FOR BROKER/DEALER USE ONLY | NOT FOR USE WITH THE PUBLIC
3
From the Chairman & CEO: What We’ve Learned, Post-Covid
Marketing: Upcoming Conferences and New Developments
8 Helpful Hints: The DOL Fiduciary Rule and PTE 2020-02
6
Navigating Technology: Securing Email: The Changing Landscape
12
15 Accounting: Are A-B Trusts Making a Comeback?
Alternative Investments: Commercial Real Estate Lives on, Despite the Challenges of 2023
18
21 Market Review: Here We Go, Leaping Into 2024
2023 Leaders Conference: Welcome to Kauai!
• Upcoming Conferences 9
• Faces of Centaurus 11
• In Memoriam 47
• Shining Stars 48
• Home Office Directory 50
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From the Chairman & CEO | Ron
What we’ve learned, post-Covid
Last month, I came upon an article in the in the Wall Street Journal’s Opinion section titled “Covid Lessons Learned, Four Years Later,” which was so compelling, I felt I had to share it with you. Written by Dr. Scott W. Atlas, a senior fellow at Stanford’s Hoover Institution, and Steve H. Hanke, a professor of applied economics at John Hopkins University, it outlines the stark reality, four years later, of the results of “unprecedented lockdowns, school closings and other sweeping measures to mitigate Covid-19.”
Much of the information associated with this subject always seems to be politically charged, but I felt, when I read this, that it took an honest approach to the facts, and the conclusions were drawn on those facts.
My fervent hope is that we all learned that if, unfortunately, this situation ever occurs again, we must be much better prepared. As Winston Churchill said in a 1948 speech to the British House of Commons, “Those that fail to learn from history are doomed to repeat it.”
Due to our agreement with Dow Jones & Co., owner of TheWall Street Journal, we cannot reprint the article in The Centaur, but we are allowed to email it to you. Look for an email following your receipt of this newsletter containing a pdf of the article in its entirety.
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Distribution Rate1 Distributions Paid Quarterly 11.0%
1 The Fund accrues distributions daily. The current annualized distribution rate is calculated by annualizing the daily accrual rate of the Fund as of October 1, 2023. The Fund’s distribution policy is to make quarterly distributions to its shareholders, but the amount of such distributions is not fixed. There is no assurance that the Fund will continue to declare distributions or that they will continue at the current rate. All or a portion of the distributions may consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily CLO junior debt and equity tranches. Shareholders should not assume that the source of a distribution from the Fund is net profit. The final determination of the source and tax characteristics of all distributions will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares.
2 Portfolio statistics calculated using quarter-end CLO holdings with underlying loan holdings data received as of the previous month. Calculations are based on CLOs that publicly report loan information; some collateral managers may not report holdings. Source: Bloomberg.
| Wes King
Upcoming Conferences, New Developments
BDD
Quantum Leap Workshop | April 24-26, 2024
In just a few short weeks, Centaurus will host many of you at our annual BDD Quantum Leap Workshop in San Diego, California. This year we maxed out our attendance with 140 advisors and some sales and service assistants.
We’re excited about the agenda, which dedicates the first day to technology solutions designed to help you
run your business to maximize production. Thursday and Friday are highlighted by our keynote speakers and presentations from many of Centaurus’s very own Top Producers and Branch Managers – your peers –who will discuss (and teach) how they prospect, run their businesses efficiently and use timely sales ideas to grow revenues. The workshop also features a multitude of NEW presentations and topics designed to take your business to the next level.
For those of you who were not able to make it this year, I would encourage you make a note on your calendars for 2025. Typically, we schedule the conference between March and May, so stay tuned for the dates.
