The Advisor As Master Builder of the Integrated Wealth Plan

® FOX Wealth Advisor Forum

The Advisor as Master Builder of the Integrated Wealth Plan

Tuesday, April 28

BREAKFAST/EXHIBITS 7:30 a.m. Alhambra

THE EIGHT ELEMENTS OF BUILDING A FAMILY ENTERPRISE 8:30 a.m. Granada Ballroom Alexandre Monnier, Family Office Exchange

WHAT FAMILIES SAY THEY WANT AND NEED! 9:15 a.m. Granada Ballroom Amy Hart Clyne, Family Office Exchange

NETWORKING BREAK 10:00 a.m. Alhambra

LEADING THE TEAM: ALIGNING THE GOALS OF A MULTI-FUNCTIONAL WORK TEAM 10:30 a.m. Granada Ballroom Ben Dattner, Dattner Consulting, LLC

LUNCH 12:00 p.m. Center Terrace

PEER DIALOGUE 1:45 p.m. Granada Ballroom

NETWORKING BREAK 3:30 p.m. Alhambra

BREAKOUTS

Breakout 1: FAMILY LEADERSHIP AND GOVERNANCE 4:00 p.m. Marbella R. Kelly Crace, College of William and Mary

Breakout 2: INTEGRATION: DEVELOPING ADVISOR TALENT AND TEAM STRUCTURES 4:00 p.m. Granada Ballroom Karen Bouche, Greenleaf Trust & Jennifer D. Fox, Hawthorn, PNC Family Wealth

Breakout 3: HOLDING THE REINS ON PASSION INVESTMENTS 4:00 p.m. Aragon Katja Zigerlig, AIG Private Client Group, Gina Teresi, Commercial Insurance Consultants, & Diana Nawi, Perez Art Museum Miami

Breakout 4: FINANCIAL SECURITY 4:00 p.m. Prado David Donabedian & Martina Frangis, Atlantic Trust Private Wealth Management Chris Lowry & Daniel C. Tarlas, Asset Consulting Group, LLC

ADJOURNMENT 5:30 p.m.

COCKTAIL RECEPTION AND MASTER BUILDER DINNER 6:30 p.m. Southwest Terrace

100 South Wacker Drive, Suite 800 . Chicago, IL 60606 USA . T: 1.312.327.1200 . F: 1.312.327.1212 400 Park Avenue, Suite 810 . New York, NY 10020 . T: 1.646.504.0776 Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom . T: 44 (0) 207 520 9443 . F: 44 (0) 207 520 9441 [email protected] . www.familyoffice.com

2015 Wealth Advisor Forum

Wednesday, April 29

BREAKFAST 7:30 a.m. Alhambra

WELCOME AND LOGISTICS 9:00 a.m. Granada Ballroom

UNDERSTANDING AND APPLYING INDUSTRY TRENDS TO EXEMPLARY ADVISOR SERVICE 9:15 a.m. Granada Ballroom John Benevides, CTC/myCFO, Glen W. Johnson, Mirador Family Wealth, Kevin Tobin, Marsh Private Client Services, & Dennis Wright, The Wellspring Group, LLC

NETWORKING BREAK 10:15 a.m. Alhambra

EXPLORING YOUR PERSONAL LEADERSHIP BRAND: BECOMING THE MASTER-BUILDER OF YOUR FUTURE 10:30 a.m. Granada Ballroom Sarah Biggerstaff, Yale School of Management

FORUM WRAP UP – WHAT ARE MY KEY TAKE-AWAYS? 12:00 p.m. Granada Ballroom

ADJOURNMENT 12:30 p.m. Granada Ballroom

LUNCH 12:30 p.m. Center Terrace

MIAMI ~ CORAL GABLES 18 RECREATION & AMENITIES 1. Biltmore Tennis Center

3. Fitness Center Golf 4. Pétanque April 27 - Reception 5. Poolside Cabanas 6. Premier Golf Fitting 7. Golf Starter Shack 6 8. Practice Green 18 9. Driving Range 10. Biltmore Culinary Academy 16 RESTAURANTS & BARS 11. Fontana 7 12. Palme d’Or 13. Cellar Club Bar 14. Biltmore Bar 15. Cascade Poolside Grill 16. 19th Hole Sports Bar & Grill 4 G to 15 5 SHOPS & BOUTIQUES th 17. Retail Shop (LL) a PathP to Golf Course 18. Golf Pro Shop Granada Alhambra

BALLROOMS General Session Exhibits/Meals 35 39 22 19. Granada Ballroom PoolPool 41 20. Alhambra Ballroom 21. Country Club Ballroom 40 22. Country Club Terrace 42 19 20 36 37 21 43 44 MEETING SPACES nter 12 Ce 23. Isabella 45 24. Anastasia ennis 11 Southwest Terrace 25. Sevilla 26. Biltmore Event Design April 28 - Reception/Dinner38 Path to Biltmore Tennis Center 3 27. Valencia 28 2 28. Majorca Concierge 29. Catalonia (Upper/Lower Lobby) 14 30. Aragon 27 Path to Conference Center 48 31. Santiago 13 17 Courtyard 1 26 32. Prado 10 33. Marbella 23 24 34. Catering Ofﬁces 25 Valet 35. Center Terrace/Back Lawn 34 36. Danielson Gallery (LL) Breakout Sessions 37. Fisher 38. Laguna April 28 39. Brickell (LL) 31 32 40. Cutler (LL) 41. Deering (LL) 29 30 33 42. Lightburn (LL) 43. Flagler (LL) 44. Tuttle (LL) 45. Bowman (LL) 46. Merrick (LL) 47. Stoneman Douglas (LL) 48. Boardroom (3rd FL) Anastasia Avenue LEGEND Restaurants Bars & Lounges

Miracle Mile / Merrick Park Florida Everglades Restroom Elevators 2015 Wealth Advisor Forum

The Eight Elements of Building a Family Enterprise

Among the many benefits of deploying design-build project delivery methodology for complex construction projects is a single point of responsibility. As such, the master builder team is responsible for all aspects of the project—leaving an owner free to focus on the project’s scope and general decision making. Building an enduring family enterprise can be likened to a construction project in its complexity, concern over the project’s environmental and social impact as well as the ongoing goal that the end product provides easy-to-maintain sustainability. These goals and others draw a comparison to family wealth advisor service that places the advisor in the role of design-builder ─ leading the aesthetic, technical and foundational elements of building family sustainability. FOX president, Alexandre Monnier, will draw a comparison between being a design-builder and serving as a family wealth advisor and will provide insight into Building an Integrated Wealth Plan.

Speaker:

Alexandre Monnier, President

Alexandre Monnier is President of Family Office Exchange (FOX), a global organization that helps wealthy families and their advisors master the unique challenges inherent to wealth ownership. He oversees FOX globally and has extensive experience in creating, marketing, and delivering premium services to families of wealth in the wealth management, private aviation and healthcare industries – in the US and internationally.

He joined FOX from PinnacleCare, a leader in private health advisory services, where he led the development of the business in the U.S. and in Europe. Earlier Alexandre ran Skyjet, Bombardier Aerospace’s private jet charter business. Previously he spent 10 years as a management consultant serving firms internationally. He started his career in finance with Societe Generale.

Notes

2015 Wealth Advisor Forum

The Advisor As Master Builder

Alexandre Monnier, President, Family Office Exchange

April 28, 2015 FOX Wealth Advisor Forum

… 376 feet above the altar.

He would build intricate machinery and scaffolding

He would bind the walls like hoops on a barrel

The first 46 feet would be built of stone The remainder would continue with lighter materials

The rest of the design and construction would depend on how things went. “Only practical experience and application will teach that which is to be followed.”

He was buried in a crypt within The Cathedral of Santa Maria Fiore

©2015 Family Office Exchange Brunelleschi - The Master Builder How did he do it? Transition • Used Innovation • Solved problems by identifying need and creating solutions • Planned to meet the ultimate long-term goals

©2015 Family Office Exchange Brunelleschi - The Master Builder How did he do it? Governance • Integrated the ideas, talents and energies of others to support the enterprise • Improved productivity, fulfillment, resilience and fun

Vision Examining family vision and mission to develop a family enterprise view for the long term

Leadership Understanding family dynamics and family goals to identify and develop the right kind of leaders for the challenge ahead.

Transition Developing a structure to identify and safely manage the family transition process

Governance Organizing and implementing governance structures to support the enterprise

Financial Security Aligning tactical goals-based investing with cash flow management for preservation and growth

Risk Management Assessing opportunities and risk to ensure alignment of goals with best practices; creating metrics to measure progress

Integration Leading the discovery of client goals and building a vertically integrated advisor ecosystem

Sustainability Guiding the evolution and enhancement of the Family Enterprise

9:15 a.m. – What Families Say They Want and Need! Speaker: Amy Hart Clyne, Executive Director, Knowledge Center, Family Office Exchange 10:00 a.m. – Break 10:30 a.m. – Leading the Team: Aligning the Goals of a Multi-functional Work Team Speaker: Ben Dattner, Ph.D. 12:00 p.m. – Lunch 1:45 p.m. – Peer Dialogue 3:30 p.m. – Break 4:00 p.m. – Breakouts 5:30 pm – Adjourn 6:30 p.m. – Reception and Dinner

©2015 Family Office Exchange Tuesday, April 28 Agenda 4:00 p.m. – Breakouts • Breakout 1 – Family Leadership and Governance Achieving Authentic Excellence - Improving Productivity, Fulfillment and Resilience Session Host: Amy Hart Clyne, Executive Director, Family Office Exchange Speaker: R. Kelly Crace, Ph.D., Associate Vice President for Health and Wellness, College of William and Mary • Breakout 2 – Developing Advisor Talent and Team Structures Session Host: David Toth, Director of Advisor Research, Family Office Exchange Speaker: Jennifer D. Fox, Senior Vice President / Director of Relationship Management, Hawthorn , PNC Family Wealth; Karen Bouche, Executive Vice President and Director of Personal Trust Division, Greenleaf Trust • Breakout 3 – Holding the Reins on Passion Investments Session Host: Ruth Easterling, Managing Director, Member Service, Family Office Exchange Speakers: Katja Zigerlig, Vice President, Fine Art, Wine and Jewelry Insurance, AIG Private Client Group; and Gina M. Teresi, Partner, Commercial Insurance Consultant • Breakout 4 – Leading Integrated Planning of Financial Capital Session Host: Charles B. Grace III Speakers: David L. Donabedian, CFA, Chief Investment Officer and Martina Frangis, Managing Director and Senior Relationship Manager Atlantic Trust Private Wealth Management; Daniel C. Tarlas, CFA, Senior Managing Director

9:00 a.m. – Welcome and Logistics

9:15 a.m. – Understanding and Applying Industry Trends to Exemplary Advisor Service Moderated by: Alexandre Monnier, President, Family Office Exchange

Panelists: John Benevides, President, CTC/MyCFO; Glen Johnson, Mirador, Kevin Tobin, President and CEO, Marsh Private Client Services; and Dennis Wright, Managing Director at The Wellspring Group, LLC

10:15 a.m. – Break

10:30 a.m. – Exploring Your Personal Leadership Brand: Becoming the Master-Builder of YOUR Future

Speaker: Sarah Biggerstaff, Lecturer in the Practice of Leadership and Leadership Coach, Yale School of Management

12:00 p.m. – Forum Wrap Up – What are my Key Take-Aways?

12:30 p.m. – Adjourn

12:30 p.m. – Lunch Buffet

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com

What Families Say They Want and Need!

Through research by Family Office Exchange and others, industry leaders have been able to uniquely pinpoint what families say they want and need. Amy Hart Clyne will share the ‘voice of the wealth owner’ while identifying the impact of these findings on the advisor of the future.

Speaker:

Amy Hart Clyne, Executive Director, Knowledge Center

Amy Hart Clyne is Executive Director of the Family Office Exchange (FOX) Knowledge Center team where she works on delivering market-centric solutions to both Family and Advisor Members of the firm. She is an executive with extensive experience in private wealth management serving ultra high net worth individuals. A strategic and tactical professional, Amy is skilled in developing strategy, marketing and communications programs to both members of senior management teams and as an advisor to industry leaders in private wealth management. Specific areas of expertise include strategic planning, client management and advisory, strategic marketing and research planning, internal sales and training meetings, client events and seminars, relationship management, and new product launch.

Amy provides over 25 years of experience in the ultra high net worth marketplace. She rejoined Family Office Exchange in 2012 after working as a consultant to some of the country’s leading private wealth management firms such as Silver Bridge Associates, Atlantic Trust and private family foundations over the last dozen years. She was the Marketing Director of The Chase Manhattan Private Bank serving the United States and Latin America for 7 years. Prior to joining Chase, Amy worked in Marketing and Training at Bankers Trust Private Bank and served as a Portfolio Manager for Lehman Management Company, a subsidiary of Lehman Bros. Kuhn Loeb, for 6 years. Amy is characterized as a disciplined, results-oriented and highly collaborative leader with well- developed client and market assessment capabilities.

Notes

2015 Wealth Advisor Forum

What Families Say They Want and Need Amy Hart Clyne, Executive Director, Knowledge Center Family Office Exchange

April 28, 2015 Wealth Advisor Forum

1 Vision Financial Security 5 Designing Client Experience Supporting Direct Investing

2 Leadership Risk Management 6 Developing Family Guarding Family Privacy Leaders and Data Security

3 Transition Integration 7 Addressing Leveraging the Cloud Family Risk

4 Governance Sustainability 8 Formalizing Structures and Delivering Education Processes Programs

Has your firm defined its vision, mission, and values? Do they align with the values of your clients? Vision & Mission Do you have the right service offering to support your clients’ goals? Strategic Goals & Do your actions and interactions Objectives support the values the firm espouses?

Operating Goals & Objectives

Does the family office have a process for documenting each How often does your family office client’s personal and financial conduct a client satisfaction survey? goals? n=92 n=84

27% Never 38% Yes Annually 24%

In Progress 12% Every 3-5 yrs 18% No

61% Other 15%

5% Every other year Source: FOX Research

Advisor Impact

Opportunity •Align your values and goals with those of your clients.

•Help families define goals. Show them the roadmap.

•Frame everything you do in terms of client goals and values.

•Measure client satisfaction in terms of client goals.

Challenge Evaluate your customer experience. Make sure it’s designed to deliver value, make it easy and pleasurable to interact with you, and promote customer satisfaction.

“Just as family offices realize the soft stuff is the hard stuff, so do great leaders.” – Greg McCann

“In families, leadership authority is earned over time and is a delicate balance of leading from in front and leading from behind.” – Sara Hamilton

8 ©2015 Family Office Exchange 2) Leadership: Developing Family Leaders Developing strong leaders is a critical success factor in the growth and cohesion of the Attendance at advisor meetings family enterprise. Participation in board meetings Industry conferences and forums Participation in due diligence process 51% Participation in board committees Family office internship 43% Next generation investment pool 34% 30% Source: FOX Research 24% 20%

11%

Advisor Impact

Opportunity Families need help … • Assessing current state vs future state of leadership practice in the family. • Establishing a leadership development framework for the family and the office. • Developing the next generation of family leaders. • Understanding family dynamics and identifying family goals.

Challenge Getting clarity on your own leadership style.

State of the Art risk management includes not just the risks associated with financial losses, but also, strategic, operational, and leadership risks.

Source: FOX Research

Advisor Impact Opportunity The family office or wealth advisor plays the role of “chief risk manager.”

Challenge Few professionals have the skills to do it all.

What are the most important governance concerns facing the family at this time? n=85

32 % Succession

32% 21% Formalizing Governance 4% 19% Growing/Sustaining Wealth 9% 21% 15% Involving and Preparing the Next Generation 15% 19% 9% Family Continuity

4% Intergenerational Communication

Source: FOX Research

Structures & Processes Yes In Progress No Written Constitution 22% 22% 56% Strategic Plan 28% 31% 41% Annual Review of Family Office 43% 18% 39%

Questions Families Need to Consider: • Are the governing boards functioning well and making progress on established goals? • Is the mechanism for family decision-making clearly documented and effective? • What can the board do to help the family make positive decisions and address their enterprise goals? • What governance initiatives should the board address in the next 12 months?

Source: FOX Research

Advisor Impact

Opportunity • Provide education about the importance of formal governance for sustainability. • Add service offering/capability. • Provide help with establishing formal governance structure and/or adapting structure to meet evolving needs of the family.

Challenge Pricing and profitability

Private investors have returned to the private equity table because of their interest in securing their financial status and their ability to take the long-term view.

