1. AEPG® Wealth Strategies
25 Independence Blvd
“Consistently Good Advice in a Constantly Changing World”® Warren, NJ 07059
908-757-5600
www.aepg.com
2. Agenda
AEPG Wealth Strategies Overview
TM
Investment Strategy
Client Service Model
Appendix
“Consistently Good Advice in a Constantly Changing World”®
4. AEPG® Wealth Strategies
overview and history
Experience: Managing wealth for over three decades as an
independent fiduciary and registered investment advisor.
Client commitment: Manage over $750M in Assets, with
solid reputation for providing personalized service and
comprehensive wealth management for individuals,
business owner and corporate clients.
Expertise: Staff of 30 across 5 departments, with expertise
in financial planning, investment management, retirement
plan solutions, employee benefits and insurance.
Credentials: Team holds highest designations in the
field including 8 CFPs, 3 CFAs, and other
specialized credentials.
Reputation for excellence: Recognized by peers and
industry publications.
“Consistently Good Advice in a Constantly Changing World”®
5. Our Philosophy
Our Mission
• To provide single-source, goal-oriented, comprehensive
wealth management services for high net worth
individuals and business owners
Our Vision Mission
• To be our clients’ trusted advisor. To continue to be
recognized as an industry leader
Our Values
• Accountability
• Professionalism
Core
• Trust Vision
Values
• Outstanding Service
• Loyalty
• Teamwork
• Caring Employer
“Consistently Good Advice in a Constantly Changing World”®
6. Our core beliefs
Our clients’ interests come first and foremost
Client success depends upon customized wealth
management advice and execution
Emphasis is placed on defining and understanding each
client’s needs/objectives at the onset of Peace
the relationship
of
We communicate with clients proactively Mind
We believe in holistic planning and coordinate with our
client’s legal and accounting professionals
“Consistently Good Advice in a Constantly Changing World”®
7. What we offer
Discuss financial/personal goals
Financial Cash flow analysis
Customize benefit package to Planning Retirement planning
meet your budget and goals Education planning
Attract and retain employees Employee
Benefits
Investment fiduciary helping
reduce or
Retirement
eliminate liability
Plans
Plan design & Operation
Participant education Client’s
Financial
Plan
Insurance needs analysis
Policy audit Insurance
Asset protection
Estate
Wealth transfer
Planning
Minimize estate tax burden
Invest Allocation based on financial plan
Mgmt Low correlated assets
Tax efficient portfolios
AEPG® Wealth Strategies
“Consistently Good Advice in a Constantly Changing World”®
8. AEPG® Wealth Strategies will
coordinate your financial plan
Financial CPA
Unique combination of
Planning Firms
independent advice, high
level of expertise and personal
Employee Elder
touch—in a fiduciary wrapper
Benefits Care
Estate
Retirement Planning
Plans Attorneys An investment discipline
Client’s that strives to optimize
Financial return and risk
Plan Property &
Casualty
Insurance firms
Wealth management
strategies integrated to
respond to unique needs of
each family
Banks
Estate
Planning
Invest Trust
Mgmt Services
AEPG® Wealth Strategies External partners
“Consistently Good Advice in a Constantly Changing World”®
9. How you benefit
Better than expected service
AEPG ®
Single source for Custom solutions and Objective investment Dedicated team including Lower costs of investment
comprehensive wealth clarity of safe money management Certified Financial Planner (underlying management
management services versus risk-based assets and Chartered fees & transaction costs)
Financial Analyst
Transparent Web-based daily reporting Tax-efficient investing Ongoing investment Collaboration with
investments and personalized online portal rebalancing and risk accountants or other
with consolidated view of management advisors to maximize
finances impact
“Consistently Good Advice in a Constantly Changing World”®
10. Reputation for
excellence
“ Most Influential Advisors of
Defined Contribution
”
“ Best Financial Advisors by 401kWire
“ Best Financial Advisors for Doctors
”
”
for Dentists November 2010 by Medical Economics Magazine
November 2010
by Dental Practice Magazine
“
April 2011& 2012
“ Top RIA Ranking
”
by Financial Advisor Magazine
New Jersey Top 401(k)
Defined Contribution Providers ”
“ June 2010-2012 by NJ Biz
Top 100 Retirement September 2010
”
Plan Advisors in 2010
“
by PLANADVISOR
January 2011
NJ 2012 Five Star Wealth Manager
”
“ Top 50 Wealth Managers
”
by NJ Monthly Magazine
Feb 2012
“
by AdvisorOne.com
Fastest Growing June 2010
Advisory Firms
”
by Investment Advisor Magazine
“ Top Wealth
Management Firms ”
2002 - 2009
“ Top 5 RIA’s in NJ
by Reuters”
Advice Point
by Wealth Manager Magazine
“Consistently Good Advice in a Constantly Changing World”®
12. Disciplined Investment
Philosophy
Investment portfolios customized to meet each client’s specific goals and needs.
