Frequently Asked Questions

INTEGRATED FIDUCIARY ADVISORY SERVICES (“INTEGRATED”)

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Who Is Integrated?

Integrated is an employee owned private wealth management partnership focused on being a superior steward of capital for institutional investors such as retirement plans, endowments and foundations as well as affluent individual and families, including pre and post liquidity event entrepreneurs and senior partners of service firms. We are a Registered Investment Advisor and act as a fiduciary in the best interests of our clients.

How long has Integrated been in business?

Integrated is approaching the five year anniversary of its formation on May 22, 2015. The firm was formed following the founders 30 years and 25 years of experience, respectively, at Wells Fargo Advisors and legacy organizations. The Integrated team members bring over 150 years of experience in supporting the creation and preservation of wealth by entrepreneurs and institutional investors.

Why was Integrated formed?

The founding partners of Integrated were, from time to time, asked by their clients to provide their assessment on various investment opportunities that were not “sponsored” by their legacy institution. As the regulatory and internal compliance environment evolved, the founding partners were prohibited from providing the advice and investment assessments on the broad range of investment that their clients expected. They felt like they were being pushed to be a fiduciary for the institution rather than for their clients

Given their personal commitment to be a fiduciary for their clients, they left the institution to form Integrated – an independent Registered Investment Advisor where they were are able to continue to put the interests of their clients first.

What kind of services does Integrated provide?
  • Cataloging and review of current environment
    • Assets and ownership structure
    • Liabilities and structure
    • Contingent liabilities
    • Risk Management products
    • Sources of cash flow
    • Profiling risk tolerance
    • Current estate planning structure
  • Model the future environment
    • Adjustments to current cash flows
    • Anticipated incremental future cash flow requirements
      • Family
      • Education
      • Medical
      • Philanthropic
  • Investment policy statement development
    • Define roles
    • Objectives
    • Goals
    • Target Allocations
    • Accountability
    • Cash Flow Requirements
    • Reporting and Review Process
  • Coordination of Advisory Team
    • Scheduling
    • Agendas
    • Meeting Minutes
    • Task assignment and timelines
    • Follow up on past due items
  • Creation of a Portfolio Dashboard and Scheduled In Person Performance Review
    • Single point of information to view all assets
    • Asset Allocation monitoring
    • Performance Reporting
    • Performance Benchmarking
    • Cash flow monitoring
  • Periodic IPS Review
    • Review of any changes in the investment portfolio, the family situation and related needs, the tax and legal environment to determine if any changes in IPS are appropriate
  • Advocacy
Who are Integrated’s clients?
  • Integrated works with two distinction client groups
    • Middle market institutional investors such as
      • Retirement plans
      • Endowments, and
      • Foundations
      • Typical plans are range from $__ million to $____ million
    • Affluent individuals and families
      • Pre and post liquidity event entrepreneurs
      • Senior Leaders of Services Partnerships such as
        • attorneys,
        • cpa’s,
        • consultants
        • investment banker and
        • private equity partners
      • Typical clients have more than $5 million in liquid investable assets.
How many clients does Integrated have and what is the level of investment dollars under advisement?

Integrated has approximately 70 clients and approximately $1.4 billion in assets under advisement.

Who are Integrated’s clients?
  • Integrated works with two distinction client groups
    • Middle market institutional investors such as
      • Retirement plans
      • Endowments, and
      • Foundations
      • Typical plans are range from $__ million to $____ million
    • Affluent individuals and families
      • Pre and post liquidity event entrepreneurs
      • Senior Leaders of Services Partnerships such as
        • attorneys,
        • cpa’s,
        • consultants
        • investment banker and
        • private equity partners
      • Typical clients have more than $5 million in liquid investable assets.
Who are Integrated’s clients?
  • Integrated works with two distinction client groups
    • Middle market institutional investors such as
      • Retirement plans
      • Endowments, and
      • Foundations
      • Typical plans are range from $__ million to $____ million
    • Affluent individuals and families
      • Pre and post liquidity event entrepreneurs
      • Senior Leaders of Services Partnerships such as
        • attorneys,
        • cpa’s,
        • consultants
        • investment banker and
        • private equity partners
      • Typical clients have more than $5 million in liquid investable assets.
What is the INTEGRATED Process?