16 ©2015 Family Office Exchange 5) Financial Security: Supporting Direct Investing Investment Trends • 34% plan to increase their allocation to Year Private Equity alternative investments in 2015. Allocation • 43% plan to increase their allocation to 2000 12% direct investments in 2015. 2012 9%

• 50% prefer direct investments in Private 2014 13% Equity rather than investing in funds.

Heavy Top Performers Alternatives 2014 Average Asset Alternatives: 2014 Overall Universe 49% or less Allocation & Performance >49% Performance >9% n=69 n=52 n=17 n=15 Hedge Funds 20% 10% 10% 12% Private Equity Direct 11% 4% 11% 6% Private Equity Funds 9% 5% 7% 6% Real Estate 23% 7% 16% 11% Average Overall 10% 7% 15% 7% 2014 Investment Performance

Direct Investing Trends Families are …

• More aware of their key competitive advantages as sources of private capital.

• Recruiting investment pros to manage the fund and direct investing.

• Characterizing themselves as “opportunistic.”

• Happy to take a non-controlling but significant interest behind a lead family, institutional investor or other private investors.

• Re-thinking whether they could rely solely on the institutional fund market to provide returns going forward.

Advisor Impact

Challenge How has this increased use of direct investing impacted your ability to meet the investment requirements of your families?

Opportunity More creativity in the investment offering.

6) Risk Management: Guarding Privacy & Data Security

• Initiatives related to privacy and data security have been elevated to the C-Suite in family offices and advisory firms.

• Family offices and advisors have to work together to make the ecosystem of data exchange as secure as possible for the family.

Family Office Data Delivery Practices: • 71% do not send financial info to client’s mobile devices for security reasons. • 67% of clients access their quarterly financial reports via hard copy and 33% access them online. • 62% monitor their family’s web footprint.

Family Office Confidence: • 56% are confident or extremely confident about internal systems. • 45% are confident about their external systems.

Source: FOX Research

Advisor Impact

Challenge How can the advisor support safeguarding while communicating and reporting in line with CX intentions?

Opportunity Supporting Important Security Practices • Ensure process for disaster recovery and/or business continuity. • Ensure Security Access Document that outlines who has access to what documents, vaults, applications and computers. • Perform a vulnerability threat assessment and or a risk and controls assessment. • Monitor the family footprint.

With the Cloud and rapid changes in technology, a vertically integrated advisor ecosystem may be in reach.

On Premise Hosted Cloud

Technology solution should support integrated, single point of entry for key information such as: – Investments – Accounting Transactions – Partnerships – Entities

Benefits of in integrated systems include: – Reduction of staff time needed to process, analyze, and report on data – Improved timeliness of information – Improved accuracy

• Security

• Finding the Right Software Solutions

• Staying Current (while avoiding the bleeding edge)

• Reporting

Cloud Options Create OPEX/CAPEX Paradigm Shift

Source: FOX Research

Advisor Impact

Challenge Help family offices understand how cloud computing can address security/privacy concerns.

Opportunity Cloud computing … – Facilitates a collaborative model in the family office, with family and staff all using the same desktop and secure infrastructure. – Allows for the secure use of collaboration tools among the office, the family and their advisors.

A family office can embrace the ability and willingness of their advisor to work as a team.

The case has been made: Family education is important even mandatory for family harmony and sustainability.

The top 5 financial challenges include: 1. Diversification and asset allocation 2. Meeting long-term investment return objectives 3. Educating next generation and fostering entrepreneurship 4. Wealth sustainability 5. Liquidity

Source: FOX Research

• 69% of family members are engaged in the family enterprise in some way.

o 64% attend family meetings o 36% serve on foundation boards o 51% attend advisor meetings • 43% attend board meetings. • 80% rely on personal trustees, but just 22% of trustees are trained for this role. • 30% of participants have a budget for family member education. • 29% say they are working on it. • The median annual education budget is $35,000.

The Current Questions: HOW to educate? WHERE to go for support? Source: FOX Research

8) Sustainability: Delivering Education Programs

Average Cost Comparisons – Summary

Avg Cost Per Finished FOX Position: Hour Family education must be Instructor-Led - curriculum based Training (ILT) $5,934 - customized beyond the basics Level 1 eLearning (Basic) – - facilitated by professional Content Pages and $10,054 educators. Assessment Level 2 eLearning (Interactive) This approach is expensive. – Level 1, plus 25% + $18,583 interactive exercises Who pays? Level 3 eLearning (Advanced) – Simulations, Games, Award $50,371 Winning type

Source: Chapman Alliance

Advisor Impact

Challenge: Few advisors deliver programming in a consistent, curriculum- based, profitable manner. Why?

IT’S EXPENSIVE!!!

Opportunity: 1. Build programmatic based curriculum. Profit? Loss leader? Part of offering? Make sure it can be sustainable from a financial point of view.

2. Buy – Hire as needed vendors

1 Vision Financial Security 5 Designing Client Experience Supporting Direct Investing

2 Leadership Risk Management 6 Developing Family Guarding Family Privacy Leaders and Data Security

3 Transition Integration 7 Addressing Leveraging the Cloud Family Risk

4 Governance Sustainability 8 Formalizing Structures and Delivering Education Processes Programs

Source: FOX Research

10 Rockefeller Plaza, 16th Floor . New York, NY 10020 T: 1 212.713.7620 . F: 1 212.713.7621

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9443 . F: 44 (0) 207 520 9441

www.familyoffice.com

2015 Wealth Advisor Forum

Leading the Team: Aligning the Goals of a Multi-Functional Work Team

Critical to the success of any design-build project is creating and managing a highly-functional, cooperative and collaborative team of internal and external resources to meet the needs of the family. Building such a work team necessitates thoughtful and preemptive conflict resolution processes as well as effective communication strategies. Ben Dattner, Ph.D., will guide participants on how to increase their individual effectiveness by developing a better understanding of the impact of individual psychology and group dynamics on their performance. In addition, Ben will share how to configure teams more effectively, and to reduce the amount of interpersonal and intergroup conflict.

Speaker:

Ben Dattner, Principal, Dattner Consulting LLC

Ben is an executive coach and organizational development consultant. He has helped a wide variety of corporate and non-profit leaders, teams, departments and organizations become more successful by developing and utilizing a better understanding of the impact of individual psychology and group dynamics on all aspects of their performance. His executive coaching and consulting services enable organizations to achieve higher returns on their human capital investments by making better hiring and staffing decisions, enhancing the professional capabilities of executives, managers and employees, configuring teams more effectively, and improving communication and collaboration.

Ben received a BA in Psychology from Harvard College, and his MA and Ph.D. in Industrial and Organizational Psychology from New York University, where he was a MacCracken Fellow. His doctoral dissertation analyzed the relationship between narcissism and fairness in the workplace, and his masters thesis examined the impact of trust on negotiation. Before graduate school, Ben worked at Republic National Bank of New York for three years, first as a Management Trainee and then as Assistant to the CEO. After graduate school, Ben was Director of Human Resources at Blink.com before founding Dattner Consulting.

Ben is an Adjunct Professor at New York University where he teaches Organizational Development in the Industrial and Organizational Psychology MA Program in the Graduate School of Arts and Sciences, and has taught Strategic Career Management in the Executive MBA Program at Stern Business School. Ben is also an Adjunct Coach at the Center for Creative Leadership. Ben is a member of the Society of Industrial and Organizational Psychology, The Society of Consulting Psychology, and the Metro New York Applied Psychology Association.

Notes

2015 Wealth Advisor Forum

Dattner Consulting

Aligning the Goals of a Multi- Functional Work Team Ben Dattner, Ph.D.

April 28, 2015 FOX Wealth Advisor Forum

• Consensus about who is, and who is not, a member • Interdependent efforts and need for coordination • Collective accountability for outcomes and results

Dattner Consulting

22 ©2015 Family Office Exchange What makes teamwork challenging in general? • The six phases of a project • Divergent goals, agendas, incentives and priorities • Lack of clarity about roles and responsibilities • Perceptions of unfairness • The need for trust and coordination • Personalities and egos • Cultural differences and dimensions ‒ Pilots and co-pilots ‒ Malcolm Gladwell’s Outliers

Dattner Consulting

• Additional layer of complexity added to the mix “functional diversity” • Function- or group- based stereotypes and attributions can emerge • Even more divergent goals, priorities, agendas ‒ When are incentives divergent and when do they align? ‒ What is the non-cynical view of goals for multi-functional teams? ‒ What might the cynical view of goals for multi-functional teams be?

Dattner Consulting

•“Us versus them” dynamics and group polarization ‒ Family feuds and family dynamics ‒ Pushing buttons, for better or for worse ‒ Self-fulfilling prophecies and cycles of interaction • “Attribution errors” for individuals and teams ‒ Dartmouth vs. Princeton • How might a “Prisoner’s Dilemma” type scenario emerge?

Dattner Consulting

• Two members of a criminal gang are arrested and imprisoned. • Each prisoner is in solitary confinement with no means of speaking to or exchanging messages with the other. • Each prisoner is offered a plea deal to either: – Betray the other by testifying that the other committed the crime, or – Cooperate with the other by remaining silent. • Here are the ramifications of the deal… – If A and B each betray the other…each of them serves 2 years in prison – If A betrays B but B remains silent, A will be set free and B will serve 3 years in prison (and vice versa) – If A and B both remain silent, both of them will only serve 1 year in prison (on the lesser charge) • What should they do? Dattner Consulting 66 ©2015 Family Office Exchange The Prisoner’s Dilemma (Discussion)

Prisoner B Stays Silent Prisoner B Betrays (Cooperates) (Defects) Prisoner A Stays Silent Each serves 1 year Prisoner A: 3 Years (Cooperates) Prisoner B: Goes Free Prisoner A Betrays Prisoner A: Goes Free Each Serves 2 Years (Defects) Prisoner B: 3 years

Dattner Consulting

• Churchill and Hoover • Mondegreens Sylvia Wright, an American writer, who coined the term in 1954 tells about how in hearing the seventeenth- century ballad “The Bonnie Earl O’ Murray” as a child, she had misheard the final line, which is “and laid him on the green,” as “Lady Mondegreen.” • Your examples of mondegreens? • In small/table groups: tapping exercise • Where do communication challenges emerge for multi- functional teams? • What happens when communication breaks down? Dattner Consulting

• Excitable: “Volatile Guardian” • Cautious: “Sensitive Retirer” • Skeptical: “Wary Watcher” • Reserved: “Indifferent Daydreamer” • Leisurely: “Rationalizing Blamer” • Bold: “Big Person on Campus” • Mischievous: “High-Wire Walker” • Colorful: “Thespian” • Imaginative: “Assertive Daydreamer” • Diligent: “Micromanager” • Dutiful: “Martyr” Dattner Consulting

• Have a hands-off management style, to the point of indecisiveness • Make decisions intended to minimize risk of being blamed • Avoid the spotlight, declining invitations to receive public credit or recognition • Fearful of giving too much credit to staff • Withdraw even more than usual after being blamed • Hypersensitive to being blamed, and too defensive or anxious to learn from feedback • Expect that their efforts will lead to blame rather than credit Dattner Consulting

• Have a “fight or flight” management style • Make decisions to limit vulnerability to being blamed by others • Project own weaknesses, faults, or mistakes to others • Believe others will unfairly blame or discredit them • Doubt the sincerity of the people who give them credit • Perceive they are being criticized or blamed even when others are offering constructive advice Dattner Consulting

• Take a purely task-based and technical approach to leadership, ignoring “people” issues • Ignore potentially helpful feedback • Appear indifferent to whether or not they receive credit from others • Do not seem to care if their teams receive credit or blame • Do not congratulate other people for their accomplishments

Dattner Consulting

• Work at their own pace and according to their own preferences, ignoring others’ needs and requests • Refuse to take responsibility for mistakes, usually blaming whomever assigned the challenging task to them • Are constantly alert for signs of not being sufficiently appreciated • Believe that they always get a raw deal in terms of being under- credited and over-blamed • Appear envious of others who get more credit Dattner Consulting 1313 ©2015 Family Office Exchange Bold: “Big Person on Campus” • Lead with the main purpose of receiving personal credit or glory • Become disproportionately angry or hurt when blamed or not credited • Require a substantial amount of credit and praise and feel they deserve it much more than others • Strategically ingratiate with superiors in order to secure credit and avoid blame • Are likely to always take credit for success and deny any blame for failure Dattner Consulting 1414 ©2015 Family Office Exchange Bold: “Big Person on Campus” (Continued)

• Deny or distort information in the present, and/or “rewrite history” • Believe they deserve credit for just being who they are regardless of actual contributions or achievement • Constantly talk about their achievements or talents • Are unlikely to share any credit with others • Are unlikely to pay attention to others’ situational challenges when assigning blame • Assign credit and blame to others based on bias, identification and favoritism rather than on merit • Believe some people deserve only credit, while others deserve only blame

Dattner Consulting

• Cut corners and bend rules in order to achieve their goals • Seek credit by doing whatever is necessary to get some • Envious of the credit that others receive • Claim credit that is actually due to others • Cut many corners to receive what they feel is their due • Want to be credited for taking bold risks and demonstrating courage • Skilled at avoiding blame or responsibility

Dattner Consulting

• Are focused on getting attention and creating buzz about themselves • Resent anyone who does not pay attention to them or credit their successes • Refuse to acknowledge that they have made errors or mistakes • Quickly become de-motivated and bored by tasks if public credit for achievements is not forthcoming • Want to be noticed and credited by everyone they come into contact with • If given the choice, would choose blame and attention over not being noticed Dattner Consulting

• Can become quite dramatic when blamed • Become uncomfortable when others receive credit and recognition • Can quickly cycle between over-crediting people to over- blaming them • Share credit only as a means of winning others over • Expect others to see them as charming, and to not blame them for anything they do or don’t do

Dattner Consulting

• Manage in an odd or eccentric manner • Provide difficult-to-understand rationales for why they made mistakes • Credit or blame others based on superstition or magical thinking rather than the facts on hand • Appear anxious about the abstract possibility of being blamed in the future, but are indifferent when actually blamed by other people Dattner Consulting 1919 ©2015 Family Office Exchange Diligent: “Micromanager”

• Tend to be perfectionists and more focused on tactical execution than the big picture • Blame themselves harshly when they make even minor errors • Downplay accomplishments, and accept or give credit only when “perfection” has been achieved • Are so concerned about being criticized that they won’t try new approaches and suffer from “analysis paralysis” • Assign credit and blame in a black and white, “all or nothing” manner Dattner Consulting

• Blame people not just for “what” they achieve or don’t achieve, but also for “how” they perform their work • Disproportionately blame their subordinates after receiving even the slightest blame from their superiors

Dattner Consulting

• Are more focused on pleasing their superiors than supporting their subordinates • “Bask in reflected glory” when their superiors are credited for accomplishment • Require a lot of credit and reassurance from their superiors • Become unduly upset if not credited by a superior • Are quick to credit others, but are uncomfortable accepting any credit themselves • Take more blame than they deserve in order to preserve working relationships Dattner Consulting 2222 ©2015 Family Office Exchange Dutiful: “Martyr” (Continued)

• Readily take blame for others’ mistakes, pleasantly surprising those who have made the mistakes • Blame themselves in a harsh, self-critical manner that serves to deflect others’ criticisms

Dattner Consulting

• Take a step back • Be strategic and don’t suboptimize • Know yourself type and your triggers • Think about who you should be working for and with • Fight the fundamental and ultimate attribution errors • Start with positive expectations • Look beyond personality to systemic challenges and opportunities

Dattner Consulting

• There is a focus on individual self-interest and silos rather than on the good of the team, department, organization or ecosystem • There are clearly defined in-groups and out-groups, and a preoccupation with who is in each category ‒ There is a focus on singling people out for blame ‒ Those in out-groups are marginalized, ignored, or dismissed ‒ Rewards accrue to people for reasons other than competence or performance ‒ Power and authority are not adequately distributed

Dattner Consulting

• Compliance becomes a substitute for commitment • There is a general lack of trust ‒ Instead of open dialogue, there is monitoring and surveillance • There is a gap between rhetoric and reality, and between stated and underlying issues ‒ Plans are not put into practice ‒ There is more of a focus on rituals, status and symbols than on substance ‒ Rules are enforced selectively and inconsistently

Dattner Consulting

• Not shared due to censorship or self censorship • Only partially shared ‒ Shared only with selected people ‒ Shared too late • Framed in a misleading way or deliberately falsified

