4 Services 5 Client Team Structure 6 Investments 7 Family Office Services 15 Tax Planning amp Compliance 17 Accounting amp Financial Planning ID: 760457
Download Presentation The PPT/PDF document "Table of Contents About" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Slide2Slide3Table of Contents
About
4
Services
5
Client Team Structure
6
Investments
7
Family
Office
Services
15
Tax Planning & Compliance
17
Accounting & Financial Planning
18
Insurance & Risk
Management
19
Legacy
Planning
20
Family & Business
Management
21
Team
22
Disclosures
23
Contact Us
25
Slide4About
Overview
Pathstone Federal Street is an independent, family and partner-owned, financial family office firm that offers integrated services and customized investment solutions to multigenerational families and nonprofit organizations nationwide. We are innovative in our thinking and disciplined in our approach, employing leading technology and proven investment processes to capture strategic opportunities and efficiencies for our clients. MissionOur mission is to empower our clients to achieve their long-term financial goals and help them build a lasting legacy.PhilosophyOur client relationships are built on unconditional trust and objectivity. We are committed to our families’ generational success, and as such, strive to always put their interests first.
Founded: Combined firm legacy dates back to 1991Partners: 30 Employees: 107Assets Under Advisement: $12B*Locations: Massachusetts, New Jersey, Washington D.C., Georgia, Florida, Oregon, CaliforniaClients: 300+ including high-net-worth individuals, multigenerational families, nonprofit organizations, and family foundations
*As of December 31, 2016
B
uilt for
C
lients.
P
owered by
I
nnovation.
Slide5Services
With first-hand experience in multi-generational wealth, we offer integrated, objective, and customized solutions to meet the diverse needs of each family or foundation.
Tax Planning & Compliance
Accounting Systems
Bill Pay Services
Banking
Cash Mgmt
Vendor Mgmt
Property MgmtPayrollFinancial Reporting
Accounting & Financial Planning
Improving After-Tax Results Annual Tax Return Reporting and ComplianceNotices & AdministrationResearchAudit Defense
Customized Portfolio StructuringGoals Based StrategyUnified Managed Account PlatformFocus on Net Results – Post-Fees and TaxesObjective and Transparent Structure Access to Innovative SolutionsComprehensive Manager Due DiligenceConsolidated Reporting Outsourced CIO CapabilitiesESG & Impact Investing (Socially Responsible Investing)
MedicalLifeDisabilityProperty & CasualtyExcess LiabilityLong-Term CareIn-Assist (Health Insurance)Personal Security
Insurance &Risk Management
Investments
Family Office Services (FOS)
Trusts
&
Estates Planning
Philanthropic Planning
Next Generation EngagementPlanning & Facilitating Family MeetingsFamily Education
Legacy Planning
Family & Business Management
FO Structuring & Administration
Counseling & Acquisition of
Special
Assets
Concierge Services
Lifestyle Management
Personal CFO
Slide6Client Team Structure
The team behind
the client experience:
Insurance & Risk Management
Tax Services
Investment Stewardship
Family & Business Management
Accounting & Financial Reporting
Legacy Planning Services
Client Service Team
Director/
Senior Adviso
r
Associate
Advisor
Accounting Systems; Banking Services; Bill Pay; Balance Sheets; Cash Management
Trusts, Estates
and Philanthropic Planning; Family Governance; Family Education
FO Structure & Administration; Concierge; Personal CFO; Counseling & Acquisition of Special Assets
Advisory; Asset Allocation; Manager Selection; Aggregated Performance Reporting; Administration; Capital Markets
Tax Planning & Compliance; Audit Defense; Notice Management; Research
Risk Profile & Exposure Analysis; Policy Review & Management
Operations/Admin
Your
Family
Investment Research Team
* Services listed are only examples of the types of services that
Pathstone
Federal Street can provide and not indicative of what is within scope for the family relationship. Please refer to the family client service matrix for additional family / entity specific details.
