The Seminara Group

s t r u c t u r i n g f a m i ly w e a lt h
The Seminara Group at Morgan Stanley Private Wealth
Management helps highly successful individuals,
families and institutions manage their finances.
The group consists of five financial professionals
whose main purpose is to enhance and preserve the
financial condition of an exceptional group of clients.
Our core competency is risk management and
understanding the requirements of managing and
preserving wealth. Our expertise is carefully constructed from a combined 60 plus years of financial
expertise with each team member providing a unique
concentration within our core competency.* Our
expertise, combined with the full backing of the
vast resources of one of the world’s greatest global
financial institutions, is what empowers our team
to provide you, your business and your family with
the attentive and competent service you deserve.
It is our honor to serve a select group of extraordinarily interesting and dynamic people. I look forward
to the day when you and your family are among them.
Sincerely,
Frank P. Seminara
Managing Director
* Frank Seminara 1995 – Present, Robert Knorr 1991 – Present,
Peter Seminara 1997 – Present, Liam Tanelli 2003 – Present.
1
O u r Co m m i t m e n t t o C l i e n t s
M
anaging significant wealth can
make it difficult to focus on what matters most to you: pursuing personal
goals and family aspirations, exploring
opportunities and living the life you
envision. At Morgan Stanley Private
Wealth Management, we will help you
address the challenges and complexities
of wealth so you can accomplish the
things in life that are essential to you.
We couple more than three decades of experience — ​serving many
of the world’s most prominent entrepreneurs, executives, families and
foundations — ​w ith Morgan Stanley’s
strength, stature and resources in the
global financial industry.
This insight and experience are at
the core of Morgan Stanley Private
2
Wealth Management and are embodied
in the team assembled to serve you.
Drawing on a deep understanding of
your financial life and guided by your
Private Wealth Advisor, your team
can help you:
• Manage investments with an
unwavering focus on your financial
strategy and personal goals
• Structure your wealth and
customize solutions based on an
objective view of your needs
• Simplify financial complexity
to help you achieve clarity and
control
• Align your strategy with the values
that have shaped your life and
constitute the core of your legacy
our client principles
Confidence in a firm that
Access to Morgan Stanley’s
An exclusive focus on
has navigated over 75 years
brightest people and
wealthy individuals,
of market cycles
best resources
families and foundations
page 4
page 9
page 12
Objective solutions for your
The highest level of personal
family’s needs that reflect
service by serving a limited
our insight into the complex
number of clients
financial world
page 20
page 17
3
confidence
I
n an environment of constant change,
demonstrated strength and stability are
invaluable assets. As one of the world’s
largest and strongest financial institutions, Morgan Stanley has successfully
navigated 75 years of market cycles,
continually gaining new expertise,
perspective and confidence. Today,
we are a global firm with more than
62,000 employees in 42 countries and
are among the best capitalized1 of all
banks in the world.
Morgan Stanley has earned a reputation for helping to develop industries,
advise governments, nurture companies
and revolutionize technologies — ​and for
serving generations of individual clients
and their families. As one of the leading
4
wealth management firms worldwide,
Morgan Stanley Smith Barney oversees
more than $1.7 trillion in assets under
management. In that role, we help support
our clients with firsthand knowledge of
world economies and emerging trends,
anchored by a presence at the center of
the global economy.
Building on t his st reng t h,
Morgan Stanley Private Wealth Management has been earning the trust and
confidence of successful, sophisticated
clients since its founding over three
decades ago. These clients include more
than 20 percent of the Forbes 400 in the
U.S., as well as many of the world’s most
prominent entrepreneurs, executives,
families and foundations.
reach and resources
Over $1.7 trillion in assets under management
at Morgan Stanley Smith Barney
75 years serving governments and companies around
the world and 30 years servicing the world’s most
sophisticated individuals and families
Deep local knowledge through a global network of
over 50 Private Wealth Management offices 2
Over 500 Private Wealth Advisors globally 2
Specialized services and solutions tailored to the needs
and complexities of each client
How do you define confidence in a world of unrelenting change?