The FIT Process

  • Generally we will have one to two in-person meetings with a prospective client to determine whether there is a mutual fit.
  • Areas of focus include:
    • Level of transparency regarding your world and expectations for the future
    • Working relationship with your team of advisors
    • General investment approach
    • Cash flow and Income expectations
    • Commitment to ongoing quarterly reviews
    • Integrity

Getting to Know You and Your World

  • Once fit is mutually determined we will document the relationship with an advisory contract and begin the work to collect applicable financial and personal information.
  • We will then spend several meetings discussing your background, your current world and expectations and needs for the future. Some of the areas  of inquiry will be new areas of discussions and can require the client additional thought and consideration before being able appropriate answer.
  • To that point, we frequently receive feedback indicating that we have deeper discussions than other advisors.
  • Through experience, we know the better we know our clients, the more effective we can be as an advisor and an advocate.

Investment Policy Statement Development

OnBoarding and Implementation

Ongoing Reporting and Monitoring

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REPORTING

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What reporting does Integrated provide clients?
  • Integrated prepares in-depth performance measurement reports for its clients on a quarterly basis.
  • Our reporting incorporates all holding of a client including investments managed by multiple managers, real estate holdings, commodities and alternative investments.
  • The reporting provides asset allocation comparison to the clients investment policy statement as well as performance comparison to agreed to benchmarks.
  • Realtime reporting is always available through our online reporting portal.
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INVESTMENTS AND INVESTMENT PRODUCTS

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What is an open architecture investment platform?
  • An open architecture investment platform provides investment managers the ability to select investment instruments from the entire universal of available investment and are not restricted to a limited set established by a parent institution.
  • It is not uncommon for advisors affiliated with wirehouse institutions to be restricted to recommending or advising on a limited list of “approved” investments.  
  • This is most evident with smaller active investment fund managers where the fund size does not meet the minimums required from the wirehouses.
  • Restrictions can also be the result of a fund not being willing to participate in revenue sharing arrangement with the brokerage firms – sometimes referred to as “Pay to Play” requirements.
What are the client advantages of an open platform?
  • An open architecture investment platform provide an advisor the ability to select investment products from the entire universe of product.
  • Over our many years of experience, we have found opportunities can be present themselves in a fund or investment size or timing issues that would not be available within a restricted platform.
  • The open platform additionally allows an advisor the ability to provide advice on a client’s entire investment world including those investments managed by others, direct private and real estate investments.
How would you describe the Integrated investment philosophy?
  • We follow a general core – satellite strategy whereby the majority of investment dollars are invested in the market through broad market ETFs.
  • We have found ETF’s to be the most effective and efficient means of acquiring respective market exposure.
  • We supplement this broad market exposure with investments in very select group of high conviction advisors or instruments.
  • We continually look for manage risk by incorporating investments with return that are not correlated to the general market when appropriate and available.
  • In addition to our risk / return analysis, we consider fees, taxes and liquidity in our investment review.
How does Integrated view alternative investments such as direct equity investment and private equity funds?
  • Alternative investments can be a component of an investor’s portfolio. In additional to the general risk / return requirements, we look for investments with returns not correlated with the general market.  We also seek to be sensitive to related leakage related to taxes and fees as well as relative illiquidity.
  • Given these elements we are generally biased toward direct equity investments rather than private equity fund investments.
Does Integrated promote direct equity investments?
  • We do not sell or promote direct equity investments.
  • While we routinely perform due diligence on direct equity investments that may be an applicable investment within a client’s portfolio, we do not receive compensation or promote when our clients make investments in these instruments.
Does Integrated sell products or earn a commission on the sale of any financial products?
  • No, we do not sell or earn a commission on the sale of any financial products including
    • Publicly traded stocks and bonds
    • Money market funds
    • Mutual Funds and ETF
    • Private Equity Funds
    • Insurance
    • Annuities
    • Direct equity and debt investments
    • Real estate investments
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REGISTERED INVESTMENT ADVISER

