AUM/Boston - Thought Leaders in Asset Management Volume 2 Issue 2 -- Q3 2019

qDalzell Trading: Fresh Tracks with Dave Dalzell

qCryptocurrency with Sarson Funds’ Jahon Jamali

qOvercoming Divorce with Sandy Cove

qReal Estate War qMaking a Stories with Difference with ‘The Triumvirate’ Everybody Water

AUMBoston Q3 2019

VOLUME 2 ISSUE 2

THOUGHT LEADERS IN ASSET MANAGEMENT

FINDING SUCCESS IN SUCCESSION Boston Financial Management — from Dick Morse to Mike Brown to Steve Kenney — the next generation of leadership

in this issue

Wealth Justification, page 12

Q3 2019

2 LETTERS FROM THE PUBLISHER AND EDITOR

A good story well told. Plus,

4 AUM/BOSTON ADVISORY BOARD

the value of experience.

6 TRENDING

Boosting women in finance; lamenting the loss of an ‘IT Guy,’ celebrating

Plus our contributing

revolutionary spirits, taxing billionaires,

partners. Meet the

recommended reads, and more!

minds behind AUM/Boston

features

COVER STORY

14

SUCCEEDING AT SUCCESSION

28

ILLUSTRATIONS: ISTOCK; PHOTOS: NICK PEDINI (BOSTON FINANCIAL MANAGEMENT), RICH OFSTHUN (DALZELL TRADING LLC)

This year Boston Financial Management

26 THOUGHTS

Is cyptocurrency blooming among traditional investors?

MAKING TRACKS

Experience makes the

handed the baton to a new CEO, who will

difference at Dalzell

lead the firm into its next phase

Trading LLC

34 AUM AGENDA Mark your

36 GOOD CITIZENS Two Cohasset

39 END USERS Womens’

Plus, a triumvirate of real

calendars for these

entrepreneurs

financial worlds

estate experts shares their

upcoming events,

are changing the

turned upside

experience, and one

seminars, and

world — one

down by divorce

man’s journey from

conferences.

carton of water

are turned

at a time.

back up.

bicycle delivery to ticker tape delivery

ON THE COVER: THREE GENERATIONS OF BOSTON FINANCIAL PLANNING LEADERSHIP. PHOTO BY NICK PEDINI

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AUM/Boston Q3 2019

WELCOME PUBLISHER’S NOTE

THE INTERNET CAN’T KILL THE STORYTELLERS SINCE 1986, THE INTERNET has driven approximately 3,000 U.S. magazines out of print, if not out

(In fact, I am.)

He’s authored many engaging stories and two of

altogether. It has stolen paid readers and absconded

his best for this issue are “Succeeding at Succession”

with ad dollars, the last remaining financial support

(Boston Financial Management) and “Making

of magazines and newspapers.

Tracks” (Dalzell Trading). They are wonderful stories

But it hasn’t killed them all. There are still over

about wonderful people. Bob would probably say:

7,000 magazines in the U.S., most of them with this

“The stories wrote themselves.” But that’s just Bob

in common: they are narrowly targeted, unique and

being modest. That said, these stories draw needed

interesting. Oh, and a renewed focus on people.

attention to professionals who have set themselves

Our thesis at AUM/Boston is that people want to read stories about the leaders and their firms who make up their community – whether that community is defined by industry or by geography. We chose to use both when we launched the magazine last year.

There are dozens of marketing companies that

apart in their particular fields.

THE SUCCESSION OF PRINT

AUM/Boston may not always be in print. Statistically, it’s more of a probability than not. But we have no intention of becoming another statistic! We are

ENVELOPE-OPEN Rich@

claim they will help you be the new source for personal

sending 2,000+ copies at 44 pages each to financial

AUMBoston.com

finance advice on the Internet. For a monthly fee they

advisors, asset managers and COI thought leaders

will find content for you and post on your behalf three

in Greater Boston. We will always strive to tell good

to five times per week. Yikes! How valuable can that

stories – to tell your stories. And that, to borrow from

“content” be?

another great New England author, “makes all the

A GOOD STORY WELL TOLD

difference.”

Everyone likes a good story. At cocktail and dinner parties we revere the storyteller. I am not one of those, but I know several, including AUM/Boston’s Editorial Director: Bob Bessel. He’s so good I want to bestow upon him the new moniker: Chief Storyteller.

At AUM/Boston we always strive to tell a good story

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AUM/Boston Q3 2019

IF YOU’RE NOT GETTING YOUR COPY, AND WOULD LIKE TO …

Please send me an email at rich@aumboston.com and I’ll get you on the list. (And, if you would rather not get a copy, I can take care of that for you, too.)

AUMBoston THOUGHT LEADERS IN ASSET MANAGEMENT

VOLUME 2, ISSUE 2 FOUNDER & CHIEF CONTENT OFFICER

Richard Ofsthun

rich@aumboston.com EDITORIAL DIRECTOR & CHIEF STORYTELLER

Robert Bessel

Robert@aumboston.com ART & PRODUCTION DIRECTOR

Kristen Goodfriend kbonami@gmail.com

COO/HEAD OF BUSINESS DEVELOPMENT

Deborah Donahue

Deb@aumboston.com BUSINESS DEVELOPMENT DIRECTORS

Michael Fechter

Michael@aumboston.com

Peter Berg

Peter@aumboston.com WEB DEVELOPER

Melissa Clark

melissaclarkdesigns@gmail.com STAFF PHOTOGRAPHER

Lucie Wicker

lucie@luciewickerphotography.com CONTRIBUTING PHOTOGRAPHER

Nick Pedini

pedinivisuals@gmail.com

Me encanta: (clockwise from left) Pyramid of the Moon, Teotlican pyramids; a local mercado; an array of postres (desserts) in Mexico City

LUCIE WICKER PHOTOGRAPHY (BESSEL); ARTOSAN/DREAMSTIME.COM (PYRAMID); ROBERT BESSEL (MARKET AND BAKERY)

AUM/BOSTON ADVISORY BOARD ROBERT BESSEL

Editorial Director & Chief Storyteller, AUM/Boston

EDITOR’S NOTE

EXPERIENCE MATTERS YESTERDAY, MY CELL PHONE recorded

means “I am enchanted.” It might even be

21,000 steps and 45 stories climbed. As

interpreted as “It makes me sing.”

you might imagine, it was a challenge,

The dividing line is experience, and

considering I was 7400 feet

I find a similar division among

above sea level, just north of

investment professionals. The

Mexico City at the pyramids

ones who know how to craft

of Teotlican.

a portfolio of individual equity

Of course the mere men-

and fixed income investments

tion of visiting the sprawl-

tailored to each client is

ing city of 20 million people

vastly different from the “five

draws few “ooos and ahhhs”

sizes fit most” approach that

and an over abundance of

prevails among the robo and

caution.

index set.

From those well-meaning

I prefer experience:

friends who had never visited

the traders who know how

Mexico City, I was warned

to execute precise investment

to be careful of taxis, thieves on the street and food that

CONTACT AUM/Boston 132 Chief Justice Cushing Highway Cohasset, MA 02025 617-285-0447

strategies; the stock pickers ENVELOPE-OPEN Robert@AUMBoston.com

would nearly kill me. My col-

who thrive on challenging their clients’ investment as-

lection of cautionary tales was mounting

sumptions to deliver outstanding perfor-

like stacks of tortillas.

mance. This issue is full of the former and

I heard something completely different from experienced travelers who had

light on the latter.

As for my Mexico City experience, I would

spent time exploring CDMX, as the city

recommend an Uber ride to one of the grand

is called by those in the know. They told

hotels near Paseo de la Reforma and a squash

me, in Spanish, “me encanta.” Roughly

flower quesadilla from a street vendor at

translated, it means “I love it!” But it also

midnight. You’ll never have it so good.

DEBORAH DONAHUE

COO/Head of Business Development MICHAEL FECHTER and PETER BERG

Business Development Directors, AUM/Boston CHRISTOPHER ARNOLD

Managing Director at Morgan Creek Capital Management, LLC JILL BERESFORD

CEO, Genderversity MARK TOOMEY

Consultant, Institutional Asset Management Distribution PATRICK CAROLAN

Managing Partner, Endeavour Investment Management ALEX THOMPSON

Partner, Odgers Bernstein

AUM/Boston is published four times per year, in both print and digital formats, by AUM/Boston and AUM/ Thought Leaders LLC Copyright © AUM/Boston and AUM/Thought Leaders LLC 2019. All rights reserved. Reproduction in whole or in part of any text photograph, or illustration without express written permission of the publisher is strictly prohibited.

DISCLOSURE: None of the content constitutes any advice or recommendation whatsoever in relation to any security, investment, potential investment or decision. No decision of any kind should be made on the basis of the Content. It is for informational use only.

AUM/Boston content can be original, contributed or curated, and unpaid or paid through contributing partnerships. We strive to maintain journalistic standards of objectivity even in contributed pieces. AUM/Boston can receive remuneration from some content contributors for copyrights, reprints, hosted webinars and events.

With regard to contributed content, past performance is no guarantee of future results. No content in those articles should be construed as specific investment advice, or replacement for investment advice from investment professionals. Publication of articles should not be construed as a recommendation, endorsement, or sponsorship by AUM/Boston or the contributors.

Some of our Contributors are affiliates, earning us a small commission if you decide to use them, allowing us to continue creating content. AUM/Boston and its management are not responsible for any errors or omissions in published content.

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AUM/Boston Q3 2019

AUMBoston

ADVISORY BOARD RICH OFSTHUN

AUM/BOSTON AND AUM/ THOUGHT LEADERS, LLC FOUNDER/ CHIEF CONTENT OFFICER Many years of media experience – from The Minnesota Daily (UofM), Business Month, Newsweek, Red Herring, The Warren Group to Financial Advisor/Private Wealth – has led Rich to this paradigm shift in media to publish engaging content with the goal of supporting, not just informing, the financial community.

At the risk of dating himself, he loves to tell the story of his days in the Chicago office at Kiplinger’s magazine (known at the time as Changing Times). A call came in from Joe Mansueto, who wanted to start advertising. Rich helped create a small ad to promote Joe’s brainchild, The Mutual Fund Sourcebook, which grew into what we now know as Morningstar. He hopes to do the same for AUM/Boston’s Contributing Partners.

ALEX THOMSON

PARTNER, ODGERS BERNDTSON

Alex Thomson is a Partner in Odgers Berndtson’s Boston and New York Offices and Head of the U.S. Asset, Wealth Management and Alternative Investment practices. He is also a Vice Chair and on the US Board of the firm.

He has more than 20 years of experience as an executive recruiter and has conducted domestic and international “C Level” searches for clients across a number of disciplines including: traditional asset management, wealth management, alternative investments, endowments, foundations and plan sponsors. At Odgers Berndtson, he continues to manage search assignments for clients in this sector, while also leading the broader expansion of the U.S. Asset, Wealth and Alternative Investment practice.

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AUM/Boston Q3 2019

ROBERT BESSEL

DEB DONOHUE

EDITORIAL DIRECTOR & CHIEF STORYTELLER, AUM/BOSTON

COO/HEAD OF BUSINESS DEVELOPMENT, AUM/BOSTON

In 2017, Bob signed onto AUM/Boston as Editorial Director. In this role, Bob works with founder and chief content officer Rich Ofsthun to execute AUM/Boston’s vision for a vibrant wealth management community in Greater Boston.

Prior to AUM/Boston, Bob spent 30 years as PR Director for COCC, a cooperatively held technology service for banks and credit unions throughout the Northeastern U.S. Bob’s creative placements changed the narrative about COCC, helping to triple its annual revenue in a mere five years.

Bob’s work has been featured in American Banker, Bank Technology News, Credit Union Times, Massachusetts Banker and many more. He lives and works in Collinsville, CT within a short walk of the Collins Ax Factory, which started the American Industrial Revolution in 1826.

Deb Donahue is a results-driven financial industry executive with extensive knowledge of the asset management business.

Her expertise in operations, trading, technology and compliance has enabled her to build an exceptional record of long-term profitable relationships.

Deb was a founding partner and the COO of Monarch Partners, a start-up investment management company. Her entrepreneurial experience is enhanced by years of experience at BlackRock. Deb was also a partner at Boston Partners Asset Management and spent almost 10 years at Keystone Investments.

Deb is a Global Member of 100 Women in Finance. She is involved with many charities including the Cystic Fibrosis Foundation, Alzheimer’s Association and the Pat Roche Hospice Home in Hingham.

CHRIS ARNOLD

MANAGING DIRECTOR, NORTHERN REGION, MORGAN CREEK CAPITAL Chris works with institutions and large asset holders on behalf of Morgan Creek Capital, a firm led by Mark Yusko and central to the proliferation of Endowment-model investing. With a legacy of investing in non-liquid alternatives including hedged equity and private equity, Morgan Creek has staked a claim in the Blockchain, through a strategic acquisition and the recent launch of Morgan Creek Blockchain Capital. Chris is also a founding member of the Transformative Technologies Investment Forum.