h eri tage of con f i dence
1935
Morgan Stanley
founded
1935
1942
Becomes member
of New York Stock
Exchange
Debuts with a
$19 million bond
offering for
Consumers Power
Company
6
1952
1961
Launches
Morgan Stanley
Foundation
Co-manages
the World Bank’s
$50 million triple
bond offering to
help finance
European
reconstruction
1953
1973
Launches research
department
Manages
General Motors
$300 million
debt issue
1966
1975
Launches asset
management
business
Manages underwriting
syndicate for $100
million bond offering
for New York
Telephone Company
1975
Establishes
Morgan Stanley
Inter­national
in Paris
1974
Represents INCO
(International Nickel
Company) in its hostile
bid for ESB (Electric
Storage Battery)
1977
Launches
Morgan Stanley
Private Wealth
Management
1980
Leads the Apple
Computer IPO
1985
1986
1995
1998
Launches Fixed
Income division
Manages the
Netscape IPO,
sparking the
rapid growth of
the Internet
Morgan Stanley
is publicly listed
on the New York
Stock Exchange
Advises the Brazilian
government on the
$18.3 billion sale of
telecommunications
provider Telebras
1997
Morgan Stanley
Group, Inc. merges
with Dean Witter,
Discover & Co.
1999
Lead under­
writer for the
UPS $5.47
billion IPO
2008
2008
2009
2000
2004
2008
Becomes a bank
holding company
Acts as the joint
global coordinator
and book runner
for $5.65 billion
IPO of China
Unicom Limited,
the largest Chinese
IPO to date
Enters into global
strategic alliance
with Mitsubishi UFJ
Financial Group
Co-manages $1.9
billion auction for
Google in the
largest Internet IPO
to date and largest
auction-based IPO
in U.S. history
Morgan Stanley
and Smith Barney
join to create a new
leader in wealth
management
Advises the U.S.
Treasury on crisis
at Fannie Mae
and Freddie Mac
2010
Co-leads the
General Motors
IPO, the largest
in U.S. history
7
What will you and your family need tomorrow?
8
access
Y
our Private Wealth Advisor can help
provide you with access to Morgan Stanley
resources which are among the most
sophisticated and extensive available
to individual investors, including institutional strategists, traders, premier
managers as well as to other specialized resources throughout the world.
Whether you seek in-depth advice on a
specialized investment or an unfamiliar
opportunity or a thought partner for
your own ideas, you can work with
some of the world’s most respected
financial professionals.
In managing your wealth, your Private
Wealth Advisor can assist you in creating strategies especially designed for
each one of your financial entities and
can help you coordinate these strategies with an eye toward managing risk
across your holdings. Also available to
you are customized solutions which
reflect Morgan Stanley’s reach and
resources as a leading global investment bank.
Additionally, your Private Wealth
Advisor can provide you with access
to the personalized resources that
are usually associated with family
offices, complementing the strength
of our investment and institutional
offering. You will work with knowledgeable, experienced professionals
who understand both the personal
and technical dimensions of wealth
transfer and estate planning. Specialists in family governance can help you
address the intricacies and sensitivities that frequently emerge in wealthy
families, developing solutions that help
balance divergent goals and competing
interests. Additionally, philanthropic
advisors can work with you to develop
personalized strategies and the appropriate vehicles to support your family’s
charitable goals.
The resources and personalized approach
of Morgan Stanley private wealth management
Access to global investment banking, corporate finance
and capital markets capabilities and expertise of
Morgan Stanley
An integrated approach to planning, including
family dynamics, wealth transfer and business
succession planning
An emphasis on generational planning focusing on
family mission, governance and conflict management
A results-oriented approach to investing in charitable
organizations, non-government organizations and
your community
Access to specialized resources — ​art advisory, health,
personal security and aircraft financing capabilities3
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m o r g a n s t a n l e y g l o b a l f oo t p r i n t
Canada
United States
Europe
Mexico
North America
Central and
South America
Argentina
Brazil
Costa Rica
Peru
10
China
France
Hong Kong
Germany
India
Indonesia
Greece
Hungary
Israel
Ireland
Japan
Malaysia
Italy
Luxembourg
Philippines
Netherlands
Qatar
Asia
Poland
Russia
Spain
Saudi Arabia
Sweden
Singapore
Switzerland
South Korea
Taiwan
United Kingdom
Thailand
Ukraine
Turkey
United Arab Emirates
Vietnam
Africa
Egypt
South Africa
Australia
Australia
Circles are drawn to scale to represent the size of the collective market capitalizations of publicly listed companies
within each continent; market capitalization weighted in billions (USD), as of August 2011; source FactSet and MSCI
New Zealand
11
focus
W
ealth frequently gives rise to
an array of complexities and challenges — ​some predictable and others
unexpected. Morgan Stanley Private
Wealth Management was created to
address these issues and to help meet
the personal and family financial needs
of Morgan Stanley’s most discerning clients.
