Morgan Stanley 35 Village Road, Suite 601 Middleton, MA Bonheur, Scott, Traino Group Morgan Stanley 401k Consulting Services

Transcription

1 Morgan Stanley 35 Village Road, Suite 601 Middleton, MA Bonheur, Scott, Traino Group Morgan Stanley 401k Consulting Services

2 Agenda Please tell us a little bit about your organization and goals for your 401k plan About Morgan Stanley 401k consulting services About our local consulting group Value added services to your 401k plan Our service areas 2

3 About Morgan Stanley 401k Consulting 3

4 4

5 Retirement Is Our Strength at Morgan Stanley One of the largest and most respected wealth management firms in the world Over 80 years of wealth management experience $2 Trillion in overall assets at Morgan Stanley & 3.5M Clients $527 billion in overall retirement assets $171 billion in defined contribution retirement plan assets Service over 23,000 bundled defined contribution plans Act as custodian to over 418,019 business retirement accounts* Network of over 16,000 Financial Advisors with a local presence across the country Alliance partnerships with best-in-class retirement service providers Innovative resources to help deliver effective retirement programs Data as of December * Includes plans with sub accounts 5

6 About Our Group 6

7 About The Bonheur, Scott, Traino Group 7 person locally based 401k consulting group within Morgan Stanley Three Senior Partners/Financial Advisors and four dedicated support staff Senior Partners/Financial Advisors are Certified Financial Planners, Chartered Life Underwriters, and Chartered Retirement Plan Specialists Senior Partners Over 65 years combined experience serving retirement plans & employees Consult for approximately 80 defined contribution & NQDC plans from both publicly traded and privately held companies across multiple industries Service the needs of over 8,000 employees Jason Traino named to 2015 Financial Times Top 401k Advisors in the country Gregg Bonheur and Mike Scott named to 2016 Financial Times Top 401k Advisors in the country Jason Traino named to 2014 Financial Times Top 400 Wealth Management Advisors in the country Jason Traino named to Boston Magazine s Five Star Wealth Manager Listing from Gregg Bonheur named to Boston Magazine s Five Star Wealth Manager Listing from Mike Scott named to Boston Magazine s Five Star Wealth Manager Listing from Corporate Retirement Directors within Morgan Stanley 7

8 Morgan Stanley Corporate Retirement Directors Corporate Retirement Directors (CRDs) have: Been designated by the firm as retirement plan focused Financial Advisors Hold professional retirement plan focused professional designations with continuing education requirements Demonstrated experience working with retirement plans Met requirements with regards to number and size of retirement plans serviced Less than 2% of our approximately 16,000+ Financial Advisors have attained this designation 8

9 Team Profile Financial Advisors Jason M. Traino, CFP, CLU, CRPS SM Jason has been a Wealth Management Advisor to high net worth individuals, families, corporate executives and business entrepreneurs since 1998 and started his career in financial services in He has been recognized annually as one of the top advisors in the country. In 2014, the Financial Times included Jason as a member of their Top 400 Financial Advisers, a prestigious list of the top 400 Financial Advisors nationally. Locally, Jason has been recognized annually since 2012 by Boston Magazine as a Five Star Top Wealth Advisor. Jason is a CERTIFIED FINANCIAL PLANNER, Chartered Life Underwriter, Chartered Retirement Plans Specialist, and received his Certificate in Financial Planning from Merrimack College. He focuses on providing comprehensive financial planning and total asset & liability management to a select group of high net worth clients. Jason is also a Corporate Retirement Director at Morgan Stanley, a designation given to a select group of advisors within Morgan Stanley focusing on qualified and non-qualified plans. In this regard, Jason was named to the inaugural 2015 Financial Times Top 401k Retirement Plan Advisors, a distinction given to the top 401k Defined Contribution plan advisors across the broker-dealer and RIA channels. Prior to joining Morgan Stanley and its predecessors in 2008, Jason was a top Wealth Management Advisor at UBS and Merrill Lynch for 11 years combined. Committed to the future of the industry, Jason coaches other Morgan Stanley Financial Advisors on how to run a successful wealth management practice. A graduate of Springfield College, he is a member of the Merrimack Valley Venture Forum, and the Wakefield Toastmasters Chapter. In addition, he is proud to work in a charitable capacity on the Massachusetts Society for the Prevention of Cruelty to Children s (MSPCC) annual DFK fundraising committee. Jason, his wife Marissa, their son Niklas, and daughter Keeley, reside in North Reading, MA. When not spending time with his family and friends, he enjoys exercising, golfing and watching all New England professional sports. 9

