from J. Carter Tolleson, CEO
I always enjoy reflecting on the last few months with the quarter-end snapshot because I’m reminded of how much has happened and how fast time has gone. While I can’t touch on everything, I’ll hit on a few significant highlights.
I’m excited to have Rick Lafitte on board as the new President of Tolleson Private Bank. This is a role that I have served in since 2006 and, while I have always been supportive of bringing in strategic leaders when needed, I never met anyone I felt had the ability to take us to the next level – until now. Rick brings over 35 years of experience in the banking industry and a true understanding of not just the nuances related to private banking, but the way we do it. He understands relationships. He understands service. He understands what it takes to uphold our vision to be the best.
We recently celebrated the announcement of InvestmentNews naming us one of the Best Places to Work for the second consecutive year. While it may not seem like a big deal to many outside the firm, it’s very important to us. We strongly believe that the right culture and happy employees leads to better service and satisfied clients. It’s a win-win for everyone.
Another great accomplishment we are proud to celebrate is Richard Joyner’s ranking as the #2 advisor in Texas on the Barron’s Top Advisor list (again.) As the president and leader of private wealth, Richard sets the example for all the advisors in the firm. We are very proud and excited to congratulate Richard… #2 in Barron’s, but #1 in our hearts.
With March 20 marking the first day of spring, many of us are looking forward to the warmer weather and onset of summer. We wanted to take a moment to celebrate our accomplishments and reiterate our dedication to serving clients in all things financial.
Riding the Slopes of the Market
from Eric Bennett, CFA, CHIEF INVESTMENT OFFICER
This winter was one of the best years in quite some time to make a trip to the mountains with friends and family. While more experienced skiers enjoyed excellent conditions and fresh powder, beginner skiers were likely taught in ski school to create a V-shaped "pizza" figure with their skis to successfully navigate the mountain.
Investors have seen their investments take a similar V-shaped "pizza" path over the last six months. For example, U.S. equities fell -14% in the last three months of 2018, but are back up +14% in the first three months of 2019.
Why such a quick rebound, you ask? In the previous quarter-end snapshot posted in January, we discussed several fundamental reasons why the economy was in better shape than the markets were telling us. While the Federal Reserve raised short-term interest rates a total of 1% in 2018, they changed course early this year by indicating no further rate increases for the foreseeable future so as not to upend the apparent economic growth. What we witnessed in the first quarter of 2019 was the market responding favorably to the current monetary policy and health of the economy.
The most valuable lesson that we can learn from the recent market volatility is rather than getting caught up in news headlines, short-term market noise and inadvertently making portfolio decisions in reaction to the latest market volatility, an investor's best reaction is to stay patient and stick to their long-term plan.
A well-defined long-term plan starts with letting your advisor know what matters most to you so s/he can help identify, prioritize and customize a portfolio to help you achieve your financial needs, goals and aspirations. This long-term plan can help us create a diversified portfolio that can withstand the type of volatility previously described and, more importantly, allows you and your family to spend time on what you enjoy doing most.
For example, one type of portfolio goal we are managing for client families is impact investing. This area of expertise is specifically for families who have a desire to incorporate their social, environmental, religious, or charitable values into their investment portfolios. We view impact investing as another opportunity to customize portfolios to achieve a family’s long-term goals.
The Investment Team here at Tolleson will monitor the changing market and economic environment to help position your portfolio for what may lie ahead. Now go catch one last batch of fresh powder on the mountains, or whatever it is you spend time on that’s most important to you and your family.
from Tracy Fulton, Executive Vice President
We know that things are constantly changing for our client families. With graduations around the corner, many will experience the joy of watching children go off to college, begin new careers or move away to create legacies of their own. Those children will soon start families of their own. With these life changes, many are faced with new decisions about housing – for themselves, their children and their children’s families.
When that perfect home isn’t available, sometimes the best option is to build a new home or add to an existing one that is already in the right neighborhood. Whether the home is a primary residence or even a vacation home, each requires a complex set of steps to make it truly a dream home and suited perfectly for your family. Tolleson Private Bank has the expertise and the experience with these to work with you, your architect and builder to make the building process seamless from contract to completion, all the way to move-in day.