Consistent with his work, Chris is a self-professed adrenaline junky, enjoys going fast and stopping along the way to enjoy time with his family of five and wife of 30 years, Heidi.

JILL BERESFORD

CEO, GENDERVERSITY

Jill Beresford became the CEO and Chairman of the Board of a publicly-held corporation during the 1990’s. She was given the job of CEO as the company teetered on the brink of bankruptcy and was successful in turning it around into profitability.

Jill has spent 25+ years successfully working in the Turnaround & Restructuring Industry filling the positions of CEO, CFO, CRO and/or CMO. More recently, she has been bringing the message of improved economics through gender balance to the C-suite of Fortune 500 companies through one-on-one trainings, facilitating workshops, participating in Summits, and conducting Key note addresses.

Recently, the American Small Business Development Centers recognized Jill as the top small business advisor in Massachusetts where she was awarded the coveted State Star Performer award.

MICHAEL FECHTER

CERTIFIED FINANCIAL PLANNERTM AND DIRECTOR OF BUSINESS DEVELOPMENT, AUM/BOSTON Michael Fechter, CFP has over thirty years’ experience in the financial services industry as a relationship manager partnering with institutional investors, investment consultants, financial advisors and other financial intermediaries.

Michael has held senior level client relations positions at Northern Cross, The Boston Company, Babson Capital, State Street Research and Putnam Investments. He is a graduate of Ithaca College with a degree in business and has a Master of Science degree from The College for Financial Planning and holds the Certified Financial Planner designation.

MARK TOOMEY

INDEPENDENT CONSULTANT, INSTITUTIONAL ASSET MANAGEMENT DISTRIBUTION After getting his start in marketing with a sales role at IBM, Mark moved into Boston and the financial services industry with State Street Corporation, working with mutual fund clients across the country. He became involved in asset management business development via Fidelity and Morgan Stanley, and developed and built out the US institutional Business for Henderson Global Investors, later JanusHenderson. More recently, he was in Chicago with Legal&General Investment Management America (LGIMA) building out their strategy for index disciplines for the US market.

He currently works as an independent consultant for asset managers focused on the institutional clients.

CONTRIBUTORS

PETER BERG

DIRECTOR OF BUSINESS DEVELOPMENT, AUM/BOSTON Peter Berg is one of those people that you want by your side no matter what. This veteran sales and marketing executive has worked every angle of AUM growth using custodian resources to help these advisors to succeed.

He began working with registered investment advisors in the 1990’s, then joined Charles Schwab, where he served as Senior Regional Vice President for institutional business in the Northeast.

After Schwab, Peter launched HSBC’s Private Banking operation in Boston, started his own firm (Boston Light Investments) and worked for BNY Mellon where he facilitated their internal merger with their wholly-owned subsidiary, Pershing Advisor Solutions.

Working with AUM/Boston enables Peter to help advisors showcase their discipline and commitment to do the right thing for their clients.

JOHN LEFFEL

RECENTLY RETIRED FROM RAYMOND JAMES FINANCIAL SERVICES, INC. Originally from Corning, NY, John has worked in San Francisco, Atlanta, New York, St. Pete and Boston over his 36 years in Financial Services.

Cycling and skiing are two favorite pastimes but he’s currently working on his golf game (no handicap disclosed) and giving archery a shot.

John is the father of two grown children. He and his wife, Whit, an accomplished artist, reside in Cohasset, Mass. john-leffel-519ba710

VIN O’BRIEN

PARTNER AT FRYER & O’BRIEN Fryer & O’Brien is a practice that focuses on the overlapping fields of business law, real estate transactions, estate planning and probate. Vin prides himself on his ability to resolve thorny — even pernicious — issues with property titles which can all too easily derail a real estate closing.

In his spare time, Vin is part-owner of Liberty Tree Distillers, access to which has been called for, but yet to be fulfilled at select, challenging closings. vobrien@dover-law.com qfryer-obrien.com

PATRICK J. CAROLAN

MANAGING PARTNER, ENDEAVOUR INVESTMENT PARTNERS, LLC

In 2006 Patrick c0-founded Endeavour Investment Partners with Cale Graham.

Endeavour acts as an external team member guiding investment managers in key marketing, communication and sales activities to successfully compete and retain investment mandates.

Prior to that, he spent seven years as Managing Director at Century Capital Management in Boston where he successfully led marketing/sales, and launched Small Cap Growth, SMid Growth separate accounts and funds.

Previously, he was Vice President, Marketing Management at Fidelity Investments in Boston, focused on the RIA Channel and before that Vice President and Director of Mutual Funds at Wilshire Associates in Santa Monica, CA.

KATHLEEN CADDELL

BILL TIERNEY

SENIOR MORTGAGE CONSULTANT, FAIRWAY INDEPENDENT MORTGAGE COMPANY

REALTOR® AT GIBSON SOTHEBY’S INTERNATIONAL REALTY

Kathleen Caddell, a Senior Mortgage Consultant with Fairway Independent Mortgage Company in Newton, offers more of a financial planning mindset than the typical mortgage loan officer … perhaps because she was a financial advisor for many years. “When people ask me for the rate or what they can qualify for, I recommend they take a deep breath and talk about their goals and their budget.” She is known in the business for the very hard-to-get “drama-free closing.”

Bill began his career in financial services at Smith Barney. After ten plus years in financial services, he transitioned to a successful career in residential real estate. His longstanding enthusiasm for real estate and the related economics has been well received by the communities he serves, as has his involvement with numerous local and state organizations. Bill understands the power of Social Media and SEO as tools to promote his clients’ real estate interests. Today, he resides in Cohasset, where he and his wife moved twenty-two years ago to raise their two children.

kcaddell@fairwaymc.com qkathleenloans.com

Bill.tierney@gibsonsir.com qwilliamtierney.net

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AUM/Boston Q3 2019

trending Up with Women: Promoting Greater Female Visibility in Finance

AUM/Boston has, as its goal, uncovering,

its Chairperson. She shared their mission

there is a quarterly meeting. Their last

celebrating and telling the stories of the

with us: “A critical element of ensuring

event in June featured Fidelity’s President

many thought leaders in Greater Boston.

success, both for senior professionals and

of Personal Investing, Kathleen Murphy.

So we wanted to shine a spotlight on 100

for the next generation, is to encourage

Ms. Murphy is an excellent example of

Women in Finance, a great

women to be more visible

the caliber of women in finance here

organization boosting the

— to their colleagues, to

in Boston. If you go to 100women.

investors, to current and

org/female-fund-managers, you’ll

future clients and to the

discover 34 Boston-based women Fund

next generation of women

Managers from these firms: Wellington

in the financial sector.

Visit 100women.org to learn more

Founded in 2001, and now 15,000 members strong, 100 Women in Finance’s mission is to empower women

entering the industry.”

100 Women in Finance has been

Management, Fidelity, Loomis Sayles, Cornerstone Capital Group, F.L. Putnam,

in the financial industry through every

busy — it hosted its 1000th education

Columbia Threadneedle, and Acadian Asset

stage of their career.

event in London last March and has

Management. They are all participating

events scheduled for New York, Chicago,

in Women in Finance’s Female Fund

Northern California and Boston, where

Manager Visibility Campaign.

Boston has a chapter and Kathleen Kisler, from John Hancock Investments is

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AUM/Boston Q3 2019

100WOMEN.ORG

visibility of women working

FOR THE LATEST BUZZ, BE SURE TO VISIT AUMBOSTON.COM/ TRENDING OR SCAN THIS QR CODE

Money Magazine is Out of Print It’s enough to invoke the words of Freddie Mercury, “another one bites the dust.” This leaves Kiplinger’s Personal Finance Magazine (my

The Future for Financial Advisors — Advice, and ...

Facial Hair?

alma mater) to advise the DIYers and educated

Trend One: Investment News held a Think

advisor clients in printed form.

Tank of their 40 Under 40 alumni in May and

You should know it isn’t the lack of reader

the result was: “The future is life coaching,

interest that’s bringing these magazines down,

relationships and comprehensive wealth

it’s lack of advertising revenue. Readers who

management, and embracing this new reality is

know there is more to finance and investing

what will drive the future of the business.”

than 401Ks and index funds still need advice.

Trend Two: Looking over the most recent

Sure they will, and may have already, turn

recipients of Investment News’ 40 Under 40’s

to the Internet — “All hail the Internet and

Class of 2019, what we noticed is nine of the

RoboAdvisors” — per GenX, Y and Z, we

twenty-four men had facial hair*. Among the

assume. But there is a lesson to be learned

Class of 2018. Only 5 of the 28 men sported

from these personal finance magazines. Many

facial hair.

years ago they smartly picked up on the idea of expanding their advice coverage to include

We also note there was an increase in representation of women – 2019: 16 …. 2018: 12.

housing, cars, credit cards and much more.

People need advisors, and for more than just

RETIRING EARLY IS CATCHING ‘FIRE’

managing their IRA.

Speaking of Under 40’s, many of that ilk are thinking of retiring early. The —Rich Ofsthun

latest movement is FIRE — Financial Independence Retire Early. The plan is to retire from the 9 to 5 corporate world of sitting in a cubicle in favor of earning money from a hobby or self-employment, such as consulting or starting an online business.

FIRE could be considered preparation for the effects of Ageism or Roboism.

Good thing Under 40s are planning on it.

Women and Divorce

ISTOCK (ILLUSTRATION)

The United States has the 6th highest divorce rate in the world. (Russia is #1) The current divorce rate per 1000 married women is 16.9. A rate nearly double that of 1960, but down from the all-time high of 22.6 in the early 1980s. (The Go-Go Eighties had many go-going.)

Almost 50 percent of all marriages in the United States will end in divorce or separation.

Researchers estimate that:

41 percent of all first marriages end in divorce.

60 percent of all second marriages end in divorce.

73 percent of all third marriages end in divorce.

See ‘End User’ on page 39 to read about how one financial advisory has stepped up its service of women going through divorce.

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AUM/Boston Q3 2019

trending Celebrating Revolutionary Spirits We are fans of the website TheFiftyBest.com — a guide to fine living, featuring unbiased reviews of restaurants, food, wine & spirits, travel, and more. We were pleased recently to see that The Fifty Best awarded Liberty Tree Founder’s Reserve Boston Rum and Liberty Tree Boston Rum Gold medals for 2019.

The Liberty Tree, if you didn’t know, was a towering elm tree that grew near Boston Common, and around which the first patriots gathered to protest the Stamp Act in 1765. For the next ten years it was the site of numerous protests and meetings, becoming a symbol of the coming Revolution such that Paul Revere made an engraving of it and Thomas Paine penned an ode to it, before the British

back that spirit with a revolution of new,

bourbons and ryes and is best served best

and Loyalists cut it

high quality spirits, including its Boston

straight up or on the rocks. It also makes for

down in the Siege of

Rum, a unique blend of aged rums that is

a perfect choice for whiskey-styled cocktails

Boston.

reminiscent of those produced in Old New

this summer.

England. This rum is extremely rich and

Distillers of

complex in flavor, with notes of butterscotch

The complete ranking results, along

Medfield, Mass.

and vanilla. Critics, judges and AUM/Boston

with tasting notes, are published on

has brought

think it makes an excellent alternative to

TheFiftyBest.com:

‘Best 4TH of July Celebrations’ … Oh, Really?

If this isn’t a lesson in “considering the source” and understanding the methodology of research before you think you’re learning something valuable, we don’t know what is.

In order to “help Americans find the best and cheapest places to celebrate this star-spangled occasion,” WalletHub com looked at 20 metrics ranging from average beer and wine prices to duration of fireworks shows to Fourth of July weather forecast to rank the 100 largest U.S. cities based on how well they balance holiday cost and fun. And —surprise! — Boston is ranked 24th for Best 4th of July Celebrations!

(Scottsdale, AZ was 12 for goodness sake and New York was #1 - ugh) This study begs the question — WHAT DATA ARE THEY LOOKING AT!?

As all you managers of assets know, not everything can be analyzed properly by metrics alone.

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AUM/Boston Q3 2019

LIBERTY TREE: PUBLIC DOMAIN, COURTESY OF HOUGHTON LIBRARY, HARVARD UNIVERSITY; FIREWORKS: PUBLIC DOMAIN/JON SULLIVAN

Liberty Tree

GLA

TTORNEY AT LAW

Boston Is One of the Top Three Venture Capital Markets, But Lags Well Behind California “The data here is shocking to me, that last year, 75 percent of the venture capital in this country went to three states: California, New York, and Massachusetts. California alone, 50 percent,” said Billionaire Steve Case. “California is awesome … [but] 50 percent of the smart, creative entrepreneurs are not in California.