I would also like to announce that we are in the process of rebuilding our library of business-building presentations which has, to date, been known as “Brainstorm.” Brainstorm was originally built on a bulletin board system (BBS), because we envisioned the capability of accessing the presentations and being able to post questions regarding the content. As I’m sure you are aware, the pace of technology has left this format behind. However, we have plans in the works to launch a more user-friendly interface to access our library, including the upcoming presentations from the April workshop. One improvement will be a passwordprotected (“for broker/dealer use only”) YouTube
channel dedicated to this content. So, if you missed the meeting or want to refresh your memory, we believe these improvements will prove useful.
2024 Centaurus National Sales Conference | June 17-21, 2024
While our BDD Workshop is unique because of its focus on practice management, our National Conference is unique because it is our biggest of the year. Our National Conference presents you with the opportunity to bone up on all the best investments available to your clients. Each year, we are able to bring together over 50 of the top investment providers in the U.S. You can take advantage of networking not only with them, but also with your peers. This year we are expecting 230-plus reps at the conference.
For 2024, we will continue our tradition of visiting
“America’s Iconic Hotels” when we visit the original getaway for the rich and famous of Los Angeles, The Langham Huntington. The Langham was built in 1906 and is nestled in the heart of charming Pasadena. The resort covers 23 acres of lush gardens, historic ballrooms and spacious guest rooms, with the San Gabriel Mountains as a majestic backdrop.
The Langham Huntington is close to top dining, shopping, sports venues and cultural attractions. Pasadena is famous for the Rose Bowl and nearby Santa Anita Park race track, but no visit to the city would be complete without enjoying The Huntington Library, Art Museum, and Botanical Gardens. The Huntington’s botanical gardens cover 130 acres featuring 16 spectacular themed gardens including the Rose Garden, the Camellia Garden and the historic Japanese Garden. Pasadena is also home to the Norton Simon Museum, with its notable private collection of paintings by Van Gogh, Renoir, Picasso and Cezanne, among others. If you are a fan of the famous bronze sculptures of Auguste Rodin, the museum is home to original casts of The Burghers of Calais and The Thinker. (Rodin’s original casts are limited to 12, worldwide, for each sculpture.)
If you choose to extend your stay and venture beyond Pasadena, the many neighborhoods of Los Angeles offer popular tourist attractions, some hidden gems,
the Pacific Coast and excellent cuisine. The Santa Monica Bay stretches from Point Dume in the north to the Palos Verdes Peninsula in the south and encompasses the beautiful beaches of Malibu, Santa Monica, Manhattan, Redondo and Hermosa. It also includes Venice Beach, which is in its own eclectic category. (If you visit Venice, don’t miss the canals originally created in 1905 by famous developer Abbott Kinney.) Baseball fans may want to visit Dodger Stadium to see MLB All-Stars Mookie Betts, Shohei Ohtani and Freddie Freeman. (The Dodgers are in town June 14-16 and June 21-22, the weekends before and after the conference.) Foodies have a myriad of options, including several high-end establishments that have earned Michelin stars, and over 50 Michelin “Bib Gourmand” restaurants, noted for great food and friendly service at reasonable prices.
So, keep an eye out for your National Sales Conference invitation and register to join us in Pasadena, California.
We look forward to seeing you soon.
President
The Langham Huntington
The DOL Fiduciary Rule and PTE 2020-02
The Employee Retirement Income Security Act of 1974 (“ERISA”) prohibits investment advice “fiduciaries” from receiving retirement advice compensation that either varies or is generated from third parties. In general, this prevents those who are defined as fiduciaries under the rule from receiving compensation related to many retirement recommendations.
The definition of fiduciary under ERISA is key. In 1975, the U.S. Department of Labor (“DOL”) clarified who is considered a fiduciary under ERISA by creating a five-part test. Keep in mind, however, that the retirement landscape at the time was much different than it is today. IRAs had just been created, and 401K plans did not exist. As the existing fiduciary definition continues to age, many of today’s retirement recommendations are viewed by most industry participants as not subject to ERISA.