The process begins with a discussion about the budget, plans and specifications for the home. We can advise on permits, insurance requirements and appraisals. We also closely monitor the construction once the project begins, including budget management, review of payments to contractors, lien research and other items to make sure that the home is completed – on schedule and on budget.
Our innovative approach to construction loans allows you the ability to purchase a new lot or existing home with a one-time close. We can provide this offering by converting your construction interim loan automatically to an amortizing mortgage upon completion. The benefits are a seamless experience that eliminates the hassle and administration of securing two loans, often at a lower cost. By understanding your needs and vision, your client advisor or private banker can help create an approach that best serves your family.
Client Advisory Team
from Royce Ramey, Managing Director
Take a moment and recall the best travel experience you have ever had. Perhaps this was at a specific resort or destination? How were you greeted when you arrived? What was your experience during your stay? Were you positively surprised at the attention to detail and service provided?
In addition to providing you and your family financial guidance and advice, one of our major initiatives over the next year is to continue to enhance the overall client experience. After listening to your feedback, we wanted to develop improvements that would utilize new technology tools and allow better access to the information you need. Some examples of the coming changes include:
- Performance and Financial Reporting: We continue to roll out client access to our online wealth management portal that is a dynamic view into your portfolio’s performance.
- Document Sharing: Alongside reporting, we plan to soon debut an online document vault to securely housing personal documents (legal, insurance, portfolio, financials, etc.) –available to you anywhere on your mobile device.
- Delivery of Information: Your advisor can now deliver financial information and scenario planning during meetings. We will no longer need to schedule a follow-up meeting to discuss different situations and customized performance dates at a later date. Advisors can illustrate responses to questions in real time.
We are very excited to bring these solutions to you in 2019. As we take care of all things financial, we want an experience that feels good for you and your life. We look forward to your continued feedback and finding ways to create an unrivaled experience.
from Christine Finn, Senior Vice President and Director of Private Trust
A common misconception about choosing a trustee is the idea that there are essentially only two options out there – and neither is ideal. You can choose an individual friend or family member who is personally familiar with trust beneficiaries who may seem easy to work with but lack objectivity or expertise for the role. Alternatively, a corporate trustee can possess the right skills and experience but is often perceived as rigid and impersonal.
Knowing this challenge, we combined the best of both worlds by bringing an individual approach to our corporate trustee offering. From our roots as a family business, we understand the level of engagement it takes to become a trusted steward of generational wealth. We invest our time and resources into getting to know our beneficiaries to better appreciate their needs, desires and goals. By establishing these long-term relationships, we can balance a beneficiary’s best interest with achieving the larger purpose of a trust and honoring a family’s shared values. We offer family education regarding finances and trust interpretation so that we can focus on preparing future generations to become successful beneficiaries.
Since 2006, Tolleson Private Bank has served families in various fiduciary roles, including Trustee, Agent and Executor. Decisions are made quickly and thoughtfully by our local team who brings professional expertise and personal family perspective to the table. The result is a collaborative process that is informed and nimble rather than stuffy or bureaucratic. We can assist with the unique issues and assets that are common amongst families of significant wealth. Unlike most institutional trustees, we are willing and able to administer trusts that hold specialty assets including real estate, oil and gas interests and private operating businesses.
Tolleson Wealth Management is not a CPA Firm.
General Performance Information
This presentation has been compiled by Tolleson Wealth Management ("TWM"). Past performance is no guarantee of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. All investments involve risk, including the loss of principal. This information discusses general market activity, industry or sector trends, or other broad-based economic market or political conditions and should not be construed as research or investment advice. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Opinions expressed are current opinions as of the original publication date appearing in this material only. Any opinions expressed are subject to change without notice and TWM is under no obligation to update the information contained herein. TWM disclaims responsibility for the accuracy or completeness of this report although reasonable care has been taken to assure the accuracy of the data contained herein. This material has been prepared and is distributed solely for informational purposes only and is not a solicitation or an offer to buy a security or instrument or to participate in any trading strategy. This report may not be reproduced, distributed or transmitted, in whole or part, by any means, without written permission from TWM. If you have any questions regarding this presentation, please contact TWM.