Dattner Consulting

• Emphasize “joint accountability” and “super-ordinate goals” • Engage in partnering and scenario planning • Build trust to establish the foundation for collaborative problem solving • Being explicit about competing priorities based on roles and goals • Explore how to maximize empathy and mutual supportiveness • Encourage proactive advance communication about potential conflicts • Pay attention to “parallel processes” and “the play within the play” Dattner Consulting

• Hoping for “A” but rewarding “B” • The power of taking the blame: Jiffy Express • Self-serving annual reports backfire • Self-blaming companies outperform the broader stock market

Dattner Consulting

3030 ©2015 Family Office Exchange Team design Teams perform best when: • The task is well specified • Roles and responsibilities are clearly defined • The team includes members with the right knowledge and experience • The team is representative of any relevant functional areas • Incentives and accountability are aligned Dattner Consulting

• Team members have worked together previously or share some common frame of reference • Members are selected for: ‒ Technical knowledge and abilities ‒ Team skills and emotional intelligence

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• There are clear goals and criteria for good performance • The team has access to the right information, tools, people, feedback and training • The organizational culture is positive and provides material and informational support • Team members have mutual respect and trust

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• Team members solicit and give candid and constructive feedback • The team experiments with doing things in new ways and takes prudent risks • Individuals admit and learn from mistakes • Accomplishments and learning are celebrated • The team conducts periodic process checks

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• Team members speak • Without fear of up by: appearing: ‒ Saying what hasn’t been ‒ Ignorant, incompetent, said intrusive or negative ‒ Contradicting what has been said ‒ Asking questions ‒ Seeking help

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• Inaccurate or untrue • Biased due to favoritism or politics • Insensitive and unduly critical • Not specific or actionable • Constituted by orders or ultimatums • Rooted in blame and focused on the past

Dattner Consulting

• Candid and honest • Specific and actionable • Based on more than one incident or example • Based on more than one person’s view • Framed positively and constructively • Behaviorally based rather than personality based • Summarized and integrated into key themes • Focused on the future rather than the past

Dattner Consulting

Performance Performance Performance conditions processes outcomes

Group(s) Clear, engaging direction Performance is aligned and energized • Consumers are pleased • Facilitative group structure • Ample effort is applied to with the team’s product (task, composition, norms) the task • Supportive organizational • Sufficient knowledge • The team’s capability as a context (rewards, and skill used performing unit increases education, information) • Performance strategies • Available, expert coaching • Individual members learn are task-appropriate and obtain personal de uate material Smooth, unconstrained satisfactions in the team resources task execution

Leader(s) Monitors, forecasts, plans Monitors, forecasts, plans, Evaluates performance and takes action relevant and takes action relevant outcomes to further improve to conditions to processes conditions and processes

dapted from: Hackman . . alton . . 6 eading groups in organi ations n P. S. oodman d. Designing Effective Work Groups San rancisco: ossey ass

Dattner Consulting

Complimentary ebook download of “The Blame Game” for iPad or Kindle: www.creditandblame.com/bookrequest.html

Complimentary “Credit and Blame Type Assessment”: www.creditandblame.com/assessment.html

Dattner Consulting

100 South Wacker Drive, Suite 800 . Chicago, IL 60606 USA T: 1.312.327.1200 . F: 1.312.327.1212

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com Dattner Consulting 2015 Wealth Advisor Forum

Peer Dialogue

In an opportunity to exchange ideas and experiential knowledge, program attendees will address the Eight Elements of Building a Family Enterprise and other issues pertinent to the role of the advisor.

FOX staff will facilitate the conversation at each table. Choose the topic that is of interest to you and participate in the conversation.

Notes

2015 Wealth Advisor Forum

Breakout 1 – The Role of the Advisor – Family Leadership and Governance Achieving Authentic Excellence – Improving Productivity, Fulfillment and Resilience

Dr. Crace will explore the promises and pitfalls of values-based living from both a personal and family perspective. While research links values to flourishing, there has been little discussion of how values can unintentionally get in the way of our productivity. This workshop will examine these issues and outline a process called “dynamic blueprinting” that can lead advisors on an individual exploration of how to transition from fear- based excellence into achieving authentic excellence. Included will be techniques for getting beyond the “plateau effect” of being “stuck at good” and how to develop an “expressive mindset” to lead toward improving productivity with fulfillment and resilience.

As one of the highest rated seminars presented exclusively for family members at the 2014 FOX Fall Forum, Dr. Crace has agreed to re-cast his innovative and actionable insight to meet the unique needs of individuals serving in the role of the family wealth advisor.

Session Host:

Amy Hart Clyne, Executive Director, Knowledge Center

2015 Wealth Advisor Forum Speaker:

R. Kelly Crace, Associate Vice President for Health & Wellness, College of William and Mary

Kelly is the Associate Vice President for Health & Wellness at the College of William & Mary. He is a licensed psychologist, the co-author of the Life Values Inventory, and creator of The Life Values Inventory Online, an online mini-course for values clarification and personal development. He has published and presented in the areas of values, flourishing, transition, identity development, and multi-generational family organizational development. He is president of Applied Psychology Resources and has conducted over two thousand seminars for academic, business, and sport groups. He has served as director of two college mental health centers at Duke University and at the College of William & Mary. He received his academic and clinical training from Vanderbilt University, the University of North Carolina at Chapel Hill, and Duke University. He is co-inventor of a U.S. Patented Interactive Sports Simulator System designed for scientific and entertainment application. Kelly was the recipient of the Chambers-Reid Award for Professional Excellence at William & Mary.

Notes

2015 Wealth Advisor Forum

Family Leadership And Governance

Amy Hart Clyne, Executive Director, Knowledge Center, Family Office Exchange

April 28, 2015 FOX Wealth Advisor Forum

This session presentation will be available soon. Please check back later at the webpage below for availability.

https://www.familyoffice.com/learning-events/forums/2015-wealth- advisor-forum-materials

Breakout 2 – The Role of the Advisor – Integration Developing Advisor Talent and Team Structures

As the desire to further refine the client experience moves to the forefront of today’s competitive marketplace, the search for qualified and proven talent escalates. While once considered practical to “buy” talent, firms today are re-energizing efforts in the realm of talent development.

Talent development provides a vehicle for empowering employees by giving them access to the tools, resources, and knowledge necessary to perform at their highest level. As such, firms are beginning to focus learning on the entire employee life cycle: on-boarding, performance management, career management, high-potential identification, leadership development, coaching, mentoring and other unique needs relevant to working on an integrated team. David Toth and a team of industry professionals will provide an overview of developing advisor talent and team structures and what you need to do to remain competitive.

Session Host:

David Toth, Director of Advisor Research

David Toth is the Director of Advisor Research at FOX. In this capacity, he harnesses research to develop actionable insights and perform strategic analyses for family offices and wealth management advisor members. Assignments include constructing a roadmap for a series of initiatives that assist family offices and Wealth advisors in building talent management strategies, optimizing team structure, elevating the client experience and achieving profitable growth.

David brings over thirty years of wealth & investment management, marketing and strategic consulting experience to FOX and its members. Over the past fourteen years he has held key leadership positions at PNC Financial’s Asset Management division formulating and implementing growth strategies that helped to more than double the size of their wealth and ultra-HNW businesses. David has played a lead role in the wealth industry through his work on client satisfaction/loyalty, improvements to both the client and advisor experience, pricing strategies, development of new investment products and approaches, and the launch of Wealth Insight® an award-winning blend of technology and advisor/client interaction.

2015 Wealth Advisor Forum Speakers:

Karen Bouche, Executive Vice President, Family Office Advisor, Greenleaf Trust

As part of the Family and Foundation Services Division, Karen is responsible for providing world-class service to high net worth families including generational holistic wealth management, trustee and private foundation services, as well as highly personalized coordination of solutions to complex family needs. She is a graduate of Northern Michigan University’s Walker L. Cisler College of Business and the American Bankers Association National Graduate Trust School. Karen is a Certified Trust and Financial Advisor and has nearly 20 years of experience in the financial industry.

Jennifer Dempsey Fox, Senior Vice President and National Managing Director of Wealth Strategy, Hawthorn, PNC Family Wealth

Jennifer Dempsey Fox is a Senior Vice President and National Managing Director of Wealth Strategy for Hawthorn, PNC Family Wealth, a business dedicated to serving the needs of individuals and families with investable assets in excess of $20 million. In her role, Jennifer is responsible for managing the Wealth Strategy practice within Hawthorn, which leads the planning process, integrating clients’ financial, estate, tax and philanthropic considerations and preferences. In addition, Jennifer leads the Hawthorn Institute. The Hawthorn Institute provides analysis and commentary on integrated wealth management topics including family legacy, multi-generational education, strategic philanthropy and wealth and business succession planning.

Notes

2015 Wealth Advisor Forum

2015 Wealth Advisor Forum – Breakout 2

Developing Advisor & Team Talent

David Toth Director of Advisor Research, Family Office Exchange

April 28, 2015 FOX Wealth Advisor Forum

Forum Agenda

Foundational Presentations

• The Eight Elements of Building a Family Enterprise

• What Families Say They Want and Need! Objectives

• Leading the Team: Aligning the • Insights about building and sustaining talent Goals of a Multi-Functional Work development Team • Practical way to determine and prioritize talent needs

This Breakout Session • Offer three perspectives • Personal Development • The Role of the Advisor – • Team Development Developing Advisor & Team • Talent Leadership Talent

Wrap-Up Sessions Session Activities

• Understanding and Applying • Part I: Speaker Industry Trends to Exemplary Presentations Advisor Service • Part II: Table Exercise • Exploring Your Personal Leadership Brand: Becoming the Master-Builder of YOUR Future

Growth is Overarching Theme Serving as the Backdrop for all Trends and Issues

Persistently Strong Growth … a Rapidly Evolving Set of is leading to … Trends & Issues Growth In Key Metrics 2012-2013* 17% 14% 14% Talent Scaling Shortage Client Teams 8%

Increasing Escalating Competition Client Demands

Assets Clients Revenues Profits

Member comments/observations: Seeing good growth on all fronts … new clients, AUM/A, Revenue, Profitability Best year ever, client retention is strong, attracted additional assets Last year represented our fastest new client and revenue growth

*Source: FOX Wealth Advisor Benchmarking Study 2014

Managing Growth: Talent Shortage Demand for talent is trending higher coinciding with a dwindling talent supply due to unfavorable demographics

Macro Labor Force Trends Impacts on Ultra Wealth Business

Gen Y (Millennials) Now …But Don’t Stay Dominate the Workforce Around Long Long talent development lead time and on the job “seasoning” works against Baby Boomers Gen X Gen Y Average Tenure Gen Y short tenures; thereby narrowing the pool of candidates Boomers 7 yrs. 2010 Fewer participants in financial services Gen X 5 yrs. industry since the “crisis” 2015 Gen Y 2yrs. Traditional pipelines of talent drying up: Law Firms 2020 Corp. Training Programs

0% 20% 40% 60%

Member comments/observations: Hired dedicated Talent Manager Talent (sourcing, developing and retaining) is our No. 1 priority Virtually all members engaged in active succession planning

Drivers => Enduring Model More Efficient Advisory Team • Drivers: two focus on Client and two on Advisors • Relationship-driven, intimate service models require constant attention to sustain Consistent Enduring Talent & Team Client Growth Management growth Experience Model • High level of interdependency between Drivers • Investment in Technology Understanding Client and Processes strengthen Experience Drivers

Enablers => Technology, Processes

More Efficient Talent & Team Management Advisory Team 1. Recruiting strategies ensure consistent flow of talent. 2. Development programs that prepare advisors to contribute Consistent Enduring Talent & Team without disruption to the client and Client Growth Management establish career-pathing that is Experience Model clear and attractive. 3. Establish criteria for cultural fit avoiding mismatches.

Understanding Client Experience

Talent and Team Management Percent in circle % indicates distribution of High Needs Improvement Doubling Down responses

Nearly 2 of 3 are 22% 43% investing in Talent

Level of Investment

13% 22%

Low Not Important Hold

Jennifer Fox Senior Vice President Hawthorn PNC Family Wealth

April 29, 2015 FOX Wealth Advisor Forum

Regional Locations: Baltimore, Cincinnati, Cleveland, Detroit, Philadelphia, Pittsburgh, Washington, D.C. and Wilmington, DE

Clients: More than 650 Relationships across the U.S. Client/Advisor Ratio: 15:1 Assets Under Management: $31.7 Billion* Total Assets Under Administration: $46.2 Billion* Minimum Relationship Size: $20 Million

Industry Recognition: • One of the Largest Multi-family Offices Bloomberg Markets, December 2014 • Best Multi-Family Office Overall – Over $2.5 Billion Highly Commended, Private Asset Management, March 2015 • Best of the Decade, Client Communications The Family Wealth Alliance, November 2013

*as of March 31, 2015

• Pace of growth • Onboarding challenges • Ratio of legacy vs. new employees • Congested career path • Cultural impact

• High performing and engaged employees • Employee driven • Strong culture focused on the client • Right people in right jobs • Broader access to talent pools • Greater role clarity for employees and managers • Enhanced career planning and development opportunities

ole areer Onboarding e elopment e elopment

Onboarding ole e elopment areer e elopment

Moved overall talent development process from focus on job description, knowledge and experience to a focus on responsibilities and competencies – Responsibilities – functional responsibilities expected to perform in their job – Competencies – knowledge, skills and behaviors required to be successful in your role. • Leadership Competencies – Establishing a clear vision and purpose, Leading Change, Managing Risk, Driving Results • Core – Client focus, Risk Management • Discipline – analytical thinking, effective communications, problem solving, communication skills • Specialty – competency for the specific role

ole areer Onboarding e elopment e elopment

• Evaluated employee experience from recruiting, hiring to onboarding.

• Implemented behavioral interviewing process.

• Created robust employee onboarding process including assignment of buddy in addition to core teammates.

Onboarding ole e elopment areer e elopment

• Consistent blue print for success for all employees that includes expectations, role clarification and tools for learning. • Includes rotational experiences and exposure to leadership • Manager coaching focused on development of competencies

Onboarding ole e elopment areer e elopment

• Career path based on competencies • Ladder and lattice • Management and functional

Karen A. Bouche, CTFA Executive Vice President Family Office Advisor Greenleaf Trust Family & Foundation Services

April 29, 2015 FOX Wealth Advisor Forum

Selection

eadership rowth

• “Ask not what your teammates can do for you, but what you can do for your teammates” – Magic Johnson

• Retain your top talent through servant leadership . Support & Equip . Engage & Inspire . Grow

Low % Talent Alignment High % Talent Alignment High Impact High Impact

Low % Talent Alignment High % Talent Alignment Low Impact Low Impact

Individual Coaching Sessions

Division Strategic Plans

Company Goals & Budget

Team and Client Feedback

• Quarterly, focused time with leader • Empower each person to select what they will be engaged and inspired by doing • 3 action items to impact strategic initiatives • Ensure personal growth • Measure and report!

“What more can I do for you?”

• Quarterly review of the team’s collective goals and accomplishments • Address the key focus areas – Education & Training – Resources Required • Plan for the quarter ahead – Time with and for

• Combination • Experienced team members need to help – Onboarding process – Mentoring – Individual plan for success • Growth requires strong leadership – Trust and confidence that it will happen – Evidence of ability to get peak impact from all

Refer to Instructions at Your Table

1) While Talent Development is a Strategic Imperative, it is also a Personal, Team and Leadership Challenge.

2) Framework for Success Can be Built on: On-Boarding, Role Development and Career Development.

3) Sustaining Success Occurs When Leadership is Committed to the Process and Coaching Discipline.

4) Build Energy and Common Purpose by Creating Structured Dialogue With Your Team Members to Identify and Agree on Talent Needs.

“Ask not what your teammates can do for you, but what you can do for your teammates” – Magic Johnson

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com

Breakout 3 – The Role of the Advisor – Holding the Reins on Passion Investments Assessing Risk and Managing Opportunities: Tying These to Realistic Goal Development

As Benjamin Franklin once stated, “If passion drives you, let reason hold the reins.” High net worth individuals often accumulate substantial assets in the form of art, jewelry, wine and as an element of equestrian actives and equine ownership. While the pursuit of these passions can become sound financial investments…they can also add considerable risk if not adequately managed, properly secured and appropriately protected. As the “holder of the reins”, advisors are often placed in the position of, by necessity, stepping beyond the emotions and providing a sense of reality when it comes to successful implementation strategies and sound decision making processes.