Separately, the DOL created several Prohibited Transaction Exemptions (“PTE”) that allow those considered as fiduciaries under ERISA to provide retirement recommendations for reasonable compensation. In 2020, the DOL created PTE 2020-02, which consolidated many of these exemptions into one. More importantly, the DOL included an interpretation in the preamble of the PTE confirming that rollover recommendations do in fact rise to the level of fiduciary advice. This caused many financial services firms, including Centaurus Financial, Inc. (“CFI”), to begin operating under this exemption.
It is important to note that the DOL’s guidance related to the above rollover interpretation, specifically PTE 2020-02 FAQ #7, was recently struck down by a judge from the U.S. District Court for the Middle District of Florida. Although the DOL appears to have dropped its appeal of this decision, it did not remove the guidance from the FAQ. It simply added a footnote related to the court’s opinion. It is also important to note that the court did not vacate any of the language in the 2020-02 preamble itself, which contained this same guidance. Due to industry uncertainty of this
topic, and the fact that the court’s opinion will likely become moot in the coming weeks or months with the DOL’s new fiduciary rule, CFI continues to operate under PTE 2020-02 for protection under ERISA’s prohibited transaction rules.
As a CFI representative conducting business under PTE 2020-02, you are indeed acting as a fiduciary under ERISA when providing retirement advice. The PTE requires you to disclose this fiduciary status in writing, via model language prescribed by the DOL, prior to making retirement recommendations. You satisfy this specific disclosure obligation, and other disclosure obligations required by the PTE, when you provide CFI’s Form CRS, CFI’s Regulation Best Interest disclosure document and/or CFI’s ADV Part 2A to clients. The fiduciary status model language specifically is also re-disclosed to your clients when CFI mails its Annual Disclosures Document.
The PTE also requires you to act in your client’s best interest and follow stringent impartial conduct standards. These standards all but mirror the standards already required of you under Regulation Best Interest and the Investment Advisers Act of 1940. This, of course, is by design.
Lastly, the PTE requires you to document your specific reasons for making rollover recommendations and provide such to clients. CFI’s required Rollover/ Transfer form helps you to comply with this. Please never discount the importance of this form.
“Will the new proposed Fiduciary Rule and amendment to PTE 2020-02 affect me or my business if such are approved?”
In short, not really.
In October 2023, the DOL proposed a new regulation, “Retirement Security Rule: Definition of an Investment Advice Fiduciary.” If enacted, the rule would specifically update the aforementioned 1975
Upcoming Centaurus Conferences
Quantum Leap Workshop
San Diego, California
April 24-26, 2024
San Diego Mission Bay Resort
Wealth Management Conference
Indian Wells, California
September 18-20
Hyatt Regency Indian Wells Resort & Spa
<<
definition. The new definition would make it clear that most retirement recommendations do in fact rise to the level of fiduciary advice and thus are subject to ERISA. As you are already classified as fiduciary under ERISA when providing retirement advice (via PTE 2020-02), the new rule, if approved as written, should not affect you. The rule is currently with the Office of Management and Budget for review and approval. Approval is expected.
Also in October 2023, the DOL proposed an amendment to PTE 2020-02. Your core obligations under the exception would remain unchanged. That said, we do anticipate some disclosure language changes in existing documents and an update to the
National Sales Conference
Pasadena, California
June 17-21, 2024
Langham Huntington, Pasadena
Leaders Conference
Miami, Florida
January 6-11 (12 for Club 16)
Trump National Doral Miami
CFI Rollover/Transfer form should the amendment be approved. We will keep you informed of any changes. The amendment is currently with the Office of Management and Budget for review and approval. Approval is expected.
We hope you have found this information useful. If you have any questions or require additional information, please do not hesitate to contact me directly at 714-456-1790, Ext. 269 or email asimon@cfiemail.com.
VP, East Coast Operations Manager
Consumers say that retirement income planning is their top priority when seeking advice from a financial advisor. Even further, 3 out of 10 chose “understanding how much can I safely spend in retirement” as the top service they seek from advisors.¹
Faces of Centaurus
Please welcome to the Home Office ...