By offering a financial relationship
that is distinguished by its scope and
depth, we are committed to helping our
clients navigate the requirements and
responsibilities of significant wealth.
This dedication is embodied in the role
of your Private Wealth Advisors and
other firm specialists, professionals
who are focused on serving individuals,
families and their foundations.
Our exclusive focus, the expertise it
fosters and the objectivity it demands,
enable us to address issues and chal-
12
lenges that extend beyond ordinary
investing and wealth management.
How your wealth is structured, how
business interests can most effectively
be passed to your children, how your
philanthropic goals and aspirations for
future generations can be realized — ​our
guidance regarding these and other issues
will be both personalized and practical,
to help you accomplish your goals in
an appropriate and effective manner.
A new generation of family wealth management
Morgan Stanley Private Wealth Advisor can help you
address many of the complexities of wealth, including:
Understanding cash flow planning associated with
complex ownership structures
Board issues related to your private foundation
Issues related to restricted stock and options
Financial education of your children
Global investment goals
Equitable division of your estate
Specialized asset classes, including personal business,
art and real estate holdings3
Where do you focus when you look into the future?
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comprehensive capabilities
Investment Management
• Investment Policy Statement
• Tax Efficient Asset Allocation
• Portfolio Construction and Management
• Open Architecture Platform
• Morgan Stanley Proprietary
Investment Opportunities
• Exclusive Coinvestment Opportunities
• Money Manager Due Diligence Research
• Alternative Investments
Family Office Services
• Family Governance and Dynamics
• Philanthropic Services
• Educational Programs
• Custody
• Performance Management
• Lifestyle Advisory 3
• Health Advisory 3
• Personal Security 3
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Risk Management
• Hedging Strategies
• Concentrated / Restricted Stock Advice
• Interest Rate Risk Management
• Currency Exposure Strategies
• Insurance Solutions
Balance Sheet Management
• Securities-Based Lending (Secured)
• Residential Real Estate Financing
• Comprehensive Tailored Lending
• Financing of Restricted Stock
• Cash Management Services
• Access to Financing of Aircraft,
Sports Teams and Art 3
• Access to Commercial Lending
Financial Planning
• Goals-Based Planning
• Cash Flow Planning
• Retirement Planning
Trust, Estate & Legacy Planning
• Wealth Transfer and Trust Strategies
• Current Will, Trust and
Insurance Review 4
• Foundation and Other
Charitable Giving Strategies
• Stock Option Analysis
• Creditor Protection
• Pre-liquidity Planning
• Coordination with Outside
Legal and Tax Advisors 4
Corporate Services
• Directed Shares, Stock Plans,
10b5-(1) Programs
• Capital Markets and Investment
Banking Interaction
• Cash Management Services
• Retirement and Pension Plans
15
What if your financial preferences and your personal objectives received equal attention?
16
insight
D
rawing on the world-class talent and
global presence of Morgan Stanley, we
shape financial strategies that combine
the highest levels of analysis and sophistication. Your Private Wealth Advisor
enhances the value of Morgan Stanley’s
insight with an objective understanding of your goals, your tax sensitivity,
the complexities of your situation and
your family dynamics.
Successfully structuring family wealth
requires an understanding of the global
financial marketplace and insight into
your financial needs and situation. The
financial world changes continually
and families redefine themselves over
generations. Your Private Wealth Advisor — ​working in conjunction with your
legal and tax advisors — ​can help realign
your financial strategy as needed. This
approach — ​consisting of a discovery
process; formulation of a tax, trust and
estate strategy; creation of a customized
strategic asset allocation; integration of a
tactical asset allocation; implementation
of a customized investment strategy;
and an ongoing assessment of wealth
management needs — ​i s customized
based on your needs and objectives.
While providing a sound foundation
for a long-term relationship, our approach
helps to ensure that your personal and
financial objectives are not overlooked
and incorporates the full range of financial disciplines necessary for the
success of your plan. The result: your
Private Wealth Advisor can address both
the personal and financial dimensions
of your wealth.
combining personal and investment insight
Your Private Wealth Advisor will apply discipline to the
management of your family’s goals and assets, helping
to ensure that your strategy leverages our global market
expertise and our understanding of you and your goals.