Per CBS 60 Minutes, “Case and his team are scouring the middle of the country looking for promising ideas overlooked by Silicon Valley.* They’ve traveled to 38 cities, and 26 states. Thousands of miles. Often spending 12 hours a day on the road.”

The middle of the country may be lagging behind us, but

GINA A. LEAHY Divorce Mediation or Litigation

Seeking a divorce attorney and launching litigation and adversarial proceedings is often the first thought when someone is thinking of ending a marriage. But, mediation or an amicable resolution through negotiation can save couples significantly in angst, time and money. As she told us, she will always zealously and aggressively represent her client’s interests, but when appropriate, will recommend mediation vs. litigation.

as we see it, there’s still room for improvement right here in our own backyard in Boston … and, a lot less land to cover.

Hey, Steve, we’re not California and, with all our brainpower here, probably a much safer bet.

CREATIVE COMMONS/FINANCIAL TIMES

SOURCE: CBSNEWS.COM/NEWS/VENTURE-CAPITALISTSTEVE-CASE-SPREADING-FUNDING-TO-MIDDLE-AMERICAWITH-RISE-OF-THE-REST-60-MINUTES/

Steve Case

(781) 206-4777 GINA@ATTORNEYGINALEAHY.COM Family Law • Divorce Post-Divorce • Modification Contempt • Custody • Support Mediation • Prenuptial Agreements Personal Injury • Civil Litigation

A T TO RN E Y G I NA L E A H Y . CO M 9

AUM/Boston Q3 2019

trending Recommended Reads THE BIG HOUSE — A CENTURY IN THE LIFE OF AN AMERICAN SUMMER HOME

BY GEORGE HOWE COLT

THE PERFECT SUMMER READ FOR BOSTON’S WEALTH MANAGERS AND FAMILY OFFICES.

The Big House is a loving, nostalgic look back at one Boston Brahmin family’s century-old summer house on Cape Cod. Faced with the sale of the home, author George Howe Colt follows its life and history over four generations, dating back to the mid-1800s, before his great-great-grandfather, Edward “Ned” Atkinson built it in the early 1900s.

Many of my friends in the Boston financial Industry, including Bob Karlis of Cabot Business Brokers and Rick Flynn of Barclay’s, who used to summer as a kid near the ‘Big House’ on Wings Neck, highly recommend it, and for good reason.

BRAHMIN WEALTH TRANSFER

As one critic weighed in: “This beautifully written salute to one man’s family and it’s ‘Big House’ goes beyond nostalgia. It’s a fascinating look at New England society in the Twentieth Century and Boston’s Old Money in particular.”

From a wealth manager or family office’s perspective, this is a must read if you hope to gain a first-hand understanding of “shirtsleeves to shirtsleeves in three generations” and Boston Brahmins.

From the book jacket: ”Every Brahmin family needs a member like Ned Atkinson, the prosperous striver who plays straight man to his insolvent, idealistic, humanotone-playing siblings. After graduating from Harvard, where he rowed crew, he worked for a company that imported machinery and raw materials for textile mills; by twentyseven, when he became a full partner, its name was changed to Atkinson, Haserick & Company. After the deaths of his parents, he moved into the family home on Heath Hill, began to support his siblings financially, and became the stable emotional center around which the “Ats” revolved.”

“Ned Atkinson did not make the same mistake as his exogamous brother, Robert: he married a Boston Brahmin — and not just any Brahmin, but a granddaughter of John Murray Forbes, a legendary Bostonian “merchant-prince,” who by the age of twenty four had amassed one of the country’s largest fortunes by sailing tea and silk

While much has changed in our summer homes today, this book is a nod to the fact some things never do, and an ode to all summer homes.

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AUM/Boston Q3 2019

out of China and sailing cotton, tobacco, and opium in.”

John Murray Forbes, by the way, had 106 great-greatgreat-great-grandchildren. Talk about a generational wealth transfer challenge.

A SUMMER PLACE

Many of our readers have summer (and winter) places, but there are few like this one, built in 1904: It is an extraordinary structure, a massive, four-story, shingle-style house as contorted and fantastic as something a child might build with wooden blocks. My grandmother once wrote that while growing up she had been embarrassed by its whimsical appearance until, reading a book of fairy tales, she came across an illustration of a castle of similar design. ….

Children love to count the rooms, of which there are nineteen (or, if you count the bathrooms — as children usually do, twenty-six).

While much has changed in our summer homes today, this book is a nod to the fact some things never do, and an ode to all summer homes.

“When I think of the Big House — and my family — at its greatest glory, I Above: ‘Big House‘ builder recall hot August weekends circa 1963, Edward “Ned” Atkinson Below: author George Howe when I was eight or nine. The house Colt, ‘the end of the line’ filled with cousins; the dining table swelled with extra leaves; the second refrigerator was pressed into service; and every morning the frying pan turned out enough bacon to feed, as my grandfather put it, “a small army.”

“The Big House renders keen observations of a lifestyle borne of privilege, perpetuated by tradition and celebrated thought elegance,” according to Booklist, but Colt turns the book into a heart-grabbing tale of mystery.

I know you’ll enjoy The Big House from your favorite chair, hammock or beach blanket at your own summer retreat.

But, as another reviewer declared, “The only complaint is that, like a warm, breezy summer on the Cape, it ends far too quickly.”

Here’s a twist for RIAs: “Growing your assets without making an investment.”

“The result of Jon Leet’s analysis of our phone system was a $16,000+ refund from the vendor, a 40% reduction in our monthly invoice and offloading the management of a difficult vendor. Plus, the time that Schooley Mitchell has saved me is at least as valuable as the money that money that we saved.

— R. B., a satisfied customer

Schooley Mitchell is only paid out of the savings that you realize Jon Leet T: 781.544.0312

www.schooleymitchell.com/jleet jon.leet@schooleymitchell.com

Jon Leet T: 781.544.0312 Jon Leet Jon Leet

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trending Welcome to the World of “Wealth Justification” An open letter from a group of wealthy

wealth management industry must think

individuals was published July 1 on

harder about how it defends legitimate

Medium.com calling for “a moderate

wealth.”

wealth tax on the fortunes of the richest one-tenth of the richest 1 percent of

“The emphasis in wealth management

Americans — on us.”

has long been transitioning from wealth creation to wealth preservation

The “us” included self-made billionaires like Liesel Pritzker

but I’m sensing a new and growing

Simmons and Ian Simmons, co-

trend. I call it Wealth Justification. And I think this is a great opportunity for

founders of the Cambridge, MASS-

wealth managers to extend their range

based Blue Haven Initiative, one of the

of services for clients.”

first family offices created with impact investing as its mission and focus.

As his editors said in their introduction:

According to the New York Times, a recent analysis of a Federal Reserve

Mr. Harris is setting out his views

report found that over the last three

“about arguably one of the most serious

decades, the wealthiest 1 percent of

challenges that the wealth management

Americans saw their net worth grow

industry faces - the perception that

by $21 trillion, while the wealth of the

great wealth itself is often hard to defend

bottom 50 percent fell by $900

ethically and that current approaches are inadequate.”

billion.

Amidst Mr. Harris’ concern for the

That “Billionaire’s” letter, prompted a July 2nd posting by Stephen Harris, Publisher of Family

threat of mass retaliation and concern for future generations of the super-rich,

Wealth Report, in which this thesis was

the proposal to “tax us” might reduce the

presented: “Amidst rising populism, the

stigma of income inequality.

SOURCES: MEDIUM.COM, NEW YORK TIMES AND FAMILY WEALTH REPORT

Bragging Rights

New England states rank high on the 2019 U.S. News & World Report Best States Index now more reasons to love being a New Englander.

According to U. S. News & World Report, ‘The Best States ranking of U.S. states draws on thousands of data points to measure how well states are performing for their citizens.” Here are some highlights from the list:

12

AUM/Boston Q3 2019

EDUCATION MA is #1 OPPORTUNITY RANKINGS NH is #1 NATURAL ENVIRONMENT RI is #1

AIR AND WATER QUALITY RI is #1 CRIME & CORRECTIONS NH is #1 BEST OVERALL NH is #2 MASS is #8

SOURCE: USNEWS.COM/NEWS/BEST-STATES/RANKINGS-INDEX

ISTOCK (TOP)

As if we needed it, there are

Perspective: Leaving the Corporate World … and your ‘IT Guy’ In 2017 at least 170 advisors departed

her, I kept saying “ I need an IT Person.”

brokerages to join or launch independent

And, then, a miracle; my local Networking

practices (Financial Planning). In fact, more

Group has a person who works with small

than 33% of brokers in 2017 said they would

businesses on site and came to my rescue.

We were done within 60 minutes.

prefer to go independent (Cerulli). By all

Hallelujah!

accounts, that’s a trend advancing unabated.

These people exist. Don’t waste your time

In its Independent Advisor Sophomore

trying to do-it-yourself. A search on Yelp for

Study, released in March 2018, Schwab Advisor Services polled independent financial

Support person would come running … or,

“IT Services and Computer Repair” resulted in

advisors and found that of the ones who

at least walk slowly … the fact is they were

36 pages of firms large and small. There must

made the leap, the majority — more than

right there and could FIX IT!!

be a better way, though, many of the reviews

90% — said they have no regrets and would make the same decision all over again.”

Schwab didn’t ask the advisors about their computer nightmares, did they?

I know I miss those corporate days when, if the computer went BLACK I could yell “Help!” (after “&7?#@&**!!!”) and my IT

INVESTORS ARE READY FOR

I’ll spare you the gory details (and expletives), but my out-of-corporate nightmare lasted 24 hours scattered over four days: on the phone with Microsoft and at Best Buy’s Geek Squad — with no success.

To my wife, who is a corporate denizen and whose “IT Guy” sits right behind

revealed questionable service and results.

—Rich Ofsthun *Editor’s Note: Believe it or not, there is a website for just what I’m talking about: IneedanITguy.com. It’s London-based so the time difference could cause trouble, but their English accent may be comforting. My guy, Eric Biondi, is local. His contact info is eric@computer-wellness.com. Bonus: He’s an ex-attorney who has made a study of blockchain and crypto … and Microsoft and systems and practically anything else.

WWW.SARSONFUNDS.COM

REAL. CLEAR. CRYPTO. ADVISOR BUILT ADVISOR SOLD S ar so n Funds, L LC i s t hir d part y marketi ng co mpany and d o e s no t manage mo ne y o r p ro v i d e i n v e st m e n t ad v i ce . A l l i n v e st me n t pr od u ct s a d v er t i se d by o r r ef e rr e d t o b y Sa rs on Fu n d s, L L C ar e pr ope rt y of t h ei r r e spe ct iv e owner s and h av e be e n ind ivid u ally reg ist e re d wit h t h e S E C as e xe m pt s e cu ri ti e s o ff e r i n gs u n d e r Ru l e 506 (c). T h e t ra d i n g a d v i s or f or F i f t h K ha gan , L P i s F i f t h K h aga n M an age me n t , L L C (an In d i an a b as ed c om pany) whi ch is not an i nves t m ent ad v iso r a nd d o es not of f er inve st me nt ad vi sor y s er v i ce s o r se cu ri ti e s m an ag em e n t . T h e In v e s tm e n t Ad v i s or fo r B l ock ch ai n M om e n t um , L P i s ET F Mo me n t u m In v e s t i n g, L L C a n I nd ia na bas ed lim it in g lia bil it y c om pa ny and a s t at e r eg ist er ed In ves t ment A d vi s or . Un l e ss s pec i f i cal l y st ate d o t h er w is e , al l i n v es t me n t s a re av ai l a bl e to acc re di te d a n d q ual i fi e d i n v es to rs on l y . Al l p ro spe ct iv e cl ien t s mu st sa t is fa ct or ily c om ple t e inve st or el igib ilit y an d anti- mo ne y lau n d er i n g r eq u i re me n ts be fo re be i n g re f er r e d t o an y i n v e st m en t spo n so r. T h e off i ci al t er ms an d obj e ct i v e s o f an y s t rat e gy me nt i one d by S ar so n F und s ca n on ly be co nveye d t h ro ug h e ac h f u nd ’s sp ecif ic o ff e rin g d o cu m e n t s w h i ch i n cl u de i t s Su b scr i pt i o n Do cu me n t s , Pr i v at e P l ac em e n t Me m or an d um a n d Li m i t ed P art n e r sh i p A gr ee m e n t all of wh ich mu s t be r ea d t h or oug hl y pri or t o inve st ing. Pa st per fo rmance d oe s no t gu ara n te e f u t u re r es u l t s . An y pe r f or man ce bac kt e st s sh ow n th at ar e sh ow n w hi l e mar ke t i n g an i n v e st m en t s t rat e gy or i n t e rn a l pr oce ss wa s a ch ie v ed b y t he r et ro ac t ive a ppli ca t io n of a mo d el desi gne d with th e b e ne fi t o f h in d si gh t an d d oe s n o t r e fl e ct an y p or t fo li o t ha t S ars on Fu n ds or an i n v es t me n t s pon s or act u al l y m an age d o r cur re n t l y ma nag e. An y his t o ri ca l r et u r ns, ex p ec t ed r e t ur ns , o r pr ob abi li t y pro je ctio ns may no t re f le ct act u al fu t u r e pe r f or man c e. Th e re is n o gu ara n t ee gi v e n or i mpl i e d . I f yo u fol l ow t h e se s t rat e gi e s you m ay l os e mon e y .