UNIQUE CLIENT COMMUNICATION ID (UCCID):
XXXX@pathstone.com
Client Service Team
Email
Phone
CellManaging Director/Director:Associate Director/Sr. Advisor:Advisor/Associate:
Slide7Investments
Slide8We listen to you
to fully understand your goals before offering solutions. We then assess your financial circumstances, identify investment opportunities and implement a portfolio strategy that best aligns with your specific objectives. We operate independently on an open architecture platform, and we do not promote any proprietary products. Our advice is objective, and our methods fully transparent. We unconditionally align our focus with our clients’ interests. As your investment steward, we oversee all aspects of asset allocation, manager and investment selection, implementation, due diligence and ongoing monitoring of your portfolio.
Goals-Based Approach
Notable Features
Outsourced Chief Investment Officer (CIO)
Fiduciary
Objectivity
Institutional Due Diligence ProcessDedicated Research CapabilitiesUnified Managed Account PlatformConsolidated ReportingSocially Responsible InvestingAccess to Private and Alternative Investments
Approach
Investments
Pathstone Federal Street’s experienced team of
investment advisors, research professionals and support staff are committed to the long-term
success of
your investment portfolio
.
Below
are highlighted components of our approach:
Slide9Tier 3*
Return Target: 4.5%
Return Range: 3-6%Std Dev (Risk): 4.5%
Tier 2*Return Target: 10.5%Return Range: 9-12%Std Dev (Risk): 15%
Tier 1*Return Target: 14%Return Range: 12-16%Std Dev (Risk): 16%
Increasing Liquidity
Increasing Risk
Goals-based
Strategy
Investments
Credit Risk Alternatives
Core Bonds
Long-Only Equity
Equity Risk Alternatives
(Long/Short Equity)
Private Equity
(Direct, Buyout)
Opportunistic Dislocations
Venture
We first listen to fully understand your goals, then assess
your financial circumstances in order to identify investment opportunities that meet your particular objectives. We construct your portfolio and strategically optimize over three tiers for a total portfolio target aligned with your specific goals.
* Return ranges are based on potential variations that may arise from market opportunities or events but are not predictive, and actual returns may vary substantially from targets and ranges. Standard deviations are based on internal asset allocation models and are not predictive.
Helping Define & Achieve Your Investment Goals:What is your risk and return objective? Does your target return agree with your appetite for risk?What specific circumstances apply to you?Liquidity needsTime horizonTax and legal statusUnique circumstances
Liquid Real Assets
(Real Estate and Commodities)
Slide10Single Proposal System
Customization Ability
Single Account & Paperwork
Coordinated Pricing
Automatic Rebalancing
Tax-Loss Harvesting
Consolidated Reporting
Multiple Products
How does a UMA work?
Unified Managed
Account
Investments
Our Unified
Management
Account (
UMA) is
an innovative investment
platform that can hold multiple
investments
in a single account to lower costs and improve efficiencies. Holdings may consist of SMA’s, mutual funds, ETF’s or single stock positions
across
a variety of asset classes
.
Lower management fees and minimums
Tax Loss Harvesting
Ease of restriction management & screening
Efficient and systematic portfolio rebalancing
Simplified paperwork and account management
Streamlined tax reporting
UMA Benefits
UMA works by employing an advanced technology
to
:Manage and rebalance accounts with consideration to associated taxes (to seek Tax Alpha*)Incorporate client restrictions, screens and special considerationsProvide trade execution for third-party active managers
*
Tax Alpha is defined by Parametric Portfolio Associates LLC as the portfolio’s after-tax return relative to a benchmark, adjusted for any excess pre-tax returns.
Slide11UMA Tax Alpha Case Study
UMA
This analysis compares the tax alpha obtained on equity investments in a Pathstone UMA versus the tax alpha obtained on a globally diversified equity ETF (Vanguard Global Stock : VTI)*.
You can expect to see a 0% to 4% increase in after-tax results on the equity portion of your portfolio, but the amount of tax reduced will vary based on market volatility and direction, among many other factors.ND= no data available.*Vanguard Total Stock Market ETF (VTI). Vanguard tax calculations are based on actual distribution and mid year price**We calculated the average tax alpha using data for seven randomly selected clients. The data used to make this calculation was provided by Parametric and is based on actual client experiences.***Highest federal brackets assumed for all tax calculations
Tax-Alpha ExplainedTax alpha is the benefit or drag resulting from taxes on investment portfolios Tax Alpha = Pre-Tax Return - [realized taxes/mid year market value]
Slide12Hypothetical Case Study
1
: Pathstone UMA Fees vs. Separately Managed Fees
UMA Fee Case Study
Investments
Fee-Reduction 2With UMA, you can expect a 10-100 bp reduction in active management fees. Under the UMA, you get active management at the cost of passive management.