So…what do you need to know about these unique asset classes? Who can you call upon for support in managing and valuing these collections? And…how do you become the voice of reason on passion investments?

Session Host:

Ruth Easterling, Managing Director – Member Services

Ruth Easterling is Managing Director, Member Services, for Family Office Exchange. In her role, Ms. Easterling leads all of the firm’s member services activities, and manages the teams who deliver conferences, educational forums, webinars, website resources and member communications annually. She has overseen marketing and drove the redesign and brand initiative that differentiates FOX today. Ms. Easterling has expanded the educational programs and services available to FOX membership. FOX now offers three industry forums, a comprehensive webinars featuring timely topics of the industry and includes a robust library of replays available for members. Programming addresses the many facets of wealth management, from family dynamics to the most sophisticated strategies in investment planning.

Speakers:

Katja Zigerlig, Vice President, Fine Art, Wine and Jewelry Insurance, AIG Private Client Group

Katja Zigerlig is Vice President, Fine Arts, Wine and Jewelry Insurance for Private Client Group at AIG Insurance. In this role, she oversees the strategic growth of the “private collections” insurance portfolio for PCG. Prior to joining Private Client Group in 2004, Ms. Zigerlig insured private collections, museums, galleries and exhibitions for AXA Art Insurance Company. She has also worked at the Walker Art Center in Minneapolis and interned at the National Gallery of Art in Washington D.C.

2015 Wealth Advisor Forum Ms. Zigerlig has a B.A. and M.A. in art history, with a specialty in twentieth century art. She has presented art history lectures at the College Art Association, the Association for Art Historians and the Swiss Embassy in Washington D.C. She has also spoken about art and wine collecting in the context of alternative investments, asset protection, trust and estate planning and risk management to audiences of collectors, appraisers, financial and insurance professionals. Ms. Zigerlig has been quoted in the Wall Street Journal, The New York Times, Reuters, The Financial Times, The Globe and Mail, ARTnews and appeared on CNBC’s Power Lunch.

Gina Teresi, Partner, Commercial Insurance Consultants

Teresi brings 22 years of corporate and industry insurance experience to CIC. Her years of work with AIG and Chubb insurance bring a variety of expertise to CIC clients. The core of her career involved a variety of underwriting and marketing experience in the insurance industry which included management and oversight of underwriters, agents and brokers across the country. Her understanding of the industry and the brokers that serve our clients gives her the insight needed to help customers select best in class brokers and carriers for their insurance programs. During her prior position as Vice President for AIG’s Private Client Group, Gina managed the strategy and implementation of national continuing education programs for brokers and trusted advisors and was charged with finding unique insurance solutions for family offices and ultra-affluent clients. Some of the highlights included working with trusted advisors to incorporate property and casualty planning into their firms’ wealth planning process. Gina served as resource to family offices across the country, helping to match their clients with best in class insurance brokers who specialize in designing customized risk management programs. These programs incorporate loss control, risk management services and product solutions to minimize risk for single and multi-generation families and their family offices. In addition, Gina’s equine experience enabled her to work across divisions of AIG to build new insurance programs, products and services specifically designed for clients with a passion for horses. Her work included the development, strategy, and marketing for this program and resulted in a number of national sponsorships for AIG.

Diana Nawi, Associate Curator, Perez Art Museum Miami

Diana Nawi has served as associate curator at Pérez Art Museum Miami (PAMM) since 2012. While at PAMM she has organized newly commissioned projects with numerous artists including, most recently, Iman Issa and Shana Lutker. In 2014, Nawi curated the first solo museum presentation of the work of Adler Guerrier and published an accompanying monograph. In 2015, she is curating a mid-career survey with Nari Ward. In addition to organizing exhibitions, Nawi also works to develop public programs and to grow the museum’s collection of modern and contemporary art. Prior to joining PAMM, Nawi worked as assistant curator on the Abu Dhabi Project of the Solomon R. Guggenheim Foundation in New York. She holds a BA from the University of California, Los Angeles, and an MA from the Graduate Program in the History of Art at Williams College.

2015 Wealth Advisor Forum Notes

2015 Wealth Advisor Forum

Breakout 3 – The Role of the Advisor

Holding the Reins on Passion Investments

Diana Nawi, Curator, Perez Art Museum Miami Gina Teresi, Partner, Commercial Insurance Consultant Katja Zigerlig, Vice President, Fine Art, Wine and Jewelry Insurance, AIG Private Client Group

April 28, 2015 FOX Wealth Advisor Forum

Supporting Pérez Art Museum Miami

April 28, 2015 FOX Wealth Advisor Forum

Pérez Art Museum Miami

PAMM Free Second Saturdays: “Off the Grid”

Installation view: Tàpies: From Within, Pérez Art Museum Miami, 2015

Darlene and Jorge M. Pérez

Wifredo Lam, Le Chevelure (The White Table), 1939

art

Alejandro Xul Solar, Proyecto fachada para Elsetta (Façade Project for Elsetta), 1954

Joaquín Torres-Garcia, Construcción con dos máscaras (Construction with Two Masks), 1943

spar a

Adrian Esparza, Wake and wonder, 2013

William Cordova, Untitled (The Echo in Nicolás Guillén Landriá’s Bolex), 2008-09

Edouard Duval-Carrié, After Heade – Moonlit Landscape, 2013

Jorge M. Pérez, Faith Ringgold, Rashid Johnson, and Alberto Ibargüen

l lo ing

Al Loving, Untitled #32, ca. 1975

Faith Ringgold, Black Light Series #1: Big Black, 1967

Ed Clark and Jorge M. Pérez

P and p in front of museum

The Pérez Family

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com

PRIVATE COLLECTIONS COVERAGE SUMMARY

Protect your passion

Coverage feature What it means Why it matters

Comprehensive, worldwide We cover loss/damage due to fire, theft, earthquake, You’re covered when taking jewelry on vacation, coverage flood and breakage—anywhere in the world. Items are moving art to a summer residence, etc. protected, regardless of location.

Newly acquired items Automatic coverage is provided up to 25% of your New acquisitions are protected immediately at the policy class limit; effective for 90 days after the time of purchase; add the item to your policy at your purchase. earliest convenience.

Coverage for diminished value In the event of a partial loss, we will pay the full amount After a loss, you can rest assured that your collection to restore the piece to its condition immediately before will be returned to its pre-loss value. Additionally, this the loss. If after restoration the value has diminished, we coverage typically is not provided on a standard will pay the difference between its market value before homeowners policy, leaving many collectors under- and after the loss protected. (up to 150% of the agreed value).

Care, custody and control Up to $1 million in coverage is available for items in Take items home on loan before finalizing the your possession, even if you don’t own them. Please purchase and know they’re protected. note: the collectible category must already be included on your policy.

Valuation You have coverage up to 150% of the insured amount. The value placed on an item in your policy is what you can expect in the event of a claim. Should your item appreciate, you will be protected.

Wine Our policy responds to fire, theft, earthquake, flood or Fragile bottles can break. Basement cellars can flood. breakage. Refrigeration systems can malfunction.

Pair or set Choose to repair, replace or surrender undamaged If you lose an item such as an earring, you benefit item(s) that are part of a pair or set. from flexibility at claim time.

Items in transit If you choose to ship a collectible, you are covered up Damage during transport and storage is one of the to policy limits. Shipments via the U.S. Postal Service® most frequent and costly causes of loss. are covered up to $10,000. For maximum protection, consult us to determine the best transit options.

Items on exhibit/display We include coverage for pieces that are damaged You can share your collection with the public and feel when moved to/from exhibitions and/or while on confident that it is protected at every stage. display.

Jewelry repair and restoration Coverage extends should damage occur to jewelry You’re protected when having stones re-set, items damage while it’s being repaired or restored. polished or other professional repairs made.

For more information, please contact Katja Zigerlig at 212 458 8861 or [email protected].

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. This brochure is a summary only. It does not include all terms and conditions and exclusions of the policies described. All references to claim settlement information are based on the loss being covered by the policy and are subject to change without prior notice. Please refer to the actual policies for complete details of coverage and exclusions. Coverage and supplemental services may not be available in all jurisdictions and are subject to underwriting review and approval. 1/14 2015 Wealth Advisor Forum

Breakout 4 – The Role of the Advisor – Financial Security Leading Integrated Planning for Financial Capital

Managing diversified financial assets for ultra wealth families has become increasingly complex and requires a multi-disciplinary approach. The session will explore how investment focused firms approach working as the trusted advisor for their clients versus wealth management firms that provide more comprehensive solutions. In either case the advisor must become the project foreman and member of a of a multidiscipline family wealth strategy. The perspective will be from the investment side, but will include its integration with other pieces of the wealth management puzzle. For investment responsibilities alone, the advisor is accountable for leading an increasingly complex array of due diligence processes, risk control procedures, opportunity assessments, compliance, oversight and reporting requirements that are accepted and in alignment with the family’s overall goals and expectations.

Utilizing the experience and knowledge of a varied team of financial experts, Charlie Grace will provide participants with step-by-step guidelines for leading today’s complex, integrated planning of financial capital.

Session Host:

Charles B. Grace III, Managing Director

Charles B. Grace, III is Managing Director at FOX. Charlie works on strategic planning projects for families and family offices as well as wealth management advisor clients. He has more than 20 years experience in the family office community advising high-net-worth families and has been quoted in various publications on the subject of private wealth management, including The Wall Street Journal, Financial Times, and Worth Magazine. In addition to his responsibilities at FOX, Charlie has been active on the Board of the single family office Ashbridge, LLC since 1992 and in 2010 was named President. He is a Trustee and member of the Investment Committee of the non-profit Tuttle Fund, Inc. in New York City.

Speakers:

David L. Donabedian, CFA, Chief Investment Officer, Atlantic Trust Private Wealth Management

Dave Donabedian is chief investment officer of Atlantic Trust, serving in that capacity since 2009. His responsibilities include chairing the Asset Allocation Committee, as well as providing oversight of internal investment strategies and the external manager selection platform. As a leading investment expert, Dave frequently appears on television networks, including CNBC and Bloomberg Television, and provides insights in publications such as Barron's and The Wall Street Journal. Previously, from 1996-2006, he was managing director and chief economist at Atlantic Trust, serving on the Asset Allocation, Multi-Manager, and Investment Policy committees and leading our Baltimore and Washington, D.C., offices. Prior to becoming CIO for Atlantic Trust, Dave served in a similar capacity at Ashbridge LLC, a

2015 Wealth Advisor Forum Philadelphia-based multi-family office. Dave received a Bachelor of Science in economics and a Bachelor of Arts with honors from the Wharton School at the University of Pennsylvania. He subsequently earned a Master of Business Administration degree from Columbia University with a concentration in finance. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute. Dave serves on the board of directors for Monarch Academy, a Baltimore-based charter school system.

Martina Frangis, Managing Director, Atlantic Trust Private Wealth Management

Martina Frangis is a senior relationship manager with more than 17 years of experience in the trust and financial services industry. She leads and supports a team that cares for some of the Boston office's largest family relationships. Martina works closely with clients and their advisors to create and implement tailored wealth management solutions to meet her clients' financial and estate-planning goals. She is a member of the firm's Discretionary Distribution Committee and can been seen leading and contributing to various Employee Engagement and Women’s initiatives. She also has management responsibility for the Boston office through her inclusion on the Boston Advisory Team. Prior to joining Atlantic Trust in 2001, Martina served in the trust departments of both Citizens Bank and Fleet Bank. Martina earned her Bachelor of Arts, cum laude, from Salve Regina University and a Juris Doctorate from Roger Williams University School of Law. Outside of the office, Martina has been involved in development initiatives for the Philanthropy Department and served on the Patient & Family Advisory Council for Women & Infants' Hospital in Providence. Much of her free time is spent outside of baseball diamonds throughout southern New England cheering on her three sons.

Chris Lowry, Director, Asset Consulting Group, LLC

Chris is a Senior Consultant in our private client advisory practice where he is responsible for a wide array of client initiatives. Prior to joining the ACG, Chris was with a $3 billion high-net- worth family in Atlanta, GA, for 10 years, the last six of which he served as the investment manager. His responsibilities included coordinating investment strategy with the family's estate plan, overseeing all third-party investment managers and private equity and direct investments, and planning and executing family meetings and educational programs. Chris was previously a Senior Accountant/Financial Analyst with ING Group and prior to that was an Audit Staff/Senior Accountant with Price, Waterhouse in Washington, DC.

Daniel C. Tarlas, CFA, Senior Managing Director, Asset Consulting Group, LLC

Dan oversees our private client advisory practice, which includes family offices, high-net- worth investors, endowments and foundations. He is also involved with new business development activities and ongoing client relationship management. Prior to joining ACG in 1992, Dan worked in the brokerage sector of the financial securities industry where he coordinated investment strategies for high-net-worth individuals and corporations. As a Senior Managing Director, he is a member of ACG's Executive Committee, which sets the course and direction of the firm. Dan is a member of Asset Consulting Group's Investment Committee, which establishes the framework for the firm's investment philosophy and oversees the internal processes used to ultimately make investment recommendations to clients.

2015 Wealth Advisor Forum Notes

2015 Wealth Advisor Forum

Understanding and Applying Industry Trends to Exemplary Advisor Services

Sustainability of the family and wealth for the long-term is critically dependent on current conditions and trends that impact families today and well into the future. Family Office Exchange is pleased to provide a panel of industry leaders whose experience, position and knowledge of the industry places them at the forefront understanding the work critical for success as the architect, engineer and constructor of full integrated, exemplary advisor service.

Session Host:

Alexandre Monnier, President

Speakers:

John Benevides, President, CTC | myCFO

John Benevides is the President of CTC | myCFO, an integrated wealth management provider that serves ultra-affluent individuals, families and family offices across their tax, estate, investment, philanthropic, risk and family capital needs. John joined the organization in 2010 and has more than 20 years of financial services experience and insight. He provides vision, strategy and operational leadership in service to clients across the full suite of family office and investment services. John helps ensure clients successfully navigate the often complex issues high wealth brings. John has helped CTC | myCFO become recognized for offering one of the most comprehensive suites of services tailored to this unique market.

Glen W. Johnson, Managing Director, Mirador Family Wealth Advisors

Glen Johnson is the Chief Operating Oﬃcer of Mirador Family Wealth Advisors and is responsible for the development and coordination of products and services necessary to meet the needs of multi-family oﬃce clients. Prior to joining Mirador, Glen led the West Michigan Advisory Team for Fifth Third Private Bank and provided relationship management and wealth planning services as well as tax and business transition consulting to Private Bank clients. Glen played an active role in developing equity risk management strategies for clients with concentrated stock holdings. He has 16

2015 Wealth Advisor Forum years of experience as a business attorney representing entities and individuals across a broad range of complex legal issues, including SEC and regulatory compliance. Prior to joining the Private Bank in July 2003, Glen served as senior counsel to a consolidated gas company, with extensive involvement in natural gas related trading.

Kevin Tobin, President and CEO, Marsh Private Client Services

Kevin Tobin, President and Chief Executive Officer of Marsh Insurance Services, joined Marsh Private Client Services in 2013 to lead and grow the insurance business for high net worth clients. Prior to his appointment, he was Chief Operating Officer, responsible for operations and technology within the Insurance Services Business. From 1987 to 2008, Kevin served financial industry giants Allstate Insurance and HSBC. He held leadership roles that focused on growing business through analytics, improved technology, increased client satisfaction and building long term, mutually beneficial partnerships.

In 2008, Kevin joined Roanoke, Virginia based Advance Auto Parts as General Manager of the $4B consumer business. He led a transformation effort that included new customer value propositions, refocused marketing investments, and organizational leadership/culture changes. He later joined Fair Isaac Corporation (FICO) to re- engineer their B2B model focused on distribution through credit bureaus (Experian, Equifax and TransUnion).

Dennis Wright, Managing Director at The Wellspring Group, LLC

Dennis is a principal and managing director of The Wellspring Group and Wellspring Associates with over 20 years of experience assisting affluent, multi-generational families and their family offices and advisors. His Wealth Integration practice takes him to many areas of the country with concentrations in the Southeast and Midwest.

Dennis’ experience with high performance teams began in corporate level management with GE Medical Systems. He worked early-on with Wellspring to refine those techniques for their Wealth Integration process.