13

AUM/Boston Q3 2019

LEADERS COVER STORY

Current and past CEOs Steve Kenney, Dick Morse, and Mike Brown are building on their activemanaged, clientfocused foundation.

Succeeding at

BOSTON FINANCIAL’S JOURNEY FROM SINGLE STOCKBROKER TO FULL-SERVICE WEALTH MANAGEMENT FIRM BY ROBERT BESSEL, EDITORIAL DIRECTOR

Boston Financial Management is a Contributing Partner and financial supporter of AUM/Boston and AUM/Thought Leaders LLC — See full disclosure on page 3

14

AUM/Boston Q3 2019

NICK PEDINI

Succession

L

ittle would Dick Morse have known 43 years ago when he launched Boston Financial that the firm would grow to 41 people and supervise $2.4 billion for its clients from two offices. Fast forward to 2019, and not only is Boston Financial a thriving organization, but Dick’s vision again comes into play as he oversees BFM’s succession into its next generation of leadership.

Mike Brown, Dick’s successor and current Vice Chairman, was instrumental in launching BFM’s Succession Plan and has been the driving force behind BFM’s growth during the 10 years he served as CEO, including BFM’s 2016 merger with Emerson Investment Management (see Integration Post Acquisition sidebar).

This year, Dick and Mike handed the baton to the new CEO, Steve Kenney, who will lead the firm into its next phase of providing comprehensive wealth planning and direct investment management services to its clients. Steve is a 35-year veteran of the industry, having most recently been with SCS Financial Services.

AUM/Boston visited Dick, Mike and Steve in their new offices at 255 State Street to discuss their strategies for the future.

CONTINUED »

15

AUM/Boston Q3 2019

■ LEADERS

WHAT A BEAUTIFUL LOCATION FOR AN

client relationships but in our employee

OFFICE! HOW DO YOU USE THIS SPACE

relationships as well. We are extreme-

TO CULTIVATE STAFF TEAMWORK AND

ly focused on attracting and retaining

ENDURING CLIENT RELATIONS?

bright, motivated people. We’ve been very

Mike Brown: Our expansive view of Boston

successful in doing that — it shows in

Harbor certainly dominates our main

everything we do.

conference room. But notice the glass walls

Steve Kenney: The broad training and

on the board room’s interior — we can

experience of our team is our most im-

fold them away and turn the space into a

portant asset. Across our team we total 19

meeting room that can accommodate the

advanced degrees, an average of 26 years

entire staff.

of experience in the industry, and nearly 12

Dick Morse: We spent a year looking for the

years with Boston Financial Management

right space, then renovating it to our spec-

or firms it absorbed. I believe this depth of

ifications. We had to do something great

experience is unique in Boston. And to have

here, given what we had at One Winthrop

that culture operating within a completely

Square. That building was a beautiful old

independent, employee-owned company

but restored classic and we were fortunate

translates to a really stable platform for the

to be there for over ten years. And, we’ve

current and next generations of our client

stayed close to our roots - our current of-

families

fice is only a few blocks from One Winthrop and also from 40 Broad, where we started

EMPLOYEE OWNERSHIP IS A HALLMARK OF

in 1976. 43 years later, I still park my car in

BFM. HOW DOES THAT FACTOR INTO YOUR

the same spot!

STRATEGY FOR SUCCESS?

16

AUM/Boston Q3 2019

in the wealth management industry is

IS THAT HOW YOU SEE THE FIRM?

accelerating. Changes to ownership and

Mike Brown: Absolutely. And I believe our

management of a firm can be disruptive to

clients expect that kind of continuity in

employees and clients. I really credit Mike

their relationships with us. Let’s face it,

and Dick for their willingness to expand

this is a people business. Not just in our

ownership among our employees. This has

NICK PEDINI (PHOTOS)

Steve Kenney: The pace of consolidation THAT’S A GREAT EXAMPLE OF CONTINUITY.

Getting the Whole Picture

made BFM a real destination of choice for professionals — not just where they want to work but also where they want to bring their clients. It’s happening often enough that it’s part of our long-term growth plan.

Dick Morse: I’ve made a promise to everybody that we’re going to stay independent.

It’s important — by spreading ownership within the firm, we give our employees the opportunity to act like owners. That’s a great way to grow the business. We invited 12 new colleagues to become shareholders in 2019, and will continue to broaden our employee ownership.

WITH THE IMPENDING GENERATIONAL

Charts and figures may be staple items in advisor-client conferences, but at BFM, Susan Zimmerman and Alisa Kim O’Neil add a special dimension.

As BFM’s longest tenured Wealth Manager, Susan Zimmerman has shepherded her family relationships — all of which are multi-generational — through a wide range of estate planning opportunities that aim to generate significant tax savings and preserve wealth for the families. To Zimmerman, “it is our responsibility to maximize the opportunity for our families to structure their estates in a way that will honor their legacy and help their families meet their financial objectives into the next generation.”

A lawyer and Certified Divorce Financial Analyst (CDFA®), Alisa Kim O’Neil expands the client meeting discussion to more personal topics — the ones that drive portfolios and allocations.

“I get clients talking about where their money might go,” says O’Neil.

“Where do they think Mom and Dad will be in a few years. How well have they saved for their children’s tuitions.

Where the charitable foundation stands. These are more tangible topics that clients can readily understand.”

As one of four BFM trust and estate lawyers, she also brings years of practical experience in probate administration. O’Neil has seen “the beginning, middle and the end” of financial and estate plans. She is keen on “issue spotting,” watching body

language and searching for topics that pull the quieter spouse into the discussion.

Following a larger meeting, clients often call Alisa for a one-on-one chat, which can be invaluable for a recent widow or for a spouse who is going through a divorce.

In one case, a BFM wealth manager had a challenge when the family patriarch died suddenly, leaving the relationship in the hands of his surviving children who knew nothing about the firm. The wealth manager invited Alisa to a meeting, and just by sharing the experience of balancing family and work, BFM was able to retain the relationship.

“Women ask questions that men tend not to,” says O’Neil. “A simple question about children or the family can lay the foundation for a trusting relationship that can take us through estate or post-divorce planning.”

Alisa entered the field in law school where she took every course she could in estate planning. She joined State Street Bank after graduating, then went into private practice before coming to BFM. She earned her CDFA® in 2018. Alisa is a Certified Trust and Financial Advisor (CTFA) and is an Accredited Estate Planner (AEP®). “My approach has always been to see the entire picture of a client’s estate and financial plan,” says O’Neil. “I’m glad to be able to help people with something that they all need.”

TRANSFER OF WEALTH, WHAT ARE THE CHALLENGES YOU FACE IN SERVING YOUR CLIENTS? Mike Brown: There’s a generational shift in how investors understand the investment vehicles available to them. People in their fifties, sixties and seventies are more

Director of Estate and Financial Planning Alisa Kim O’Neil and Wealth Manager Susan Zimmerman

familiar with individual equity management. Younger investors are often more interested in ETFs and mutual funds. Both have their pluses and minuses, but we find that an actively managed portfolio of individual stocks is an excellent way to invest CONTINUED

»

17

AUM/Boston Q3 2019

Boston Financial Management acquired Emerson Investment Management three years ago, raising AUM by $700 million. Mike Brown, who was President and CEO of BFM at the time, likes to say that Emerson’s amazing team had more to do with the deal than the AUM. “In one fell swoop, we added $700 million and gained twelve strong players,” says Mike, who explained that acquisitions are all about integration.

Fortunately for both organizations, the qualities that attracted them actually made integration of the two firms easier.

Initial discovery uncovered striking similarities, from the software both companies had selected for client service, back office and training, and most importantly, their investment philosophy.

“Investments were the most important,” Mike recalls. “Both of our firms were focused on high quality individual securities over ETFs and mutual funds. That philosophy plus a strong wealth management practice — and the three really good people at the top who are respected in the community — made the difference.”

“We had a number of attractive options for merger partners,” said BRAD GARDNER, former President of Emerson, “but only Boston Financial was uniquely committed to independence and employee ownership. They were the best cultural fit for our employees and our 340 clients.”

According to Market Insider, more than 15 qualified buyers are typically available to every seller, creating plenty of pressure to move quickly. Echelon Partners reported that merger and acquisition activity in the RIA space posted its sixth straight year of record growth in 2018.

The fevered pace had little effect on BFM’s acquisition of Emerson.

“It took us seven years to find Emerson and it took us forever to make sure that it all would work,” says Mike.

■ LEADERS

Beyond Investing Family relations are a critical part of what we do. One of our clients worried about the effect of turning over all his assets to his children. He had always managed the money for the family, so they didn’t know the extent of his holdings and he feared that they might lose their work ethic and personal values when they found out how much the family had accumulated. We suggested they write a letter to their family explaining what they had accumulated and the values they felt were important in managing the family’s wealth. Then we called a meeting that included all the family, their CPA, law firm and the estate planners and their BFM team. Our client read the letter out loud and by the time he finished, everyone in the room was crying. It captured what was important to Mom and Dad and sent a heart-felt message to the children. Everyone in the room was touched and knew what was expected of them.

— Mike Brown

over the long-run (see Investing’s Genera-

literacy to a family’s children. So getting

tional Divide). So there’s education involved

back to the strength of our team, it serves

with the next generation. We talk to them

us and our clients well to have profes-

about the risks involved in holding passive

sionals who are deeply familiar with the

investments in a bear market. It’s one of

challenges that face the next generation of

many conversations we have as we engage

our client families.

with diverse, multi-generational clients.

Steve Kenney: As we begin to see our

HOW HAVE YOU POSITIONED BOSTON

clients undergo their own generational

FINANCIAL MANAGEMENT TO WORK WITH

transition, we increasingly are spending

THE NEW GENERATIONS OF CLIENTS?

time with the broader family beyond the

Steve Kenney: We seek to hire profession-

original wealth creator. We see ourselves

als with diverse educational and financial

as strategic wealth management partners

experience backgrounds. We also identify

to our families, bringing planning resourc-

future wealth management professionals

es well beyond the investment portfolio

within our ranks and actively support our

(see Getting the Whole Picture). We build a

employees’ pursuit of designations, in-

comprehensive Wealth Plan for each family

cluding Certified Financial Planner© (CFP)

we work with, and even have been asked

and Chartered Financial Analyst (CFA).

to develop a curriculum to teach financial

18

AUM/Boston Q3 2019

CONTINUED

»

NICK PEDINI (BROWN)

INTEGRATION POST-ACQUISITION

Addressing Investing’s Generational Divide

ISTOCK

BFM’s CEO Steve Kenney and CIO Brad Weafer introduce the advantages of active investing to a new generation With the evolution of exchange traded funds (ETFs) - to the point where today there are as many ETFs as stocks to choose, Gen X and Gen Y investors can fairly ask “should I commit to an individual stock portfolio?”

When speaking with Boston Financial’s team, clients can see the firm’s unwavering belief in the benefits of investing in high quality stocks.

“We believe that the direct and tangible experience we provide to our clients in the form of investments in the equity and debt of high-quality U.S. companies is highly attractive,” says Steve Kenney, President and CEO of Boston Financial Management.

“To receive cash dividends and investment returns from well run companies - and less well-known niche companies that the BFM investment team introduces to our clients provides strong long term results experience.”

Steve explained that the low portfolio turnover strategy can be very tax-efficient when compared to mutual funds, which have a history of giving an investor capital gains tax distributions whether the investor has sold shares or not. ETFs have taken

care of this to some degree, but neither of these passive instruments is as flexible in a bear market as individual stocks.

“We particularly like our approach of holding direct investments in securities because it has the potential to protect investors from the wide price swings that can affect mutual funds and ETFs when investors in these pools sell their holdings indiscriminately in difficult markets,” says Brad Weafer, BFM’s Chief Investment Officer.

In the fixed income markets, Brad also believes that owning individual high-quality bonds could save investors if a sustained increase in interest rates triggers a mass exodus from bond funds. “If you have a portfolio of high quality securities, you don’t have to be concerned about what others are doing,” he said.

