Workforce Title: Smart River Advisors
Agency: UBS Non-public Wealth Administration
Senior Members: Craig Chiate, Mark Binder, Glenn Oratz, James Chiate, Tony Guinane
Location: Los Angeles, CA
Workforce Custodied Property: $6 billion
Forbes Rankings: Prime Wealth Administration Groups Non-public Wealth, Greatest-In-State Wealth Administration Groups
Background: Whereas Craig Chiate began his profession in funding banking, Mark Binder had his personal actual property firm earlier than getting an MBA. Each labored in personal wealth at Goldman Sachs, after which moved over to Merrill the place they have been on founding groups within the personal banking and funding group in 2000. They ultimately joined UBS in 2013. Chiate and Binder have been companions for practically 25 years. With 24 individuals on the group in the present day, they emphasize an intensive, long run monetary planning method that makes a speciality of coping with households throughout a number of generations. Many consumers are extremely excessive web value people and households, together with entrepreneurs, athletes, entertainers and public firm and personal fairness executives. “It’s not simply concerning the funding course of however finally serving to households with legacy planning for the following era—actually being a holistic heart of recommendation for each a part of a shopper’s life,” says Binder.
Aggressive Edge: “We jokingly say that we found crucial factor to our purchasers just isn’t cash, it’s their households—and when you may deliver these two issues collectively by training and open dialogue, that’s on the high of our worth proposition,” says Chiate. “Now we have the power to grasp what’s most essential to every particular person household and deal with all elements of these wants.”
Funding Philosophy/Technique: “The center of our funding philosophy is to maintain issues comparatively easy,” says Chiate. “Shoppers can stand up to the volatility of the market as long as they perceive what they personal and that’s why training is such an enormous a part of our course of.” The group tends to favor top-down asset allocation with an emphasis on tax environment friendly and price efficient methods. On the fairness aspect, meaning usually proudly owning index funds for his or her broad diversification and tax administration advantages, whereas in fastened earnings, the group builds bond portfolios that they handle straight. Smart River additionally tends to be selective with different investments, favoring actual property, personal fairness and personal credit score. “We’ve been very brief in our municipal bond and Treasury portfolios however we’re now within the means of extending that period, particularly with bonds,” says Binder.
Funding Outlook: “It is a significantly unclear time for markets—anyone with a powerful opinion on what occurs subsequent is overconfident,” says Chiate. “Our outlook is considerably optimistic however we’re taking a really measured, non-directional method and making an attempt to play this as defensively as we are able to.” Each companions agree that with many alternative arguments to be made a couple of attainable recession or delicate financial touchdown, now could be the time to attend and see, whereas not taking vital bets in both course. Nonetheless, the group emphasizes profiting from completely different alternatives as they come up out there: They have been brief on fastened earnings, for instance, however see a possibility to start out extending Treasury and bond portfolio durations with charges locked in.
Largest Problem: Discovering the best partnership on the high of the group with a shared imaginative and prescient was the most important problem, the 2 say. “We disagree about one million issues however in 30 years we have not had an argument,” Binder says. “We do our analysis then come to a joint conclusion.”
Greatest Recommendation: “We usually work with purchasers who’ve skilled some main change of circumstance, so our recommendation to purchasers is to go slowly and never do something that’s illiquid and that you do not utterly perceive for a time period,” says Chiate. “There’s completely no hurry—generally it’s okay to attend a 12 months or two earlier than any main selections.”