Our goal is to help you:
Clearly and concisely define your investment
considerations and objectives
Ensure that all of your investment needs are fully and
appropriately reflected in your strategy
Define a formal investment strategy to guide asset
allocation and portfolio management decisions
Provide a foundation upon which to build and
implement a customized wealth plan
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A customized approach
Your family’s dynamics, goals and risk tolerance
are unique. We will tailor our process to meet your
personal and financial needs and objectives.
2
formulation of tax, trust
and estate strategy 4
1
discovery process
While every client situation is
unique, we begin by learning about
you, your family and your financial
complexities. What we learn helps
us to formulate specific strategies
and, of equal importance, it helps us
customize the entire relationship to
your preferences and requirements.
18
After reviewing your balance
sheet and existing estate plan,
we help analyze your income
and estate tax circumstances
to identify planning techniques
that may be effectively tailored
to your personal and financial
objectives.
3
creation of a customized
strategic asset allocation
Managing significant wealth often
involves developing a customized
asset allocation mix that reflects
risk, opportunities and taxation
across multiple entities, while
integrating your investing and
estate plans. This asset allocation4,5
becomes the basis for a long‑term
strategy formalized in your
investment policy.
6
ongoing assessment of
wealth management needs
5
implementation of a customized
investment strategy
4
integration of tactical
asset allocation
These short-term adjustments
in asset allocations seek to take
advantage of opportunities created
by temporary market distortions.
Before adjustments are made, we
can analyze the potential impact
of any taxes or trading costs on
potential returns.4,5
Coordinating with you and your
other advisors, we can conduct
ongoing reviews and comprehensive
reporting to ensure that your
strategy adapts to changing
financial and family needs.
After comprehensive due diligence and
extensive analysis of expected results
across a range of market scenarios,
investment strategies from our global
investment platform are combined to
create your portfolio. Our platform
includes proven proprietary strategies
developed using Morgan Stanley’s
worldwide resources and expertise
as well as open architecture solutions
by many of the world’s most
respected managers.
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personal service
Y
our Private Wealth Advisor serves
a limited number of clients, ensuring
the highest level of personalization
and responsiveness. This attentiveness
encourages a depth of connection with
you, your family and your other advisors
that enables us to better appreciate your
needs and simplify your financial life.
Your Private Wealth Advisor oversees
a wide range of your financial needs,
including investments, cash flow, banking arrangement and overall balance
sheet. The result is a more complete
understanding of your financial life
and a greater sense of control.
To help ensure that you gain max­
imum benefit from your relationship,
20
your Private Wealth Advisor assembles
and directs a team with the financial
sophistication and experience to address the particular issues and opportunities that are most timely and
important to you.
When your needs demand deeper
expertise, your Private Wealth Advisor
has the stature within Morgan Stanley to
bring together the world-class resources
and expertise to address them for you.
Working on your behalf, your Private
Wealth Advisor makes it possible for
you to devote more time and energy
to business matters, your family and
the personal interests that are most
important to you.
uncompromising, comprehensive service
Solutions that help ease administrative burdens across
generations — ​from consolidating your financial reports
to managing cash flow, expenses and some of the most
complex aspects of your life
Making life simpler and more enjoyable with a full
range of concierge services3 — ​from managing travel
arrangements to overseeing multiple residences
Integrated custody and reporting services
How do you simplify after years of increasing complexity?
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defining your legacy
Working in conjunction with your external advisors,
we will help develop a framework for integrated planning
and strategic decision making across your entire family.
1
edward greene
(husband)
greene family legend*
Advisor
Family Attorney and CPA
• 5 Investment Household
Family Entity
Tax Entity
Greene Family
Greene
Family LP
2% own
Private Wealth
Advisor
Greene Family
Attorney and CPA
*For illustrative purposes only
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Personal
Retirement
Accounts
• Primary Home
• Vacation Home
• Restricted
Stock Awards
• Executive
Stock Options
• 5 Investment Accounts
• Private Equity
• Private Business
• Real Estate
• 2 Iras
• 401(k)
• Pension Plan
• Deferred Compensation
• Life Insurance
• Founder’s Stock,
89% Interest in Private Company
2
3
elizabeth greene
edward greene, jr.