Countering Gen X and Y’s confusion about how best to invest will be a challenge in the years ahead BFM concedes. But based on conversations its team holds every day with the next generation of its family clients, they don’t believe the next generation of investors will be a “Lost Generation,” similar to investors who wouldn’t return to stocks after the crash of 1929.

19

AUM/Boston Q3 2019

■ LEADERS

Dick Morse: The world is changing, but I believe there will always be a place for personal attention by experienced professionals who are conflict-free and have the utmost integrity. We have worked hard to ensure that the culture of the company stays that way. We keep up with the latest trends in investment management, technology, and reporting, but it is the quality of our advice and the professionals who deliver it is what we believe will keep us standing out from the crowd.

NOT TO PUT YOU ON THE SPOT, STEVE, BUT AS THE NEW GUY AT BOSTON FINANCIAL MANAGEMENT, WHAT ARE YOUR GOALS FOR BFM?

TOP: Susan Zimmerman, Brian Walsh, Alisa Kim O’Neil, Lindsy Owens and Brad Weafer cover a full spectrum of client’s needs. BOTTOM: Jay Nicholls, Brad Weafer and Kevin Perniciaro direct trades.

Steve Kenney: My first priority is to continue the strong tradition of deliver-

families as they, like BFM, transition to

their financial goals. The challenges get

ing outstanding advice and service to our

the next generation. We expect that will

bigger, but all of us at BFM know that it is

clients that Dick and Mike have ingrained

mean even more investments in technology

a privilege to have a family share their fi-

in BFM’s culture. We also will grow to

and training that will allow us to meet the

nancial details, hopes and worries with our

meet the changing needs of our client

evolving demands of helping families meet

advisors, and we will keep working hard every day to earn that trust. ✹

20

AUM/Boston Q3 2019

The information contained in this article is for informational purposes only and should not be considered investment advice. This article does not contain any legal or tax advice. You should always consult with your attorney, accountant or other professional advisors before changing or implementing any tax, investment or estate planning strategy.

NICK PEDINI

“MY FIRST PRIORITY IS TO CONTINUE THE STRONG TRADITION OF DELIVERING OUTSTANDING ADVICE AND SERVICE TO OUR CLIENTS THAT DICK AND MIKE HAVE INGRAINED IN BFM’S CULTURE.” —STEVE KENNEY

Classic Car Show at The Boston Common

Best of Show, American 1957 Chevrolet Corvette, Torey Dean

Presented By

Best of Show, European 1937 BMW 328, Matthew Ivanhoe

JOIN US,

SEPTEMBER 29, 2019 ON THE BOSTON COMMON, THE PARKMAN BANDSTAND

9AM – 2PM | WWW.THEBOSTONCUP.COM The Boston Cup, New England’s premier classic car show, for the 8th consecutive year is proud to display 100 of the finest vehicles in the world.

America’s largest free classic car show. In the past 8 years we have raised over $150,000 for our partner, The City of Boston’s Park & Recreation Department. The 8th year will be our best show ever!

Rich Doucette

Founding Chairman

To nominate your car or for more information, please visit our website www.thebostoncup.com

LEADERS

DAVID DALZELL AND JERRY OLIVETTI OFFER INVESTMENT ADVICE AND MAKE TRADES LIKE THEY PLAY GOLF: EARLY, QUICKLY AND WELL.

22

AUM/Boston Q3 2019

Making Tracks THE EXPERIENCE OF DALZELL TRADING LLC

BY ROBERT BESSEL, EDITORIAL DIRECTOR

E

very once in a while, you’ll see two guys on the Sassamon Trace Golf Course early in the morning. So early and so far ahead that all you see are their footsteps in the fairway dew.

Four years ago, those early tracks marked the meeting of David Dalzell and Jerry Olivetti. It took only nine holes for this serendipitous pairing of two single-digit handicappers for Dave to realize Jerry would perfectly complete the founding team of his new outsourced buy-side trading firm.

Months before, Dave had shared his vision with two of the best traders he had ever worked with — Trey Bauer and Nick Lampone. They had already signed on with zero assurances of income or success. Today, this foursome is making tracks at Dalzell Trading LLC.

FIRST TRACKS AT BLACKROCK

trading at BlackRock; Nick was head of

desktop. As electronic charts, numbers

The origins of Dalzell Trading go back to

trading at Janney Montgomery Scott.

and trades take their places on his

2006 when Dave ran BlackRock’s equity

Trey Bauer is a legendary linebacker

screens, Dave swivels toward AUM/

and derivatives trading desk in Boston.

from Penn State’s 1986 National

Boston and explains: “Our execution

Like many on Wall Street, Dave saw the

Championship team who has taken his

capabilities focus on U.S. Equities and

trading environment was changing.

“never quit” attitude from football to

Options. Every client gets at least two

Investment and brokerage firms had

finance, fighting and trading for clients

traders with intimate knowledge of their

begun to reduce their pools of highly

since 1989. Jerry is an equally legendary

trading style and investment strategy.

seasoned and compensated traders.

RIA, having founded Olivetti Capital

That enables us to act as their buy-side

Many saw the handwriting on the wall

Management in 2002 after working

trading desk and service them at the

and fled the business. By 2016, Dave saw

at Smith Barney, A.G. Edwards and

highest possible level.”

this flight as the greatest opportunity of

Deutsche Bank Alex Brown. John’s career

his career. It was time to make his move.

as a Director of Trading at BlackRock

thing as lunch. Milliseconds are often

In the trading world, there is no such

“Many Wall Street firms seemed to

and Head of Trading at Schneider Capital

measured in basis points, and trades

have abandoned professional trading

makes him “the best buy-side trader I’ve

can happen too quickly for a trader to

and the coverage of buy-side managers,”

ever worked with,” according to Dave.

take even a bio break without another

says Dalzell. “Of course, the largest

Jerry’s pitch to a hedge fund or

team member covering the desk. At any

clients still get coverage, but mid-sized

investment firm boils down to this: “How

given moment, millions of dollars are

and small clients get little to none since

would you like to have Dave Dalzell, Nick

changing hands. “We will never kill the

buy-side managers have decided to

Lampone, and John Stefanelli trading for

portfolio manager’s strategy with sloppy

eliminate so many of their execution

you at the cost of your trade execution, or

execution,” says Dalzell. “We are here to

counter-parties. This creates a universe

brokerage commission?” Very often, the

understand and deliver exactly what our

of thousands of potential clients for us –

answer is: “Where do I sign?” The magic

managers desire.”

we provide the professional trading that

here is that managers can eliminate the

Wall Street has abandoned.”

fixed costs of hiring in-house traders

BASIC BEST EXECUTION

where the initial trader can cost firms

Knowing where and how to trade is

$500,000 per year.

basic best execution. Dave used a simple

NEXT ON THE TEE

purchase of option contracts to illustrate

“Us” at Dalzell trading is Dave Dalzell, Nick Lampone, Trey Bauer, Jerry Olivetti,

NO SUCH THING AS LUNCH

the point. Recently, one of his clients’

and John Stefanelli. Dave and Nick are

By 7:00 am, Dave has fired up the

brokers quoted a wide bid/ask spread

legendary traders. Dave was a head of

concave wall of trading screens on his

CONTINUED

»

Dalzell Trading LLC is a Contributing Partner and financial supporter of AUM/Boston and AUM/Thought Leaders LLC – See full disclosure on page 3

23

AUM/Boston Q3 2019

■ LEADERS Left to right: Dave Dalzell at his Natick trading desk, John Stefanelli, Trey Bauer, and Nick Lampone all in Trevose, Pennsylvania, Jerry Olivetti in Natick

of $1.20/$2.20. Dalzell Trading’s expert could get the same contracts at $1.70, so just by trading through Dalzell, the client saved $.50 a share or $120,000 in premium on his $34,000,000 communications a day, they get that. If

manager for this price improvement was a

they want summaries only, they get that,

mere $.01 per share.

too. Whatever they need, we deliver.”

Of course, Dalzell’s trading expertise

That level of service is what buy-side trading is all about.

LEARNING THE BEST FROM THE BEST — LOU GITLIN

Professional buy-side traders work closely

NOT-SO-SYNTHETIC STRATEGIES AND SERVICE

with their institutional clients to develop

Frequent and detailed communication

service came from, Dave cites Lou Gitlin, the

complex execution strategies. That’s why

about investment strategy enabled Dave

renowned former head of equity trading at

the best buy-siders develop a thorough

to assist one of his clients who had a

BlackRock who oversaw the 500% growth of

understanding of each manager’s trading

“huge growth tilt” in his portfolio.

the fundamental equity trading desk. His car-

style and investment strategy.

The client wanted a short-term hedge

ing attitude earned him the nickname “Sweet

against growth under-performing value.

Lou.” Overall, BlackRock grew from a couple

service standard by executing a high level

Dalzell worked with the manager to

of hundred employees when Lou was hired,

of “fundamental buy-side trading” where

create a synthetic short on the Russell

to over 10,000 when he retired. Today, with

trader teams tailor their coverage to each

1000 Growth and a synthetic long on

AUM of $6.52 trillion, BlackRock is widely

client. This level of intimacy starts with

the Russell 1000 Value. “Based on the

regarded as the largest and most highly re-

morning and intra-day notes written at

spreads and execution quality, we created

spected investment firm in the world.

the frequency and detail that each client

combo options where the client would

specifies.

get paid (credited) to put these positions

to client needs during their first meeting

on, and if his idea was right, the client

in 2000.

goes deeper than favorable pricing.

The Dalzell team has continued that

“Knowing what information each

When asked where his commitment to

Dave discovered Lou’s commitment

client needs at different times of the

would make a profit when exiting the

day is critical to serving them at the

positions,” Dave recalled. “We were able

put down roots in central Pennsylvania as

highest level possible,” says Dave. “If

to execute that strategy very effectively

a senior equity trader at Trinity Investment

a portfolio manager wants dozens of

and our client did very well.”

Management. His wife was expecting their

24

AUM/Boston Q3 2019

At the time, Dave was settled. He had

RICH OFSTHUN AND COURTESY PHOTOS

position. The additional cost to the

The Birth of a Trader Every trader has a ‘bug’ – something that pulled them to the markets and holds them for years. Dave got the trader’s bug when he was 7 years old. It was back in the day when computers weren’t widely used.

Dave remembers that every Saturday morning, he would watch his father look at the New York Stock Exchange listings.

His father owned 100 shares each of three utility stocks. Young Dave asked him what he was doing. His father explained that he owned parts of each company and they paid

dividends every three months.

The idea appealed to Dave so he offered to track the stocks every week for his father. Then he noticed that the stock prices changed week to week, and somehow that got him excited about financial markets. He has one of his dad’s original stock certificates (10 shares of Consolidated Fibers) framed in his office.

“All the way through high school and college, I was aware of the markets,” Dave recalls. “I opened a brokerage account as a teenager, borrowed from my Dad to buy my first stock and made money on my first trade. That was it.”

Throughout Dave’s career, he has been a believer in education. He picked up a business degree at Augustana College in Illinois, then an MBA in Finance from Penn State. He went on to earn a CFA – mostly to learn the tools and thinking of the portfolio managers.

first child. In the middle of this idyllic scene,

tion they were getting from Wall Street and

Dave got a phone call from Ted, a sell-side

the high cost of hiring the best traders. We

Dave from Pennsylvania. When he heard

trader he had known for 10+ years. Ted’s

also knew that we would be able to fill this

the situation, the former linebacker came

message was simple: “Call Lou at BlackRock.”

void very well,” says Dave. “We knew the

to Boston to take care of Dave. “He was in

culture and policies and technology to make

my house for weeks, helping with the boys,

refusals to pursue any other jobs before Ted

it work. All we had to do was hire the best

keeping us fed, and forming plans for the

literally shouted at Dave: “You owe it to

buy-side and sell-side traders for the best

business,” Dave recalls.

your family to make this call!” Dave called

outsourced buy-side trading desk we could

Lou that evening, and ten minutes into the

create, then tell everyone about it.”

It took five phone calls and five different

“I wanted to become the best trader I could be and wanted my clients, portfolio managers to know that I fully understood their world.”

IDEAL CLIENTS AND LOCATIONS

When clients and traders can be anywhere, does it make sense to have multiple trade desks hundreds of miles from each other? For Dalzell Trading, multiple trading desks make perfect sense, because they want their clients to be well served.

“We want our offices to be near our people,” said Dave. “A five minute commute versus an hour makes a big difference in trader productivity. Let’s face it, our work takes a lot out of our people. We want them fresh and fully attentive while working, and able to spend more time with their families. That results in less turnover and better service for our clients. It’s a win-win all around.”

In the middle of this disaster, Trey called

“It’s been like that with all of us at Dalzell Trading; it has always been a real team effort where everyone plays a valuable

conversation, Dave knew he was going to

THE HARD ROAD TO FOUNDING DALZELL

role. I am proud that we have a team of

compelling story about BlackRock – the

It was not the best time to start an

succeed for our clients.

direction that Rob Kapito and Larry Fink

outsourced buy-side trading firm. In fact,

were taking the firm and the exceptional

the timing couldn’t have been worse. In

to starting this firm with no guarantee

culture behind everything they were doing.