Corey Barnes IT Support Technician
Deanne Bramers Administrative Assistant/ Order Processing Associate
Veronica Lopez Legal Assistant
The Home Office enjoyed sliders from Mo Bites on January 3rd courtesy of Rick Mantei and Cola Wealth Advisors.
Madison Frerking Order Processing Associate
Anny Phan Liv Marketing Assistant
Pictured, left to right: Justine Reis, Jerry Duhovic and Angela Meinhart.
NAVIGATING TECHNOLOGY | Gordon Huber
Securing Email: The Changing Landscape
Securing e-mail has been talked about continuously for several decades now.
We have all been advised to use secure passwords and have proper anti-virus & anti-malware installed on all of our devices to assist in securing our email accounts. This helps to secure our information, but how we respond to phishing attacks and spoofed emails has plagued the email industry for the last several years.
The human factor is the weak link in the security of email and identifying phishing attacks and SPAM.
We are getting better as email users, but the bad actors who are trying to steal information and identities are getting better, too. They are even using AI to assist in their malicious attacks.
Major email vendors, including our own email vendor, Silversky, are upping their game on email security to assist in allowing fewer suspect emails through their incoming mail systems.
ADDED SECURITY VIA DNS FILE SETTINGS ON EMAIL SENDER DOMAINS (Centaurus-hosted domains)
In January 2023, Google started requiring email domains to have what is called an SPF file to be entered
as a DNS text record for all senders to an @gmail.com email address. The SPF file/setting is a basic method all email servers use to verify that the sender of the email message is legitimate. If you are getting email returned to you as undeliverable or delayed delivery, contact us immediately so we can assist you in activating these newly required settings.
An SPF record identifies the mail servers, email domains and IP addresses that are allowed to send email on behalf of your domain. Receiving servers check your SPF record to verify that incoming messages that appear to be from your organization are sent from servers allowed by you.
While this helped reduce the volume of spoofed email, it did not eliminate the problem. The bad actors continued to enhance the sophistication of their systems, too, and the problem started to get worse again.
Starting in February 2024, three major email providers – Microsoft, Gmail and Yahoo – and unknown others started requiring two additional settings in a domain’s DNS to be present so they can better validate if an email is being delivered from the indicated email domain. These two additional records are DKIM, an encryption key, and DMARC, an instruction file telling the receiving email server how to handle each email message. These handling instructions include delivering the message, sending the email to quarantine or rejecting the email based on whether it matched the information in the SPF and/or DKIM records.
Many email providers now require all three of these entries in your domain’s DNS:
1. SPF Record
2. DKIM Record
3. DMARC record
Last year we assisted advisors with adding the SPF record to their domains’ DNSs, but now we need to work with each of you to Provide the DKIM encrypted Key (unique to each domain) and the recommended DMARC setting.
Important: DMARC can affect email marketing campaigns from services like Constant Contact, Mail Chimp and others. Please contact the Centaurus IT Department immediately before your next campaign is sent out!
Please contact the Centaurus IT department to assist you with adding DKIM & DMARC entries in your domain’s DNS settings.
For those of you with your own approved Centaurus email domain, as independent representatives, you own your Centaurus-hosted domain, and you maintain the credentials to change the DNS on your domain. That said, with your help and authorization, we can assist you with adding these important DNS records to ensure continued proper email delivery.
ONGOING CYBER SECURITY
Email security will continue to be an ever-changing challenge as bad actors will continue to try to compromise your computers, email accounts and other accounts, including customer accounts, in a multitude of ways.
Please note that breaches commonly originate from actions by people:
• 95% result from human error, something somebody did or did not do
• 85% involve a human element
• 75% start with an email
• 61% involve passwords
• 20% of employees are likely to click phishing links
• 5% will also enter credentials
The entire Centaurus community has increased their cyber security awareness and we received many, many requests to confirm if an incoming email is legitimate. Quite often those emails are from nefarious senders. Thank you for those requests, and please keep asking, as we all need to help to keep our systems safe.