10 Team Profile Financial Advisors Michael G. Scott, CFP, CLU, CRPS SM Michael has been a high net-worth personal financial advisor since his career began in 1994 with Merrill Lynch. Today he is widely recognized as one of New England s top personal financial advisors, and has been selected as a Five-Star Wealth Manager Award recipient by Boston Magazine. Additionally he has been recognized by the Financial Times as a Top 401k Retirement Plan Advisor in Within Morgan Stanley, Michael has earned the title of a Corporate Retirement Director, a distinction that very few receive and branding him a specialist within the 401k retirement plan market. He has also attained the title of a CHARTERED RETIREMENT PLAN SPECIALIST and works closely with corporate clients to consult and implement employer retirement plans. Michael is also a Senior Portfolio Manager and is therefore able to invest client accounts with discretion into portfolio models that he creates and manages for his personal client base. As a CERTIFIED FINANCIAL PLANNER all of his clients begin with a documented financial plan as stepone of his process. He feels that investment recommendations are much better made once you get to know your client. Recommendations aside from just investment advice typically accompany a comprehensive financial plan. As such, he is also a CHARTERED LIFE UNDERWRITER and can help clients with questions surrounding life insurance and long-term-care insurance. Through Morgan Stanley s vast banking capabilities, Michael also assists clients with mortgages and other lending needs they may have. On the personal side, Michael lives in Methuen, Massachusetts with his wife and four children. He is an avid sports fan and plays hockey, golf and enjoys skiing. He also coaches youth hockey for Methuen as well as the Junior Warriors in Haverhill. 10

11 Team Profile Financial Advisors Gregg E. Bonheur, CFP, CLU, CRPS SM With more than 26 years of experience as a Financial Advisor with Morgan Stanley, UBS, and Merrill Lynch, Gregg Bonheur delivers comprehensive wealth management services to high net worth individuals, families and entrepreneurs to help manage and protect their assets for the long term. Gregg is a CERTIFIED FINANCIAL PLANNER, and a member of a select group of advisors within Morgan Stanley focusing on qualified and non-qualified retirement plans. Gregg has been recognized by the Financial Times in 2016 as a Top 401k Retirement Plan Advisor, a distinction given to the top 401k Defined Contribution plan advisors across the broker-dealer and RIA channels. Gregg also holds his Chartered Life Underwriter and Chartered Retirement Plans Specialist designations. After a serving an honorable 5 year tour in the United States Marine Corps, Gregg attended the University of Massachusetts on a golf scholarship and was voted into their golf Hall of Fame in While at UMass Lowell, he was selected for the University s prestigious All American Golf Team, and the All American Scholar. Gregg continues to be an active volunteer in various charitable organizations serves on the Board of Directors of CLASS INC., an adult day care program for mentally and physically challenged adults. Gregg s interests include golf, physical fitness and traveling. He is a member of the Andover Country Club and is a 4 time Club Champion, and a 3 time Senior Club Champion. Gregg and his wife MaryBeth live in Lowell, MA on the mighty Merrimack River. 11

12 Team Profile Client Service Associates Michele Vincent- Portfolio Associate Michele started her career in the financial services industry with Advest, Inc. in After 15 years with Wachovia Securities she joined Morgan Stanley Smith Barney and its predecessors back in While at Wachovia she held the title of Vice President and Complex Operations Manager. Her licenses include Series 3, 7, 9, 10, 63, 65 and insurance license. As a veteran in the industry, she focuses on client service and client communication for our group. Her hobbies include spending time with her husband Denis and their two daughters, Olivia and Victoria; kayaking, camping, or gardening. Maura Lewis- Senior Registered Associate Maura started her career in the financial services industry with PaineWebber in She spent her first 4 years as a Registered Sales Associate and 12 years as the operations manager in the Peabody branch, where she worked through the eventual merger of PaineWebber with UBS in Maura joined Morgan Stanley Smith Barney and its predecessors in February Her licenses include series 7, 9, 10 and 63. Maura, like Michele, focuses on client service and communications for our group s valued clients. Her hobbies include skiing and exercising, and she is passionate about all levels of sports. Maura lives with her husband Barry, and two daughters Meagan and Nicole in Beverly, MA. 12