June 2017, the month they decided to go full

of success, and no guarantee of financial

“The BlackRock culture is simultaneously

force, Dave’s wife left home for a month to

rewards—but we have always been all in with

professional and family-oriented,” says

care for her brother following his open-

the belief that we will make this happen!”

Dave. “It is an incredible meritocracy

heart surgery. While she was away, her

Dave passed his FINRA exams. The

where everyone remembers that treating

father suffered a stroke in Italy and had

application to start Dalzell Trading was

every partner with respect delivers the best

to be med-flighted home for care. Then,

accepted. And two years later, they are

results for everyone.”

while Dave was caring for their two boys, he

preparing to hire additional traders to

contracted shingles.

handle the demand from hedge fund

take the job at BlackRock.

Dave explained that Lou laid out a

Years later, as Dave watched the decline in professional trading coverage grow

“So here I am, writing a business plan,

steeper, he called up Trey, Nick and Jerry

studying for my FINRA license exams, filling

just the way Lou called him.

out an extensive new member application,

“We knew managers everywhere who were complaining about the lack of atten-

winners, dedicated to doing what it takes to Trey, Nick, and Jerry each committed

managers and investment houses that value the unique expertise of Dalzell Trading.

And just like that, Dalzell Trading is

feeding my boys and sleeping 16 hours a

making tracks — and their clients are

day,” Dave recalls. “Everything hurt.”

trading up. ✹

25

AUM/Boston Q3 2019

thoughts Sarson Funds Update — The Crypto Blossom No longer a curiosity, cryptocurrencies are attracting traditional investors

BY ROBERT BESSEL, EDITORIAL DIRECTOR

Jahon Jamali CHIEF MARKETING OFFICER SARSON FUNDS LLC DUXBURY, MA

sarsonfunds.com ENVELOPE-OPEN jjamali@ sarsonfunds.com

A lot has happened since we

blossom, bringing an increasing

recovered from a drop of more

first talked about wrestling and

number of smiles to investors’

than 25% which makes some of us

cryptocurrencies with Sarson

faces.

wonder if the bear market in cryp-

Fund principals John Sarson and

“Overall, the news is very

to might be coming to a close.”

Jahon Jamali a few months ago.

good,” said Jahon. “The price of

AUM/Boston caught up with Jahon

Bitcoin, the most visible crypto-

recently to learn how this still

currency, has risen an astonish-

CRYPTOCURRENCIES ARE HERE TO STAY

somewhat puzzling investment

ing 59% since December. This is

Beyond the unquestionably

opportunity has begun to

the fourth time that the coin has

volatile price of Bitcoin, there’s

Sarson Funds LLC is a Contributing Partner and financial supporter of AUM/Boston and AUM/Thought Leaders LLC – See full disclosure on page 3

26

AUM/Boston Q3 2019

ISTOCK

A longtime associate of founder John Sarson (from their days on the Boston College High School wrestling team), Jahon has developed a keen sense of competitive intelligence through his work with venture-backed startups and even military intelligence. One of his goals at Sarson Funds is to deliver institutional quality research and risk management to all of the company’s investment vehicles.

Jahon holds a BA/MA from Johns Hopkins University. He lives in Marshfield.

FOR MORE INSIGHTS FROM THOUGHT LEADERS, BE SURE TO VISIT AUMBOSTON.COM/ THOUGHTS

plenty of activity to show that

responsibilities,” said Jahon.

investors purchased $98.5 million

cryptocurrencies are here to stay:

“That’s where we hope to provide

Blockstack stacks tokens, a new

our most valuable value add to the

cryptocurrency. While a substantial

financial community.”

investment, Harvard grad Ronald

■ Major companies now accept cryptocurrency, including Microsoft, Expedia, Overstock and Intuit. According to 99bitcoins.com, it’s possible to buy almost anything with Bitcoins through the use of a Bitcoin debit card issued via Mastercard and Visa.

■ Transaction platforms have built cryptocurrency into their mix of acceptable payments.

NCR Silver, PayPal and Shopify accept Bitcoin today. Several other platforms are working to accept cryptocurrencies right now.

■ Non-profits now accept donations via cryptocurrency.

Bitcoin donations are accepted

by Save the Children, United Way, Wikipedia and The Water Project.

■ Cryptocurrency is taking

“THERE IS A RIGHT AND WRONG WAY TO DO THIS,” HE SAID. “SAYING THAT YOU HAVE DIGITAL CURRENCY IS MUCH LIKE SAYING ‘I HAVE REAL ESTATE.’ THERE ARE FAR TOO MANY FACTORS INVOLVED IN ESTABLISHING THE VALUE OF THE ASSET FOR ANYONE TO SIMPLY ‘JUMP IN.’

Transparency and governance are

Glantz, a senior advisor at Bitcoin

vital components in Sarson Funds’

and digital currency-investment

value add. Hence their fully vetted

firm Pantera, said that no invest-

overview of cryptocurrency for cli-

ment manager should have more

ents available free of charge at sar-

than 2 percent of their assets in

sonfunds.com/cryptocurrency-101.

blockchain — and even that small

The Sarson Funds site also provides

percentage needs to be diversified

a Blockchain Insider’s Report and

across multiple currencies.

a separate Blockchain newsfeed to

Sarson Funds goes even farther

help investors stay informed about

with their market monitoring

day-to-day events.

algorithms that keep track of

HOW DO I GET MY CLIENTS INTO CRYPTOCURRENCY?

cryptocurrency moves. “There is still a lot of volatility in the cryptocurrency market,” says Jahon,

For those itching to get involved

“especially when so many currencies

in cryptocurrency on a small

are entering and exiting the market. “

scale, there is always Coinbase

Boston is a great place to learn

(coinbase.com) where a digital

the crypto ropes. Thanks to MIT,

wallet can be setup as easily as a

Cosimo Ventures and Sarson Funds,

PayPal account. However, Jahon

the newly formed Boston Block-

doesn’t recommend jumping in

chain Association and many others,

that quickly without a thorough

Boston is becoming a beacon for the

understanding of the market.

blockchain community. May saw

the place of cash as a way of

“There is a right and wrong

the 2nd annual Boston Blockchain

sending money to relatives in

way to do this,” he said. “Saying

Week with over 60 (mostly local)

trouble spots around the world,

that you have digital currency

sponsors and partners, and more

such as Venezuela.

is much like saying ‘I have real

events are popping up all over the

estate.’ There are far too many

area — consult meetup.com/

factors involved in establishing

Boston-Blockchain-Association

according to Jahon, the more that

the value of the asset for anyone

and the AUM/Boston Agenda for

cryptocurrencies are used for

to simply ‘jump in.’ There are over

details.

tangible purposes, the sooner these

5,000 crypto coins, so if a financial

currencies will be adopted by the

advisor wants to incorporate

managers will start asking more

masses. Adoption drives investor

crypto in her client’s portfolio,

of these questions as they look

interest in cryptocurrencies, and

they are advised to get into a fund.

to provide transparent and clear

investor interest drives financial

Just as individual investors look

information to their clients,” said

advisors to look for answers.

to knowledgeable RIAs to manage

Jahon. “While we’re not counting

“Before an advisor can

their assets, so too should invest-

any chickens before the blockchain

confidently suggest an

ment advisors turn to cryptocur-

hatches, we have an especially

exposure to crypto, they are

rency portfolio managers to find

good sign that the public is taking

going to need a crypto currency

their way.

take notice: John Sarson’s dad is

These are all great signs because,

segment expert who views this

Among the heftier investors in

asset category with the standards

digital currency are endowments.

and protocols of high fiduciary

This April, Harvard-affiliated

“We anticipate that wealth

investing in the fund!”

The crypto bloom seems to be everywhere… ✹

27

AUM/Boston Q3 2019

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thoughts It Takes a Team A Trio of Boston Real Estate Experts Shares Tales of Horror and Wisdom to Help You Help Your Clients — and Yourself

With the paradigm shift to fee-based, fiduciary financial advisors, and advancements in technology, meetings with clients are changing, too. What used to be conversations confined to portfolio performance have expanded to include anything with a dollar sign in front of it. With Millennials sitting across the desk, this is especially pertinent.

What’s the biggest purchase clients make in their lifetime? A house … or, several houses. How can you, their financial advisor, help them maximize their real estate investment and avoid the loss of mass amounts of working capital because of poor choices and bad advice? Advise them to seek expert advice.

To help you help your clients, AUM/Boston did just that.

What happens when you put a leading Mortgage Lender, a preeminent real estate agent and a storied real estate attorney in the same room with AUM/Boston? An eruption of stories — some horrific, some enlightening, some stretching the bounds of imagination.

ISTOCK

Through the bubbling stream of consciousness, we learned the dos, the don’ts and some of the rules of the real estate road from three of Boston’s best. We call them The Real Estate Triumvirate.

KATHLEEN CADDELL, a Senior Mortgage Consultant with Fairway Independent Mortgage Company in Newton, offers more of a financial planning mindset than the typical mortgage loan officer … perhaps because she was a financial advisor for many years. “When people ask me for the rate or what they can qualify for, I recommend they take a deep breath and talk about their goals and their budget.” She is known in the business for the very hard-to-get “drama-free closing.”

BILL TIERNEY is a Cohasset-based agent for Gibson Sotheby’s International Realty. He began his career in financial services with Smith Barney, and then transitioned to residential real estate where his knowledge of the area and its special culinary sources (Holly Hill Farm, Seabird Coffee and French Memories) provide a welcome break from the breathless chase for “the perfect house.”

VIN O’BRIEN is a partner at Fryer & O’Brien, a practice that focuses on the overlapping fields of business law, real estate transactions, estate planning and probate. Vin prides himself on his ability to resolve thorny — even pernicious — issues with property titles which can all too easily derail a real estate closing. In his spare time, Vin is part-owner of Liberty Tree Distillers, access to which has been called for, but yet to be fulfilled at select, challenging closings.

CONTINUED

»

29

AUM/Boston Q3 2019

thoughts inner cities. Her credit rating plummeted from 800 to 600 and it was Game Over.”

Kathleen “moved heaven and earth” to get her client to qualify for an FHA loan, and she finally closed. “But it was needless pain,” says Kathleen. The lesson: “You can fight with the insurance company but pay the darned bill!”

YOU DON’T KNOW WHAT YOU DON’T KNOW ...

NEITHER DO ROBOTS “We have a whole generation that believes they are just a Google search away from knowing all the answers,” says Bill Tierney.

“It’s just not so. A robot doesn’t have a good idea of what a property is worth, what the neighbors are like, or the answers to so many other questions.”

The Real Estate Triumvirate shared their collective experience recently.

Bill adds that mortgage lenders, estate planners, real estate agents all have specialized knowledge and experience that can streamline and, when needed, save the deal.

“Doing a real estate deal is like moving a football down field. If you’ve been around

YOU DON’T KNOW WHAT YOU DON’T KNOW ...

JUMBO MORTGAGES, PROPERTY TITLES AND FORGOTTEN BILLS There’s something about applying for a

long enough, you’ve seen enough to avoid mortgage arms of large banks are no longer in existence. As a rule of thumb, I

getting sideswiped.”

Even so, Amazon, Zillow, Rocket

recommend having your attorney review

Mortgage and others are trying to replace

the title before you list the house.”

humans as originators. The Triumvirate

Still another unknown is forgotten bills.

strenuously disagrees.

jumbo mortgage under a tight deadline that

Kathleen remembers that one client who

proves the old lender’s adage: You don’t

nearly lost her dream house because of a

have in your life,” Kathleen stresses. “You

know what you don’t know.

dermatologist who neglected to send out a

need to have someone who will advise you

bill five years earlier.

every step of the way using their experience

“Too often, a loan applicant swears he has perfect credit without realizing that he

“My client was cleared to close for

“This is the biggest debt you are going to

and certifications. I’ve been in this business

needs four active and current trade lines in

weeks. Just before closing, we had to do our

15 years and I’m still learning. All of us are

good standing to qualify,” says Kathleen.

standard re-pull of credit and were shocked

because the world for us is changing daily,

“The applicant might be a responsible,

to find out she not only got hit with a new

sometimes by the hour.”

HNW adult who pays off his one credit card

Medical Collection, but she had not paid on

every month. The trouble is — that’s only

her student loans at all since she went under

one open and active trade line and for most

contract, because they were going to be

Jumbo programs he needs four to get the

“forgiven” within the year under the student

YOU DON’T KNOW WHAT YOU DON’T KNOW ...

YOU NEED A TEAM

loan. Unknowns like that can blow him out

loan forgiveness program for teachers in

“Getting an offer accepted is just the begin-

of the water.”

