1. Sound and Fundamental Investment Strategies. A client’s risk profile, investment horizon, liquidity and cash flow requirements are ultimately integrated into a plan and implemented through an asset allocation. At CWA, Asset allocation is a dynamic process that is reviewed frequently to adapt to our outlook and to the changing needs of our clients.27
2. Accessibility and Direct Communication with Advisors.At CWA, we have a network of professionals with expertise in managing the complex accounting, estateplanning, philanthropic, insurance and banking needs of the professional athlete. We provide seamlessintegration of all your financial planning with an investment strategy designed to protect and grow your assetsover the long term.`28
3. Assured Accounting and Financial Services. Professional athletes have short careers, huge potential, and complex needs. At CWA, we help our clients by budgeting their current and future expenses, thinking strategically about their cash management, and working closely with their accountants, attorneys and other advisors to ensure that their post-retirement lifestyle is as comfortable as possible.29
10 9 8 7 6 John Arne Riis Kenny Anderson Scotty Pippen Mushin Muhammad Marion Jones ELTE: $20MM ELTE: $60MM ELTE: $120MM ELTE: $20MM ELTE: $20MM Bankruptcy: 2007 Bankruptcy: 2005 Seeking Employment Selling home on eBay Incarcerated: 2007 5 4 3 2 1 Latrell Sprewell Michael Vick Dick “Night Train” Lane George Best Mike Tyson ELTE: $50MM ELTE: $130MM ELTE: $5MM ELTE: $100MM ELTE: $400MM Foreclosure: 2008 Bankruptcy: 2008 Died in 2002 broke Drunk and broke Net Worth <$5MM31
Strategy Client Risk Profile Assessment In order to determine the right amount of risk a client’s asset allocation Conservative can accept to meet their objectives, we make the time to listen. Our discussions lead us to an agreement on the levels and types of risk that are appropriate for a given client’s situation. Each client’s portfolio is custom designed and assessing risk tolerance is paramount to the investment process. Moderate Conduct Cash Flow Analysis Generating the cash flow to meet their lifestyle requirements allows our clients to weather difficult investment climates. We model cash sources and uses to ensure that assets are positioned to meet any forecasted need. Define and Refine Asset Allocation over Time Aggressive A client’s risk profile, investment horizon, liquidity and cash flow requirements are ultimately integrated into a plan and implemented through an asset allocation. Asset allocation is a dynamic process that is reviewed frequently to adapt to our outlook and to the changing needs of our clients.33
Research Equities We evaluate hundreds of investment managers annually to focus only on the select few that meet our criteria of attractive risk adjusted rates of return, timeliness, and a focus on wealth preservation. Our research team utilizes sophisticated software analysis to help find and evaluate investment managers that meet multiple screening criteria. (left) Fixed Income Bonds are often an integral part of investment plans, particularly where wealth preservation is a primary goal. CWA is not captive to any one trading desk. As such, we are able to search for bonds from multiple dealers to make the best selections for our clients. Alternatives The risk/return and often non-correlated characteristics of alternative investments can make them attractive additions to traditionally positioned portfolios. We may seek attractive investment opportunities among hedge funds, real estate, and private equity offerings depending on market conditions.34
Reporting Personal Financial Reports Wealth management is a dynamic as well as a visual process. Good decisions begin with accurate and complete information and a logical way in which to view it. We provide clients with regular, comprehensive and useful views of their finances. Performance Reporting CWA has created a proprietary report that provides clients a comprehensive performance evaluation of their portfolios delivered with performance benchmarking quarterly. Annual Tax Dossier Our annual tax dossier is compiled for clients that require consolidation of pertinent tax reporting information across multiple custodians for client family entities and accounts. Balance Sheet Summary Asset Allocation by Family Entity Portfolio Performance Analysis35
Services Estate Planning and Gifting Strategies Depending on client goals, there are numerous estate planning vehicles available for our clients to consider. We can help educate our clients and their beneficiaries on various planning techniques before they meet with their attorneys. We then work closely with our clients’ counsel in planning and modeling the multi-generational elements to family wealth. Family Office Services Many of our client families seek our help in non-investment related areas. We welcome those requests and where it makes sense to deliver those services directly, we do. Often, there are better or more cost effective alternatives outside our firm and we seek out and evaluate those alternatives. We maintain a network of firms with specialty knowledge in many areas of interest to our clients and will coordinate the seamless delivery of those services.36
Disclosures This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information presented herein is derived from sources deemed by Constellation to be reliable and are not guaranteed as to accuracy. In data transcription, errors may occur. The portfolio managers and the corresponding management styles described herein are those utilized by Constellation Wealth Advisors, LLC. Some of the benchmarks, such as the S&P 500 or the DJIA, are broad-based indices used for comparative purposes only and have been selected as they are well known and easily recognizable. Investment activities and performance of each manager discussed herein are potentially more volatile than the performance of the indices. The performance numbers shown are unaudited, estimated figures that may or may not include brokerage and the reinvestment of dividends, interest and other earnings or charges. The figures may or may not be shown net of management and performance fees and certain other expenses of the funds. All performance data is subject to revision based on internal auditing procedures. Past performance is not indicative of future results. Constellation Wealth Advisors, LLC is an investment adviser registered with the Securities and Exchange Commission (copy of current Form ADV Part II is available upon request), and a broker-dealer registered with FINRA. Please contact Constellation Wealth Advisors at (212) 697-2500 with any questions you might have. * Assets under advisement includes client assets without a discretionary asset management agreement.37
Constellation Wealth Advisors, LLC Mission Statement Constellation Wealth Advisors, LLC is an independent multi-family investment office with an uncompromising commitment to the best interests of our clients. We are focused on forging long-term relationships with our client families allowing them to reach and maintain their life goals while simplifying the inevitable complexities that come with wealth.39
Constellation Wealth Advisors, LLC History • Constellation Wealth Advisors, LLC (“CWA”) was established in 2007 as an independent multi-family investment office. Prior to forming the company, the founding partners of CWA had built two of the largest wealth management practice groups at Citigroup’s Family Office Division. • The concept of CWA evolved from our observation that large financial advisory firms had moved away from a truly client focused culture with the flexibility and independent thinking required to address the complex needs of wealthy families. • We are registered with the U.S. Securities and Exchange Commission as both a Registered Investment Advisor and a Broker-Dealer.40
“About” Constellation Wealth Advisors, LLC • Our firm employs 31 people in offices located in New York City and Menlo Park, California. • Senior Advisors of the firm each have more than 15 years of investment advisory experience. • Co- CEO’s Jon Goldstein and Paul Tramontano recognized by Barron’s in their April 2010 ranking of the Top 100 Financial Advisors. • CWA advises on over $3.8 billion in client assets (as of 12/31/09).* • We are committed to full transparency as we search and evaluate the entire universe of investment ideas. Our practice is primarily fee-based which supports a conflict-free approach to investment selection. • The principal custodians of our client assets are Bank of New York Mellon and Charles Schwab Corporation. • We seek client relationships with a limited number of families with a minimum of $10 million in investable assets.41
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