13 Team Profile Client Service Associates Ian O Brien- Client Service Associate Ian is the most recent addition to the Bonheur, Scott and Traino group, joining us in June He graduated from the College of the Holy Cross with a Bachelor s degree in Economics. Ian began his career in the financial industry with a 401(k) Defined Contribution consulting firm as an investment analyst. He holds his Series 63 and is currently studying for his Series 7 exam. Ian is dedicated to providing the highest degree of service to our 401(k) clients. Ian currently lives in Charlestown, MA with his girlfriend Clare. He plays ice hockey every Monday night and watches as much Boston Sports as he can. He finds any opportunity to get outside and enjoys the beach more than anything. Nicole Leal- Client Service Associate Nicole joined the Bonheur, Scott, Traino Group in June She graduated from the University of Massachusetts at Dartmouth with a Bachelor s degree in Human Resources and Sociology. Nicole began her career in the financial industry at New York Life Insurance Company as an insurance agent. She holds her Producers License and is currently studying for her Series 7 exam. Nicole is dedicated to maintaining effective client relationships. Nicole is a resident and native of Methuen, MA. She is fluent in Portuguese and an active member in her community s Portuguese American Club. When she is not spending time with her family, Nicole loves traveling and meeting new people. 13

14 Our Value Added Services To Your 401k Plan 14

15 Reasons Our Plan Sponsors Hire Us As Financial Advisor 1. For improving participation rates & preparing employees for retirement 2. For ongoing support in understanding, managing and in some cases shifting fiduciary responsibility 3. For knowledge and experience in selecting and monitoring investments 4. For guidance in evaluating and choosing a provider 5. For help understanding fees and expenses 15

16 1. For Improving Participation Rates Preparing Your Employees for Retirement Direct access to 3 CFP s on call for all questions Group and Individual Meetings Enrollment Seminars Education Seminars Monthly Participant Newsletter Participant Website Success measurement of education strategies 16

17 2. Understanding & Managing Fiduciary Responsibility A qualified retirement plan ERISA fiduciary must: Act solely in the interest of plan participants/beneficiaries; Act for the exclusive purpose of providing benefits to participants and their beneficiaries; Pay only reasonable plan expenses; Act with requisite care, skill, prudence, and diligence; Diversify the investments of the plan; and Act in accordance with the documents and instruments governing the plan. Diversification and asset allocation does not assure a profit or protect against loss in declining financial markets. 17

18 Understanding and Managing Fiduciary Responsibility Choosing a Fiduciary Wisely If a plan's named fiduciary does not have the requisite expertise to carry out certain of its functions (such as investment of the plan's assets), a fiduciary has a duty to act prudently and hire a service provider with that professional knowledge: Your partner matters The Strength of Morgan Stanley One of the largest, most established and respected wealth management firms in the world: $69 billion in Equity Capital $2.4 billion in Earnings $2 trillion in Morgan Stanley Wealth Management client assets Insurance Protection Fidelity/Fiduciary bond with coverage of $250 million (with $20 million deductible) Advisors Errors and Omissions Policy with coverage of $15 million (with $100,000 deductible) Data as of March 31,

19 Understanding and Managing Fiduciary Responsibility Choosing a Fiduciary Wisely Internal Oversight External Regulatory Oversight COMPLIANCE 250 professionals LEGAL 40 professionals RISK 470 professionals Financial Industry Regulatory Authority (FINRA) Securities Exchange Commission (SEC) Securities Exchange Commission (SEC) State Regulators Focused on: Focused on: Inspections Surveillance and Technology Initiatives Regulatory Obligations Field and Home Office Compliance and Risk Operations, Technology and Data Firm Examinations Rule Enforcement Investor Protection Advisor Registration and Licensing Maintaining Efficient Markets A deep and experienced team of Legal, Compliance and Risk professionals who advise the business, support regulatory obligations and provide supervisory oversight. 19