“Consistently Good Advice in a Constantly Changing World”®
13. AEPG® Wealth Strategies’ Investment Model makes a clear distinction between risk-based
and lower-risk assets.
• Risk-based assets include: a Core portfolio of low-cost equity exchange-traded funds
(ETFs) is designed for long-term growth; tracking the global equity markets through the
use of indexing; and an Opportunistic ("satellite") portfolio that allows us to invest
more tactically, increasing risk-adjusted returns. Each Opportunistic investment has its
own entry and exit points and risk management parameters. We monitor the markets
for additional opportunities that present an attractive risk reward ratio.
• Lower-Risk high quality fixed income serves as the primary safety net in your portfolio.
Our experience and research has demonstrated that high quality fixed income,
particularly US Treasuries, provide true risk diversification – especially in times of
market stress, when diversification is needed most. In addition to high quality fixed
income, AEPG® Wealth Strategies offers other fixed income solutions to address client
specific needs for yield or tax efficiencies.
“Consistently Good Advice in a Constantly Changing World”®
14. Global approach to
investing
Based on and benchmarked to the MSCI All Country World Investable Market Index
MSCI All Country World Investable Market
“Consistently Good Advice in a Constantly Changing World”®
15. Risk-based portfolio
investments
AEPG® Wealth Strategies utilizes a core
Risk-Based equity/opportunistic structure for investing the risk-
based assets in the portfolio.
Lower-Risk
The Core portion of the portfolio is designed to offer low
cost beta (or market) exposure. Exposure is gained
through low cost Exchange Traded Funds (ETFs) and
‘Manager Model Strategies’. Where appropriate the core
is also tax-optimized, allowing for capital losses to be
realized in the portfolio.
The Opportunistic portion of the portfolio is designed to
generate alpha (or excess market return) by allocating to
undervalued sectors, asset classes or investment styles.
High Quality Core Equity Opportunistic Active management is applied both to manager selection
Fixed Income Investments Investments and style/sector allocations.
The ratio of the allocation to core and opportunistic is
dependent upon:
Expected after-tax return of the
market benchmark
Tactical Short Expected manager after-tax alpha
Strategic Long Term
Term
Expected opportunistic tracking error
Expected active manager turnover
“Consistently Good Advice in a Constantly Changing World”®
16. Lower-risk portfolio
investments
The AEPG® Wealth Strategies lower-risk portfolio is
comprised of high quality fixed income with a
Lower-Risk Risk- Based significant allocation to US Treasuries. We
continuously monitor the yield curve and interest
rates and make adjustments to the portfolio as
needed. Additional fixed income related risks are
constantly monitored. AEPG® Wealth Strategies
manages these risks carefully.
High quality fixed income is considered lower-risk
due to its low default risk and ability to appreciate or
maintain value during times of market stress
High Quality Core Equity Opportunistic
Fixed Income Investments Investments
The lower-risk portfolio can consist of individual
bonds, mutual funds and/or ETFs. The duration of the
lower-risk model will be carefully managed and the
maturity schedule any individual bonds may change
at any time.
Strategic Long Term
Tactical Short In addition to high quality fixed income, AEPG®
Term Wealth Strategies offers other fixed income solutions
to address client specific needs for yield or tax
efficiencies.
“Consistently Good Advice in a Constantly Changing World”®
17. AEPG® Wealth Strategies Portfolio
approach
Country
Sector ETF
ETF
Core Portfolio
Commodity Regional
ETF ETF
Lower-
Risk
Style ETF Cash
“Consistently Good Advice in a Constantly Changing World”®
17
19. Wealth management options
Depending on your needs, AEPG Wealth Strategies offers two Wealth
Management Planning Tracks.
• Standard Planning – this track offers a basic initial plan that produces
cash flow projections that assist in determining your portfolio allocation,
liquidity needs, asset location plan and tax management needs. This
basic plan may be updated once a year at your annual investment
review meeting. Additional planning items can be addressed on an A
La Carte basis.