Dennis is an active member of the Atlanta and Savannah Estate Planning Councils and is a guest speaker for the Fiduciary Law Section of the Georgia Bar, the Georgia Society of CPAs and the Southeastern Family Office Forum. He is also a member of our Thought Leaders Council. As you might expect, Dennis prides himself in working collaboratively with his clients and select law, accounting and financial services firms.

Notes

2015 Wealth Advisor Forum

Family Office Exchange / Wealth Advisor Forum Role of the Advisor - Financial Security

April 28, 2015 / 4:00 PM to 5:30 PM Presented by: Charlie Grace / Family Office Exchange

Multi-Generational Relations Dedicated Family Offices • ntegrated ealth d isory

• iduciary Mindset Multi- Family Offices • ull ser ice mplementation

• roader ange of Ser ices Integrated Wealth Advisory Firms • Higher ost of Ser ice eli ery and Private Banks • ower Profit Margins Transactions Wealth Management Firms and Private Banks • n estment d isory ocus

• iscretionary Mindset Investment Advisory Firms • elegation of ecision making

• imited ange of Ser ices Investment Managers • Higher Profit Margins

hat o amilies ant • ntegrated approach • Identify Financial Resources and Objectives • nno ati e solutions • Develop Intergenerational Wealth Transfer Planning • Proacti e ad isors • Identify Appropriate Asset Allocation and Investment Strategy • iduciary mindset • Coordinate with Professional Advisors • ull ser ice implementation • road range of ser ices • Provide Personalized Attention Strategic • Monitor Investment Performance Wealth Planning • Provide Comprehensive • Provide Estate Planning Trust & Performance Reporting Investment Recommendations Estate Management • Participate in Manager Selection • Develop Family Wealth Plans Services • Support Trustees in Fiduciary Duties Family Members

Tax & • Support Family Philanthropic Mission Charitable Financial • Develop Tax Efficient Strategies Develop Personal Gifting Programs Gifting • Planning • Oversee Personal & Entity Tax Returns Administer Family Foundations • • Review Personalized Financial Plans Family with Each Client Unity

• Support Strategic Long-term Family Vision • Actively Guide, Promote and Support Governance Committee Business

• ll participants offer family office ser ices in estment consulting financial management and philanthropy and deli er them internally. ducation is another ser ice that is handled internally.

Services Provided to Ultra-Wealthy Clients As of 2014

n 6

How Delivered Primarily (if offered) Service Offered Internally Outsourced Family office services 100% 100% 0% Investment consulting 100% 100% 0% Financial management 100% 100% 0% Philanthropic giving and legacy planning 100% 100% 0% Fiduciary advisory services (including estate planning) 100% 88% 13% Investment management 94% 93% 7% Risk management & asset protection planning 94% 73% 27% Family governance 94% 87% 13% Family wealth education 94% 100% 0% Tax planning 94% 87% 13% Tax compliance 75% 58% 42% Insurance services 63% 20% 80% Lifestyle management services (e.g. concierge services) 63% 20% 50% Private banking 50% 75% 25%

Which of the following services does your firm provide ultra wealthy clients For each service, please indicate whether or not each service is offered or not and, if so, how it is delivered

Which of the following consulting services do you use? Select all that apply n

88% 81%

49% 37%

16% 11% 4% 4%

Investment Strategic Consolidated Educational Wealth Trust services Other, please Full wealth manager asset reporting materials planning explain management and or allocation and or events estate or services security financial selection services

Other includes: Market research, performance reporting

Most participants rely on their investment consultant for investment manager/security selection and strategic asset allocation advice. A growing number are looking to their consultants for help educating the next generation.

David Donabedian, Chief Investment Officer, Atlantic Trust Martina Frangis, Managing Director and Senior Relationship Manager

April 28, 2015 FOX Wealth Advisor Forum

Our Investment Philosophy: The best way to control risk and generate income is through global diversification among asset classes and investment strategies.

To develop a strategic, or long-term, asset allocation for you that is durable, flexible and tailored to your unique needs, we follow a disciplined process that typically involves the following steps:

Define and prioritize your objectives by considering your investment time horizon and balancing Step 1 goals for preservation and growth of capital with tolerance for risk and expected granting needs

Establish target asset allocation ranges for the various assets to be represented in your portfolio, Step 2 considering recommendations from Atlantic Trust’s Asset Allocation Committee

Document your strategy, which may include a written investment policy statement (IPS) that will Step 3 guide the management of assets toward your desired results

Implement the strategy using the appropriate mix of proprietary and/or external managers across a Step 4 full array of asset classes; effectively manage portfolio transitions and related tax implications

Step 5 Make tactical adjustments to your allocation based on opportunities or risks in the market, considering Asset Allocation Committee guidance

Through our hybrid investment approach, we offer a combination of proprietary and external investment strategies with competitive, risk-adjusted returns.

Our experience edge—of more than two decades of using this approach—gives us outstanding access to leading managers in every major asset class.

This is a generalization of asset classes and is for illustrative purposes only.

As a multi-family office, our comprehensive services include: Diagnostic investment review and analytics Investment policy development Custom asset allocation plan development Investment Management Proprietary portfolio management External manager due diligence, selection and monitoring Ongoing tactical adjustments and rebalancing Income and retirement Wealth transfer Philanthropy* Wealth Strategies Family legacy Business succession and entity management Risk and protection* Fiduciary services Reporting Financial administration—general ledger/expense management Document vault and secure electronic storage Family tree hierarchy views and management Client Access* Global multi-custody support Entity coordination and analysis Tax compliance for trust and investment accounts Lifestyle enhancement services *Atlantic Trust provides some services in-house and also coordinates with Speaker series events outsourced providers, as relevant. Regular newsletters and e-newsletters Communications Timely expert commentaries Educational white papers

We have found a way to simplify the complexity of the wealth management process and to organize your wealth plan. Through our well-developed methodology, we help you determine how you ultimately want to use your wealth, and then we develop and implement the plan to accomplish your vision.

Meet Your Lifestyle Needs Consider your cash flow needs Ensure you retain sufficient assets throughout your lifetime Look ahead to any future income needs and unexpected expenses Help you feel secure about the future through proper asset allocation in conjunction with cash flow modeling

Plan Your Family’s Legacy Prepare your wealth to be transferred to the children and prepare your children to be good stewards of your wealth Begin creating a legacy, one that goes “beyond money”

Fulfill Your Charitable Vision Nurture a conscious culture of philanthropy in your family Determine the best approach for giving to charitable causes Fulfill your desire to maximize tax benefits, memorialize your family’s mission and educate your children about your family’s values

Asset Consulting Group

Family Office Exchange Wealth Advisor Forum April 28, 2015

©2015 Family Office Exchange Investment Consultant: An objective, third-party who focuses exclusively on investments. The consultant orchestrates all investment- related initiatives and coordinates with other advisors to bring the most comprehensive solutions to the family.

Tax

Charitable Legal Giving

Wealth Family Insurance Planners Advisors

Master Investments Custodian Corporate Trustee

In-House Outsourced

. Understand/help define the family’s overall mission, goals, risk tolerances and return objectives

. Develop a formal, tailored investment program that reflects the family’s profile

. Recommend appropriate investment strategies

. Provide ongoing due diligence, oversight and compliance with stated investment guidelines

. Provide ongoing perspective and education

Successful Investment Consulting Relationships:

. Have a “Quarterback” (Family Office Executive Director, CIO, Another Advisor)

. Allow Us to Establish Relationships with all Parties:

− Family Office Staff − Individual Family Members − Other Advisors

. Are Collaborative

. Identification of Investment Objectives/Risk Tolerances . Ongoing Portfolio Monitoring

. Investment Policy Creation and Review . Investment Performance Reporting

. Asset Allocation Analysis . After-Tax Return Computation

. Tax Efficiency Analysis . Risk Management

. Portfolio Implementation Analysis . Portfolio Rebalancing

. Custodian Bank Search, Selection and Review . Concentrated Stock Analysis

. Current Manager Analysis . Low Cost Basis Stock Analysis

. Investment Manager Search and Selection . Socially Responsible Investing

. Ongoing Investment Manager Due Diligence . Client Education

. Data Collection . Fee Negotiation

. Investment Performance Calculation and Reconciliation . Special Projects

Alignment of Best of Breed Interests

To access the “best of breed” in each category To assure a complete alignment of interests between the advisor and family

Distinct Lines of Minimize Responsibility Concentration To implement distinct lines of responsibility / To diversify the knowledge of the family and ownership of duties minimize concentration: No single point of failure

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com Understanding and Applying Industry Trends to Exemplary Advisor Service

Alexandre Monnier, Family Office Exchange John Benevides, President, CTC | myCFO Glen W. Johnson, Managing Director, Mirador Family Wealth Advisors Kevin Tobin, President and CEO, Marsh Private Client Services Dennis Wright, Managing Director at The Wellspring Group, LLC

April 29, 2015 FOX Wealth Advisor Forum

• Trends are “change in motion” and therefore represent challenges and opportunities

• Trends are rarely urgent but often important

• Addressing trends effectively can be the source of new competitive advantages

Needs & Solutions Life Cycle ATTRACTIVENESS

DISTINCTIVENESS

Desired Unique Pacing Key Fading Basic • Known, but • Only the • A few firms • Differences in • Catch-up • All firms not pioneers are ahead performance moves or perform well currently score determine declining • Weight • No competitive edge supplied well competitiveness weight begin to being take away the • Required, expected, • No weight • Some shifted to top performers no weight unless weight this edge weak advantage 3 ©2015 Family Office Exchange How Should Trends Be Assessed?

The impact of a trend is determined by the magnitude and pace of change

Magnitude vs. Pace of Change

60 Priority 1

50 Priority 2

40 Priority 3

Priority 4 30 Pace ofPace Change

Priority 5 10

0 0 10 20 30 40 50 60 70 80 Magnitude of Impact Source: FOX MFO Council

Rapid technology advances are threatening the protection of client assets, 1. privacy, and security.

2. Advisors are realigning their service models to optimize client experience.

3. Single family offices are continuing to explore outsourcing. Advisor firms and SFOs are preparing to fill the human capital gap left by 4. retiring wealth professionals. Family education and learning are becoming essential service 5. requirements. Advisors and family clients are acknowledging the impact of “soft issues” 6. on wealth sustainability. Advisors and family clients are relying more on integration as a strategy for 7. managing complexity. Increasing family office professionalism is driving expectations across the 8. industry.

9. Advisors are striving to engage millennial clients.

10. Families are increasing their focus on philanthropy.

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com 2015 Wealth Advisor Forum

Exploring Your Personal Leadership Brand: Becoming the Master-Builder of YOUR Future

As an advisor responsible for providing holistic and integrated family wealth services, leadership is an integral part of your every day responsibility. Sarah Biggerstaff, noted coach and lecturer in the practice of leadership at Yale School of Management, will walk participants through a process to unlock their potential and explore their personal identity as a leader. Sarah believes there is no one-size fits all approach to leadership and will help advisors explore and develop their own authentic style.

Speaker:

Sarah Biggerstaff, Lecturer in the Practice of Leadership and Leadership Coach, Yale School of Management

Sarah is currently a Lecturer in the Practice of Leadership and leadership coach at Yale School of Management. In this capacity, she teaches the core course Leadership Practicum and works one-on-one with MBA, Executive MBA, and Master of Advanced Management student leaders to facilitate their development. Sarah uses a combination of humor, candor, and support to help leaders see new possibilities and take new actions as leverage for personal growth and organizational change. She believes that there is no one-size fits all approach to leadership and works with clients to help them explore and develop their own authentic style.

Sarah also served as an officer in the military and personally understands the challenges, demands, and pleasures of leadership. This background, combined with her experience as a change management consultant and coach, gives her a unique perspective into the world of leadership.

Notes

2015 Wealth Advisor Forum

Exploring Your Personal Leadership Brand: Becoming the Master-Builder of YOUR Future

Sarah Biggerstaff, Yale School of Management

April 29, 2015 FOX Wealth Advisor Forum

©2015 Family Office Exchange Objectives • Overview and impact of branding for leaders • Phases of personal branding 1. Values, Strengths, Experiences 2. Growth areas and Misalignment 3. Clarify and Calibrate 4. Live your brand • A plan and framework to move forward

Born 30% Learned 70%

There is not one style of leadership 70/20/10 Rule3

nor one kind of brand Classroom study, 10%

Feedback and coaching, 20% Experience , 70%

Experiential

Assimilation

Immediate Application

I talk, you only listen

Adult learning

• A clear and profound understanding of who you are and what you stand for. – Then, the way in which you let others see and experience who we are what we stand for. • Communicated through values and behavior. • An ongoing and iterative process.

Jeff Bezos, Founder of Amazon

• Leaders who brand effectively carry an image that gets associated not only with their organizations’ brand but with their own.

• Millennials intuitively understand this as a necessity.

– They do it and expect it of others.

– Meet them where they are. Speak their language.

• What does this mean for next generation leadership?

• Social media presence

• Persuasion

• Selling yourself

8 ©2015 Family Office Exchange Moving past reticence to brand • I don’t know why it matters. • I don’t know what my brand is. • I don’t know how to share my brand. • The “ick” factor. – Feels inauthentic – Feels like I’m trying to sell

9 ©2015 Family Office Exchange Upside of cultivating a personal brand • Enables you to be a more authentic leader who creates greater impact. Strengthens trust and • Clarity for yourself and others - relationships knowing who you are and what you stand for.

• Better understanding of expectations, being set for you and what you set for others.

• It’s a distinction - something that sets you apart.

1 2 3

Teamwork Communication Integrity Relationships Innovation Growth Ambition Relationships Intelligence 5 6

Spirituality Integrity Innovation Social Resp. Patience Tolerance Patience Social Resp. Creativity

• It is critical to establish your own brand as a leader. • You are not just your company’s brand. • Both matter; find a way to represent both without subjugating one for the other • If others don’t know what your personal brand is, the fault is yours and not theirs.

14 ©2015 Family Office Exchange Self-assessment of Your Brand • Have you defined your personal brand? – To truly live your brand, you have to know what it is. – It’s not static or set in stone. • Are you consistently living your personal brand every day?

For most people, the answer to both is “no”.

• Phase 1 – Values, Strengths, and Experiences

• Phase 2 – Growth areas and Misalignment

• Phase 3 – Clarify and Calibrate

• Phase 4 – Live your brand

Past Experiences

Values Strengths

17 ©2015 Family Office Exchange Personal Branding Exercise • Fill out the branding worksheet – Explore your values, strengths, expertise – Use that to draft a few sentences to put shape to your personal brand • Share and discuss with a partner – Ask questions, explore, engage in dialogue

• Which of these values are most important in your work?

• What question on the worksheet was the most difficult for you to answer? Why?

• In your current role, what’s the potential gain from identifying your personal brand?

19 ©2015 Family Office Exchange Phase 2 – Growth areas and Misalignment • It’s imperative to engage others in a way to get a better picture they see you. – For your brand to be effective, it must resonate externally. • How you see yourself is not enough, – It’s often vastly different than how others see you. – This leads to dysfunctional, ineffective relationships • A meta-analysis of 263 studies consistently showed that other people’s view of us is more predictive of our behavior than our own view.

Known to self Not known to self

Open Blind Known to others Known to self and Not known to self but known to others known to others

Not known Facade Unknown to others Known to self but Not known to self not to others or others

• Reduce gaps between how you want to be seen and how you are seen. • Disclosure – Demonstrate behavior that is aligned with how you want others to perceive you. – Be consistent. • Reduce the façade – Engage in dialogue about who you are as a leader and what you value.

• Information about reactions to a product, an idea, a person’s performance of a task, etc.

• It has no inherently positive or negative connotation.

24 ©2015 Family Office Exchange Increase the “open area”, con’t • Shrink blind spots through feedback! • Show that you are open to receiving it. Ask for it. Give it. • Multiple ways to get it – Dialogue – Past reviews – Frameworks – Free online surveys (SurveyMonkey, Google) – Explore where you’ve had success – Explore where you’ve had frustration

A structured way for anyone to take a periodic “pulse”.

What am I currently What am I not What am I currently doing that if I was to currently doing that if I doing that is really stop, would make me was to start doing, working? I’m asking more aligned with my would make me more so I don’t stop doing it personal brand? aligned with my or start doing it personal brand? differently.

26 ©2015 Family Office Exchange Table top discussion In the family wealth advisory culture: – How can you ask for and receive feedback? – How can you help increase others’ self- awareness? – What are the barriers to garnering feedback? – What are the perceived risks to discussing how others see you? – How can you overcome these barriers and mitigate risks?