(wife)
Greene
Family LP
2% own
Retirement
Accounts
• Artwork
• Primary Home
• Vacation Home
• Executive
Stock Options
• Life Insurance
Accounts
Personal
• Real Estate
• Coin Collection
• Start-Up GRAT
• 1 IRA
• 401(k)
Family
Trust
• 2 IRAs
• 401(k)
• Private
Company Stock
Foundation
• Family Controlled Nonprofit
Technology Company
Accounts
Business
• Real Estate
greene family
charitable interests
• 2 Investment • 5 Investment • Private Equity
• Private 5
greene family estate
planning vehicles
(son)
• 3 Investment Personal
4
Retirement
Life Insurance
Trust
• 1 Investment • 96% Greene Charitable
Trust
• Survivor
MSSB GIFT
Account
Family LP
Life Insurance
• 3 Investment Accounts
• Donor Advised Fund
23
our team
The Seminara Group is a premier
private client wealth management
team comprised of five investment
advisors focused on developing
comprehensive wealth management
strategies since 1996. Our office is
located in Florham Park, New Jersey.
The combination of our personal
services and experience, supported by
the resources of the Morgan Stanley
global platform, allows us to provide
unique solutions tailored to our clients’
individual needs. Our group has over
60 years of financial experience with
each member specializing in their own
concentration within our core strategy.
24
Left to right: Rebecca De Jesus, Shea C. Murell, Robert F. Knorr, Frank P. Seminara, Peter J. Seminara, Liam M. Tanelli, Leah Zaccone
Frank P. Seminara
Robert F. Knorr
Managing Director
Private Wealth Advisor
Senior Vice President
Senior Portfolio Manager
Private Wealth Advisor
Frank is a Managing Director–Private
Wealth Advisor at Morgan Stanley
Private Wealth Management, providing investment advice to high net
worth individuals as well as small- to
medium-sized institutions. He works
directly with Morgan Stanley Wealth
Management Research and various
external resources to create customized asset allocation strategies. He also
heads the team’s due diligence efforts
as it relates to investment management
consulting and alternative investing.
Frank started his career in 1996 at
Salomon Smith Barney and later UBS
in a similar capacity.
Before his career in financial services,
Frank spent nine years as a professional baseball player, which included
three years at the Major League level
with the San Diego Padres and the New
York Mets.
A Brooklyn native, he received a BA
in History from Columbia University
in 1989 and graduated from Xaverian
High School in 1985.
Frank lives in Mendham, New Jersey
with his wife, Mariah, and three children,
Luke, Eliana and Benjamin. He coaches
local youth sports and is a member of
the Major League Baseball Alumni
“Swing with the Legends” charitable
golf circuit. Frank also enjoys traveling, reading and spending his spare
time with family and friends.
[email protected]
973-236-3634
Robert is a Senior Vice President
and a Senior Portfolio Manager at
Morgan Stanley Private Wealth Management. Robert works directly with
Morgan Stanley Equity research and
various external partners to construct
global equity portfolios consisting of
exchange traded funds, individual stocks
and institutional mutual funds. His
secondary responsibility is working
with a Morgan Stanley private banker*
to provide lending solutions to both
private and corporate clients.
Before joining The Seminara Group
in 1999, Robert was a Senior Securities
Compliance Examiner with the U.S.
Securities and Exchange Commission.
Robert Graduated magna cum laude
from Montclair State University with a
BA in Economics and Finance, and he
holds his MBA in Finance from Rutgers University’s Graduate School of
Management. He lives in Ringwood,
New Jersey with his wife, Kathleen,
and three children, Morgan, Connor
and Ronan. He enjoys skiing, cycling
and spending his free time with family
and friends.
*Private Bankers are employees
of Morgan Stanley Private Bank,
National Association, Member FDIC.
robert.knorr​@morganstanleypwm.com
973-236-3637
25
our team
Peter J. Seminara, CFP ®
Liam M. Tanelli
Senior Vice President
Private Wealth Advisor
Registered Marketing Associate
Peter is a Senior Vice President at
Morgan Stanley Private Wealth Management, focusing on fixed income strategies for high net worth individuals
and institutions. He works directly
with Morgan Stanley’s fixed income
division and various external resources
to construct and manage fixed income
portfolios. Peter is a CERTIFIED FINANCIAL PLANNERTM practitioner.
Before joining The Seminara Group
in 2005, Peter spent five years working on Morgan Stanley’s fixed income
trading desk. In that capacity, he was
responsible for fixed income sales efforts to over 1,500 Financial Advisors
nationwide. He developed fixed income
investment strategies and recommendations for high net worth individuals as well as small-to medium-sized
26
institutional clients of the firm.
