braver wealth management primary
DESCRIPTION
Braver Wealth OverviewTRANSCRIPT
22
Wealth Management Overview
An SEC Registered Investment Advisor founded in 1987
Over 20+ years in business
$550 Million in assets under advisement
A team approach of 15 employees
A boutique investment advisor with unique investment strategies
Keen focus on risk control & down market protection
Integrated financial and estate planning
Supported by our affiliation with Braver P.C. – A 100 person accounting and advisory firm with 5 offices in Massachusetts and Rhode Island
33
Investment Philosophy:Act, Preserve, & Protect
We are long-term investors but realize that in today’s investment world, clients need an active investment strategy that harvests gains and avoids the markets’ major declines.
Our philosophy for long term success in meeting client goals is that it is more important to avoid major market corrections than it is to capture every last gain in the up market.
Most managers do well when the markets are rising- we believe an investment managers’ real worth is best demonstrated when the markets fall.
Wealth preservation and risk control are key factors in our investment strategies. Cash is a true investment – In times of market weakness and negative trends, our quantitative
programs have the ability to move partially or fully to money market securities (cash) to protect assets. Our quantitative investment programs are long standing and have proven disciplines over long periods of time.
We achieve true down market protection without using leverage, derivatives, shorting or other complicated strategies.
We focus on net investment returns and utilize ETFs and no-load mutual funds to minimize fees and manage portfolios in a tax-efficient manner.
We believe in full transparency to our clients and use outside custodians to safeguard and report independently on our client’s assets.
44
Proprietary Investment Strategies
Traditional, Fully Invested Quantitative, TacticalAsset Allocation – Conservative Diversified EquityAsset Allocation – Moderate Sector Rotation EquityAsset Allocation – Growth Tactical AllocationIndividual Equity – Dividend Income Strategic Portfolio
Municipal & Taxable Bond Portfolios High Yield Bond
Our Quantitative, Tactical Strategies have demonstrated downside protection and wealth preservation characteristics especially in difficult market environments. When combined with traditional, fully invested strategies they serve to provide an element of risk control not otherwise available in a fully invested philosophy thereby achieving true diversification and down market risk control.
Our Traditional, Fully Invested Asset Allocation Strategies utilize ETFs and mutual funds to remain prudently diversified across major equity, fixed income, and alternative asset classes. Our goal is to provide our clients with risk controlled access, and fully invested participation, in the long term capital market trends.
Proprietary Investment Strategies
5
Equity Strategies•Asset Allocation Growth•Diversified Equity•Sector Rotation •Dividend Income Individual
Balanced Strategies•Asset Allocation Moderate•Asset Allocation Conservative•Tactical Allocation •Strategic Portfolio
Fixed Income Strategies•High Yield Bond•Core Bond ETF
Client Goals, Objectives, Restraints, Unique Preferences
Risk/RewardTolerance
Relationship Manager
Creates
Optimal
Program
Allocation
Pro
prie
tary
Inve
stm
ent P
rogr
ams
WealthPreservation
Conservative
Moderate
Growth
AggressiveGrowth
ProprietaryInvestment Strategies
Braver Investment Process
6
Performance Summary
6
Period Ending June 30,2011 StandardQUANTITATIVE, TACTICAL STRATEGIES 1 Year 3 Year 5 Year Alpha Deviation* Beta*
Fixed IncomeHigh Yield 13.31% 19.91% 14.81% 7.85% 7.83% 0.47 ML US HY Constrained Index 15.40% 12.39% 9.20% 0.00% 12.73% 1.00
BalancedBraver Tactical 18.14% 8.49% 6.60% 2.62% 7.33% 0.61 Braver Strategic 12.15% 0.64% 3.83% 5.26% 7.75% 0.50 60 % S&P 500 / 40% BarCap Agg 19.57% 5.36% 4.90% 0.00% 10.54% 1.00
EquityBraver Diversified 14.88% 8.79% 6.93% 4.57% 7.66% 0.29 Braver Sector Rotation 30.96% 0.97% 4.06% 5.49% 22.00% 0.99 S&P 500 30.69% 3.34% 2.94% 0.00% 18.24% 1.00
TRADITIONAL, FULLY INVESTED STRATEGIES
Asset Allocation Conservative 14.37% 1.81% 3.04% 3.02% 10.83% 0.55 Asset Allocation Moderate 20.22% 1.00% 2.83% 2.96% 14.63% 0.77 Asset Allocation Growth 23.94% 1.27% 2.82% 2.60% 17.42% 0.93 S&P 500 Index 30.69% 3.34% 2.94% 0.00% 18.24% 1.00
*For the ten years ending 6/30/2011 relative to the indicated benchmark.