• Review your feedback – What are consistent themes? – How do others consistently perceive you? – What strengths do they see? – What growth areas? • Calibrate – Reflect on the ways you can adjust behavior to better embody your desired brand.

Designated Leader Influencer

Leadership

Active Follower Self Leader

How do you stay true to your personal brand when you are required to take on these roles? – “Modulate around the edges.” - Beth Axelrod, SVP of HR @ Ebay

How does your brand transcend your role?

• Lacking authenticity. • “This doesn’t matter for my career right now.” • Branding in a vacuum. •“I’ll do this when I have more time” syndrome. • Thinking of your brand as something that is separate from you. • No measurement. • Going it alone.

• Commit to action. • Give yourself a deadline. • Set aside time to identify your brand. • Find an accountability partner.

33 ©2015 Family Office Exchange 6 Dominican Accountability Study 43% Group 1 was asked to simply think about the business-related goals and rate according to difficulty, motivation, etc, whether they had pursued the goal before. Groups 2-5 were asked to write their goals and then rate them on the same dimensions as given to Group 1. Group 3 was also asked to write action commitments for each goal. Group 4 had to both write goals and action commitments and also share these commitments with a friend. Group 5 went the furthest by doing all of the above plus sending a weekly progress report to a friend. 76%

Values, Strengths, & Growth areas & Clarify & Experiences Misalignment Calibrate

Find an Seek feedback from Assess what you accountability others. need to change. Live partner. Review old Find resources Your Complete the performance evals. to help support Brand branding building new worksheet. Talk to trusted capacities. colleagues and Where? Create an action mentors. plan and share it. How? Design and send a short 360.

1 week 3 weeks 2 weeks

Values, Strengths, & Growth areas & Clarify & Experiences Misalignment Calibrate

Ask Russ to be Seek feedback from Identify themes Live accountability Jackson and Steph from feedback – Your partner. flexibility and Review old collaboration. Brand Complete the performance evals from branding Army Sign up for Yale worksheet. workshop on Talk Rich…and Tom. flexibility. LinkedIn Create an action plan and share it. Design and send a Actively be Bio short 360 to at least 5 more Fam Army people, 5 collaborative. coaches, and LDP.

1 week 3 weeks 2 weeks

• Overview and impact of branding • Your brand versus your org’s brand • Creating a personal brand • The importance of feedback • “Modulating around the edges” • A plan and framework to move forward

1 De Neve, J.-E., Mikhaylov, S., Dawes, C. T., Christakis, N. A., & Fowler, J. H. (2013). Born to Lead? A Twin Design and Genetic Association Study of Leadership Role Occupancy. The Leadership Quarterly, 24(1), 45–60. doi:10.1016/j.leaqua.2012.08.001 2 Dweck, C. S. (2006). Mindset: The new psychology of success. New York: Random House. 3 Rabin, R. (2014). Blended Learning for Leadership: The CCL Approach. Retrieved from http://www.ccl.org/Leadership/pdf/research/BlendedLearningLeadership.pdf 4 Chamorro-Premuzic, T. (10 March 2015). Why you lack self-awareness and what do do about it. Retrieved from http://m.fastcompany.com/3043354/work-smart/why-you- lack-self-awareness-and-what-to-do-about-it. 5 Ostis, N., Gookin, J. (2007). Developing Leadership Effectively on River Courses. Retrieved from http://www.nols.edu/enrolled/admissionforms/instructor_course_curriculum/REN1_Lead ership.pdf 6 Matthews, Gail. (2014). Goals Research Summary. Retrieved from http://www.dominican.edu/academics/ahss/undergraduate-programs- 1/psych/faculty/fulltime/gailmatthews/researchsummary2.pdf

1. Photo attributed to Matt Yohe under the Creative Commons Attribution- Share Alike 3.0 Unported license. http://commons.wikimedia.org/wiki/File:Steve_Jobs_Headshot_2010- CROP.jpg. 2. Mike Krzyzewki – public domain photo 3. Photo attributed to Luke Vargas (vargas2040) under the Creative Commons Attribution-Share Alike 2.0 Generic license. http://commons.wikimedia.org/wiki/File:Oprah_Winfrey.jpg. 4. Copyright held by Funkfried333. http://commons.wikimedia.org/wiki/File:Lady_Gaga_Berlin_23.10.13.jpg. 5. Martin Luther King, Jr. – public domain photo 6. Photo attributed to Alice Schroeder under the Creative Commons Attribution-Share Alike 3.0 Unported license. http://commons.wikimedia.org/wiki/File:Alice_Schroeder_with_Warren_B uffett.jpeg.

400 Park Avenue, Suite 810 . New York, NY 10022 T: 1.646.504.0776

Adam House 7-10 Adam Street . London WC2N 6AA United Kingdom T: 44 (0) 207 520 9439 . F: 44 (0) 207 520 9441

www.familyoffice.com Examples of Effective Branding Values Instructions: At your table, please discuss the unique brand that each of these leaders cultivated. Choose 3-5 descriptors from the list above that you think best describe their brand. Ambition Dependability Humor Power Spirituality Autonomy Empathy Independence Productivity Teamwork Communication Family Innovation Prosperity Tolerance Challenge Flexibility Integrity Recognition Trust Competence Growth Intelligence Relationships Wisdom Creativity Harmony Loyalty Risk Taking ______Curiosity Health Open-mindedness Service ______Decisiveness Honesty Patience Social Responsibility ______

1. Steve Jobs – Cofounder and CEO of Apple

______

2. Mike Krzyzewski – Coach of Duke University’s basketball team

______

3. Oprah Winfrey – Talk show host and media mogul

______

4. Lady Gaga – Musician

______

5. Martin Luther King, Jr. – Civil rights leader ______

6. Warren Buffet – Investor

______

Your Personal Brand Worksheet

From the list below, what values resonate with you? Or are there others, not on this list? Circle or write in a few values that are in alignment with who you are.

Ambition Dependability Humor Power Spirituality Autonomy Empathy Independence Productivity Teamwork Communication Family Innovation Prosperity Tolerance Challenge Flexibility Integrity Recognition Trust Competence Growth Intelligence Relationships Wisdom Creativity Harmony Loyalty Risk Taking ______Open- Curiosity Health Service ______mindedness Social Decisiveness Honesty Patience ______Responsibility

What are you most passionate about?

What are past experiences that shaped who you are today?

In what do you consider yourself an expert?

What distinct qualities do you have? How do they benefit those around you?

What do you do that you are most proud of?

What do you want people to say about you when you’re not around to hear it?

Reflect on your responses and draft a few sentences that embody your personal brand. It doesn’t have to be perfect, but do take a stab at putting some structure and wording around your brand.

COMPANY OVERVIEW

Archway Technology Partners (Archway) is a software company whose products support the accounting, investment management and reporting functions for Single Family Offices, Multi-Family Offices, Investment QUICK FACTS Advisors and Hedge Funds. Archway’s technology platform, ATWeb, is a comprehensive web-deployed application that enables clients to simplify the operations and reporting of their firm through a single FOUNDED software solution. 2002

SOFTWARE SOLUTIONS FOR INVESTMENT MANAGEMENT, ACCOUNTING & REPORTING ASSETS UNDER REPORTING $200B ACCOUNTING Basis Transfers Cash Management HEADQUARTERS Fixed Asset Depreciation INDIANAPOLIS INVESTMENT MANAGEMENT General Ledger Multi-Currency 3rd Party Pricing via IDC Multi-Tiered/Nesting TECHNOLOGY Automated Amortization 123 Partnership Allocations SOFTWARE-AS-A-SERVICE Automated Bank, Receipts & Disbursements Brokerage & Custodial Transfers & Gifting Integrations Trust Accounting Corporate Actions OUTSOURCING Portfolio Modeling & PORTFOLIO RECONCILIATION Rebalancing REPORTING Public & Private 180+ Standard Reports Investments Client Statements Side Pockets Financial Reporting Trade, Position & Cash Performance Reporting Reconciliation Tools Report Batching & Scheduling Wash Sale Notification ATWeb Report Writer User Queries

TECHNOLOGY OTHER CAPABILITIES 24/7 Availability 99.5% Guaranteed Uptime API Calls Annual Penetration Testing Budgeting Microsoft & Adobe Technologies Client Portal $ Offsite Backup & Disaster Recovery Dashboards with Drill-Through SOC 2 Certified Hosting Facility Data Import & Export via Excel AP/AR SQL Server Database Document Manager Bill Creation Web Hosted SaaS Check Writing Fee Billing Invoice Creation Workflow Control

CLIENT TYPES

SFO MFO RIA HF PB FA

SINGLE FAMILY MULTI-FAMILY REGISTERED HEDGE FUNDS PRIVATE BANKS FUND OFFICES OFFICES INVESTMENT ADMINISTRATORS ADVISORS PRIVATE WEALTH INVESTMENT SOLUTIONS

HELPING TO DRIVE HIGH-NET-WORTH CLIENT SUCCESS n Global reach with investment professionals in North America, Europe and Asia n Customized, institutional-quality investment strategies tailored to high-net-worth clients n Client acquisition programs targeted at centers of influence n Specialized investment consultants focused on trust and fiduciary issues n Best-in-industry thought leaders

To nd out more, call 800.521.1297 or visit columbiathreadneedle.com/us blog.columbiathreadneedleus.com

For broker/dealer use only. Not for distribution to the general public.

Securities products offered through Columbia Management Investment Distributors, Inc., member FINRA. Advisory services provided by Columbia Management Investment Advisers, LLC. Collectively, these entities are known as Columbia Management. This material is for educational purposes only. It cannot be used for the purposes of avoiding penalties and taxes. Columbia Management Investment Advisers, LLC does not provide legal or tax advice. Clients should consult a legal or tax advisor for individual needs. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110-2804 © 2015 Columbia Management Investment Advisers, LLC. All rights reserved. CT-MK/247467 A (04/15) 5504/1152901

About Diamond Hill

Founded in 2000, Diamond Hill Capital Management, Inc. is an independent investment management firm headquartered in Columbus, Ohio with significant employee ownership and $16.2 billion in assets under management as of February 28, 2015. We provide investment management services to institutions and individuals through mutual funds, separate accounts, and limited partnerships. Existing strategies include long-only U.S. equity strategies, alternative long-short equity strategies, and a fixed income strategy.

Our entire investment team shares the same intrinsic value investment philosophy focused on absolute returns. We believe that a company’s intrinsic value is independent of its stock price and that competitive long-term returns can be achieved by identifying meaningful differences between market price and intrinsic value using a discounted cash flow methodology. All of our portfolio managers are significant investors in the same portfolios in which our clients invest, and Diamond Hill employees and affiliates are collectively one of the largest investors in our strategies, ensuring that our interests are aligned with those of our clients.

We are committed to achieving excellent long-term results and providing outstanding client service to existing and new clients.

Our Mission

At Diamond Hill, we serve our clients by providing investment strategies that deliver lasting value through a shared commitment to our intrinsic value-based investment philosophy, long-term perspective, disciplined approach and alignment with our clients’ interests.

Value We believe market price and intrinsic value are independent in the short-term but tend to converge over time.

Long-Term We maintain a long-term focus both in investment analysis and management of our business.

Discipline We invest with discipline to increase potential return and protect capital.

Partnership We align our interests with those of our clients through significant personal investment in our strategies.

Josh Alderman Director – Institutional Business Development 614.255.3335 [email protected]

325 John H. McConnell Blvd . Suite 200 . Columbus, OH . 43215 . 614.255.3333 Family Wealth Report is the leading source of essential Family Wealth Report increased its offering for and often exclusive business intelligence for family the wealth management industry with the launch offices, private banks, wealth and private asset of the inaugural Family Wealth Report Awards 2014 managers, and other advisors to wealthy clients in the program. Americas. These awards, which are unique in that they Online content comes from our own experienced concentrate on the client experience rather than editorial team as well as leading industry quantitative metrics, are judged by an esteemed panel professionals, helping readers stay on top of important of judges including some of the most recognized developments in this complex space. industry figures. The judging panel is independent from the organizers and full confidentiality is ensured Family Wealth Report is published by ClearView throughout the process. Financial Media, an independent, London-based publishing house providing daily intelligence and By focusing on the Americas, these awards add to the regular in-depth market research to the global wealth success of ClearView’s established global awards management community. program, its robust events business and Family Wealth Report’s unique position in the global ClearView also operates a robust events business – our wealth management industry. annual schedule includes thought leadership events in major financial centres as well as international industry awards in London, New York, Geneva, Singapore, Hong For more information please visit: Kong and Dubai. www.familywealthreport.com

Family Wealth Report is part of ClearView Financial Media Ltd

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Better Advice, Better Service, Better Value... for an Easier Life! 2015 FOX Member Events - Advisor ®

January February March April May June July August September October November December

FOX Forums* Wealth Advisor Financial Global Fall Forum Forum Executives Investment Oct 22-23 Apr 27-29 Forum Forum Chicago Coral Gables Jul 21-22,Chicago Sep 10, NYC

FOX Educational Programs and Workshops* Family Office Private Family Trustees and Design Trust Company Beneficiaries Workshop Symposium Private Wealth Workshop May 5-6 Jun 9-10, Chicago Management Nov 17-18 Chicago Oct 27-30 New York Chicago

FOX Webinars*

Wealth Advisor Key Trust States’ Providing 2015 FOX Global Director and Trustee Unpegging the Next Gen: Women Private Family Direct Investment Next Generation Private Family Direct Investment Selection Process Innovative Proposals Perspective: Five Investment Survey Pay Plans: Increasing Swiss Franc: and Wealth Trust Co. Topic Topic Global Investing Trust Co. Topic Topic Supporting Private Predictions for the Responsibility and Jan 21 Family Trust Presentation of Impact on Global Jul 8 Aug 12 Sep 16 Practices Nov 4 Dec 2 Companies and Family Office of Findings Governance Impact Investments Oct 7 Family Trusts Tomorrow Apr 8 May 6 Jun 3 Feb 11 Mar 11

Trust & Estate Advising Before the Data Breach: Reinventing The Next Gen: GL Accounting for Strategic CIO Human Capital Human Capital Human Capital Best Practices Technology Planning Millennials Planning Ahead to Performance Philanthropy & the Small/Medium Topic Topic Topic Topic & Trends from Operations & Data Jan 28 Feb 25 Minimize Risk Reviews Impact Investing Family Office Jul 29 Aug 19 Sep 30 Oct 14 FOX KC Security Topic Mar 25 Apr 22 May 20 Jun 17 Nov 18 Dec 16

FOX Wealth Advisor Brieﬁngs and Roundtables Wealth Advisor Regional SFO/ Wealth Advisor Wealth Advisor Regional SFO/ Wealth Advisor Wealth Advisor Briefing MFO Briefing Briefing Briefing MFO Briefing Roundtable Briefing Mar 25, Dallas Apr 21, Minneapolis May 14, New York Jun 24, Boston Sep 17, Philiadelphia Oct 7, London Dec 3, New York

Wealth Advisor Wealth Advisor Wealth Advisor Member Breakfast Briefing Briefing Mar 27, Houston Jun 30, Chicago Sep 24, San Francisco

As of April 17, 2015, Dates subject to change. For updates and event details, please visit: www.familyoffice.com/learning-events *Eligible for CPE credit 2015 FOX Member Events - Advisor ®

January February March April May June July August September October November December

FOX Councils and Summits

Owner/Operator Executive Council Sr. Mgmt Council Thought Leaders Financial Family Enterprise Owner/Operator Executive Council Executive Council Council ‘14 Mar 3-5 Council Summit Executives Council - AUS Council ‘04 ‘14 Jan 12-13 Feb 10-11 Miami Jun 23-24 Council Aug 12, Melbourne Sep 8-9, NYC Sep 30 - Oct 1 Nov 9-11, TBD Salt Lake City Scottsdale New York Jul 20-21, Chicago Toronto

Financial Family Enterprise Executives Client Service Wealth Advisor Wealth Advisor Global Family Executives Council - AUS Council ‘04 Council Council-AUS Council-U.S. Council Council Feb 25 Mar 10-12 Jun 17-18, New York Aug 14, Melbourne Sep 16-17, New York Oct 1-2, Toronto Jan 29-30, Nashville Melbourne Ft. Lauderdale

Wealth Advisor Wealth Advisor Executive Council Wealth Advisor Council-AUS Council-U.S. ‘04 Council-EU Feb 27 Mar 18 Sep 30 - Oct 1 Oct 6 Melbourne New York Toronto London