We all need to continue to be diligent and disciplined in our approach to cyber security.
For questions, please contact a member of the Centaurus IT Department at (800) 880-4234.
Chief Technology Officer
Are A-B Trusts Making a Comeback?
A-B trusts are a great way to minimize estate taxes, but A-B trusts are not much utilized today, given the current estate tax exemption of $13.61 million in 2024 ($27.22 million for married couples).
However, this exemption is scheduled to be adjusted down to $5 million per person ($10 million per married couple) on January 1, 2026. It should be noted that the 2026 estate tax exemption will be adjusted for inflation, thus estimated to be $6.08 million per person ($12.16 million for married couples).
Given the decrease of the exemption in 2026, to minimize taxes a married couple can create an A-B trust. An A-B trust is a joint trust created by the married couple. Upon the death of one of the spouses, the trust splits into a survivor portion (the A trust) and a bypass portion (the decedent’s trust, or B trust). Because of the split, the A-B trust effectively minimizes estate taxes and defers them until after the death of the surviving spouse.
It should also be noted that the surviving spouse has
limited control over the decedent’s trust, the B trust. However, with the help of a good trust attorney, the terms of the decedent’s trust can be set to allow the surviving spouse to access the assets and even draw income from them. Effectively, the surviving spouse is not limited to use of the assets in the B trust.
As an example, imagine a married couple who has an estate worth $20 million at the time the first spouse dies. The surviving spouse is left with the whole $20 million, which is not taxed due to the unlimited marital deduction for assets flowing from a deceased spouse to a surviving spouse.
The surviving spouse dies 6 months later, during calendar 2024, leaving the money to the couple’s children. The taxable portion of the estate is $6,390,000, which is the amount of the estate that exceeds the exemption. The taxes paid are $2,556,000 ($6,390,000 x 40% estate taxes). Thus, out of the total $20 million, this would leave $17,444,000 (the exemption plus the residual after estate taxes are calculated) for the children: >>
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The taxes paid are $2,556,000 ($6,390,000 x 40% estate taxes). Thus, out of the total $20 million, this would leave $17,444,000 (the exemption plus the residual after estate taxes are calculated) for the children:
$ 20,000,000.00 Estate Value
$ 13,610,000.00 2024 Exemption
$ 6,390,000.00 Value Exceeding Exemption
$ 2,556,000.00 Taxes at 40%
$ 3,834,000.00 Residual
Now, let’s consider the same simple example assuming the married couple established an A-B trust under their last will and testament. Upon the death of the first spouse, the assets are put into each trust in equal parts. The assets in the A trust will go to the surviving spouse. At the same time, the assets in the B trust will be subject to estate taxes. The surviving spouse will still have access to the income or assets in the B trust, after taxation, if said terms are written within the trust when created. Once the second spouse dies, only the A trust will be subject to taxes.
B Trust
First Spouse Dies:
$ 10,000,000.00 Half of the Assets
$ 13,610,000.00 2024 Exemption
$ None Value Exceeding Exemption
B Trust
First Spouse Dies:
$ 10,000,000.00 Half of the Assets
$ 13,610,000.00 2024 Exemption
$ None Value Exceeding Exemption
Under the first example, where taxes of $2,556,000 are due, it should be noted that “portability” could be elected by the surviving spouse upon the death of the first spouse. This would mean that the entire $20 million would pass tax-free to the beneficiaries, because with portability the combined exemption of both spouses will equate to $27,220,000 million. This removes the need for an A-B trust.