7
Growth of $100,000 vs. S&P 500
Braver Wealth Management, LLC ZephyrStyleADVISOR: Braver Wealth Management
Braver Wealth Management, LLCJuly 2001 - June 2011 (Single Computation)
50
100
150
200
250
300
350
Q2 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q2 2011
Braver DiversifiedBraver High YieldBraver StrategicBraver Tactical AllocationS&P 500
Braver Diversified
AnnualizedReturn (%)
5.59
CumulativeReturn (%)
72.32
Std Dev(%)
7.66
AnnualizedExcess
Return (%)
2.87
CumulativeExcess
Return (%)
41.55
InfoRatio
0.20
SignificanceLevel (%)
73.34
Portfolio Performance vs. S&P 500
ExplainedVariance (%)
47.75
TrackingError (%)
14.08
Braver High Yield 12.24 217.32 7.83 9.52 186.56 0.62 96.06 30.43 15.38
Braver Strategic 7.51 106.38 7.75 4.80 75.61 0.34 84.49 45.85 14.19
Braver Tactical Allocation 5.42 69.54 7.33 2.70 38.78 0.22 74.64 75.31 12.42
8
Significantly Lower Risk And Superior Returns
Braver Wealth Management, LLC ZephyrStyleADVISOR: Braver Wealth Management
Braver Wealth Management, LLCJuly 2001 - June 2011 (Single Computation)
Retu
rn
0%
2%
4%
6%
8%
10%
12%
14%
Standard Deviation0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Braver Diversified
Braver High Yield
Braver Strategic
Braver Tactical Allocation
Market Benchmark:S&P 500Cash Equivalent:Citigroup 3-month T-bill
Braver Diversified
Return(%)
5.59
Braver High Yield 12.24
Std Dev(%)
7.66
7.83
Downside Risk(%)
5.18
4.24
Betavs.
Market
0.2901
0.2366
Alphavs. Market
(%)
4.57
11.42
R-Squaredvs. Market
(%)
47.75
30.43
R-Squaredvs. Style
(%)
63.70
43.44
SharpeRatio
0.4677
1.3073
Tracking Errorvs. Market
(%)
14.0835
15.3794
Observs.
40
40
Braver Strategic 7.51 7.75 6.10 0.2878 6.50 45.85 59.68 0.7097 14.1896 40
Braver Tactical Allocation 5.42 7.33 4.65 0.3489 4.11 75.31 76.65 0.4650 12.4239 40
S&P 500 2.72 18.24 13.82 1.0000 0.00 100.00 99.90 0.0388 0.0000 40
9
Lower Drawdown Preserves Wealth
Braver Wealth Management, LLC ZephyrStyleADVISOR: Braver Wealth Management
Braver Wealth Management, LLCJuly 2001 - June 2011
-50%
-40%
-30%
-20%
-10%
0%
Q2 2001 Q4 2003 Q4 2005 Q4 2007 Q4 2009 Q2 2011
Braver DiversifiedBraver High YieldBraver StrategicBraver Tactical AllocationS&P 500
Braver Diversified
Braver High Yield
MaxDrawdown
-7.56%
-3.89%
MaxDrawdownBegin Date
Oct 2007
Jul 2008
MaxDrawdownEnd Date
Mar 2008
Sep 2008
MaxDrawdown
Length
2
1
Max Drawdown
Recovery Date
Sep 2009
Dec 2008
Braver Strategic -20.11% Jul 2008 Mar 2009 3 Mar 2011
PainIndex
1.92%
0.22%
2.84%
PainRatio
1.87
46.08
1.94
Omega(MAR = 0.00%)
2.59
16.70
3.34
Gainto LossRatio
1.39
4.17
0.84
High WaterMark Date
Apr 2011
Apr 2011
Apr 2011
To HighWater Mark
0.00%
0.00%
0.00%
Braver Tactical Allocation -10.16% Oct 2007 Mar 2009 6 Sep 2009 2.02% 1.69 2.81 1.69 Apr 2011 0.00%
S&P 500 -45.80% Oct 2007 Mar 2009 6 N/A 12.48% 0.06 1.36 0.73 Jul 2007 6.43%
10
A long history of delivering equity like returns in a very risk controlled environment.
A history of superior returns and significantly lower risk.
Low correlation to the benchmark portfolio.
Provides active management to market conditions which in today’s short term investment world is increasingly important.
Added protection during market declines as a result of our ability to tactically allocate to cash
Saves clients from making emotional decisions to take money out of the market (selling bottoms and buying tops)
Strive to preserve wealth by avoiding steep losses.