Multi-Family Sr. Mgmt Council Office Council Oct 26-28 Mar 18-19 Nashville New York

Global Family Council Mar 25-26 London

Wealth Advisor Council-EU Mar 27 London

FOX Networks Investment Global Inv Forum Webinar TBD Network Direct Networks Sep 10, New York DIRECT Investing Meeting Dec 2 INVEST Network Jun 4, New York Webinar TBD, Sep 16

Network Investment Webinar TBD Global Strategic Networks Investment SCION CIO Jul 29 Network Meeting Forum Jun 4, New York Sep 10, New York Webinar: Director and Private Family Webinar TBD Fall Forum Webinar TBD Network Private Trustee Pay Plans: FamilyPrivate Trust Trust Company Oct 21-23, Chicago PFTC Family Trust Increasing Responsibility Aug 12 Nov 4 CompanyCompany and Governance Impact Symposium Network May 6 Jun 9-10, Chicago

Network Technology Webinar TBD Financial Webinar TBD Webinar TBD TODS Operations & Executives Data Security Jun 17 Forum Sep 30 Dec 16 Network Jul 20-21, Chicago

Network Webinar: Reinventing Financial Human Webinar TBD Webinar TBD HCAP Human Performance Executives CapitalCapital Aug 19 Oct 14 Network Reviews Forum Apr 22 Jul 20-21, Chicago

Network The Next Gen: Webinar TBD Webinar TBD, Oct 14 NEXT Next Gen Philanthropy & Impact GEN Leaders Investing Jul 8 Network May 20 Fall Forum Oct 21-23, Chicago

As of April 17, 2015, Dates subject to change. For updates and event details, please visit: www.familyoffice.com/learning-events *Eligible for CPE credit ® The FOX Thought Leaders Council™ Families and Advisors Collaborating on the Future of Wealth Management

The Concept and Approach The Benefits of Joining The Family Office Exchange invites distinguished advisor firms to FOX Thought Leaders Council join the FOX Thought Leaders Council (TLC) based on their Be present at the table as the highest level issues are reputation, skill and commitment to the highest end of the identified and addressed private wealth management industry. The goal of the Council is • Gain access for your firm to new insights on what families of to forge a diversified working group of experts to engage in top wealth are experiencing—insights that others in the industry level discussions that push the boundaries of best practice. The will only discover later group is designed to include integrated wealth advisors, legal • Be recognized as a leading mind in the industry based on and tax practitioners, insurance providers, private banks, trust having been selected to be part of this group companies, educators, consultants and philanthropic advisors. Learn from other advisors and the most sophisticated Identifying the issues that will be critical to family offices and families in the world the private wealth industry in the future is a central role of FOX. • Participate in candid discussions with a multi-disciplinary team To validate these issues and outline productive approaches that doesn’t exist anywhere else to resolving them, FOX works with the FOX Thought Leaders • Gain online access to all FOX research, publication, and Council (TLC). Prominent family office members also join the webinar archives TLC discussions to ensure well-rounded solutions. • Participate in the FOX Advisor Online Forum for quick answers The FOX Thought Leaders Council members are true leaders in Engage with FOX member families and family office the market and are recognized as such in the publications of executives the Council, at FOX meetings, on the FOX website, and in press • Meet family representatives as they join the TLC Summit relations about the Council publications. meeting • Attend Family Day at the Fall Forum including meals and FOX Thought Leaders Council Activities social activities Each July, at the annual Thought Leader Summit • Be present at the FOX Financial Executives Forum, attended meeting, the Council will by key family office executives • focus on a select industry issue where dynamic, thought- • Host FOX members and prospective members at private regional events provoking discussions take place resulting in industry changing insights. • Enjoy four complimentary admissions for the FOX Wealth Advisor Forum, FOX Financial Executives Forum™ and FOX • review industry trends and developments identified by FOX Fall Forum™ (use up to two passes per event) and Council members • draw on its collective experience and perspective to address Position your brand and showcase your expertise the issues at hand among the FOX membership and the wider private wealth management community The product of the Summit will be • Distribute your company’s research and white papers via FOX • new thinking in the format of a report, published for FOX publications, meetings, and global website members, and available to TLC members to share with • Be invited to present at a FOX webinar their clients and prospects. The report will duly note the • Contribute as a guest blogger on the FOX Insights blog, a contribution of the members of the Council. unique TLC member benefit • presentation of the findings at the FOX Fall Forum in October • Through articles publishing the results of the Thought Leaders • depending on the topic, an article provided to a leading Council Summit, highlighting your insights and contributions industry publication • On the FOX webpages devoted to the Thought Leaders • a press release and special coverage in the bi-weekly Council FOXConnects • An extended listing in the FOX Advisor Member Directory

Partner with FOX to build Your Business Family Office Exchange • Annually, conduct a capabilities review with FOX ™ management to brief them on your strategy and expertise Thought Leaders Council (as of 03/25/2015) so they can advise you of business opportunities that arise in • AIG the course of the year • The session includes feedback on your branding and • Ascent Private Capital Management positioning • Asset Consulting Group • Your dedicated Relationship Manager will keep up with you through monthly calls to ensure you are getting what you • BNY Mellon need from FOX and that FOX remains current on your goals • Deutsche Asset & Wealth Management • For wealth advisory firms, participate in FOX Wealth Advisor Benchmarking, gaining quantitative insight into how your • Eton Advisors, L.P. firm’s operations compare to your peer firms. Use these • HUB International Personal Insurance customized insights to build your competitive advantage • Pitcairn Position your company • Plante Moran • Use the FOX TLC logo in your marketing materials and on your website to signify your commitment to advancing the • PwC Private Company Services practice of wealth management and your selection as a • Rockefeller & Co. Thought Leader by FOX • Secure the first opportunity to co-sponsor FOX research • Schiff Hardin LLP and events. • TriState Capital Bank

Past Topics of the FOX Thought Leaders Council • U.S. Trust, Bank of America Private Wealth • Forging Successful Partnerships in the Face of Conflicts Management of Interest • Warner Norcross & Judd LLP • Managing Uncertainty in a Changing Environment • The Wellspring Group • Recasting the Central Role of FO as Risk Manager • Preparing the Next Generation for Responsibilities of Ownership • Securing the Future: Managing Threats and Opportunities Through Effective Risk Planning • How Wealth Owners Measure Value Thought • Developing a Long-Term View for the Family Wealth Strategy Leaders F ® a Council e • State of the Art in Family Wealth Management m g i n ly ha Office Exc

Family Office Exchange (FOX) is a global organization dedicated to supporting wealth owners and their advisors with research studies, consulting services, collaboration opportunities, and education on key topics such as managing wealth, family governance and best practices for running family offices. FOX currently serves approximately 850 families and their advisors each year from headquarters in Chicago with offices in New York and London.

For more information, visit www.familyoffice.com.

100 South Wacker Drive, Suite 800 Chicago, IL 60606 USA T: 1.312.327.1200 [email protected] 400 Park Avenue, Suite 810 New York, NY 10022 USA T: 1.646.504.0776 Adam House 7-10 Adam Street London WC2N 6AA United Kingdom T: +44 (0) 207 520 9443 FOX Integrated Wealth Advisor CouncilTM ® ESTABLISHED 2 0 0 6

Definition of the Peer Group Benefits of the FOX Wealth Advisor Council Chief executives of wealth advisory firms and boutique multi-family offices dedicated to building Access to a highly qualified peer group of their business among the highest net-worth clients. wealth advisory firms who will challenge you and stimulate your best thinking on how to Purpose of the Council lead your organization. The global resources of FOX are focused and To rapidly prepare wealth advisory firms for delivered to frame the Wealth Advisor Council profitable growth by providing peer insights, discussions about how to effectively develop a informed analysis of the drivers of success for profitable wealth advisor firm catering to top integrated wealth advisor globally, and clear end clients. articulation of the needs of the target audience. Updates on the trends in the family wealth marketplace and insights on the needs of Approach ultra-high net-worth families. Objective data from the industry’s leading A Council, first and foremost, is a carefully matched benchmarking study, tracking organizational peer group. People who have similar levels of structure, services, pricing, and profitability of experience and face similar issues come together to the Wealth Advisory market. address their needs arising from their responsibilities First hand insights that will help you articulate to the families they serve and the professional your firm’s distinguishing capabilities. development they need themselves. Learn from the experience of other market Each Council works from a FOX developed leaders. curriculum that is tailored to the needs of the Clear understanding of the evolving best Council. Meetings include content from the practices of the industry. Meeting topics will curriculum as well as specific topics and discussions include: requested by the Council members. FOX provides o Evolving your service offering the appropriate internal and external resources for o Attracting and motivating your staff lively, fruitful meetings. o Positioning your firm effectively for new business and new staff The concentrated full day format of the two Council o Understanding pricing trends in the industry meetings each year allows for in-depth exploration o Knowing what is working for others in of the issues at hand. Members find this approach business development to be highly effective in arriving at solutions for the unique issues they face. This intense experience is not available anywhere else in the world.

Outcome of FOX Wealth Advisor Council: The Implementation of Best Practices

Talent & Business Service Scope Business Processes & Strategy & Delivery Team Development Operations Structure

• Management Goals • Client Service • Development of Talent • Branding and • Internal Business • Business Metrics Experience • Team Structure Positioning Processes • Pricing for Proﬁtability • Integrated Planning • Compensation and • Marketing and • Operations and Control Process Incentives Messaging • Financial Reporting • Investment Planning • Sales Process Process

Community A Sampling of FOX Worldwide Wealth Advisor • Twice a year meetings of your Council peers featuring in-depth dialogue and the infusion of the latest FOX Wealth Advisor research. Council Members • Meet families at FOX Member Roundtable meetings in Europe. Abbot Downing • Private Wealth Advisor Council online discussion Addicus Ascent Private Capital Management Advice Ballentine Partners, LLC Access to FOX subject matter experts for industry questions • Carey Group • Continuing support from your Council Leader, guiding you to the appropriate peers, experts, or FOX knowledge to help you reach your goals. CTC | myCFO Eton Advisors, L.P. Knowledge Formuesforvaltning AS • Participate in and get detailed reporting from the FOX Wealth Advisor GenSpring Family Offices Benchmarking study. Hawthorn, PNC Family Wealth • Full access to the FOX Online Knowledge Center including the FOX Wealth Advisor Enterprise Series (5 volumes) Hemenway & Barnes, LLP • Monthly FOXConnects e-newsletter featuring FOX events, FOX Insights Lowenhaupt Global Advisors articles, and peer white papers Manchester Capital Management Education Meerschaert Family Office Mirador Family Wealth Advisors • Access to the bi-weekly webinar series covering trend briefings, FOX research, and a wide range of topics by top industry experts. Pitcairn • Webinars are recorded and available on demand 24/7. Plante Moran • The ability to engage FOX to train your staff and your clients on topics from the FOX Learning Curriculum. Rathbone Brothers Plc Rockefeller & Co. Positioning The Northern Trust Company

• Your membership in the FOX Wealth Advisor Council demonstrates to Quilvest Wealth Management prospects, clients, and staff that your firm is a visionary leader, participating Richardson GMP Ltd. in the leadership of the rapidly evolving ultra wealth advisory market. Rockefeller Financial • Submit your firm’s articles and white papers for inclusion in the online FOX Knowledge Center. Top articles qualify for features in the semi-monthly U.S. Trust, Bank of America Private FOXConnects e-newsletter. Wealth Management • An Extended Profile in the FOX Advisor Directory, providing four screens of Wilmington Trust information to a highly desirable audience. • The right to use the FOX Wealth Advisor Council membership seal on your website and in your collateral. For more information, contact info@familyoffice.com

Benefits of the Definition of the Peer Group FOX Multi-Family Office Council

The chief executives of sophisticated multi- Membership in a highly qualiﬁed peer group of family ofﬁces of varying sizes and structures, industry leaders who will challenge you and but all dedicated to the delivery of fully stimulate your best thinking on how to lead your organization. integrated wealth management solutions.

A seat at the table on the direction of the industry.

Purpose of the Council Objective data from the industry’s leading benchmarking study, tracking organizational To collaboratively address the challenges structure, services, pricing, and profitability of the of building profitable advisory businesses US MFO market. FOX MFO Council members can while influencing the direction of this influence the content of future studies to ensure the data is most helpful. evolving segment that serves ultra wealthy families, family offices, and families operating First look at the latest FOX insights on ultra wealthy significant businesses. families and developments in the ultra high net worth wealth management market.

First hand insights that will help you articulate your ﬁrm’s distinguishing capabilities. Multi-Family Office Learn from the experience of other market leaders.

F ® a Council e m g Clear understanding of the evolving best practices i n ly ha of the industry. Past meetings have focused on: Office Exc o Evolving your service offering o Attracting and motivating your staff

“The MFO Council meeting in March is one o Positioning your ﬁrm effectively for new business and new staff of the things I try not to miss each year.” o Understanding pricing trends in the industry –Leslie Voth, President & CEO, Pitcairn o Knowing what is working for others in business development

“You can’t ﬁnd this level of conversation anywhere in the marketplace.”

–Council Member

100 South Wacker Drive, Suite 800 Chicago, IL 60606 USA T: 1.312.327.1200 info@familyoffice.com 400 Park Avenue, Suite 810 New York, NY 10022 USA T: 1.646.504.0776 Adam House 7-10 Adam Street London WC2N 6AA United Kingdom T: +44 (0) 207 520 9443 FOX Multi-Family Office CouncilTM Membership An MFO Council membership includes a full slate of FOX membership benefits as well as positioning as a leader in the integrated wealth management marketplace. Community • The MFO Council Meeting (March) offers in-depth dialogue and the FOX MFO Council Members infusion of the latest FOX Wealth Advisor research. (as of April, 2015) • Meet families and peer advisors at the exclusive FOX Wealth Advisor Forum, FOX Financial Executives Forum, and FOX Fall Forum. Abbot Downing • Frequent Wealth Advisor Briefings in cities around the country. Ascent Private Capital Management • Private MFO Advisor Online Forum (Listserv). Athena Capital Advisors LLC Advice Ballentine Partners, LLC • A private briefing with a senior FOX consultant to update your staff or for a private brain-picking session. Commerce Family Office Access to FOX subject matter experts for industry questions. • CTC | myCFO • Continuing support from your Relationship Manager, guiding you to the appropriate peers, experts, or FOX knowledge to help you reach Eton Advisors, L.P. your goals. Glenmede Knowledge Gresham Partners, LLC • Participate in the FOX Wealth Advisor Benchmarking study. • Full access to the FOX online Knowledge Center including the FOX Hawthorn, PNC Family Wealth Wealth Advisor Enterprise Series (5 volumes). Hemenway & Barnes LLP • Bi-weekly FOXConnects e-newsletter featuring FOX events, FOX Insights articles, and peer white papers. Kanaly Trust Company Education Kerr Financial • Access to the bi-weekly webinar series covering trend briefings, FOX Lowenhaupt Global Advisors, LLC research, and a wide range of topics by top industry experts. Mirador Family Wealth Advisors • Webinars are recorded and available on demand 24/7. • The ability to engage FOX to train your staff and your clients on Northern Trust topics from the FOX Education Catalog. Pathstone Family Office, LLC

Positioning Pitcairn • Aside from the strategic insights and practical support you will receive, your membership in the FOX MFO Council demonstrates Plante Moran to prospects, clients, and staff that your firm is a visionary leader, Rockefeller & Co. participating in the leadership and the rapidly evolving ultra wealth advisory market. Sentinel Trust Company • Submit your firm’s articles and white papers for inclusion in the online FOX Knowledge Center and Resource Center at the FOX Synovus Family Asset Management Fall Forum. Top articles qualify for features in the bi-weekly FOXConnects newsletter. Tolleson Wealth Management • An Extended Profile in the FOX Advisor Directory, providing four Vogel Consulting, LLC screens of information to a highly desirable audience. • The right to use the FOX MFO Council membership seal on your U.S. Trust Family Office website and in your collateral. • Create awareness of your brand and your offering by attending the annual FOX Financial Executives Forum, FOX Wealth Advisor Forum, and FOX Fall Forum. For more information, contact info@familyoffice.com

® FOX Client Service CouncilTM ® SAVE THE DATE: June 17-18, 2015 - New York City

Client Service

F ® a Council e m g i n ly ha Office Exc

The purpose of the FOX Client Service Council (CSC) is to deﬁne the future Client Experience for integrated wealth advisors and single family ofﬁces.