The property title can be another dangerous unknown according to Vin. “We’ve seen instances where the seller didn’t legally own the property as there were errors in their deed or their property was encumbered because the prior owner didn’t discharge a mortgage properly.

We still see improper discharges that are difficult to obtain since the defunct

30

AUM/Boston Q3 2019

ning of a real estate transaction,” says Bill.

“TOO OFTEN, A LOAN APPLICANT SWEARS HE HAS PERFECT CREDIT WITHOUT REALIZING THAT HE NEEDS FOUR ACTIVE AND CURRENT TRADE LINES IN GOOD STANDING TO QUALIFY,” SAYS KATHLEEN.

“There are so many moving parts, so many little idiosyncratic things that make the transaction difficult. Then you add two attorneys, a buyer and a seller, two banks, two lenders, and you get an idea of how complex it can be.”

Vin adds, “A buyer or a seller is crazy if they don’t have a full-time realtor who actually knows what he’s doing and knows

“THE BEST COMPLIMENT WE CAN GET IS WHEN YOU GET TO THE CLOSING AND THE BUYER SAYS: “WOW — THAT WAS EASY.”

“Then they sent their client to me to

Kathleen adds: “The best compliment

write the loan, I had to tell them it was

we can get is when you get to the closing

totally unrealistic. But they made the offer

and the buyer says: “Wow — that was

before we got involved. So, I had to go back

easy.” The buyer was blissfully unaware

to the seller and ask for an extension. Right

of the machinations we went through.

away, the whole good faith of the transac-

The buyer missed all that.” But we were

tion blew up. We had all this drama because

here, and we took care of it. The team

where the client can get caught in the weeds.

the buyers didn’t get the experts involved

did its job. Here are the keys to your

There are too many people who are trying to

from the beginning.”

new home.” ✹

ISTOCK

do this part time. It doesn’t work that way.”

Bill chimes in: “When a client works

Kathleen recalled some part time real es-

with a team, you have a greater chance of

tate agents who make offers that appear to be

avoiding issues like that. When you have

In our next installment of the

advantageous, then claim that they can close

people who work well together, you can

Real Estate Triumvirate, Bill, Kathleen

in two weeks and get a mortgage contingency

create a much more seamless transaction

and Vin examine the shaky advice

in a week.

and keep everything moving forward.”

promoted on television. Stay tuned!

31

AUM/Boston Q3 2019

thoughts “Always Delivering” A Retiring Institutional Salesperson’s Look Back —

BY JOHN LEFFEL, L ATE OF RAYMOND JAMES, BOSTON

back and look ahead. We think you’ll

CRASHING: FROM BICYCLE DELIVERY TO TICKER TAPE DELIVERY

appreciate his story.

It was news to me that San Francisco in the summer

AUM/Boston’s newest Contributor is a very recent retiree. We asked him to look

I PEDALED MY WAY FROM BICYCLE MESSENGER TO WALL STREET

is foggy. One day, in self-defense, I dodged a car and my front tire slipped into a cable car track. Head over heels I went. My dispatcher radioed me to say “Forget

John Leffel

I had plenty of jobs as a

RETIRED

boy: delivering newspapers,

the lobby of the office on Montgomery Street. The

RAYMOND JAMES COHASSET, MA

mowing lawns and painting

package was whisked from my hands and a fleet of

houses. All the usual stuff. My original plan for

Brooks Brothers suits flowed behind it. As soon as the

that first summer before my Junior year at Hobart

package disappeared into the conference room, the

College was to find something different, maybe the

Office Manager asked if I would like a few bandages.

restaurant business — any work — to save a few

Unbeknownst to me, I was a bit banged up. That Office

bucks for college

Manager was my gateway to Wall Street.

Originally from Corning, NY, John has worked in San Francisco, Atlanta, New York, St. Pete and Boston over his 36 years in Financial Services. Cycling and skiing are two favorite pastimes but he’s currently working on his golf game (no handicap disclosed) and giving archery a shot. John is the father of two grown children.

He and his wife, Whit, an accomplished artist, reside in Cohasset, Mass.

But, something much more exciting — thrilling

the ruined bike, get the package to the stockbroker on foot … NOW!” There were a dozen well-tailored executives in

As we made light conversation by the First Aid kit,

even — came while spending that summer in San

I told her that I was a college student, using the job to

Francisco with family friends. I always loved biking

investigate workplaces. As it turned out, they had an

in my hometown but that was no preparation for the

opening for a ticker tape delivery person. She said if I

messengers I saw fearlessly sweeping through traffic

came back the next day in a button-down shirt, I could

and over the cable cars tracks... and I decided to look

interview for it. I went one better and showed up in a

into this fast and furious business of bicycle delivery. It

blazer and got the job. My first indoor job!

is a risky business and doesn’t even pay as well as being

The job doesn’t exist today, but it was one of the

a busboy, but it offered the bonus of getting me into the

most vitally important form of communication back

even faster-paced world of business.

then. I tore off messages from the non-stop printing

The great satisfaction of the delivery service is

machine, put them into the delivery piles and every fif-

handing a package to a person who really wants

teen minutes ran the seven flights of the office building.

it. In those days, architects, lawyers, accountants,

I got to see everyone. Got to know a few pretty well.

medical lab techs, consultants and stockbrokers eagerly awaited the packages I was delivering.

As I said, delivering something that people need and want is a very rewarding job. A true career lesson for

That was just as rewarding as successfully (read:

me. After graduating from college, they hired

not crashing) weaving through the streets of San

me again to a clerical position. Definitely a

Francisco.

And, it was a great way to compare different workplace environments. Rewarding and valuable, especially as I was considering a wide range of careers post-college. Here’s what I saw:

notch above the ticker tape delivery, but still delivering … although, this time anything my boss wanted.

Two years and two promotions later, I went to get an MBA at Cornell then got into the tough arena of Wall Street

■ law offices were too much like the Library,

MBA recruiting, delivering candidates

■ medical facilities were in panic mode,

to hiring managers. 36 years later and

■ architects and developers were very quietly focused.

I’ve just retired from Raymond James where I was delivering results for my

were busy — frantic even, and had this outgoing and welcoming vibe, even for me, the lowly bicycle messenger.

32

AUM/Boston Q3 2019

institutional clients, proving that in any industry, you have to deliver the goods.

I was fortunate to do that from Day One. ✹

ISTOCK

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agenda

» Mark your calendars for these upcoming events, seminars, and conferences

Financial Services Institute FSI Forum & Capitol Hill Day When: September 9–11 Where: Washington, D.C.

This unique event brings together independent financial advisors and firm executives to learn more about the legislative and regulatory issues facing the industry. At FSI Forum & Capitol Hill Day you will be brought up to speed on the latest coming from Washington, D.C. and the states.

Sessions will provide overviews of the current political and regulatory landscape, deep dives into the top issues such as Regulation Best Interest and Rulemaking by Enforcement, training on how to be an effective grassroots advocate and much more! Whether this is your first time or you’re Capitol Hill Day veteran, by the end of the sessions you’ll be thoroughly prepared to spend the day on the Hill advocating for your business and your clients’ access to your professional advice. » s4.goeshow.com/fsi/forum/2019/ index.cfm

Private Investor Summit When: September 24 Where: New York, NY Cost: $485 for Non-Members

Family offices are constantly in pursuit of excellent direct investment opportunities and our annual Family Office Private Investor Summit is the only conference that brings together family investors with off-market deal flow. For one day only, family offices, dealmakers, and private businesses will connect for one singular pursuit: to get a deal done. Attendees will also enjoy insightful presentations and

34

AUM/Boston Q3 2019

panel discussions chock-full of realworld direct investing insights from family office investors.

The Boston Cup

When: September 29 Where: Boston Common

» familyoffices.com/newyork

Back2Y Conference When: September 26 Where: Birmingham, UK Cost: £397 / $497

The Back2Y conference — which is shorthand for getting “Back To WHY” — is an event in the UK created by Paul Armson, a financial planner who pioneered what he calls “lifestyle financial planning.” It is roughly akin to the “Life Planning” movement here in the US. The focus is not on financial services products, or just financial advice for advice’s sake, but specifically on doing financial planning to help clients fit their money to the end lifestyle they want to achieve that will be most personally meaningful for them (or as Armson puts it, “financial planning with the end in mind”).

From a practical perspective, the significance of this financial planning approach is that it is very much not focused around insurance and investment products. It is instead a fee-forservice model of delivering financial planning for advice fees, with a heavy focus on doing cash flow planning with clients to help them truly align their personal values and priorities with where their dollars are actually going.

The Back2Y conference itself has no sponsored sessions, and no exhibitors at all. Instead it is — like fee-only financial planning itself — a fee-only conference focused entirely on the advisors it serves. » back2y.co.uk/the-conference

The Boston Cup is now in its 8th year and considered to be in the top five Classic Car Shows in the country and is the only car show of its caliber in the Northeast.

With over 30,000 people in attendance and a 1,000 VIP’s, The Boston Cup continues to draw and delight car enthusiasts from all over New England and beyond.

Presented by Herb Chambers » thebostoncup.com

21st Annual Women’s Breakfast: Changing Lives Before Lunch — Horizons For Homeless Children When: October 17 Where: Westin Copley Place Cost: General Admission: $150

Horizons’ Annual Women’s Breakfast offers a powerful morning of inspirational stories and presentations, and opportunities to network. The guest speaker is Tara Westover, author of the #1 New York Times bestseller, Educated.

Born to Mormon survivalist parents opposed to public education, Tara never attended school. Tara ultimately made the decision to seek a formal education and experience the world outside of her community Her story recounts the struggle for survival and self-invention. It is a story

TO STAY ON TOP OF WHAT’S COMING UP, OR TO ADD YOUR OWN EVENT TARGETING AUM PROFESSIONALS IN GREATER BOSTON AND NEW ENGLAND, PLEASE GO TO AUMBOSTON.COM/AUM-AGENDA/ OR SCAN THE QR CODE AT RIGHT.

that gets to the heart of what education is and what it offers: the perspective to see one’s Tara life through new Westover eyes, and the will to change it. You won’t want to miss her tell it in person. Co-Chairs: Michelle Hicks of GMO, Inc. and Daniele Serafini of Adage Capital Management » horizonschildren.org/news-andevents/wb

Schwab IMPACT

NICK PEDINI (AUM/INSIDER PHOTOS)

When: November 4-7 Where: San Diego

IMPACT 2019 is the RIA industry’s premier event where thousands of advisors, experts, and solution providers come together to find the best strategies for continuing to elevate client service and firm success.

The typical attendance of 5,000 advisors, fund managers, FinTech’s and COIs enjoy it all, oh and the opportunity to network and learn.

On the agenda are perspectives on the future of advisors, the markets they serve and how to serve them, and the global and economic big picture. Every session, presentation, and venue is designed to encourage lively discussion of the subjects that are most essential to continued RIA firm success. And, most sessions qualify for CE credits. » impact.schwab.com

AUM/INSIDER

AUM/Boston hosted a reception for 40 AUM and COI thought leaders last month at the Workstation in Cohasset.

Guests were treated to cocktails by Liberty Tree Distillers, and wine and craft beer from Kappy’s and Life on the Rocks as they made new connections and renewed old ones.

Additional sponsors were Cabot Business Brokers, Buckley Financial, Multi-Funds and Sarson Funds.

To find out about future AUM/Boston events, contact rich@aumboston.com or check our website aumboston.com

35

AUM/Boston Q3 2019

GOOD CITIZENS

Being a Good Citizen is an important role in today’s society, and Greater Boston’s wealth and fund managers do more than their fair share of filling it. They have more than big balance sheets, they have big hearts, too. AUM/Boston celebrates the many ways their influence is felt throughout New England and across the country.

EVERYBODY in the WATER

HOW TWO COHASSET ENTREPRENEURS ARE CHANGING THE WORLD

BY ROBERT BESSEL, EDITORIAL DIRECTOR

,everybodywater.com A MISSION ON EVERY PACKAGE

There’s no doubt what Everybody Water is all about — it’s written right on the package: Refresh yourself with water in a carton that supports clean water projects for people who don’t have access On the website, Kimberly and Megan explain: “We started out as mothers, neighbors and entrepreneurs who had a vision to make a difference in the world.”

“We saw an opportunity to engage people to help fund permanent solutions for clean water projects that have an enormous impact on peoples’ lives, especially women and girls.”

WHAT’S THE VALUE of an overthe-backyard-fence conversation

ANATOMY OF A CARTON

with a neighbor? For Kimberly Reilly and Megan Hayes, a neighborly conversation started a business that is saving lives.

The business, Everybody Water,

Paper in this paperboard is a renewable resource sourced from responsibly managed forests*

Bio-based cap sourced from sugarcane

has a goal unlike most: they raise awareness and funding for clean water projects around the globe by selling water.