• Comprehensive Planning – this track provides full, deep planning into
all areas of your financial life from Retirement planning, Customized
Investment Plan, Life, Disability, and Long Term Care Insurance Needs,
Education Funding Analysis, a full Estate plan including beneficiary
analysis, trusts and much more. You will also have access to your
Financial Advisor throughout the year to assist with any financial items
that might arise.
“Consistently Good Advice in a Constantly Changing World”®
20. Financial plan construction
Step 1 – Data Gathering Meeting
Review of short and long term goals & objectives, current
income, living expenses, investments and risk tolerance
Align with hierarchy of financial needs and goals
Open discussion involving both qualitative and
quantitative issues
Step 2 – Initial Plan Presentation
Planner and client review preliminary version of the
financial plan
Revisions will be noted and plan adjusted accordingly
Step 3 – Final Plan Review
This step involves a number of meetings that will focus on
certain areas
Could be 2 to 4 additional meetings depending on the
schedule of the client
Step 4 – Implementation
Implement investment proposal and planning
recommendations
Step 5 – Annual Review
Review of current plan and changes in circumstances that
may require plan revisions
“Consistently Good Advice in a Constantly Changing World”®
21. Ongoing communications
Quarterly Review Conference Calls or Meetings
Semi-Annual Financial Plan Updates
Quarterly Investment Newsletters
Town Hall Meetings
E-mail ‚bursts‛ for timely topics
Treasury Debt Ceiling
Opportunistic Portfolio Updates
Money Markets with Exposure to Sovereign Debt
Market Volatility
Year End Financial Planning Tips
Estate Planning Topics
Roth Conversions
Value Added Website
“Consistently Good Advice in a Constantly Changing World”®
22. “myWealthStrategies” –
Value added website
Simplify your Financial Life with “myWealthStrategies”
Organize all of your important
financial information in one place with
24 hour access
Safe & secure access to all of your
information remotely for peace
of mind
Your personal website will enable you
to view and monitor all of your assets
(investment accounts, bank account,
401(k)s, stock options, etc.) and
liabilities (credit cards, mortgage, etc.)
in one place
Budgeting tool
Collaboration across your team of
financial professionals (Financial
Planner, CPA, Attorney, etc.)
“Consistently Good Advice in a Constantly Changing World”®
23. Client fees
Our fees for investment management are based upon assets under management:
1.00% for $1 million in assets under management
0.90% for 2nd million in assets under management
0.80% for 3rd million in assets under management
0.70% for amounts over $3 million in assets under management
$500,000 minimum portfolio requirement
Fees may be tax deductible
In addition to fees charged by American Economic, clients are subject to fees charged by various separate
account managers (e.g., Adhesion/Atria), mutual funds and Charles Schwab.
Note: Mutual funds are purchase at net asset value without sales charges.
“Consistently Good Advice in a Constantly Changing World”®
25. Correlation in “normal”
times
Zephyr StyleADVISOR Zephyr S tyleA DV IS OR: A merican E conomic P lanning Group Inc.
Equals
Correlation Matrix: Returns vs. S&P 500
negative or March 1997 - August 2011
zero
correlation
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21)
1) Dow Wilshire 5000 (full-cap) 1.00
2) Dow Wilshire REIT 0.58 1.00
3) HFRI Fund of Funds Composite Index 0.65 0.32 1.00
4) MSCI EAFE Index 0.86 0.56 0.68 1.00
5) Russell 1000 Growth 0.96 0.44 0.62 0.80 1.00