Peter graduated from Ramapo College
of New Jersey with a BA in Economics.
He lives in West New York, New Jersey,
with his wife, Lauren, and their son,
Brian. He is the Vice President of the
Ramapo College of New jersey Alumni
Association. Peter volunteers his time
helping students find workplace internships and helps the college in fundraising
initiatives. In his free time, he enjoys
skiing, golfing and traveling.
[email protected]
973-236-3639
Liam has been a member of The Seminara Group since 2010 and has been
in the financial industry since 2003.
Liam is a generalist within the team
and is involved with portfolio analysis,
strategy implementation and business
development.
Prior to joining The Seminara Group
in 2010, Liam spent four years as a
Vice President with a mid-sized hedge
fund, where he focused on corporate
finance, private equity, and real estate development. Prior to the hedge
fund, he worked at Wachovia Bank and
Morgan Stanley in wealth management
and banking roles.
Liam also spent four years as a Sergeant in the United States Marine Corps,
where he was assigned to the U.S. Embassy of Nairobi, Kenya, Prague, Czech
Republic and stationed in Okinawa,
Japan. While in the military, he held a
top secret security clearance and was
assigned to President Bush, President
Carter, Secretaries of State Colin Powell
and Condoleezza Rice, and Secretary
of Defense Donald Rumsfeld.
Liam graduated from Montclair State
University with a BS in Finance. He
lives in Jersey City, New Jersey with
his wife, Andrea and daughter, Liana.
[email protected]
973-236-3645
Rebecca De Jesus
Leah Zaccone
Shea C. Murrell
Senior Registered Client Service Associate
[email protected]
973-236-3647
Client Service Associate
[email protected]
973-236-3649
Client Service Associate
[email protected]
973-236-3550
27
our clients
Our clients consist of leaders in various industries
including real estate, finance, pharmaceuticals,
medical and professional sports. We maintain
private client and corporate relationships in
25 states and access Morgan Stanley offices
in each of these locations.
We are truly vested in our clients and their
businesses. By understanding their industries
and interests we have made introductions
within our practice, which have led to
successful relationships.
28
relationships
by client nature
relationships
by size
35%
10% $100+ million
15% $50 – 100 million
25% $10 – 50 million
25% $5 – 10 million
20% $2 – 5 million
5%$2 million
Entrepreneurs /
Business Owners
20%
Real Estate Professionals
20%
Corporate Executives
15%
Medical / Pharmaceutical
10%
Professional Althletes
and below
philosophy
Managing and growing relationships through prudent investment
practices and an intimate “know your client” philosophy have been the
key drivers of our success since 1996. While asset management is our
core competency, we recognize it is only one component in the wealth
management process. To that end, we have created a formidable team
of experts in the fields of retirement planning, trusts and estates,
wealth succession planning, lifestyle advisory and charitable giving.
29
recognition
Barron’s Top Financial Advisors®
Frank Seminara has been recognized in Barron’s magazine’s annual ranking of Top Advisors
Rankings in 2011 and 2012. He is ranked number 41 in New York in 2012.
Source: Barron’s “Top 1,000 Advisors,” February 20, 2012, 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 1,000 Financial Advisors have a minimum of seven years of financial services experience. Qualitative factors include, but are not limited to, compliance record,
interviews with senior management 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 pay 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.
30
portfolio construc tion and management process
3
1
Manager Selection
Strategic Asset Allocation
• Integrate asset allocation with trust,
tax and estate planning, coordinating
with other advisors to encompass all
client holdings
• Analyze investments within legal entities and by beneficiaries to align
with estate planning goals
• Memorialize long-term strategy in a formal investment policy
2
Tactical Asset Allocation
• Seek to enhance long-term performance by taking advantage of temporary market dislocations
• Under- and overweight asset classes relative to the strategic asset allocation to avoid undue volatility
• Take into account the effects of taxation and transaction costs before any adjustments
• Draw from open-architecture platform
of affiliated and unaffiliated investment
managers who have been vetted by
rigorous qualitative and quantitative due
diligence processes
• Evaluate combinations of investment
managers in lieu of or in combination
with indexing
5
Performance & Risk Monitoring
• Periodically analyze and review 4
manager selection to assure adherence
to style criteria
• Perform portfolio performance review
and risk monitoring to ensure alignment
with investment strategy
Portfolio Construction
• Create portfolios using a combination of specialist managers who complement one another with minimal overlap
• Use risk budgeting disciplines to inform capital allocation decisions
• Perform “look-through” analysis on portfolio
designed to maximize diversification
• Establish a funding plan that reflects market conditions, client preferences and potential taxes
31
risk management
Alternative
Assets
• Volatility exposure
• Real estate risk
management
• Custom hedge fund
exposure
Interest Rates
• Interest rate hedging
• Cross-currency hedging
• Yield enhancement
Commodity
Currencies
investment
solutions
• Bespoke basket exposure
execution
Access
•
• Hedging and • Hedging solutions
• Tactical investment Credit
• Credit default
Equity
• Portfolio hedging
• Single stock hedging and swaps and options
• Credit-linked notes
• Risk management
monetization
• Yield enhancement
• Alternative sale strategies
• Equity swaps
• Structural alpha
Strategies and / ​or investments listed may not be suitable for
all investors, please discuss with your Private Wealth Advisor.