Very prudent investment structure to preserve and protect fiduciary responsibility.
Client Service focused.
Why Braver?
11
David D’Amico, CFA – PresidentDave graduated from Bentley College with a B.S. in Accounting and received an M.S. in Finance from Boston College. He earned his Chartered Financial
Analyst (CFA) designation in 1996.Mr. D’Amico has over twenty years of experience in investment management, working in both the wealth management and institutional asset management
arenas. Prior to joining Braver Wealth Management in April of 2008, Dave was with Lee Munder Investments Ltd. in Boston where he led the Private Investment Management group, managing roughly $1.5 billion for individuals, families and small institutions. In addition to leading the group, Dave served as Portfolio Manager and analyst for an innovative, globally diversified equity product he created called Global Multi Cap. At the same time he helped manage the organization’s Large Cap Growth equity portfolio. Prior to Lee Munder, Dave worked for a number of Boston based investment advisors including: Babson Capital (formerly David L. Babson & Company), Bingham Legg Advisers, Congress Asset Management and Mellon Bank. Mr. D’Amico has spent his career focusing on helping individuals and their families manage their wealth.
Dave is a member of The CFA Institute and The Boston Securities Analyst Society. He resides in Lynnfield, MA with his wife Rene and four children. Email: [email protected]
Andrew P. Griesinger – Chief Investment OfficerAndrew graduated from Cornell University, Ithaca, NY, in 1998. He earned a Bachelor of Science degree with honors and is a member of the Golden Key
National Honor Society. Andrew was originally employed by Tandem Financial Services, Inc. (now Braver Wealth Management, LLC) from 1998 to 2000, where he served as an
investment analyst. From 2001 to 2002 he worked as a proprietary trader and analyst for Investment Services Capital in New York City and from 2002 to 2004 as a quantitative trader in West Harrison, NY. In 2004 he returned to Braver. Most of his professional efforts have been directed at creating and implementing computer models to trade the financial markets. He is proficient in numerous programming languages and financial modeling software and has a solid background in equity trading as an independent trader. Andrew is a member of the National Association of Active Investment Managers (NAAIM). He resides in Newton, Massachusetts.
Email: [email protected]
Deborah H. Levenson, CFP ®, MBA – Vice PresidentDebbie graduated from the Wharton School of the University of Pennsylvania in 1983, receiving a B.S. degree in Economics with honors. In 1988 she earned
an MBA from Harvard Business School.Ms. Levenson began her career as a consultant for Bain & Company, an international strategy consulting firm. Subsequently she spent twelve years in
strategic planning and consumer marketing, leading The First Years, an innovative infant products manufacturer, and then ZOOTS, the largest dry-cleaning chain on the East Coast, as Senior Vice President of Marketing. In 2004 she decided to apply her strategic planning skills to help individuals and she joined Braver Wealth Management, LLC. She completed the financial planning curriculum at Boston University and passed the national Certified Financial Planner exam in 2005. Ms. Levenson has written articles published in the AAII Journal (American Association of Individual Investors), Women’s Business and Financial Planning Magazine. She has been quoted on Morningstar.com, and in Investment News and The Wall Street Journal. She has also been featured as a Money Makeover Expert in the Boston Sunday Globe. Ms. Levenson is currently a member of the National Association of Personal Financial Advisors (NAPFA), the Financial Planning Association and the Boston Club. She lives in Waban, Massachusetts.
Email: [email protected]
Investment Team
12
Joseph B. Ludwig – Managing DirectorJoe graduated from Rutgers University, New Brunswick, New Jersey, with a BS in Electrical Engineering and a BA in Liberal Arts. He subsequently received an MS in
Management from Rensselaer Polytechnic Institute, Troy, New York. The first half of Mr. Ludwig’s career was spent in manufacturing; initially with Texas Instruments, Inc. Seventeen years were spent at Fairfield Optical Company, Inc., a small
eyeglass frame manufacturer, where Mr. Ludwig was a principal and executive vice president. In 1981 while still at Fairfield, he began managing money for family and friends. In 1986, Mr. Ludwig registered as an investment adviser with the Securities and Exchange Commission. The following year he founded Tandem Financial Services, Inc. (now Braver Wealth Management, LLC) with his wife Judith, a CPA and CFP who specialized in personal financial planning for a national CPA firm.
Mr. Ludwig has served as president, director and chairman of the National Association of Active Investment Managers (NAAIM), a national trade association for registered investment adviser firms. He was a member of Vanguard's first Investment Adviser Services Client Council and was formally a director of the New England Sinai Hospital in Stoughton, Massachusetts. In addition, he has published articles in Personal Financial Planning, AAII Journal (American Association of Individual Investors), The Boston Business Journal, and Massachusetts Lawyers Weekly and has been quoted in Forbes. He has also served as an expert witness in a lawsuit between two investment advisors. Mr. Ludwig and his wife reside in Sharon, Massachusetts.
