Bonheur, Scott, Traino Group Morgan Stanley 401k Consulting Services. Morgan Stanley 35 Village Road, Suite 601 Middleton, MA 01949

Transcription

1 Bonheur, Scott, Traino Group Morgan Stanley 401k Consulting Services Morgan Stanley 35 Village Road, Suite 601 Middleton, MA 01949

2 Table of Contents About Morgan Stanley 401k Consulting Services About Our Local 401k Consulting Group 6 Areas We Help Plan Sponsors Our Areas of Service Disclosures

3 About Morgan Stanley 401k Consulting

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

7 Bonheur Scott Traino Group at Morgan Stanley Awards and Recognitions Boston Magazine Five Star Wealth Managers Award Jason Traino 2012, 13, 14, 15, 16 Gregg Bonheur 2014, 15, 17, 18 Michael Scott 2013, 14 15, 16, 17 Forbes Best-in-State Wealth Advisor 2018 Jason Traino 2017 Top NAPA DC Advisors Award Team Award Financial Times Top 401 Retirement Advisor Recipients Jason Traino 2015, 2017, 2018 Michael Scott 2016, 2017 Gregg Bonheur 2016, 2017

8 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 (CFP), Chartered Life Underwriters (CLU), and Chartered Retirement Plan Specialists (CRPS) Senior Partners Over 65 years combined experience serving retirement plans & employees Service the needs of over 8,000 plan participants Provide consulting services to defined contribution & NQDC plans from both publicly traded and privately held companies across multiple industries Corporate Retirement Directors within Morgan Stanley 8

9 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 designations with continuing education requirements Demonstrated experience working with retirement plans Meet 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 9

10 Team Profile Financial Advisors Jason M. Traino, CFP, CLU, CRPS Jason is an Executive Director and Corporate Retirement Director with the Bonheur Scott Traino Group at Morgan Stanley. With over 20 years of experience, he focuses on providing comprehensive retirement plan consulting, financial planning and total asset & liability management to a select group of corporations, high net worth individuals, families, corporate executives, and business entrepreneurs. Outside the firm, he frequently appears on lists of the top advisors in the country. In 2018, Jason was named to Forbes Magazine s inaugural list of America s Best in State Wealth Advisors. 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. Jason was also named to the 2015, 2017 & 2018 Financial Times list of Top 401 Retirement Advisors, a distinction given to the top 401k plan advisors across the brokerdealer and RIA channels. Locally, Jason has been recognized every year since 2012 by Boston Magazine as a Five Star Top Wealth Advisor. Within Morgan Stanley, Jason has earned the title of a Corporate Retirement Director, a designation given to approximately 180 out of 15,000 firm wide advisors specializing in the retirement plan market. 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. Continually refining his skills and deepening his knowledge base, Jason is a Certified Financial Planner, Chartered Life Underwriter, and Chartered Retirement Plans Specialist. He received his Certificate in Financial Planning for the CFP designation from Merrimack College. Jason utilizes this deep knowledge and experience to deliver comprehensive solutions to both his Wealth Management and Institutional 401k clients. A graduate of Springfield College, Jason coaches other Morgan Stanley Financial Advisors on how to run a successful wealth management practice. Jason is also a member of Morgan Stanley s Consulting Group Advisory Board. In this regard, Jason advises and consults on this business line that manages over $1 trillion in client assets across the firm. 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, playing basketball, golfing, and watching all New England professional sports. 10

11 Team Profile Financial Advisors Gregg E. Bonheur, CFP, CLU, CRPS SM Gregg E. Bonheur is a Financial Advisor with The Bonheur Scott Traino Group at Morgan Stanley. With more than 26 years of experience with Morgan Stanley, UBS, and Merrill Lynch, Gregg delivers comprehensive retirement plan consulting wealth management services to corporations, high net worth individuals, families, and entrepreneurs to help manage and protect their assets for the long term. To offer his clients some of the most innovative and up-to-date financial planning tools in the industry, Gregg attained the designation of Certified Financial Planner. As a CFP, he utilizes his deep knowledge of investment management, estate planning strategies, and retirement planning to deliver comprehensive solutions for his client s needs. Gregg is also a Chartered Life Underwriter and a Chartered Retirement Plans Specialist. In 2016 the Financial Times named Gregg as a Top 401 Retirement Plan Advisor, a distinction given to the top 401(k) Defined Contribution plan advisors across the broker-dealer and RIA channels. After serving an honorable five-year tour in the United States Marine Corps, Gregg attended the University of Massachusetts Lowell on a golf scholarship and was voted into the University s Golf Hall of Fame in While at UMass Lowell, he was selected for the University s prestigious All American Golf Team and was named an All American Scholar. Deeply committed to his community, Gregg is an active volunteer with various charitable organizations. He currently serves on the Board of Directors of CLASS INC., an adult day care program for mentally and physically challenged adults. In his free time, he enjoys golf, physical fitness, and travel. A member of the Andover Country Club, Gregg is a 4-time Club Champion and a 3-time Senior Club Champion. He and his wife live in Lowell, MA on the mighty Merrimack River. 11

