sam and currently resides in New York City with his wife Tracey. Mitch joined The Beyer Stein Group as a partner in 2005 after working for several years at UBS on the Equity Research and Sales desk identifying domestic and international equity opportunities. He is a CERTIFIED FINANCIAL PLANNER practitioner with extensive training in portfolio management, retirement planning, estate planning, and insurance. Mitch oversees the team s financial planning efforts and conducts due diligence for portfolio analysis. His experience and ingenuity ensures that each client receives customized and comprehensive financial management. Mitch maintains his Series 7, 63, 65, and Life Insurance and Variable Annuity licenses. Mitch graduated with highest distinction from The Pennsylvania State University with a Bachelor of Science degree in finance. He now resides in New Jersey with his wife Ellyn and their children Hallie and Jake. 10 MorGAn Stanley

11 The Beyer Stein Group: Overall Capabilities Global Multi-Asset ETF Portfolios are just one facet of The Beyer Stein Group s commitment to helping our clients solve their unique financial challenges. We stand ready to serve as your primary financial advisor, helping you define your goals and create highly customized strategies to address your specific needs. Acting as your personal CFO, we will work to help you prepare for your future and make well-informed financial decisions in times of transition. We have over four decades of experience providing wealth planning services. We advise successful individuals and organizations on how to help preserve and grow their assets through customized financial planning. We will work with tax accountants and attorneys to devise a personalized strategy designed to fit your unique individual needs. We look forward to helping you address unique challenges facing you and your family.

12 This material is intended only for clients and prospective clients of the Portfolio Management program. It has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument, or to participate in any trading strategy. The Portfolio Management Program account will be charged an asset-based wrap fee every quarter ( the Fee ). In general, the Fee covers investment advisory services, the execution of transactions through Morgan Stanley Smith Barney LLC or its affiliates, custody of the client s assets with Morgan Stanley Wealth Management and its affiliates, and reporting. In addition to the Fee, you will pay the fees and expenses of any funds in which your account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund s share price. You understand that these fees and expenses are an additional cost to you and will not be included in the Fee amount in your account statements. Please see the Morgan Stanley Form ADV Part 2 for more information including a description of the fee schedule. Past performance of any security is not a guarantee of future performance. There is no guarantee that this investment strategy will work under all market conditions. Holdings are subject to change daily, so any securities discussed in this profile may or may not be included in your account if you invest in this investment strategy. Do not assume that any holdings mentioned were, or will be, profitable. The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor s individual circumstances and objectives. Morgan Stanley Smith Barney LLC, 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. The appropriateness of a particular investment or strategy will depend on an investor s individual circumstances and objectives. Principal value and return of an investment will fluctuate with changes in market conditions. Investors should carefully consider the investment objectives and risks as well as charges and expenses of exchange traded funds (ETFs) before investing. To obtain a prospectus, contact your Financial Advisor or visit the fund company s website. The prospectus contains this and other important information about the ETFs. Read the prospectus carefully before investing. Source: Barron s Top 1,200 Advisors, February 24, 2014, 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 1,200 Financial Advisors have a minimum of seven years of financial services experience. Qualitative factors include, but are not limited to, compliance record 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. Source: The Financial Times Top 400 Financial Advisors is an independent listing produced by the Financial Times (March, 2014). The FT 400 is based in large part on data gathered from and verified by broker-dealer home offices, and, as identified by the FT, reflected each advisor s performance in six primary areas, including assets under management, asset growth, compliance record, experience, credentials and accessibility. 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 The Financial Times in exchange for the rating. This information, products and services described here are intended only for individuals residing in states where this Financial Advisor is properly registered as described in this site. Morgan Stanley reserves the right, to the extent permitted under applicable law, to retain and monitor all electronic communications. Morgan Stanley will not accept purchase or sale orders via any Internet site, social media site and/or its messaging systems. Morgan Stanley does not endorse and is not responsible and assumes no liability for content, products or services posted by third-parties on any Internet site, social media site and/or its messaging systems. All electronic communications are subject to terms available at the following link: morganstanley.com/disclaimers/mssb .html. Any profiles and associated content are for U.S. residents only. *References to length of service at Morgan Stanley include years at Morgan Stanley and predecessor firms. Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer s particular circumstances from an independent tax advisor. The securities/instruments, investments and investment strategies discussed in this material may not be suitable for all investors. The appropriateness of a particular investment or investment strategy will depend on an investor s individual circumstances and objectives. The views and opinions expressed on this website do not necessarily reflect those of Morgan Stanley. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER and CFP (with flame logo) in the U.S., which it awards to individuals who successfully complete CFP Board s initial and ongoing certification requirements. Awards Disclosures Source: Barron s Top 1,200 Advisors, February 23, 2015, 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 1,200 Financial Advisors have a minimum of seven years of financial services experience. Qualitative factors include, but are not limited to, compliance record 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. Source: The Financial Times Top 400 Financial Advisors is an independent listing produced by the Financial Times (March, 2014). The FT 400 is based in large part on data gathered from and verified by broker-dealer home offices, and, as identified by the FT, reflected each advisor s performance in six primary areas, including assets under management, asset growth, compliance record, experience, credentials and accessibility. 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 The Financial Times in exchange for the rating Morgan Stanley Smith Barney LLC. Member SIPC. CRC /15 CS /15