PM Team Structure

Portfolio Management InstituteAtlanta

April 2009

Jeffrey S. GersonGerson, Guarino & Meisel Group

Family Wealth DirectorSenior Portfolio Management Director

New York City, NY

TeamTeam DefinitionDefinition

““A Team is an assembly of individuals who A Team is an assembly of individuals who work together towards a common goal”work together towards a common goal”

IndividualIndividual DefinitionDefinition

““A single human considered apart from a A single human considered apart from a society or communitysociety or community “

“a single human being, as distinguished from a group”

QuestioQuestionn

Do you believe your client’s want Do you believe your client’s want to view you as an island?to view you as an island?

Team Formation

When do you consider forming a team?

“Successful teams are built by filling weaknesses, not by just adding strengths”

Types of Teams

Vertical Team Horizontal Team

Types of Teams

Vertical Team One main decision maker Looks much like a single practitioner

with an army Very often, the team leader receives the

gross and the rest of team receives salaries

Types of Teams

Horizontal Team Team Macro Decision Making Generally a sharing of the gross pool Team members in charge of excelling at

their specialty Looks like advisory firm within the firm

Why Should you Consider a Why Should you Consider a Team?Team?

Depth Continuity Service Reduce Risk

Why Should you Consider a Why Should you Consider a Team?Team?

Depth Fact: HNW individuals gravitate

towards the team approach Fact: Nobody is so smart that

they can be everything to everyone

Why Should you Consider a Why Should you Consider a Team?Team?

Continuity HNW Clients want to feel that their

financial future doesn’t end when your financial career ends

HNW Clients want to know that someone is available at all times to watch their assets

Why Should you Consider a Why Should you Consider a Team?Team?

Service Team members can focus on

specific aspects of service/advice in a collaborative effort.

Diversity in product / service offerings is very sticky for Clients

Why Should you Consider a Why Should you Consider a Team?Team?

Reduce Risk Sharing in the ups and downs of the

cycles makes it easier to focus on doing business

Providing a diverse offering of specialties amongst a team mitigates the risk of a client finding answers elsewhere

What Makes Teams Last?What Makes Teams Last?

Compatibility Respect Success

Define Roles and Define Roles and ExpertiseExpertise

Products and Services Portfolio Management

Equity Fixed Income

Trust Services Liability Management Estate Planning Alternative Investments Cash Management Executive Benefits Philanthropic Services Insurance Long Term Care Asset Protection

Process Rainmaker Family Office Advisor Portfolio Manager /

Chief Investment Officer

Financial Planner Relationship Manager Administrative /

Operations Team Management Technology

Coordinator Presentation &

Proposals

““Successful teams are built by filling weaknesses, Successful teams are built by filling weaknesses,

not by just adding strengths”not by just adding strengths”

Top 5 MistakesTop 5 Mistakes1. Duplication: Hiring someone just like yourself 2. Dumping Ground: Hiring A Junior Partner

Upon Which To Dump The C-D-X-Y-Z Book3. Forcing the Roles Issue: Putting People In

Roles That Don’t Play To Their Strengths4. I vs. We: Policy stems from the top and

everyone needs to buy into the team approach5. Dislocated Comp Structure: This business is

a meritocracy. The comp needs to reflect that.

Getting Getting ThereThere

3 Stages

1. Observation and Due Diligence

2. Dating3. Marriage

PreparationPreparation

Compatibility Social Business

Personality Analysis Paragon Resources

CompensationCompensation

“Be Fair or Beware”

Compensation StructuresCompensation Structures

Support Staff

“Nobody Works For you, they work with you”

What does Staff What does Staff Want?Want?

• Respect

• Praise

• Protection

• Money

Compensation StructuresCompensation Structures

Financial Advisors

“ “Dating” ModelDating” Model

PoolAcct.

TeamTeam50%50%

Joint Production NumberJoint Production Number

TeamCandidate

50%

Marriage “Model”Marriage “Model”

Step 1: Inventory Your Current Business – Focus Report Analysis

Step 2: Establish definitive roles and expectations

Step 3: Create method of measurement and evaluation

Step 4: Establish a production number for legacy business

Step 5: Establish a production number for new business

Marriage Marriage CompensationCompensation

Subjective - not good on it’s own

Objective - not good on it’s own

Question: Whats the solution?

Answer: Progressive Objective Subjective

Progressive Objective Progressive Objective SubjectiveSubjective

The establishment of a system that incentivises all team members to service the entire book and creates a method for less senior FAs to increase their equity over time by being rewarded by the success of the team and being rewarded for their level of contribution.

Case StudyCase Study

Gerson Guarino & Meisel GroupNew York, NY

Gerson, Guarino & Meisel Group

Investment and Wealth Management

Jeffrey S. GersonFamily Wealth Director

Gregory M. MeiselPortfolio Management Director

Christopher D. GuarinoSenior Portfolio Management Director

Michael A. Gammarati, CRPC®Portfolio Management Associate

Laura MicelliSr. Client Service Associate

Ishrat MirzaClient Service Associate

Shawn P. Landau, CFP®Vice President – Wealth Management

Research, Service, and Administration

Lisa GuzmanRegistered Client Service Associate

Joseph GammaratiRegistered Client Service Associate

Richard F. DiVenutoFamily Wealth Director

Andrea AmayaRegistered Associate

Official Firm Titles

Gerson, Guarino & Meisel Group

Investment and Wealth Management

Jeffrey S. GersonRainmaker / PWM Advisory / Sales / PR

Gregory M. MeiselRelationship Mgr / Sales / Team Conduit

Christopher D. GuarinoCIO / Portfolio Manager

Michael A. Gammarati, CRPC®Cash Inv. / Model Portfolio Execution /

Sales Fullfillment / Insurance / CPM

Laura MicelliManaged Accounts / 529sInsurance and Annuities

Ishrat MirzaAdministration

Wires, Journals etc…

Shawn P. Landau, CFP®CFP / Comprehensive Plans / Sales Follow up

Research, Service, and Administration

Lisa GuzmanEFS, New Accounts

Complicated Projects

Joseph GammaratiFixed Income Trading Assistant

Presentation Prep. / CFA Candidate

Richard F. DiVenutoAsset Protection / Investment Banking / Sales

Andrea AmayaTravel and Ent. Scheduling / Operations

Actual Roles

“ “Progressive Objective Progressive Objective Subjective” ModelSubjective” Model

Total

Production

Legacy Legacy FAFA

numbernumber

Joint Production NumberJoint Production Number

NewBusinessNumber

FA #135%

FA #413%

FA #317%

FA #224%

FA #411%

PM Team Structure

Portfolio Management InstituteAtlanta

April 2009

Jeffrey S. GersonGerson, Guarino & Meisel Group

Family Wealth DirectorSenior Portfolio Management Director

New York City, NY