How We Work
At MorningSide, we believe strongly that one size does not fit all. We do not run a predetermined asset allocation model and simply buy mutual funds for our clients. We listen to our clients closely to understand their concerns and to create individually customized solutions that will meet their short and long-term objectives.
For example, in the equity market, we look at opportunities in value-based stocks for clients who prefer investing in a well-diversified equity portfolio. We utilize Exchange Traded Funds (ETFs) for diversification and optimal tax strategy in non-qualified accounts. MorningSide has access to over 10,000 institutional no-load and load-waived mutual funds, when appropriate. We recommend separately managed account managers from a list of money managers in our program based on portfolio asset levels and best fit for strategy.
A number of our clients are at the stage of life where they wish to protect and preserve assets. For these clients, and those deriving current income from their investments, we employ various techniques including bond ladder, unit investment trusts, publicly traded and privately held real estate investment trusts, managed futures and limited partnerships to limit portfolio volatility, and to provide consistent and predictable current income. We advise families exploring options to prepare for higher education costs taking into account current and future estate tax issues.
With respect to small-businesses, foundations, and non-profits, our firm advises employers and individuals in fiduciary capacity. When establishing employee retirement plans, we work with small businesses owners and non-profits clients identify and evaluate Third-Party Administrators (TPAs); review investment managers track records; analyze and recommend appropriate investments considering both costs and risk-adjusted returns. We work closely with fiduciaries of existing employee retirement plans and endowments to assure a cost-effective arrangement with sound investment selection.
By remaining independent and bias-free, we are able to look at every situation from our clients perspective. This allows us to work closely with clients in determining their needs and finding the most suitable solution.
With most clients, we initiate a four step process to create a clear working relationship.
Our Four-Step Process
First - Establish Common Basis of Understanding:
During the first meeting, we will cover all aspects of the client's financial situation: current assets, liabilities, cash flow and portfolio allocation. We look at the prospective client's personal investment portfolio as well as their various employer-sponsored retirement accounts such as 401K, 403B or 457 Plans and Employee Stock Option Plan. We review privately-held investments including real estate investment trusts, limited partnerships as well as annuities, managed futures, and insurance plans.
We work closely with owners and managers of closely-held businesses, fiduciaries, foundations and non-profit boards to review current portfolio allocation, risk/reward levels and portfolio fee structure to help identify a suitable plan provider.
Second - Develop the Strategy:
We analyze a prospective client's risk appetite, time horizon and investment experience and personal financial situation based on the information provided during our initial meeting. We then develop portfolio alternatives to meet client's short and long-term objectives that are realistic and measurable. We then prepare a recommendation to discuss with the client.
Third - Create a Plan and Implement the Strategy:
For individual clients and family trusts, we build a portfolio that will serve their specific short and long-term objectives: growth, current income, tax-advantage and preservation of capital.
For endowment and employee retirement plan fiduciaries, we construct a portfolio of investments that will comply with corporate bylaws and fiduciary requirements with respect to risk/reward, fee structure, investment selections including, but not limited to, mutual funds, fund of funds and life-cycle funds. We have the tools and techniques to evaluate and compare appropriate fee levels and investment managers' track records. We develop a comparative analysis that is independent and unbiased to help our clients identify a suitable employee retirement plan provider for participants.
Fourth - Monitor Progress:
Once the strategy is in place, we monitor progress, review and rebalance clients' portfolio at agreed regular dates - quarterly, semi-annually, annually, and when our clients situations change or market conditions merit. We recommend a face-to-face meeting at least once a year (and generally meet more frequently), where portfolio performance is reviewed with clients against the appropriate benchmarks and relative to the agreed strategic objectives.
Service Fees
I) Investment and Fiduciary Consultation hourly fee: $260 -$300. For a defined project, a flat fee could be agreed.
II) Investment Management Fees are based on assets under management set on a sliding scale, typically from 1.5% to 0.8%.
III) Financial planning fee ranges from $1500 to $3500 depending on the modules selected and analysis involved.
The annual fee for asset management is payable in quarterly installments and is deducted from the account at the beginning of the period, prorated based on the managed accounts net asset value on the first day of each quarter.
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Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Cambridge Investment Research Advisors, Inc., Registered Investment Advisor. MorningSide Investment Advisors, LLC and Cambridge Investment Research, Inc. are not affiliated.
Information relating to securities is intended for use by individuals residing in the following states: California, Illinois, New York, Virginia and Washington only. This is not an offer to sell securities, which may be done only after proper delivery of a prospectus and client suitability is reviewed and determined.
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