Tag: Family Office

Manager Analysis Services LLC (MAS), founded in 2003, provides customized services and expertise to benefit non-profits, Family Offices and Institutional Investors.

Professional governance services: MAS principals serve as Board directors for endowments, foundations, and nonprofit organizations. We serve on many boards, are experts at governance processes and fiduciary considerations, and bring the resources of our extensive network of financial industry and legal talents to the clients we serve.

Family office and trust-related services: We are experts for fiduciary matters for trusts and estates, and we serve as trustees and advisers for families. Unlike many trustees who specialize in one area such as law, investments, tax, or family experience, we have an exceptional capability to integrate all these considerations into a cohesive and comprehensive advisory approach. We can ensure that families’ investment strategies and service providers are appropriate and calibrated to the families’ needs.

Expert Portfolio Evaluations: MAS has performed 2,000+ investment manager evaluations, and each of our 3 principals has 25+ years of experience in investment management, risk, and portfolio analysis. We can assist with any client requesting help with specialized investment-related projects for any type of investment. Our credentials include JD, CFA and FRM designations.

MAS’s website has 20+ short policy papers posted on a variety of current Governance, Investment Management, Family Office, Portfolio Construction, ESG/Emerging Manager, and related topics so the reader may gain a sense of our range of expertise and focus. www.manageranalysis.com

Would a fresh look by expert practitioners help your Foundation or Family Office?

Please contact Chris Cutler, Tom Donahoe or Safia Mehta at 917 287 9551.

© 2020 MAS, LLC

Case Study B Longstanding Brokerage Links

Situation

• A family office came to Manager Analysis via a referral from a Family Office that we assist. The family leader had managed wealth carefully, and he benefited from the stock market’s long-term performance. However, because he had kept portfolio management considerations away from his children, and because the entire family wanted to plan for an orderly transition of responsibilities, the family asked Manager Analysis to review the family’s portfolios and identify any material threats to the assets.
• The next generation was generally pleased with their current holdings, comprised primarily of liquid, larger cap equities, and muni bonds, and they did not want to alter the strategy. They also valued their operationally conservative profile and comparably simple legal structures. Virtually all of the assets were held directly and so the family was in a good position to control the timing of transactions to avoid unnecessary capital gains taxes.

Findings

• The broker was attempting to gain discretionary control of the family’s portfolio through sleight of hand.
• Buried within a simple “principal transactions agreement” was a commitment for the family to a second agreement, granting the broker full discretion. The family did not to sign the form because of our strongly delivered advice.
• While portfolio turnover was low, the broker was charging commissions of 1% to 2% on large stock trades. He was seeking the opportunity to liquidate the entire estate’s liquid holdings to receive a $1 million commission. Comparable commissions would be about $125,000.
• We also conducted reputational reference checks on the broker and found that he had been placing clients into the highest commission investment products permitted by his brokerage firm.

Resolution

• We assisted the family in establishing accounts at other brokerage firms, who charge zero or near-zero commissions on equity trades, and we are currently in the process of moving their holdings.

Want to learn more? Please contact Chris Cutler, Tom Donahoe or Safia Mehta at 917 287 9551.

© 2019 MAS, LLC