20 Understanding and Managing Fiduciary Responsibility By default a plans primary fiduciary is the employer, more specifically; the individual(s) employees who act as the fiduciaries to the plan. They act on behalf of the employees who are participants in the plan. They are required to act prudently and can face personal liability for breaching this duty. You have the ability to retain this personal liability or carve all or a portion of it out to a qualified cofiduciary. Typically there are 3 choices you have, Morgan Stanley can accommodate any of the three: 1. Retain the fiduciary liability yourself 2. Have a 3(21) co-fiduciary rendering investment advice assigned to the plan 3. Have a 3(38) fiduciary investment manager assigned to the plan 20

21 Understanding and Managing Fiduciary Responsibility Flexible ERISA Fiduciary Services for Your Plan 3(21) Investment Advice 3(38) Investment Manager Plan Sponsor Morgan Stanley Plan Sponsor Morgan Stanley Investment Policy Statement Primary Role Provide template and advice Primary Role Provide template and advice Fund Selection Primary Role Provide Advice 1 N/A Primary role and final authority 1 Fund Monitoring and Replacement Primary Role Provide Advice 1 N/A Primary role and final authority 1 QDIA 2 Select investment type and fund Provide advice on investment fund only 1 Select investment type Primary role and final authority for investment fund selection 1 Asset Allocation Programs Selecting/Monitoring Investment Advisor N/A Risk-Based Models N/A Risk-Based Models Target Date Models Solely Responsible N/A Solely Responsible N/A 1. Only funds that meet the Morgan Stanley screening process will be recommended or selected. 2. Excludes services with respect to managed accounts. 21

22 Understanding & Managing Fiduciary Responsibility Educate plan sponsors on their fiduciary obligations by providing them with timely whitepapers and articles Demonstrate a prudent process by showing how to document decisions with a Fiduciary Audit File and checklist Inform plan sponsors of current industry trends and explain how they may affect their plan 22

23 3. Selecting & Monitoring Investments Demonstrate a prudent process by providing an investment policy statement template and guidance on how to customize it Assist plan sponsors with identifying strategies that are generally consistent with the plan s investment policies and objectives Provide detailed quarterly reporting and analysis to monitor plan investments Needs Analysis Ongoing Overview Disciplined Investment Process Investment Policy Statement Fund Monitoring Asset Class Analysis Fund Selection 23

24 Selecting & Monitoring Investments Ongoing Fund Monitoring and Selection Global Investment Manager Analysis Investment Policy Statement Corporate Retirement Director Investment Advice Investment Discretion Diversified Fund Menu 24

25 Selecting & Monitoring Investments Deliver quarterly reports that contain a detailed review of investment line up: Qualitative and quantitative details on each fund Integrate plan s investment monitoring criteria Highlight funds that are not meeting the established criteria Provide documentation necessary for your fiduciary audit file Proprietary investment manager analysis on: Mutual Funds Exchange-Traded Funds Stable Value Funds Collective Trust Funds Sample 25

26 4. For Guidance in Evaluating and Choosing a Provider Conduct a needs analysis Ensure that the provider chosen meets the needs of the plan Solicit and evaluate proposals from other providers periodically to help ensure services and fees remain competitive Corporate Retirement Plans Owner Only 401(k) Micro Market 401(k) $0-1MM Small Market 401(k) $1 10MM Mid Market 401(k) $10-50MM Large Market 401(k) $50-250MM Mega Market 401(k) $250MM+ ERISA 403(b) Oppenheimer Pioneer Morgan Stanley ADP American ING John Hancock Lincoln Nationwide Paychex Principal Transamerica ADP American Fidelity Empower ING/Voya Lincoln John Hancock Mass Mutual Nationwide Paychex Principal Prudential Transamerica Vanguard ADP American Ascensus Diversified Empower Fidelity ING/Voya Nationwide Mass Mutual NY Life Principal Prudential Putnam Transamerica Vanguard American Diversified Fidelity Empower ING/Voya Nationwide Mass Mutual Newport Group NY Life Principal Putnam Vanguard Diversified Fidelity ING/Voya Mass Mutual NY Life Principal Putnam Vanguard Diversified Fidelity ING/Voya Nationwide Principal 26