For those of us who pour clean water simply by turning a faucet,

100% recyclable

a company like Everybody Water might seem unnecessary. But to the 200 million women and children who lug 40 lb. jugs of water from unsanitary streams to their homes

* Paperboard made from mainly renewable resources sourced from responsibly managed forests by the Forest Stewardship Council®

every day, it is everything.

“People who lack access to clean

toilets into the home, these people

just for themselves but for their

water in their homes spend five to

then have the resource of time

children as well.

seven hours daily collecting and

to take the first step in breaking

They explored the concept for

carrying,” said Megan. “Women

the cycle of poverty, disease and

a year, learning about everything

and girls do the work, which

childhood death.”

from packaging to licensing to

prevents them from attending

Successful business people and

sustainability in the clean water

school or taking a job. Worse yet,

mothers, Megan and Kimberly felt

projects they support. They didn’t

the water they collect is unsanitary,

it was important to give back —

want people to just give money.

“We chose to put it in a carton because it’s the right thing to do.“

resulting in diseases that sicken

especially in an area that has such

They wanted to connect donors to

and kill millions of mostly children

a huge impact on women and girls.

the projects so they could see the

under five years old each year. If we

They gave up their professional

impact, get their neighbors excited

“We gave up our careers and invested our savings getting Everybody Water off the ground.”

can bring clean water and sanitary

careers to gain meaning, not

and grow the network of supporters.

“We travel to see the projects we fund. We meet the children and families whose lives are changed with clean water. We hope our passion inspires others to be part of the story.”

DIRTY WATER TRAPS PEOPLE IN A CYCLE OF POVERTY ■ The world’s poor spend $30 billion a year treating water and sanitation-related illnesses —

an astoundingly high percentage of their household income — caused by lack of clean water and toilets.

■ Millions of women and girls around the world devote hours each day simply to the task of carrying

water to their homes. Because the water is dirty, the same women and girls spend their time caring for the ill in their households. They may also lack the strength to work themselves because of injury or illness.

■ In urban squatter settlements, the poor are forced to buy water at very expensive rates from

illegal connections.

Everybody Water is a Contributing Partner and financial supporter of AUM/Boston and AUM/Thought Leaders LLC – See full disclosure on page 3

36

AUM/Boston Q3 2019

Good neighbors, Kimberly and Megan, gives new meaning to the axiom from Robert Frost’s poem, “Mending Wall’, “good fences make good neighbors.”

Everybody Water partnered with Water1st International

In September 2017, Kimberly

because of their success in

and Megan took the fateful

providing permanent solutions

step of renting space at The

to people’s water and sanitation

Workstation in Cohasset. Their

needs. It is believed that nearly

neighbor, Rich Ofsthun — the

half of water projects by other

founder of AUM/Boston —

organizations fail within three

watched them work through the

years of the ribbon-cutting

numbers, beverage distribution,

ceremony, but with Water1st

packaging, marketing, FDA

International the 100% success

testing and permitting.

rate of almost 3,000 projects is

“I never knew that water could

unprecedented. They work with

be so complicated!” said Rich.

local people, monitor over years,

“It’s extreme!”

and learn from their projects to

Megan replied, “It was really

improve their outcomes. They

good that we didn’t know

bring not only clean water to a

anything about this going in!”

business. For one thing, it’s not a

ACCESS TO WATER IS THE VERY FIRST THING THAT HOLDS WOMEN AND GIRLS BACK AROUND THE WORLD

business in the traditional sense.

“Our goal was never to start a beverage company,” Kimberly said. “Our goal is to have a social impact.”

No wonder the dynamic duo wanted to bring filmmakers to the project locations so people can see how important this work is. Kimberly and Megan actually traveled to Honduras last March and Bangladesh to video the effect of the water projects they’re funding.

“It’s very motivating to see the positive effect firsthand,” said

But that’s part of the magic

Megan. “Women are working and

in-home, piped systems that

of Everybody Water. Megan and

driving. Girls are going to school.

impact women and girls by giving

Kim probed differently, asked

There really is a difference. It

them the resource of time. That’s

different questions, looked

can’t happen fast enough.”

the kind of quality and standards

for different ways to run their

community but also, specifically RICH OFSTHUN

that Everybody Water supports.

CONTINUED

»

37

AUM/Boston Q3 2019

■ GOOD CITIZENS Megan has known the problems of water since she was very small. She grew up in Thailand, then moved to Egypt where she learned of the problem she would eventually begin to solve with Kimberly and Everybody Water. She met people who are beaten down by the hours they spend walking to get water.

“Their heads are down,” said Megan. “They literally can’t do anything else. Access to water is the one thing holding girls back around the world.”

In vivid contrast to the extreme poverty they witness, Kimberly and Megan are using their access to Greater Boston resources to make change. They have tapped into the smart packaging industry to reduce their carbon footprint. By shipping their carton packaging materials in rolls instead of pre-made containers,

to promote the cause. And,

they can ship 26 truckloads of

they have designs on getting

material on just one truck.

Everybody Water into the offices

Instead of selling in grocery

of financial advisors and impact

Megan and Kimberly on site in Bangladesh. “Our goal was never to start a beverage company. Our goal is to have a social impact.”

in our lane, stay authentic and understandable,” says Megan.

“People today care about what they’re buying. They want to be

stores, Everybody Water distributes

investments. Says Kimberly, “it

through takeout restaurants, fitness

makes sense for companies to

locations, offices, schools, hotels,

align themselves with a water that

caterers and private transportation

has meaning behind it. Everybody

to change the world, we need a lot

and jet services. In addition,

and every company can be part

of people to believe that we are

they are tapping eCommerce to

of this ripple effect and together

changing the world, and with their

generate recurring sales through

we can make amazing change

help, we can change even more.”

subscriptions.

happen.”

Corporate sponsors, like

There’s a lot to be said for

Lululemon, Harpoon, J. Crew

a dominant position. “The only

and Eileen Fisher buy the water

way to make a dent is to stay

THE GLOBAL WATER CRISIS IMPACTS CHILDREN

The facts about water are grim — 2.5 billion people worldwide do not have access to clean water and a simple toilet. Five million people, mostly children under the age of 5, die from water-related illnesses each year.

Surviving diarrhea is the greatest single challenge for our world’s children.

Diarrhea is the leading cause of death of children in countries with high child mortality rates. Over 90% of diarrheal death is caused by unsafe water, poor sanitation and insufficient hygiene.

Children weakened by frequent diarrheal illnesses are malnourished and vulnerable to other infections, like pneumonia, leaving them physically and mentally underdeveloped.

involved with their brands, and believe in them. That’s really important here, because if we want

Together they are changing lives. ✹

Get Involved and Invested!

Everybody Water had a low key launch in January, 2019, but that didn’t stop people from reaching out to Kimberly and Megan.

“We have people from all over looking to partner with us,” said Megan. “Festivals want Everybody Water to be their official water. Companies want to put our water in their meeting rooms and conferences.

Caterers want to offer Everybody Water at events. We welcome all of it.”

And, they want to expand their influence. Investors are welcome to join their cause and help to support expansion.

To find out how your organization can make a difference, visit everybodywater.com

38

AUM/Boston Q3 2019

■ EENNDDUUSSEERRSS

$

FINDING A NEW BALANCE TURNING AN UPSIDE DOWN WORLD BACK UP AFTER DIVORCE

BY ROBERT BESSEL

IS THERE ANYTHING WORSE than hearing

visor can break through the pain, Prescott

to us, many of them feel self-conscious

the words: “I want a divorce?”

answered, “You don’t. At this crucial point

about the state of their affairs. We see

in a client’s life, our job is to listen.”

high-powered professionals who stepped

With just four words, the listener’s world can flip upside down, creating a new

Prescott and Toni Grimm, director of financial planning at Sandy Cove, have years

family, and suddenly they are anxious and

for women. Despite many advances in the

of experience working with clients at this

overwhelmed. We often hear: “I ran the

workplace for women, the new normal com-

vulnerable time in their lives. The entire

household; he ran the money.” Sometimes

pletely changes the dynamics of a meeting

Sandy Cove team has become experts at

they’re completely paralyzed. It’s a very

with one’s financial advisor. Even successful

supporting and empowering their clients

vulnerable time in their lives.

business women find themselves lost at sea

through a divorce.

A woman’s identity is often her home, her husband and her children. They’re her

when facing the prospect of divorce.

WHAT ARE SOME OF THE OBSTACLES YOU

safe place. When it’s turned upside down,

situation are overwhelmed,” says Deirdre

FACE WITH CLIENTS WHO ARE HEADING

many women are thrown completely off

Prescott, founder and owner of Sandy Cove

TOWARD DIVORCE?

balance. They want to know if they can

Advisors. When asked how a financial ad-

Deirdre: When these clients first come

“Many women who come to us in this ISTOCK

back from successful careers to raise a

“normal” that’s anything but, especially

Sandy Cove is a Contributing Partner and financial supporter of AUM/Boston and AUM/Thought Leaders LLC – See full disclosure on page 3

CONTINUED

»

39

AUM/Boston Q3 2019

■ END USERS keep the house they’re living in. They worry about making changes in their children’s lives.

Toni: The environment we have created and the respect we give our clients allows them to confidently open up to us. We don’t talk about the tools or the process. We simply use tools to bring the process to life and to clarify their financial situations. The most important thing for our clients is to know they can pick up the phone or come to the office anytime. We are here for them.

WHAT RECOMMENDATIONS DO YOU MAKE? Deirdre: We recommend that a client surround herself or himself with smart, empathetic people. We are experts in financial advice and estate planning, but most of all, in establishing solid relationships with our clients. Nothing happens without trust. If we’re working with a couple to build a long term financial plan or if we’re advising a client through the ups and downs of

REDUCING THE COST OF DIVORCE

Clients facing divorce often believe their first step is hiring the right attorney.

In our experience, a mediator can be quite effective when the couple agree on the majority of the terms.

Deirdre recalled one case where the husband and wife spent one million dollars each on attorney’s fees — an extreme case, but one that begs the question: why spend that kind of money when the two parties can work out their differences with a mediator? Many attorneys also serve as mediators and are happy to get both parties to an equitable solution without sky high litigation costs.

divorce, we first construct a tent of trust.

Otherwise, we cannot help the client make their all-important fork-in-the-road

IN LIGHT OF YOUR EXPERIENCE WITH DIVORCE,

of 30 years. We presented different scenari-

decisions.

HOW DO YOU WORK WITH COUPLES?

os to both he and his wife. Five months into

Toni: Our first client meetings never focus

the process, he told us: “My wife really likes

ness to other experts: estate planners,

on capabilities. We ask our clients what

working with you.” So, we severed our rela-

CPAs, real estate brokers and attorneys. As

keeps them up at night; then we listen to

tionship with him and started working with

a prerequisite of working with us, however,

the entire answer. We don’t cut them off

her. In the end, they both were happy with

our partners must meet our standards of

or use complex financial jargon. We have

the settlement, and he was thrilled that she

competence, empathy and respect.

long conversations about kids, family

would be working with a trusted advisor

values, selling a business, estate planning

going forward.

HOW DID SANDY COVE DEVELOP ITS ABILITY

and more. They are made to feel secure and

TO HELP CLIENTS REBUILD THEIR LIVES?

comfortable knowing we will be there for

IS IT TRUE THAT WOMEN HAVE A GREATER

Toni: It wasn’t intentional. We just recog-

whatever they are going through.

TENDENCY TO REFER NEW CLIENTS THAN MEN?

nized that most clients in crisis have trouble

We might follow-up with an estate plan-

Deirdre: It’s definitely the case. We do get

believing that things can get better. We’re

ning questionnaire, an article about chari-

referrals from men, but women ask each

patient. We listen. And we show them that

table giving or other subjects that the client

other for help all the time, so it comes

over time, things do get better. We show

identified as interesting to them. From their

more naturally to them. We are active

them that they are making progress, and

reaction to these materials, we know pretty

and well known in our community. Our

after a while, they begin to see it for them-

quickly if they want to come our way.

varied experience, especially managing

selves. We see a number of our clients two

Deirdre: A more unusual case was an in-

finances in divorce, and surviving spouse

and three years out and they have made great

dividual who asked us to help him through

situations, leads to many introductions.

strides in putting their lives back together.

the financials involved in divorcing his wife

A SURPRISING DISCOVERY … AND FOOD FOR THOUGHT When asked, out of curiosity, how many of your married clients who come in together to review their finances and portfolio have gotten divorced, Deirdre and Toni looked at each other and to their surprise, came up with this answer: “None.”

40

AUM/Boston Q3 2019

Our clients are our biggest advocates. ✹

Deirdre Prescott

Toni Grimm

ISTOCK (TOP)

Of course, we refer quite a bit of busi-

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