12 Team Profile Financial Advisors Michael G. Scott, CFP, CLU, CRPS SM Michael G. Scott is a Corporate Retirement Director, Senior Portfolio Manager, and Financial Advisor with The Bonheur Scott Traino Group at Morgan Stanley. With over 20 years of experience in the financial services industry, Michael focuses on portfolio management and retirement planning for corporate clients and high net worth individuals and their families. Widely recognized as one of New England s top personal Financial Advisors, Michael has been selected as a Five-Star Wealth Manager Award recipient by Boston Magazine every year since Additionally, he has been recognized by the Financial Times as a Top 401 Retirement Plan Advisor in 2016 and Within Morgan Stanley, Michael has earned the title of Corporate Retirement Director, a designation given to approximately 180 Financial Advisors out of 15,000 firm-wide. He has also attained the chartered retirement plan specialist certification, and works closely with corporate clients to consult and implement employer retirement plans. As a Senior Portfolio Manager, Michael is able to identify, construct, and manage appropriate investment portfolios in accordance to client needs and objectives. He also holds the title of Certified Financial Planner, which allows Michael to create sound financial plans based on client goals. He feels that investment recommendations are better aligned after you get to know your client. Additionally, Michael holds the designation of chartered life underwriter, and can help clients with questions surrounding life insurance and long-term-care insurance. In his free time, Michael serves as a coach with Methuen youth hockey and the Junior Warriors in Haverhill. An avid sports fan, he enjoys skiing, hockey, and golf. Michael lives in Methuen, Massachusetts with his wife and four children. 12

13 Team Profile Client Service Associates Ian O Brien - Consulting Group Analyst Ian O Brien is a Consulting Group Analyst with The Bonheur Scott Traino Group at Morgan Stanley. He is dedicated to offering the highest degree of service to the team s 401(k) clients. A 2013 graduate of the College of the Holy Cross with a Bachelor s degree in Economics, Ian began his career in the financial services industry as an Investment Analyst with a 401(k) Defined Contribution consulting firm. Ian holds his Series 63, 65 and 7 licenses. In his free time, Ian plays ice hockey twice a week and watches as much Boston sports as he can. Relishing every opportunity to get outside, he enjoys the beach most of all. Ian lives in Charlestown, MA. Jacob Fudge - Client Service Associate Jacob Fudge is a Client Service Associate with The Bonheur Scott Traino Group at Morgan Stanley. He concentrates on maintaining effective client relationships for the team and consistently providing exemplary customer service. A graduate of Bridgewater State University, Jacob received his Bachelor's degree in Business and Finance. Shortly after graduating in May of 2018, Jacob joined The Bonheur Scott Traino Group at Morgan Stanley. Outside of the office Jacob enjoys golfing and hiking with family and friends. Jacob is also an avid Boston sports fan and frequently attends sporting events. 13

14 Team Profile Client Service Associates Michele Vincent - Portfolio Associate Michele Vincent is a Portfolio Associate with The Bonheur Scott Traino Group at Morgan Stanley. With nearly 35 years of experience in the financial services industry, Michele focuses on client services and client communications for the group. A veteran in the financial services industry, Michele started her career with Advest, Inc. in She subsequently spent 15 years with Wachovia Securities as a Vice President and Complex Operations Manager. She joined Morgan Stanley Smith Barney and its predecessors in She holds Series 3, 7, 63, 65, and an insurance license. Outside the office her hobbies include kayaking, camping, and gardening. She enjoys spending time with her husband Denis and their two daughters. Maura Lewis - Senior Registered Associate Maura Lewis is a Senior Registered Associate with The Bonheur Scott Traino Group at Morgan Stanley. With 25 years of experience in the financial services industry, Maura concentrates on client services and communications for the team. Beginning her career with PaineWebber in 1991, she served first as a Registered Sales Associate and then spent 12 years as a Branch Operations Manager through the firm s merger with UBS in Maura holds the series 7 and 63 licenses. She joined Morgan Stanley through its predecessors in Maura s hobbies include skiing and exercising, and she is passionate about all levels of sports. Maura lives with her husband Barry, and their two daughters in Beverly, MA. 14

