High-Touch $3 Billion Wells Fargo Team Focuses On Dividends And Cash Flow

Group Identify: TSG Wealth Administration

Agency: Wells Fargo
WFC
Advisors

Senior Members: Mark Schulten, Allen Schreiber, John Szymura, Lori Zorn, Merlin Micken

Location: Lengthy Seaside, CA

Group Custodied Belongings: $3.1 billion

Forbes Rankings: Prime Wealth Administration Groups Excessive Internet Price, Greatest-In-State Wealth Administration Groups

Background: Mark Schulten began as an advisor at Paine Webber within the late Eighties, ultimately teaming up together with his father in 1992 at Shearson Lehman Brothers, which later grew to become Citi Smith Barney. As the 2 grew the enterprise collectively, they had been joined by Allen Schreiber within the late 90’s, who had began at Paine Webber as a chilly caller. In 2009, following the monetary disaster, the group moved to Wells Fargo for ten years earlier than switching to the agency’s unbiased channel. “The dream was to have a enterprise sufficiently small to be high-touch like a boutique, however on the identical time supply the companies and assets of a giant establishment like Wells Fargo,” says Schulten. The group not solely focuses on working with excessive web price households however it has additionally created a platform for advisors who need to be unbiased however don’t essentially need to undergo the arduous arrange course of themselves. A giant chunk of TSG’s enterprise comes from small charges from affiliate advisors who associate with TSG however are nonetheless in a position to personal their very own practices and preserve working with shoppers. With 55 advisors and 45 assist employees, TSG now has 16 places of work throughout a number of states. Although they’re supported by Wells Fargo, just about all the branding is TSG and affiliated advisors.

Aggressive Edge: On the consumer expertise facet, the group’s aggressive edge is their capacity to supply a monetary concierge method, dealing with every little thing from investments and lending to tax and property planning. “The power to be a real one cease store for the households we work with permits them to return to us and have their monetary lives simplified,” says Schreiber. “It’s key to have advisors targeted on facetime with shoppers—having a number of contact factors is essential.” On the advisor facet of the enterprise, Schulten emphasizes the aggressive fringe of having the ability to supply independence with out the stress. “We provide the power for them to think about independence however with out all of the complications that historically include that,” says Schulten. “We take every little thing an unbiased apply proprietor has to take care of off their shoulders to allow them to concentrate on shoppers.”

Funding Philosophy/Technique: The group’s core philosophy is money circulate oriented, with the 2 companions arguing that money administration is now extra essential than ever for shoppers as a result of they’re lastly being compensated with returns. “We like dividends and constant money turbines, however extra importantly, rising dividends, that are a sign of robust earnings and nice monetary well being,” says Schreiber. Mounted earnings had been difficult, in the meantime, however has now change into a a lot bigger a part of consumer portfolios as charges have risen, describe the 2 companions. For probably the most half, portfolio bond holdings are nonetheless pretty brief in length: “We’re conserving high quality very excessive as a result of we haven’t been satisfied that the tip of the bear market in bonds is over,” says Schulten.

Funding Outlook: Over the long run, each companions are believers in markets, stating that properly positioned high quality portfolios will all the time be capable to journey out the storm. “There’s loads of uncertainty in markets and the world at this time,” says Schreiber, although he nonetheless expects the market to be pretty constructive going into the tip of the yr. “There’s some huge cash on the sidelines—now persons are getting some bang for his or her buck—however that may add firepower as many uncertainties steadily get eradicated.” In the case of the Federal Reserve, the group anticipates that markets are close to the tip of the speed mountain climbing cycle, particularly as some stress in wages and inflation subsides. “I feel the Fed has executed the lion’s share of its modifications to financial coverage,” says Schulten. “Whereas it could take longer for the Fed to start out chopping charges, many of the present we’ve been swimming towards has subsided.”

Greatest Recommendation: “Probably the most frequent recommendation we give to households is to diversify however all the time preserve powder dry on the sidelines to reap the benefits of alternatives—and we’re beginning to see extra of these on this market,” says Schreiber. He advises in search of alternatives that not solely have a compelling story but additionally constant and rising money circulate.