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What is an Registered Investment Adviser (RIA)?
  • As a Registered Investment Advisor (RIA), Integrated acts in a fiduciary capacity when engaged for wealth management and comprehensive financial planning. Under the Investment Advisers Act of 1940, any firm that is engaged in the business of providing financial advice for a fee is considered to be an “investment advisor”.  However, unlike stockholders and broker dealers, RIA are held to a higher standard of legal fiduciary.  They have no conflicts of interest and are legally bound to put the interests of our clients ahead of the interests of the firm or its officers.  RIAs are required to be registered with the appropriate state agencies.  Integrated is registered with the State of Michigan.
What is a Fiduciary?
  • As defined by the Employee Retirement Income Security Act (ERISA) and the Investment Advisors Act of 1940, RIAs have a fiduciary obligation to their clients, which means they have a fundamental obligation to provide suitable investment advice and always act in the best interest of the client.
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COMPENSATION AND FEE STRUCTURE

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What is a Fee Only Adviser?
  • A fee-only advisor is someone, who in all circumstances, is compensated solely by the client, with neither the firm, the advisor or any related party receiving compensation that is contingent of the purchase or sale of a financial product.
  • Fee only advisors do not receive commissions, rebates, awards, finder’s fees, promotes, or any other form of compensation from others as a result of a client’s implementation of his or her financial recommendations.
Why is Fee-Only Compensation Important to Me?
  • Clients desire their advisor to recommend financial products that are not only suitable within their financial plan but also the best available.
  • A financial advisor who earns a commission from selling investment products has a financial stake in the course of action that he or she recommends, and thus faces an inherent potential conflict of interest to direct a client to a less than optimal product.
  • The majority of financial advisors are sellers of financial products. Some or all of their income may be dependent up their ability to steer clients into a limited list of preferred products rather than the complete universe of financial products available in the market.   These products and related compensation can include commission on stock and bonds, enhanced commission on inhouse money market and mutual funds, promotes on investments in private equity funds, direct equity and real estate, commissions of annuity and insurance sales.  These advisors can include stockbrokers, broker-dealers, insurance agents, accountants, and attorneys. Many clients are unaware of their advisors dependence on selling products.
What is Your Fee Structure?
  • Our asset management fee is 100% transparent. Our fee structure is clearly stated in the investment management agreement. 
  • The annual fee is based on the value of the assets that we advise upon. The fee is paid quarterly in advance.
  • Our annual fee schedule for individuals and families is as follows:
    • Up to $5 million – 1.00%
    • Next $10 million – 0.50%
    • Next $10 million – 0.35%
    • Next $25 million – 0.25%
    • Additional funds – 0.15%
  • Our fee schedule for institutional clients typically ranges from ____ % to ____% based on the size and requirements of the engagement.
Do you require a long term contact?
  • While we seek long term relationships, we do not require a long term contract or commitment. Our advisory arrangements can be terminated at any time by the client and any prepaid advisory fees will be refunded on a pro-rata basis.
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SAFETY

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How do I know my money is safe?
  • Integrated works directly with Charles Schwab as our independent third party custodian.
  • Funds
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ADVOCACY

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You reference advocacy in your marketing materials. What is it?
  • It what we call the additional value provided to our clients by leveraging our knowledge of the client and it’s business with our knowledge, resources and network.
Can you provide an example of advocacy?

Historical examples of our advocacy have included the following introductions to:

  • Potential customers
  • Executives at existing customers
  • Potential suppliers
  • Industry experts to support the due diligence process associated with new and existing investments
  • Potential recruits
  • Potential acquisition candidates
  • Potential board members
  • Potential advisors – investment bankers, accountants, lawyers, consultants, etc.
  • Alternative capital sources
  • Alternative liquidity management tools
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PRE-LIQUIDITY EVENT PLANNING

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What is pre-liquidity event planning?
  • The assistance provided to a business owner who is considering liquidating their business. This can include general discussion regarding sales process, investment banker selection, transactional attorney selection, historical and projected financial information requirements, additional information sharing requirements, succession planning, estimated post-sale annual cash flow available to support lifestyle and lifestyle costs, etc.
Does Integrated provide investment banking services?
  • We are not investment bankers and we do not provide investment banking services.
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