27 For Guidance in Evaluating and Choosing a Provider Matching Your Plan Goals with Your Record Keeper Review your existing plan in order to identify potential gaps in service offerings When appropriate, identify recordkeepers for your consideration Provide side-by-side analysis of recordkeepers with a scoring system to identify solutions that meet your needs Manage finalist presentations Assist with transition to new provider Provide ongoing support with your service provider 27

28 5. For Help Understanding Fees and Expenses Benchmarking Your Plan Costs and Services Benchmarking reports Evaluate and understand plan fees and services Assess reasonableness of plan fees relative to services received Document prudent process Support 408(b)(2) review of reasonableness of fees and services Assist in cost negotiations with your service providers 28

29 Our Areas of Service 29

30 Morgan Stanley Corporate Retirement Services Dedicated Support for: Defined Contribution Plans Defined Benefit Plans NQDC Plans 30

31 A Comprehensive Approach You Support for Plan Fiduciaries Plan Benchmarking Fees & Expenses Comparison Investment Guidance Plan Administration Ongoing Plan Monitoring Your Executives Retirement Planning Financial Planning Education Planning Estate Planning Healthcare Services Insurance Services Philanthropic Services Morgan Stanley Retirement Services 401(k) Plans Profit Sharing Plans SEP IRA, SIMPLE IRA Defined Contribution Plans Deferred Compensation Plans Defined Benefit Plans 403(b) Plans 457 Plans Your Employees Enrollment Meetings Ongoing Communications Asset Allocation Education Investment Guidance Onsite Seminars Retirement Planning Transition Services Your Business Investment Banking Lending Services Insurance Services Stock Option Plans Succession Planning 31

32 Contact Information Jason M. Traino, CFP, CLU, CRPS Executive Director, Financial Advisor Direct (978) Gregg E. Bonheur, CFP, CLU, CRPS Sr. Vice President, Financial Advisor Direct (978) Michael G. Scott, CFP, CLU, CRPS Sr. Vice President, Financial Advisor Direct (978) Michele Vincent Portfolio Associate Direct (978) Maura Lewis Senior Registered Associate Direct (978) Nicole Leal Client Service Associate Direct (978) Ian O Brien 401k Client Service Associate Direct (978) Ian.O brien@morganstanley.com 32

33 Important Disclosures 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 Asset Allocation and diversification do not assure a profit or protect against loss in declining financial markets. Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. 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. Five Star Professional, as a third party research firm, identified pre-qualified award candidates based on industry data and contacted all identified broker dealers, Registered Investment Advisor firms and FINRA-registered representatives to gather wealth manager nominations. Self-nominations are not accepted. Award candidates are then evaluated against 10 objective eligibility and evaluation criteria associated with wealth managers who must have a minimum of five years experience as an investment adviser representative or other accepted credentials, client retention rates, client assets administered, firm review and a favorable regulatory and complaint history as defined by Five Star. Five Star Professional determines the final list of Five Star Wealth Manager Award winners. The Award does not evaluate the quality of services furnished to clients and it is possible that the recipient may have received unfavorable ratings from those surveyed. Five Star Professional collected the information for this Award through surveys it conducted. Wealth managers and/or their firms do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. The Five Star award is not indicative of the wealth manager's future performance. Wealth managers may or may not use discretion in their practice and therefore may not manage their clients assets.

34 Important Disclosures (cont'd) The inclusion of a wealth manager on the list should not be construed as an endorsement of the wealth manager by Five Star Professional. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. For more information on the Five Star award and the research/selection methodology, go to fivestarprofessional.com. Source: The Financial Times Top 400 Financial Advisors is an independent listing produced by the Financial Times (March, 2016). 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. Source: The Financial Times Top 401 Retirement Plan Advisors is an independent listing produced by the Financial Times (September, 2016). The FT 401 is based on data gathered from financial advisors, regulatory disclosures and the FT s research. The listing reflects each advisor s status in seven primary areas including DC plan assets under management, growth in DC plan business and other factors. This award does not evaluate the quality of services provided to clients 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 May 2016 Expires: May 2017