6) Russell 1000 Value 0.91 0.65 0.51 0.81 0.78 1.00
7) Russell 2000 Growth 0.87 0.51 0.70 0.74 0.84 0.67 1.00
8) Russell 2000 Value 0.83 0.76 0.54 0.73 0.68 0.84 0.83 1.00
Equals negative or
9) S&P GSCI 0.24 0.18 0.42 0.33 0.22 0.21 0.27 0.23 1.00
zero correlation
10) Barclays Capital U.S. Aggregate -0.03 0.12 -0.01 0.01 -0.04 -0.01 -0.09 -0.03 0.02 1.00
11) Barclays Capital U.S. Treasury: Long -0.20 -0.06 -0.17 -0.19 -0.19 -0.17 -0.22 -0.19 -0.07 0.87 1.00
12) Barclays Capital U.S. Treasury: 7-10 Year -0.25 -0.08 -0.23 -0.23 -0.23 -0.21 -0.28 -0.24 -0.07 0.90 0.95 1.00
13) Barclays Capital U.S. Treasury: 1-3 Year -0.31 -0.17 -0.26 -0.29 -0.29 -0.27 -0.34 -0.30 -0.12 0.72 0.63 0.78 1.00
14) Barclays Capital U.S. Corporate High Yield 0.64 0.61 0.55 0.64 0.58 0.59 0.60 0.62 0.24 0.17 -0.13 -0.18 -0.29 1.00
15) Barclays Capital U.S. Treasury: U.S. TIPS 0.02 0.19 0.11 0.08 0.01 0.05 -0.03 0.02 0.26 0.73 0.62 0.66 0.45 0.26 1.00
16) Barclays Capital U.S. Municipal Bond 0.02 0.17 0.11 0.04 0.01 0.03 -0.01 0.03 -0.03 0.67 0.51 0.52 0.34 0.28 0.52 1.00
17) Credit Suisse High Yield Index 0.64 0.61 0.59 0.65 0.59 0.59 0.61 0.63 0.26 0.15 -0.15 -0.20 -0.32 0.99 0.26 0.28 1.00
18) Dow AIG Commodity Index 0.31 0.25 0.46 0.42 0.27 0.31 0.30 0.29 0.91 0.07 -0.05 -0.04 -0.09 0.32 0.30 -0.03 0.33 1.00
19) MSCI EM (EMERGING MARKETS) 0.79 0.48 0.74 0.83 0.74 0.71 0.74 0.67 0.35 -0.05 -0.21 -0.26 -0.33 0.64 0.10 -0.00 0.65 0.45 1.00
20) FTSE RAFI Global ex US 1000 0.83 0.60 0.61 0.97 0.74 0.82 0.68 0.74 0.35 0.01 -0.20 -0.23 -0.27 0.64 0.08 0.07 0.64 0.43 0.80 1.00
21) S&P 500 0.99 0.56 0.59 0.86 0.95 0.93 0.79 0.79 0.22 -0.02 -0.19 -0.23 -0.29 0.61 0.02 0.02 0.61 0.30 0.76 0.83 1.00
“Consistently Good Advice in a Constantly Changing World”®
26. Correlations in times of
stress
Zephyr StyleADVISOR Zephyr S tyleA DV IS OR: A merican E conomic P lanning Group Inc.
Correlation Matrix: Returns vs. S&P 500
July 2008 - December 2008
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21)
1) Dow Wilshire 5000 (full-cap) 1.00
2) Dow Wilshire REIT 0.86 1.00
3) HFRI Fund of Funds Composite Index 0.86 0.51 1.00
4) MSCI EAFE Index 0.90 0.74 0.91 1.00
5) Russell 1000 Growth 0.99 0.81 0.91 0.93 1.00
6) Russell 1000 Value 0.99 0.87 0.82 0.88 0.98 1.00
7) Russell 2000 Growth 0.99 0.90 0.81 0.89 0.98 0.98 1.00
8) Russell 2000 Value 0.96 0.94 0.69 0.80 0.93 0.97 0.98 1.00
Equals negative or
9) S&P GSCI 0.84 0.73 0.61 0.64 0.80 0.89 0.79 0.84 1.00
zero correlation
10) Barclays Capital U.S. Aggregate 0.62 0.39 0.81 0.86 0.68 0.61 0.56 0.43 0.47 1.00
11) Barclays Capital U.S. Treasury: Long 0.39 0.17 0.61 0.67 0.44 0.39 0.30 0.19 0.35 0.95 1.00
12) Barclays Capital U.S. Treasury: 7-10 Year 0.34 0.07 0.62 0.63 0.40 0.34 0.25 0.12 0.29 0.93 0.99 1.00
13) Barclays Capital U.S. Treasury: 1-3 Year -0.73 -0.81 -0.41 -0.47 -0.69 -0.72 -0.81 -0.85 -0.53 0.03 0.32 0.37 1.00
14) Barclays Capital U.S. Corporate High Yield 0.95 0.93 0.78 0.92 0.94 0.93 0.96 0.93 0.70 0.64 0.40 0.33 -0.73 1.00
15) Barclays Capital U.S. Treasury: U.S. TIPS 0.88 0.72 0.88 0.98 0.91 0.88 0.84 0.77 0.72 0.91 0.76 0.72 -0.37 0.89 1.00
16) Barclays Capital U.S. Municipal Bond 0.58 0.20 0.88 0.70 0.67 0.51 0.56 0.39 0.19 0.64 0.44 0.48 -0.28 0.54 0.61 1.00
17) Credit Suisse High Yield Index 0.97 0.94 0.78 0.92 0.96 0.96 0.97 0.95 0.76 0.63 0.40 0.33 -0.73 1.00 0.89 0.51 1.00
18) Dow AIG Commodity Index 0.81 0.66 0.78 0.87 0.82 0.83 0.74 0.70 0.81 0.88 0.80 0.75 -0.23 0.78 0.95 0.42 0.81 1.00
19) MSCI EM (EMERGING MARKETS) 0.88 0.76 0.86 0.99 0.90 0.87 0.88 0.80 0.64 0.85 0.67 0.63 -0.47 0.92 0.97 0.63 0.91 0.86 1.00