15 Our Value Added Services to Your 401(k) Plan

16 6 Reasons Plan Sponsors Hire Us As Financial Advisor 1. To act as a fiduciary and for ongoing support in understanding and managing fiduciary responsibilities 2. For knowledge and experience in selecting and monitoring investments 3. For help understanding and monitoring fees and expenses 4. Consulting on Plan Design for best participant outcomes 5. For improving participation rates & preparing employees for retirement 6. For guidance in evaluating and choosing a provider 16

17 1. 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. 17

18 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 Fund Monitoring and Replacement Primary Role Provide Advice 1 N/A Primary role and final authority 1 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. 18

19 Understanding and 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 19

20 2. 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 Investment Policy Statement Disciplined Investment Process Fund Monitoring Asset Class Analysis Fund Selection 20

21 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 21

22 Selecting & Monitoring Investments: Manager Due Diligence Global Investment Manager Analysis (GIMA) Team 50 professionals with average 17 years industry experience 450 on-site visits per year $1 Trillion advisory assets under management Leverage 300 analysts from Morgan Stanley s Global Research group Evaluation of Stable Value specific attributes (dedicated Stable Value Analyst)

23 Selecting & Monitoring Investments: Reporting 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 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 23

24 3. 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 24

25 4. Consulting on Plan Design Review, analyze and consult on Plan Design Adoption Agreement Review Evaluate current matching structure Contribution types Eligibility requirements Special cases (after-tax contributions, loan restrictions, distribution requirements etc.) Periodic Testing analyses and recommendations ADP/ACP testing Safe Harbor Plan Mergers/Splits 25

26 5. 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 26

27 6. 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 401k Micro Market 401k $0-10 MM Small Market 401k $10-50 MM Mid Market 401k $ MM Large Market 401k $250 MM-1 B Mega Market 401k $1 B+ 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 27

28 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 28

29 Our Areas of Service

30 The Power of Integrated Solutions Corporate Solutions: YOUR COMPANY Access to high quality institutional programs to address corporate needs DC/401(k) Stock Plan Services Defined Benefit Plan Cash Management and Lending NQDC Acquisition Financing Merger Advice Access to Capital Markets Managing Personal Wealth to Institutional Standards: Your employees can benefit from Morgan Stanley s market insight, analytical rigor and vast array of services YOUR EMPLOYEES Executive Financial Planning Investment Advice Financial Education Financial Planning Philanthropy Retirement Planning Trust & Estate Insurance Cash Management and Lending

31 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) Ian O Brien Consulting Group Analyst Direct (978) Ian.OBrien@MorganStanley.com Michele Vincent Portfolio Associate Direct (978) Michele.Vincent@MorganStanley.com Maura Lewis Senior Registered Associate Direct (978) Maura.Lewis@MorganStanley.com Jacob Fudge Client Service Associate Direct (978) Jacob.Fudge@MorganStanley.com 31

32 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.

33 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.

34 Important Disclosures (cont'd) Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. Since life insurance and long term care insurance are medically underwritten, you should not cancel your current policy until your new policy is in force. A change to your current policy may incur charges, fees and costs. A new policy will require a medical exam. Surrender charges may be imposed and the period of time for which the surrender charges apply may increase with a new policy. You should consult with your own tax advisors regarding your potential tax liability on surrenders. The individuals mentioned as the Portfolio Management Team are Financial Advisors with Morgan Stanley participating in the Morgan Stanley Portfolio Management program. The Portfolio Management program is an investment advisory program in which the client's Financial Advisor invests the client's assets on a discretionary basis in a range of securities. The Portfolio Management program is described in the applicable Morgan Stanley ADV Part 2, available at or from your Financial Advisor. NAPA Top DC Advisors Firms, Winter Issue NAPA Net The Magazine. NAPA's Top DC Advisor Firms, unlike other lists, recognizes firms, or what may, in a wirehouse environment, be referred to as a team, or office, for their defined contribution (DC) practice specifically. The ranking is based on the team's defined contributions assets under management. This award does not evaluate the quality of services provided to clients and is not indicative of the team's future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pay a fee to NAPA in exchange for the rating. Morgan Stanley Smith Barney LLC. Member SIPC. CRC /2018