However, portability isn’t automatically available. Portability will require the surviving spouse’s executor to make a portability election on a timely filed estate tax return (Form 706) with the IRS. In addition, a tax CPA specializing in trust tax returns – and, specifically, portability rules – would need to perform the filings, possibly along with the estate attorney. All of this could become quite costly, with the needed valuations performed and additional outside professional services needed. It also requires officially filing with the IRS the name of the estate administrator at the time of the death of the first spouse. So, even though portability acts tax-wise in a similar way to the tax benefits of an A-B trust, other considerations needed with portability could be avoided with an A-B trust.
Remember, the examples used here are simple, while estate structures and asset holdings could be quite complex for some estates. Given the decrease in the exemption to around $6 million beginning in 2026, the A-B trust may make sense for estates valued at $12 million or less that are straightforward, with assets like bank accounts, automobiles, a home or two (with straightforward simple valuations performed), the contents of the home, non-qualified financial assets and qualified financial assets. This would avoid formal IRS filings and hiring of additional professional resources, if not needed.
Commercial Real Estate Lives on, Despite the Challenges of 2023
In the past, this article has covered the effects of falling interest rates and long-term trends favoring certain real estate sectors. Further consideration has been given to the many new types of products coming to market, including perpetual life real estate investment trusts, preferred stock offerings in listed securities, closed-end funds and the rise of interval funds. Investors have spoken with their wallets as the vast majority of our available investments have fallen into the more liquid category of alternatives over the last half decade, and this trend appears to be continuing. However, 2023 will long be remembered as a challenging year for so many sectors of real estate, as interest rates skyrocketed at the fastest clip in modern history, and the underlying trends accentuated by the pandemic continued to play out.
2023 Challenges
In 2023, the real estate market faced the challenge of rising interest rates, influencing various aspects of the industry from investment strategies to property affordability. As central banks around the world responded to inflationary pressures by tightening monetary policy, interest rates began to climb, presenting both opportunities and challenges for participants in the real estate sector.
Rising interest rates also impacted commercial real estate financing. Property developers and investors faced increased borrowing costs, potentially squeezing profit margins and altering project feasibility. Higher financing expenses dampened development plans, including a slowdown in construction activity and a shift toward more conservative investment strategies.
However, rising interest rates also had nuanced effects on some segments of the real estate market. Multifamily properties, for example, faced all of the impact of rising rates for owners, but they may benefit over time from renters who are priced out of the housing market. In times of economic uncertainty,
The negative effects of rising interest rates in 2023 might have some advantages.
rental properties can offer stability for investors seeking steady cash flows, mitigating some of the negative impacts associated with higher borrowing costs.
The Duality of Interest Rates
Moreover, as this column addressed recently, an inherent duality in rising rates plays itself out in the real estate market – rising interest rates, while mostly negative for real estate owners, can signal a strengthening economy, which bodes well in the long run for certain sectors of commercial real estate. Increased spending and business activity may boost demand for retail and office spaces, offsetting some of the negative effects of higher financing costs. Additionally, industrial properties, particularly those tied to e-commerce and logistics, may benefit from heightened economic activity and increased demand for warehouse and distribution space.
But interest rates were not the only story in 2023. In addition to the sudden impact of rising rates, commercial real estate is facing some ongoing challenges tied to the evolution of industry and
people’s behavior. Retail spaces have adapted to the rise of e-commerce by integrating experiential elements and embracing omnichannel strategies. In fact, retail real estate was pronounced practically dead a few years ago, and now record occupancy and rents are found in many locations. Office spaces are facing some serious challenges as landlords must evolve to accommodate flexible work arrangements, with a focus on collaborative environments or creative use of space to attract the best talent. Also, industrial and logistics properties have experienced increased demand driven by the growth of e-commerce and supply chain optimization, most of which has been a boon to industrial demand.
If you are thinking, “Wow, there is lot going in the world of real estate,” you’re right. And, of course, these macro trends are fluid and dynamic. As financial advisors, it stands to reason that we would do well by our clients to get them on the right side of these macro trends in real estate.