Email: [email protected]
Judith D. Ludwig, CPA/PFS, CFP ® - Vice President, Financial Planning ServicesJudy received her B.A. in Mathematics from Douglass College, Rutgers University in New Brunswick, New Jersey. She received a Certificate in Accounting from Bentley
College, Waltham, Massachusetts.Ms. Ludwig began her professional career as a systems analyst at Prudential Insurance Company, General Electric Corporation, and finally Texas Instruments, Inc. After a
temporary retirement to raise her family, Ms. Ludwig resumed her career at Sherman, Bernson, Schneider & Gesserman, a regional accounting firm located in Newton, Massachusetts. This firm subsequently merged into Laventhol & Horwath, a national CPA firm, where she was the Manager in charge of Personal Financial Planning.
In 1987, Ms. Ludwig and her husband founded Tandem Financial Services, Inc. (now Braver Wealth Management, LLC) located in Canton, Massachusetts. Ms. Ludwig has been president of the Norfolk/Plymouth Estate and Business Planning Council and has served on the Board of Directors of the National Association of Estate Planners. In 1997 she was selected as a Money Makeover Expert by The Boston Globe and has continued in that role. In 1999 she was named as one of the country's top financial advisors in JK Lasser's Estate Planning for Baby Boomers and Retirees and JK Lasser’s New Rules for Estate and Tax Planning (2005). Ms. Ludwig has been quoted in Financial Planning Magazine, Business Week, The Boston Globe, and The Wall Street Journal. Ms. Ludwig is currently a director of the New England Sinai Hospital in Stoughton, Massachusetts, and a former member of the Board of Overseers at Children’s Hospital, Boston, Massachusetts. She and her husband reside in Sharon, Massachusetts.
Email: [email protected]
Bradley K. Sharp, CFP® - Vice President – Director of Client ServicesBrad graduated from Colorado State University in Fort Collins, Colorado with a BA in Economics in May 1990. He earned his Certified Financial Planner (CFP®)
designation in 2008.Mr. Sharp spent the first five years of his career with Delta Air Lines where he held various positions on both the operational and sales side of the business. Mr. Sharp began
his financial services career with Fidelity Investments in 1996. He held a number of positions at Fidelity including Senior Relationship Officer within the discretionary money management arm and ultimately holding the position of Vice President, Senior Account Executive in the Private Client Group. Mr. Sharp is married with two children and resides in Waban, Massachusetts.
Email: [email protected]
13
Charles M. Toole, CFA – Assistant Vice President
Charlie graduated from Worcester Polytechnic Institute with a B.S. in Mechanical Engineering and received an M.S. in Mechanical Engineering from Northeastern University. He earned his Chartered Financial Analyst (CFA) designation in 2008.
Prior to joining Braver Wealth Management, Charlie was with Boston Engineering Corporation in Waltham where he was a consultant to local technology and manufacturing firms. Mr. Toole also spent two years at Parametric Technology Corporation in client service. In 2006 he joined Braver Wealth Management, LLC to help manage individual’s portfolios.
Charlie is a member of the CFA Institute and The Boston Securities Analyst Society. He resides in Westwood, MA with his wife and two children.
Email: [email protected]
Robert D. Lepson, CFP ®,– Vice PresidentBob graduated from Brandeis University receiving a B.A. degree in American Studies in 1983. In 2004, he became a CERTIFIED FINANCIAL PLANNER™ practicioner
after previously earning his Chartered Financial Consultant (ChFC®) and Chartered Life Underwriter (CLU®) designations from the American College in 1995 and 2004 respectively.
Mr. Lepson has over twenty years of experience in the financial services industry. Prior to joining Braver Wealth in 2011, Bob was Vice-President and Regional Planning Consultant with Fidelity Investments. He worked closely with high-net worth clients and their financial representatives in Fidelity’s retail branches throughout the Boston area. He has extensive experience in retirement income planning, risk controlled portfolio design and charitable giving strategies. Prior to Fidelity, Bob spent the first 10 years of his career with North American Underwriting Managers, The Bulfinch Group and Chestnut Hill Financial Group working in similar planning and investment management roles. Bob’s financial planning focus, comprehensive market knowledge and relationship management skills are a perfect match for Braver Wealth Management’s top priorities: client success and service. Bob lives in Brookline, MA with his wife and two children.