The study below compares investment management fees under a Pathstone UMA vs. fees on a potential investment portfolio. The cost savings can be significant.
CostsUMA overlay manager (Parametric) charges an advisory and administrative fee of approximately 15 bps
Expected Value-Add
1
The information provided is a hypothetical study compiled by Pathstone for illustrative purposes and is not representative of any client portfolio. The above-noted positions are examples of the funds currently available; however, there is no guarantee that they will continue to be available to be held in clients’ portfolios.2 Manager fee reduction will vary based on asset allocations, manager selections, and other factors. 3 Calculated using the data in the hypothetical case study displayed in the chart in the previous slide titled “Tax Alpha Case Study”. 4 We calculated the average tax alpha using data for seven randomly selected clients. The data used to make this calculation was provided by Parametric and is based on actual client experiences.
Hypothetical Net OutcomeFee reduction3 0.47%Tax Alpha4 1.86% Overlay fee - 0.15%_______________________Net benefit +2.18%
Fees are .29% with Pathstone UMA, compared to .76%.
This example shows a saving of $231,058 in fees alone.
Slide13Monitoring and Consolidated Reporting
Investments
Monitoring and Consolidated Reporting
Non-discretionary monitoring of assets, allocations, portfolio construction, investment policies, cash flows, and feesMonitoring of external advisorsReal-time reportingAbility to measure performance net of feesPerformance measured against established benchmarksIlliquid portfolios receive periodic consolidated reports, and more upon request24-7 access to consolidated reports via online portal
Pathstone
Pathstone
Slide14Socially Responsible Investing
Investments
Establishes exclusions of certain sectors or companies involved in activities
that do not fit an investor’s
values or mission. Generally used in public equity portfolios.
Favors
companies
with
good records on ESG issues. Typically equity, but increasing in bonds and private
portfolios.
Recommended manager files
resolutions and
raises opportunities for improvement with companies you own. Establishes an “Engagement Portfolio.”
Direct investments in projects, companies and funds that generate social or environmental impact in addition to financial returns. Generally accessed through private equity or direct deals, but can also be achieved through public equities and bonds.
New ideas and structures. Social Impact Bonds, Green Bonds and Blue Bonds, “Evergreen” private equity structures and beyond.
In accordance with each client’s mission, we can incorporate environmental, social, and corporate governance (ESG) criteria into our investment analysis and portfolio implementation across a range of asset classes.
Implementation Options*
* Some options are available only to investors that are ‘accredited investors’ and or satisfy other requirements.
Negative Screening
Integrating Sustainability Factors
Shareholder Engagement
Impact Investing
Full Frontier
Slide15Family Office
Services
Slide16Overview
Family Office Services (FOS)
Peace of Mind – Families can rely on the expertise of our dedicated professionals to help protect, preserve and grow their wealth. This will help reduce family-decision makers’ stress, affording them the ability to focus on life’s big picture. Trust & Transparency – Pathstone’s objective structure ensures family and advisors are always on same side of the table as clientsHarmony – Pathstone extends a platform for successful transfer of family assets, values, and relationshipsEconomies of Scale – Pathstone provides access to institutional quality resources, creating cost savings from combined AUMCollaborative Solutions – Pathstone centralizes all areas critical to a family’s growth and success
Why Join Pathstone’s Family Office?
Individuals and
multi-generational
families
with significant wealth often require
a comprehensive set of solutions
to meet their
unique
needs
. We have the resources and perspective to
manage the
details
of
everyday
life along with
the demands of future
generations—from anticipated
milestones
to unexpected
responsibilities.
Slide17FOS: Tax Planning & Compliance
Counsel on income tax minimization
Cash management of quarterly estimated tax paymentsActive income tax planning, analysis, and managementFamily and household tax return preparation Response to tax authority notices and defense (as necessary)Entity tax return preparation (as needed)
We play a proactive role in tax planning and management, providing expert guidance to help minimize taxes and simplify the preparation process.