The category of products at Centaurus spans the spectrum from broad exposure to many areas and managers to micro exposures in very specific locations. As an investment firm that strives to provide an independent product platform, we have offerings available today that provide more choice and flexibility in real estate investment than has ever been available.
If you have not visited the platform of late, I encourage you to do so. Bring a large pad of paper and a glass of wine; it’s going to take some time! But by staying informed, adopting proactive and researched strategies, and remaining flexible to new ideas, real estate participants can navigate the complexities of a changing interest rate environment and dynamic trends to position themselves for long-term success.
General Counsel, Director of Alternative Investments
Retirement strategies as unique as the clients you serve.
You know that every investor is unique. But ask yourself, how many of your financial partners actually treat them that way?
At Prudential, we’ve evolved our entire business to meet the individual needs of clients. Whether they’re looking to help protect assets or income for the future, we’ve designed unique strategies that can provide greater growth potential and more flexibility to adjust as client needs change.
You’re their rock, we’re here to be yours.
To find out more about about Prudential’s suite of solutions, contact your Prudential wholesaler, or call 800-513-0805
MARKET REVIEW | Scott Rivera
Here We Go, Leaping Into 2024
The S&P 500 Index has returned 7.11% year to date as of leap day, February 29, 2024, a strong return following an S&P 500 2023 total return of 26.29%. Many may throw caution to the wind and continue to invest in last year’s sectors and styles that outperformed: Technology had an impressive 65.1% total return in
2023 and has started where it left off with a 10.9% year to date as of leap day. Consumer services was at 31.1% (10.5% year to date 2024), and industrials were at 19.8% (5.7% year to date 2024). Below, you can see that year-to-date financials and health care sectors are off to a decent start.
Short-term interest rates have driven up the dividend yields on money market funds to 5.00%, making them a replacement investment option to fixed income and other fixed income alternatives. Short-term U.S. Treasuries have a return of 0.81% year to date (5.15%
for 2023) versus the U.S. Aggregate Bond Index at -1.68% year to date (5.28 for 2023). The ability to invest in a risk-free money market while generating an attractive yield has gotten the attention of many, as illustrated below. Money market investors have
stashed a whopping $6.06 trillion into these products. Performance of growth equities over value equities continues into 2024. Large cap growth equities returned 10.4% year to date (47.3% in 2023), followed by large cap core at 8.50% year to date (18.6% in 2023) and mid cap growth at 8.00% year to date (25.4% last year). Small caps continue to lag year to date.
We find ourselves in uncertain territory: sticky inflation, unclear direction of the Federal Reserve rate cuts, an overbought technology sector, geopolitical turmoil – and, last, it is an election year. As we complete the first quarter of the year, instead of throwing caution to the wind, let’s rather develop a diversified portfolio that can weather any uncertainty in the markets that may come to exist near term. I like to and
will continue to invest in equities for a long-term time horizon and within sectors that I believe will benefit from new innovation and eventually benefit from lower interest rates.