32
transaction timeline
Continue tax planning
and integrate with
investment plan
Tax, Trust, Estate and Legacy Planning
Family Office Services
Implement investment portfolio
with after-tax proceeds
Investment and Risk Management
Segregate tax liability from
proceeds and invest
Post-IPO / ​M&A
Implementation and monitor of 10b5-1 plan
ipo / ​m &a transaction occurs
Pre-IPO / ​M&A
Execute philanthropic gifting strategies
Evaluate stock hedging and sales
(e.g., 10b5-1 plans)
Appoint Morgan Stanley
Smith Barney as custodian for
private stock certificates
Conduct a stock option
analysis and consider exercise
of options as appropriate
Tax and Estate Planning
Strategy Session
33
A relationship with Morgan Stanley Private
Wealth Management is one of the most
distinctive in the financial world. Focused
exclusively on your needs and those of your
family, it commits Morgan Stanley’s resources
to achieving your goals. Your Morgan Stanley
Private Wealth Advisor will work to address
your most important concerns and aspirations,
from coordinating investment strategy and
managing risk in multiple portfolios and entities
worldwide, to aligning your family governance
structure and estate plan with your values and
hopes for future generations, to connecting you
to the investment bankers and capital markets
specialists of Morgan Stanley. We look forward
to meeting personally with you to discuss how
we may serve you and your family.
34
contact information
The Seminara Group
400 Campus Drive
Florham Park, New Jersey 07932
973-236-3634 / MAIN
877-565-2549 / TOLL-FREE
973-860-1896 / FA X
[email protected]
www.theseminaragroup.com
CRG 512052 7204538 06/12
REferences
1 Tier 1 Capital
2 Includes overseas affiliates
3 Products and services are provided by third parties, not Morgan Stanley Smith Barney LLC or its affiliates.
4 Morgan Stanley Smith Barney LLC and its affiliates and employees do not provide tax or legal advice.
5 Asset allocation does not ensure a profit or protect against loss. Disclosures
Investments and services offered through Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC, member SIPC.
Morgan Stanley Smith Barney offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Private Wealth Advisor to understand these differences.
Morgan Stanley Smith Barney LLC is a registered broker-dealer, not a bank. Where appropriate, Morgan Stanley Smith Barney has entered into arrangements with licensed banks and other third
parties to assist in offering such banking-related services. Life insurance, disability income insurance and long-term care insurance are offered through Morgan Stanley Smith Barney’s licensed
insurance agency affiliates.
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. You should consult your own tax advisor or attorney for matters involving taxation, tax planning estate planning and other legal matters.
This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The
strategies and / ​or investments discussed in this material may not be suitable for all investors.
The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Diversification does not guarantee a profit or protect against a loss.
An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Some of these
risks may include:
• Loss of all or a substantial portion of the investment due to
leveraging, shortselling, or other speculative practices
• Restrictions on transferring interests
• Complex tax structures and delays in tax reporting
• Lack of liquidity in that there may be no secondary market
for the fund and none is expected to develop
• Potential lack of diversification and resulting higher risk due
to concentration of trading authority when a single advisor
is utilized
• Less regulation and higher fees than mutual funds
• Volatility of returns
• Absence of information regarding valuations and pricing
Unless otherwise noted, information contained in this document is dated as of August 1, 2011.
Individual funds will have specific risks related to their investment programs that will vary from fund to fund.
Actual results may vary and past performance is no guarantee of future results.
© 2012 Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC.
• Manager risk