Client Service – The Differentiator for the Future Preliminary Agenda The elevation and sophistication of the client service experience will become a key indicator of value in the future. Wednesday, June 17 Offices that deliver a compelling client experience will be the future industry leaders. 7:00 PM Cocktails 7:30 PM Dinner Council Members Will Lead the Industry Would you like to be part of a small group of firms that will Thursday, June 18 be at the forefront in designing the client service experience 8:30 AM Breakfast for tomorrow? These Council members will learn from FOX and from each other. If you are not at the table, you will not 9:00 AM Overview and Purpose of the FOX be learning what others are learning and will not be able to Client Service Council take advantage of the insights they are gaining. 9:15 AM Participant Introductions and Peer Exchange Efficiently Develop Your Future Offering This Council is a highly efficient means of defining your future 10:45 AM Break client service experience. The Council fee is a small fraction 11:00 AM Defining the Component Parts of of the consulting expense you would pay to do this on your the Client Experience own. That is why several member firms have been asking FOX to form this Council. 12:00 PM Lunch 1:15 PM The Client on-boarding Process The Curriculum Includes Peer Discussion, FOX Research, Examined and Expert Resources CSC meetings will include a combination of FOX-facilitated 2:45 PM Break intimate peer exchange, FOX research, and other expert 3:00 PM Client Satisfaction resources introduced to help guide discussion. FOX has developed a curriculum focused on wealth management 4:00 PM Next Steps for Council / Planning services and the delivery of these services in an integrated Next Meeting fashion to clients. 4:30 PM Adjourn Participation is Limited The ideal Council participant for the CSC is a senior Registration relationship manager in your organization who oversees To reserve your seat in this Council, members or delivers wealth management services, or the person should call Karen Rush at 312-327-1233. responsible for the Client Experience. CSC will include both advisor and family office participants but the total size for the Non-members should email first meeting will be capped at 15. info@familyoffice.com or call 312-327-1247.

100 South Wacker Drive, Suite 800 Chicago, IL 60606 USA T: 1.312.327.1200 F: 1.312.327.1212 info@familyofﬁce.com 400 Park Avenue, Suite 810 New York, NY 10022 USA T: 1.646.504.0776 Adam House 7-10 Adam Street London WC2N 6AA United Kingdom T: +44 (0) 207 520 9443 F: +44 (0) 207 520 9441 Family Ofﬁce Design Workshop ® May 5-6, 2015 | University of Chicago Gleacher Center

Workshop Overview

Strategic Families who are thinking about starting a family Wealth office want to do it right - from the start. They want Planning to know what steps to take, when to take them, Trust & Estate Investment and how to avoid costly mistakes. But they can’t see Services Strategy down the road to know what will be needed. This workshop is designed to help. Family Members Drawing on 25 years of experience using our Tax & proprietary Family Office Blueprint™ process, FOX Charitable Giving Financial presents the “Family Office Design Workshop,” Planning designed specifically for families who are thinking Family about creating a family office or brand new offices Unity that are just getting started.

This comprehensive, two-day program addresses the The workshop will be led by the Sara Hamilton, issues that family members and office executives need Charles B. Grace III, Steven Draper and Jane Flanagan to understand as they launch a new family office. Day 1 of the FOX Consulting Team. This team brings more focuses on the guiding principles and key concepts that than eight decades of collective wealth management every family member should consider, and Day 2 delves experience to the task of helping you develop a custom into office operations and other technical issues for office blueprint for your family office. You will work with your executives. We encourage you to bring the members of the peers to discuss the material presented and brainstorm family who will champion this effort along with your office about alternatives and solutions. Throughout the executives to learn as a group about the following: workshop, you will learn what questions to ask - of your family and your advisors - at each phase of the • Family enterprise goals, governance, ownership design process. structures • Roles and responsibilities of the family and the Don’t miss this unique opportunity to gain the essential family office knowledge and tools you need to create your own, custom family office blueprint. Please join us on May • Family office costs and measures of success 5-6 in Chicago at the Gleacher Center. • Scope of services, including investment guidelines and processes For more information, call 312.327.1231 or email [email protected]. • Operations and infrastructure, including technology solutions and staff compensation

Workshop Agenda

Tuesday, May 5 Evaluating Office Performance – Critical Issues Map

8:00 am Breakfast and Registration Evaluating...... Office Performance – Critical Issues Map

9:00 am Welcome and Introductions I. Oversight and Governance Key Metric: Effective governance framework I. Oversight and Governance 9:30 am Family Culture and Enterprise Goals Key Metric: Effective governance framework Family Governance Process II. Owner Engagement and Education Enterprise Structures II. Owner Engagement and Education Key Metric: Family engagement Key Metric: Family engagement Group Discussion and Q & A III. ClientIII. Experience Client Experience Key Metric: Client satisfaction and use of services This session introduces the concept of the family Key Metric: Client satisfaction and use of services enterprise (what a family owns together and IV. Wealth Sustainability wants to preserve as family capital – financial, Key Metric:IV. ProfessionalWealth Sustainability investment process business, philanthropic, social, etc.). This Key Metric: Professional investment process overview explains the importance of working V. Complexity and Cost Key Metric: Cost relative to complexity together to determine what the family enterprise V. Complexity and Cost

looks like and what will be passed on to future VI. StaffKey Experience Metric: Cost relative to complexity generations. Effective governance structures Key Metric: Staff satisfaction/retention

and decision-making processes help sustain VI. Staff Experience 1 ©2014 Family Office Exchange the family enterprise. Participants will gain an Key Metric: Staff satisfaction/retention understanding of governance in the family setting, the key elements of governance (vision, 1 ©2014 Family Office Exchange leadership and decision-making) and the variety 3:00 pm Fee Structures of structures that support the family enterprise. Funding the Office Measuring Goals against Results – 12:30 pm Lunch The Family Office Report Card

1:30 pm Roles and Responsibilities of the Group Discussion and Q & A Family and the Family Office Leveraging the insights of the 2014 FOX Family Types of Family Offices Office Benchmarking™ survey, FOX experts will Regulatory, Legal and Tax Considerations answer questions about offices costs and outline Group Discussion and Q & A common cost allocation methods and typical fee structures. The first day will close with an This session explores the roles that family explanation of how to evaluate the family office members play in leadership of the enterprise each year and time for group discussion and Q & A. and in partnership with the family office. This discussion helps participants understand the many types of offices and identify the type of 5:00 pm Adjourn office that is needed to achieve the family’s goals. Participants will learn about the pros and 6:00 pm Reception & Dinner at Gleacher Midway Club cons of various ownership structures, and will be exposed to the regulatory and tax considerations that impact decisions about the legal structure of the family office.

Workshop Agenda

Wednesday, May 6 8:00 am Breakfast 1:30 pm Family Office Organization and Management 9:00 am Welcome and Insights from Day 1 Talent and Team Structure Staff Development Considerations 9:30 am Integrated Wealth Management: The Compensation and Benefits Importance of a Holistic Approach Scope of Family Office Services Group Discussion and Q & A Service Delivery Process The talent and integrity of the family office staff Investment Strategy, Policy and Processes has the greatest impact on the office’s success. Group Discussion and Q & A Every office struggles to attract and retain top talent. In this session, participants will learn The family office is uniquely positioned to about the roles and responsibilities of key staff ensure that a family’s wealth is managed in an members and best practices in family office integrated fashion, where each financial decision compensation and benefits offerings. is considered in the context of the family’s long- term goals and financial (tax, estate, investment) realities. Participants will learn about the most 3:00 p.m. Family Office Technology common family office services and service The Integration Challenge delivery alternatives. FOX experts will examine Software Solutions and Data Security this integrated framework and dig into the Wrap Up: Next Steps in the Design Process investment process with information designed Group Discussion and Q & A to help participants understand a best practice The family office is the primary source of investment process. consolidated financial information, and better reporting means better decision-making. Having 12:30 pmProfile Lunch ofBreak the Small Office (1-6 FTEs) the right technology in place is critical for Demographics | Peer Profiles | Oversight and Governance | Owner Engagement and Education | Client Experience | Wealth Sustainability | Complexitysuccess. and Cost This | Staff session Experience addresses the integration n=63 Characteristics of Small Offices (1- 6 FTEs) Staff Time Allocationchallenge n=44 inherent in consolidating data Averages from multiple sources and identifies software Number of family members 17 26% solutions that have been used by other family Staff size 3 FTEs offices with success. The program concludes Age of the family office 12 years 18% Investable assets $413M with the review of a helpful planning guide that Business Ownership 62% Yes 12% outlines critical next steps in the design process. 10% Leadership Generation Gen1-2: 79% 8% 6% 6% Number of trusted advisors 21 5% 5% 4:30 pm Adjourn 4% 20% rely on external Most Outsourced Service advisors for Integrated Investment Trusteeship Accounting Lifestyle Philanthropy Family General Business Special investment planning Planning Planning Reporting Mgt. Continuity Family Office Mgt. Projects Compliance Education Mgt.

Program for educating family members 20% have Average Total Cost of Wealth Management n=25

Average Annual Technology Costs Internal Family Office Costs 35 bps 54 bps External Advisory Costs Hardware Software Maintenance n=29 $12,000 $16,000 18 bps External Investment Costs n=34 New Software Consulting n=25 $3,000 n=32 $16,000

Average total cost of wealth management: 107 bps

©2015 Family Office Exchange 14 3 ©2014Family Family Office Office Exchange Design Workshop | May 5-6, 2015 | Chicago, IL Family Office Design Workshop ® May 5-6, 2015 | University of Chicago Gleacher Center

Workshop Presenters

Sara Hamilton Charles B. Grace, III

Sara Hamilton is the Founder and CEO Charles B. Grace, III is Managing of Family Office Exchange (FOX), the Director at Family Office Exchange definitive source of information and (FOX). He works on strategic planning best practices associated with the projects for families and family offices business of managing family wealth as well as wealth management advisor across generations. The strength of the clients. Assignments have included FOX network is derived from the collective knowledge and work on strategic planning, wealth management cost experience of over 340 globally-minded family enterprises analysis, development of investment programs, advisor based in 18 countries. selection, family office and advisory firm structuring, among others. Charlie is also active on the family office and Since 1989, FOX has made solutions accessible to financial advisor membership and research side at FOX, including families by fostering dialogue among wealth owners, investment focused studies and other initiatives. family office executives and wealth advisors. In 2014, FOX celebrated its 25th anniversary of service and remains Charlie has been active for 20 years in the family office true to its founding mission of objectivity in wealth community advising high net worth families and serving as management, member education and shared knowledge a resource to high net worth families and family offices. across a sophisticated, global network of families and leading wealth advisors. He advised wealth owners on investment portfolios and wealth management for 10 years at the multi-family Sara is the co-author of Family Legacy and Leadership: office Ashbridge Investment Management LLC and the Preserving True Family Wealth in Challenging Times, © single family office Ashbridge, LLC. His responsibilities 2010, Wiley & Sons. She serves on the Executive Education included client relationships, business development, and faculty of the University Of Chicago Booth School of membership on the firm’s investment committee, as well Business for the course on Private Wealth Management as business operations and firm strategy as Chairman of offered twice a year in Chicago. the Management Committee of the $1 billion investment advisory firm. He still serves on the Board of the single Since 2009, Sara has been named as one of the “Top 50 family office Ashbridge, LLC. Charlie is a Trustee and Women in Wealth Management” by Wealth Manager. Investment Committee member of the Tuttle Fund, Inc. in She serves on the editorial boards of the Journal of Wealth New York City. Management and Trusts and Estates as well as a Founding Board of the Chicago Global Donors Network. Charlie graduated from the Washington College of Law with a J.D. and is a member of the New York State Bar. He Prior to founding FOX, Sara worked in marketing and received a B.A. and M.A. in history from Bates College and strategy at Harris Bank and AT&T Information Systems. Sara the American University, respectively. holds a Bachelor of Arts from Vanderbilt University and a Master of Business Administration from the University of North Florida.

Workshop Presenters

Steven Draper Jane Flanagan

Steven Draper is a Senior Consultant Jane is the Director of Research and at Family Office Exchange (FOX). He Content Development at Family Office focuses on the “business” side of family Exchange (FOX). Jane has been with office and wealth advisor operations. the firm since 1993, and has served in a The emphasis is on solutions to support number of roles providing value to FOX the integrated financial platform that members, including Managing Director is key for the Family Enterprise Framework. Steven is also of Membership, Director of Research, and as a Consultant, active on the family office research side at FOX to ensure where she advises and counsels family offices and financial the members have the best available information, resources institutions on the wealth management process and family and solutions to help them streamline the family office office operations. processes and technology. Jane currently leads the firm’s annual Family Office In previous consulting positions, Steven has been involved Benchmarking™ research studies and works as a developer, in single and multi-family office assignments ranging writer and editor of industry whitepapers and research from establishing the basic processes, technology and studies for FOX members. Some of her recent works infrastructure required to operate the family office include: The FOX Guide to the Professional Family Office, business through to the implementation of a sophisticated, Financial Reporting in the Family Office, and 50 Best integrated platform that included CRM, portfolio and Practices for an Enduring Family Enterprise. Jane also partnership accounting, cash management, financial monitors the FOX listserv and serves as a content resource planning, risk management, data warehouse, account for the Membership and Research Teams at FOX. aggregation and flexible, on-demand reporting. Prior to joining Family Office Exchange, Jane worked as Steven has worked for over 25 years in the wealth a global custody Relationship Manager at the Northern management, private wealth and family office Trust Company. She served as the liaison between business in the USA, UK, Switzerland and the Middle East. her foundation and endowment clients and the bank, His skill set covers a broad range and includes: strategy and coordinating all of their master custody needs. operations for single and multi-family offices; new business and operational structures; process re-engineering and Jane holds a B.A. in political science from St. Norbert modeling; suitable technology and latest developments; College. negotiations of contracts with vendors; program/ project management of operational change projects and technology install; writing proposals, plans, standards, procedures and guidelines.

Steven holds a B.A. in politics and history.

Workshop Qualifications Four Ways to Register CPE This workshop is eligible for 9 CPE credits. 1. Register online at 3. Fax this form with credit card infor- Are you one of the following? https://www.familyoffice.com/ mation to 312.327.1212 I am a family member learning-events/workshops/2015- I am a family office executive 4. Mail this form with a check to: family-office-design-workshop- I am an external advisor Family Office Exchange may-5-6 100 South Wacker Drive Suite 800 Do you have a formal family office? 2. Scan and email to Chicago, Illinois 60606 Yes, I have a formal family office [email protected] No, I do not have a formal family Attendee Information office

Name (First/Last) If you have a formal family office, what year was it established? Family Name and Family Ofﬁce Firm Name

Title/Position What generation is your family leadership? Street Address

(G1, G2, G3, G4) City State/Province

Country Zip/Postal Code Will you attend dinner on Tuesday,

May 5? Phone Yes, I will attend dinner No, I will not attend dinner E-mail Dinner will start at 6:00 p.m. How did you hear about this workshop? Do you have interest in booking a hotel room? Do you have any dietary or special needs? Yes No Payment Method If you were referred, please advise Payment by check is enclosed (Check payable in U.S. dollars to Family Office Exchange) who referred you. Please charge the following credit card: VISA MasterCard Am. Express

Registration Fee Cardholder Name

Space is limited; all attendees must Card Number Expiration Date Security Code submit a registration form to ensure a seat. Billing Address for Credit Card FOX Members City State/Province Zip/Postal Code Country First attendee: $3,200 Additional attendees: Cardholder’s Signature $2,560 each Questions? Non-members Contact our events team at 312.327.1231 or at [email protected]. First attendee: $3,800 For event registrations, refunds of payment will be offered if the cancellation is made in writing Additional attendees: to Family Office Exchange at [email protected] five or more business days prior to the $3,040 each start of the event.

2ND ANNUAL Private Family Trust Company Symposium June 9-10, 2015 Union League Club | Chicago, IL

It is a lively time for private family trust companies (PFTCs). Several states are embracing innovative laws in the hopes of attracting PFTCs to their borders. Existing PFTCs are implementing creative solutions in response to these new legal conditions and changing family needs. Multi-family offices are expanding their trust service offerings. With more choices in the evolving legal landscape and much more to be learned and mastered, the 2015 FOX Private Family Trust Company Symposium will provide critical, in-depth insight and analysis on the latest state-and trust-structured changes relevant to creating and maintaining a private family trust company, including: • Legal • Compliance • Regulatory • Business • Family Issues

The symposium runs for two days. Attendees can elect to attend both days or select the one that suits their needs best.