Thank you,
Chief Investment Officer
Grand Hyatt Kauai Resort & Spa • January 7-12, 2024
Ron Burkard | Santa Ana, CA
Sean Burr | West Hills, CA
Tim Doud | Fort Collins, CO
Not pictured: Adam Simon | Sandy Springs, GA
Jesus and Jennifer Lopez | Woodland Hills, CA
Curtis Edmark | Greenfield, WI
Tim Hague | Scottsdale, AZ
Quantum Leap – Individual Awards
Bill Jontz | Hendersonville, TN
Gregory Kinkead | Las Vegas, NV
Isaac Levy | La Jolla, CA
Marc Linsky | West Palm Beach, FL
Darren Martin | Highlands Ranch, CO
Joy Martinsen | Smithtown, NY
Quantum Leap – Individual
Not pictured: Joseph Fenstermacher | Coopersburg, PA
Ken McCabe | West Hills, CA
Marc Wheeler | Highlands Ranch, CO
Jason Santos | San Diego, CA
Tom Wiltz | Biloxi, MS
Surya Metzler | San Marcos, CA
Most Inspirational
Isaac & Loraine Levy
Jim & Sandy Flanders
Top Production
Advisory Services: Brett Ewing
CLASSIC Plus: Manuel Ramos
Alternative Investments: William Burks
Fixed Index Annuities: Marc Linsky
Top Production
Extra Mile
Variable Annuities: Stephen Kremer
Not pictured: Mike Brodie | Advisors Capital Management
Variable Life: Issac Levy
Angela Jacobsen | TruChoice Financial
Jonathan Dease | Preferred Apartment Communities
Club 16
Back row, left to right: Bob Walsh, Jason Coles, Stephen Kremer, Tim Hague, Jacob Cornell, John Brinkerhoff, Tim McVey, Surya Metzler, Brett Ewing, Kapil Bhatnagar, James Bales
Front row, left to right: Philip Board, Mark Woodfield, Darren Martin, Mike Morrison, Kelley Slaught, Manuel Ramos, Tim Tremblay, Todd Walker, Bill Fuentes, Marc Linsky, Isaac Levy
Branch Awards
Advisory Branch of the Year: Ramos Capital Group | Manuel Ramos | Downey, CA
Multi-Branch of the Year: Tremblay Financial | Tim Tremblay | Santa Barbara, CA
Alpha Branch of the Year (Highest Average Production per Rep): WealthMap Advisors | Stephen Kremer | Auburn Hills, MI
Branch of the Year: First Franklin Financial Services | Brett Ewing | Tallahassee, FL
Large Branch of the Year: 1on1 Financial | Philip Board | Upland, CA
Top 5 Advisors
New Advisor of the Year
Left to right:
Manuel Ramos
Stephen Kremer
Isaac Levy
Brett Ewing
Tim Tremblay
Advisor of the Year
Christopher Gordon | Annapolis, MD
Isaac Levy | La Jolla, CA
Welcome home
In Memoriam Tony Waldschmidt
It is with heavy hearts and great sadness that we inform you of the sudden passing of a member of the Centaurus family, Tony Waldschmidt, on April 1.
Tony, 66, joined Morrison Financial in Highland Village, Texas in 2016. He was a registered representative, certified Medicare specialist and vital member of the Morrison team. Tony worked tirelessly for his customers, collaborating with them to develop creative options to meet their financial goals. He will be remembered as an important member of the Centaurus family who brought professional, individualized service to each and every one of his clients.
Tony had a rich career in the technology field, working for AT&T, Cisco, NCR and others prior to becoming a registered representative.
Beyond his professional accomplishments, Tony was a devoted husband, father, brother and friend. His ability to light up any room and make everyone feel welcomed was one of the many reasons he was so cherished by all who knew him. His unparalleled culinary skills also brought significant joy to all who were lucky enough to partake. He also was very proud of his prowess on the golf course, which was legendary.
Born in 1957 in Hays, Kansas to Melvin and Viola Waldschmidt, Tony pursued his academic career close to home, earning a Business Management Degree at Fort Hays State University.
He is survived by his beloved wife of 35 years, Peggy Kincaid Waldschmidt; children
Branden and Travis Waldschmidt and Katelynn Mann; and many other relatives, including Alex and Parker Mann, Mike and Linda Waldschmidt, and Cynthia and David King. He was preceded in death by his parents and Ms. Nancy Shaw.
Tony was a member of St. Ann Catholic Parish in his hometown of Coppell, Texas, and was a lead facilitator with the Employment Network.
A Celebration of Life will be held at 3 p.m. April 15 at St. Ann’s Catholic Church, 180 Samuel Blvd., Coppell. In lieu of flowers, the family asks that donations be made to the Breast Cancer Research Foundation, an organization dear to Tony’s heart.
Please keep Tony’s family and friends in your thoughts and prayers.