20) FTSE RAFI Global ex US 1000 0.93 0.76 0.91 1.00 0.95 0.91 0.91 0.83 0.70 0.84 0.65 0.62 -0.50 0.93 0.98 0.67 0.93 0.88 0.99 1.00
21) S&P 500 1.00 0.84 0.87 0.90 0.99 1.00 0.98 0.95 0.86 0.63 0.40 0.36 -0.71 0.93 0.89 0.58 0.95 0.82 0.88 0.92 1.00
“Consistently Good Advice in a Constantly Changing World”®
27. Appendix
Case Studies
Retirement
Tax
Investment Descriptions
ETFs
Manager Model Strategies
Mutual Funds
Adhesion Unified Managed Account
“Consistently Good Advice in a Constantly Changing World”®
28. Case study: Retirement
Retirement scenarios
Required Return: 5%
Retirement Age Return Infl Exp Stl MC
65 5 3 175k 90/87 16
65 6 3 175 98/95 24
65 0 3 175 77/74 <5%
65 5 3 150 96/93 30%
68 5 3 175 92/89 21%
“Consistently Good Advice in a Constantly Changing World”®
29. Case study: retirement (Cont’d)
Fact pattern
Age: 55, married 2 children
Occupation: Corporate Executive
Household Income: $300K
Expenses: $170K (excluding taxes)
Goals
Retire at age 65 sustaining the same lifestyle throughout retirement
Estate Planning
Education Planning
Process
Determine Risk Tolerance
Cash Flow Projections
Probability of Success: Monte Carlo Simulation
Retirement Scenarios
“Consistently Good Advice in a Constantly Changing World”®
30. Case study: retirement (Cont’d)
C/F projections
Total Capital Projection
$4,500,000
Ret Plan
$4,000,000 Invest
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
62 66 70 74 78 82 86 90 94 98 102 103
“Consistently Good Advice in a Constantly Changing World”®
31. Case study: retirement (Cont’d)
Probability of success
Monte Carlo Projections
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
-5,000,000
-10,000,000
16% probability of success retiring
-15,000,000 at 65 living same lifestyle & 2% real
-20,000,000 rate of return
-25,000,000
-30,000,000
“Consistently Good Advice in a Constantly Changing World”®
32. Case study: retirement (Cont’d)
Risk tolerance – behavioral/qualitative component
When faced with a major financial decision you are usually, more concerned about the
possible losses
Expected Return and Risk
Low Medium High
30% 30%
40%
Portfolio 1 Portfolio 2 Portfolio 3 Portfolio 4 Portfolio 5 Portfolio 6 Portfolio 7
It is somewhat more important that the value of your investments does not fall (than that it retains its
purchasing power).
Over ten years you would expect average earnings of about three times the rate from certificates of deposit.
The total value of all your investments could go down by 33% before you would begin to feel uncomfortable.
With these portfolio choices, you would choose Portfolio 4.
“Consistently Good Advice in a Constantly Changing World”®
33. Case study: retirement (Cont’d)
End result
Required Return: 5%
Risk Tol – mod plus
Allocation 70/30
UST
Core
Opp
“Consistently Good Advice in a Constantly Changing World”®
34. Case study: Taxes
AEPG can help clients save on taxes
Option1: New Comparability Profit Sharing Plan
As of December 31, 2010
Testing Profit Sharing Plan Total Employer Defined
Name Age Compensation Allocation Contribution Allocation
Doctor 60 245,000.00 $49,000.00 90.32%
Assistant 40 45,000.00 $2,250.00 4.15%
Bookkeeper 45 60,000.00 $3,000.00 5.53%
TOTAL NHCEs 2 $105,000.00 $5,250.00 9.68%
Option 2: Triple Decker - Cash Balance / New Comparability Plan / Safe Harbor 401(k)
as of December 31, 2009
Testing Profit Sharing Plan Total Employer Defined
Name Age Compensation Allocation Contribution Allocation
Assistant 40 45,000.00 $4,200.00 1.79%
Bookkeeper 45 60,000.00 $5,400.00 2.30%
TOTAL NHCEs $105,000.00 $9,600.00 4.08%
Option 1 reflects a Profit Sharing Plan costing the Doctor $5,250 for 2 staff in order to save $49,000.