Highlights
Slide18FOS: Accounting & Financial Planning
We proactively
oversee and
streamline our clients’ accounting and financial reports to help ensure accuracy in details as well as clarity of the bigger picture.
Accessing Your Account OnlineLog into one online account from anywhere to access everything:www.accounting.pathstone.comApprove your bills onlineView previous paymentsAccess financial statements
To help achieve financial goals, we oversee all accounting functions, including bill pay, banking, money management and payroll. Our accounting programs are tailored to meet individualized objectives. We help assist individuals and businesses in bringing a seamless solution to their back-office financial needs.We present financial reports in a structured, informative way to provide clients with clarity and understanding of their financial position. Our financial reports act as a guide to help achieve current and future financial goals through every life stage.
All-Inclusive Accounting
Full-View Financial Reporting
Slide19FOS: Insurance & Risk Management
Medical
Life and DisabilityLong Term CareExcess LiabilityReal Estate, PropertyAutomobile, Aviation, Watercraft
We help ensure that goals are met and clients remain protected. Our insurance experts work with each family to inventory and review in-place coverage, suggest appropriate changes, help reduce costs, and ensure coverage is adequate and consistent. We proactively consider all options to help protect against known and unknown risks.
Highlights
Slide20FOS: Legacy Planning
We
seek to preserve the value of an estate through thoughtful preparation and detailed execution. We begin with an in-depth understanding of a client’s legacy goals, educate them on opportunities and risks, then guide them through strategies to help ensure that their specific goals are met.
We work side-by-side with families to help them identify their philanthropic mission. We then develop a plan and put the appropriate processes in place to manage contributions.
Trusts & Estates
Philanthropy
Through thoughtful planning, we help build your family’s lasting legacy.
Slide21FOS: Family & Business Management
We help manage personal and
business affairs to help alleviate any frustrations by ensuring all the details are being handled accurately and efficiently.
Concierge Convenience – We have the professionals and the partnerships to help find the right solutions— from finding the perfect gift to overseeing new construction or a vacation home.Asset Acquisition & Management – As families avail themselves of special assets, we are available to assist with the details of acquisition, staffing, management and use. With deep experience in aircraft, yachts and art, we support families in pursuing their passions and enjoying their lives.
Highlights
Slide22Team
Slide23Disclosures
Slide24Disclosures
This
presentation and its content are for informational and educational purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness. No information available through this communication is intended or should be construed as any advice, recommendation or endorsement from us as to any legal, tax, investment or other matters, nor shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security, and this communication has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient. Past performance is no guarantee of future results
.
Additional information and disclosure on
Pathstone
Federal Street is available via our Form ADV Part 2A, which is available upon request or at
www.adviserinfo.sec.gov
.
Some investment funds are offered only in a private offering and are intended to be exempt from registration as an investment company under the Investment Company Act of 1940, as amended. Accordingly, interests in any such fund are available only to investors who are accredited investors and meet additional requirements under applicable securities laws. In addition, interests in a fund generally cannot be sold or otherwise disposed of without the general
partners’
or manager’s consent and registration (or exemption from registration) under applicable securities laws, which is not expected. Consequently, investors should be prepared to hold such interests for an indefinite period.
Any tax advice contained herein, including attachments, is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of (
i
) avoiding tax penalties that may be imposed on the taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
The concept of ‘tax alpha’ referred to in this presentation is explained in detail in a publication of Parametric Portfolio Associates LLC, entitled Using Tax Alpha to Measure Tax Efficiency, which is available upon request
.
Third party rankings and recognition from ratings services are no guarantee of future investment success. Working with a highly rated adviser does not ensure that a client or prospective client will experience a higher level of performance or results. Ratings should not be considered an endorsement for the adviser by any client nor are they representative of any one client’s evaluation. Generally, rankings are based on information prepared and submitted by the adviser, or the amount of assets under management by the adviser. Please refer to the more thorough disclosure and additional information about the criteria used in making these rankings via the website of the publication and/or organization granting such recognition.
Slide25