Email: [email protected]
James M. Philbin, CPA/PFS, CFP ® - Executive Vice PresidentJim graduated from Boston College with a B.S. in Accounting and Economics. He received his M.S. in Taxation and Master Personal Financial Planner Certificate from
Bentley College, with high distinction. Mr. Philbin has over 18 years of business and wealth management experience as a certified public accountant and financial planner. He has been with the Braver Group since
1990 and a shareholder of Braver & Company, P.C. since 1998. As executive vice president for Braver Wealth Management, LLC. Mr. Philbin provides comprehensive financial planning services to our clients. Jim has multiple responsibilities within the Braver Group. He is Director of Entrepreneurial and Emerging Growth Business of Braver and Company P.C. and also leads the Financial Planning Practice Group as Executive VP of Braver Wealth Management. Mr. Philbin is a member of the Personal Financial Planning and Relations with Financial Institutions Committees of the Massachusetts Society, the American Institute of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants, the Ireland Chamber of Commerce in the United States - N.E. Chapter and the Boston Estate Planning Council. Jim is also a member of the Beta Gamma Sigma Honor Society. Jim is married with three children and resides in Foxboro, MA.
Email: [email protected]
14
David A. Fontaine, CPA, PFS – Vice PresidentDave received his Bachelor of Science degree in Business Administration (Accounting) as well as his Master’s degree in Business Administration (Finance) from Bryant
University. Dave is a shareholder of Braver PC and joined Braver PC with the merger of Braver and Prescott, Chatellier, Fontaine, Wilkinson, LLP, in Providence, Rhode Island. He has 28 years of public accounting experience and specializes in non-profits, small businesses including wholesalers, retailers and construction contractors.
Mr. Fontaine also has 10 years experience as a Registered Investment Advisor and is a Vice President of Braver Wealth Management. Dave is a Certified Public Accountant and is a member of the American Institute of Certified Public Accountants, the Rhode Island Society of Certified Public Accountants and a Paul Harris Fellow. Dave lives in Harrisville with his wife and two children.
Email: [email protected]
Mary K. Hoey, CFP® - Relationship ManagerMary graduated from the University of Massachusetts in Amherst, MA with a BA in Legal Studies. She earned her Certified Financial Planner (CFP®) designation in 2009. Ms. Konetzny began her financial services career with Fidelity Investments in 2004 holding various positions including Investments Representative. Prior to joining Braver
Wealth Management in January 2011, she spent three years at Eaton Vance Distributors as an internal sales consultant. Mary resides in Stow, MA. Email: [email protected]
1515
Quarterly FeesInvestment management fees are charged at the end of each calendar quarter and are
based on assets under management at the close of the quarter.
Our fee schedule is as follows:
Total Assets Quarterly Fee
First $2,500,000 0.25% of assets (1.0% / year)Next $2,500,000 0.20% of assets (0.80% / year)Next $5,000,000 0.15% of assets (0.60% / year)Over $10,000,000 0.10% of assets (0.40% / year)
*20% Discount provided to Non Profit Organizations & Charities.
Investment Fee Structure
16
Braver Wealth Management is an SEC registered investment adviser. Different types of investments involve varying degrees of risk, and there can be no guarantee the future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Braver) will be profitable. Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed as a guarantee of a positive experience if Braver is engaged to provide investment advisory services, nor should it be construed as a current or past endorsement of Braver by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. A copy of our current written disclosure statement discussing Braver’s advisory services and fees remains available upon request.
Past performance is no guarantee of future results. There is potential for loss as well as gain in securities investments of any type as well as in the employment of any particular investment strategy, including those of Braver.
Sharpe Ratio is calculated by dividing the return in excess of Treasury bills by standard deviation to determine reward per unit of risk. The higher the Sharpe Ratio, the better the historical risk-adjusted performance of the investment.
Beta is the measure of an investment's sensitivity compared to movements in the S&P 500 ("the market"). An investment with a beta of 0.5 would be expected to gain half as much as the market when the market is up, and lose half as much as the market when the market is down.
Alpha is the difference between an investment's actual returns and the expected performance of an investment with the same beta. A positive number indicates that an investment has performed better than beta would predict. Alpha can be used to measure the value added or subtracted by a manager.
All results are total returns; dividends and distributions have been reinvested. Unless otherwise indicated, Braver returns are gross returns and do not include any investment advisory fees. Actual returns will be reduced by these.
All results were calculated quarterly for all fee paying accounts under management for the entire quarter. Investment advisory fees are fully described in Braver Wealth Management, LLC SEC Form ADV-Part II. A complete list of Braver's investment programs and a description of the composites is available upon request.
Disclosures