Option 2, the Triple Decker plan design (inclusive of Cash Balance, New Comparability and Safe Harbor 401(K)) reflects a cost of $9,600 for 2 staff in order to save
$225,675. Therefore, the Doctor in this example could save an additional $176,675 for an additional cost of only $4,350.
“Consistently Good Advice in a Constantly Changing World”®
35. Exchange traded funds (ETF)
ETFs are open-ended funds that trade on registered national security
exchanges similar to stocks.
While mutual funds are bought and sold based on end of day pricing, ETFs
trade at different prices throughout the course of the day.
Most ETFs seek to track the performance of an index by holding all or a
representative portion of the underlying index.
ETFs can track equity, fixed income, commodity or other indices.
ETFs generally entail lower fee structures and are more tax efficient than
mutual funds.
Unlike mutual funds, ETFs do not subject you to taxable events due to other
investors selling shares in the fund.
More recently, actively managed ETFs are being created where investors are
able to receive the benefits of a tax efficient ETF while in turn receiving the
benefits of active management.
“Consistently Good Advice in a Constantly Changing World”®
36. Manager Model Studies
Manager Model Strategies are investment portfolios of stocks, bonds or
other securities that can be customized on an individualized basis.
Manager Model Strategies offer full, real-time transparency of all
underlying securities and trades since the investor owns the actual
securities (as opposed to owning shares of a mutual fund).
Manager Model Strategies offer high degrees of tax efficiency. Since cost
basis is known for each security, tax harvesting can be done on a
continuous basis. Also, since the investor owns the individual securities,
you are not subject to taxable events by other investors selling as you
would with a mutual fund.
Unlike mutual funds, Manager Model Strategies allow investors to
customize portfolios by including preferences and/or restrictions on the
purchases of specific securities. This is especially helpful for those who
hold company stock from their employer and do not wish to hold an
additional position in the company.
“Consistently Good Advice in a Constantly Changing World”®
37. Manager Model Strategies vs.
Mutual Funds
Manager Model Strategies Mutual Funds
Own shares of a pool of securities along with
Ownership Sole ownership of underlying securities
other investors
Daily transparency of all underlying Holdings available on a quarterly basis with
Transparency
securities a lag
Ability to harvest tax losses continuously No ability to harvest losses without selling
Harvesting
throughout the year shares
Ability to customize holdings on a security No customization available on a security or
Customization
and industry level industry level
Daily liquidity with funds available after Daily liquidity with funds available after
Liquidity
T+3 settlement T+1 settlement
Minimum investment $100K and up As low as $100
“Consistently Good Advice in a Constantly Changing World”®
38. Adhesion Unified Managed
Account
Adhesion will provide overlay management of your investments, streamlining the day to
day management of your accounts.
By utilizing Adhesion, AEPG can substantially increase the benefits to you, specifically
in the areas of:
Tax optimization
Continuous tax harvesting
Rebalancing benefits
Continuous monitoring of investments and the ability to maintain your asset allocation at all times
within the acceptable allocation threshold.
Accessibility of managers
Adhesion offers the ability to access managers that would otherwise be out of reach due to
account minimums.
Lower manager expenses
Separately managed account expense ratios will be reduced due to Adhesion’s economies of
scale.
Net savings vs. current structure
Greater after tax-returns
Additional capital losses to be used to offset capital gains
Lower net portfolio expenses
“Consistently Good Advice in a Constantly Changing World”®
39. Adhesion Unified Managed
Account
Adhesion will act as the “Overlay Manager” and will
provide rebalancing and active tax management, in Rebalancing
addition to an improved web-based reporting platform.
AEPG will continue to act as the “Wealth Manager”
Security Security
and will be responsible for asset allocation and Timing Selection
manager selection.
The “Money Managers” selected by AEPG will be Asset
responsible for individual security selection and the Allocation
timing of such investments.
Active Tax
Management
Overlay Manager
Money Manager
Wealth Manager
“Consistently Good Advice in a Constantly Changing World”®