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ADVERTISING SECTION CRAIN'S CONTENT STUDIO

WEALTH

MANAGEMENT

+ Investment tips from 7 top wealth advisors

+ Active Investing makes a comeback + Why your portfolio might not be

as diversified as you think

CRAIN'S CONTENT STUDIO ADVERTISING SECTION

MAKE SURE YOU'RE ON THE BEST FINANCIAL PATH

W elcome to Crain's Wealth Management Guide, a special advertising supplement in which top Chicago-area financial advisors share tips and tactics for achieving and maintaining investment success.

Is active investing right for you? Our lead feature explores how worries about market volatility and a possible downturn are helping active investing strategies make a comeback.

Read on for a helpful checklist on what to expect when working with a financial advisor--"We can help inspire people to meet their goals," promises one--as well as a detailed look at how to ensure your portfolio is as diversified as you think it is.

Looking for more strategic investment advice? Check out wealth-management for additional features, including seven tips for protecting your investment gains in a volatile market.

Whenever you need in-depth wealth management advice, please consider the sponsors of this guide, who all work in the Chicago market to build the strongest possible investment portfolios for their clients.

This advertising-supported section is produced by Crain's Content Studio, the marketing storytelling arm of Crain's Chicago Business. The Crain's Chicago Business newsroom is not involved in creating Crain's Content Studio content.

CONTENTS

FEATURES

ACTIVE INVESTING: THE COMEBACK KID?.................................................22 WHAT TO EXPECT FROM A FINANCIAL ADVISOR: A CHECKLIST............24 IS YOUR PORTFOLIO REALLY DIVERSIFIED?................................................26

CONTRIBUTING SPONSORS

Matrimonial and Family Law Attorneys

What's your vision for success? From years of working with affluent individuals and families, we've learned that success often means helping you achieve a sense of satisfaction and joy from using your wealth for yourself, your family and the causes you hold dear.

It would be our privilege to help bring your vision for your wealth to life.

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120 South LaSalle Street Chicago, IL 60603 800 662-7748

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2019 EXECUTIVE GUIDE: WEALTH MANAGEMENT

COMPANY NAME: Savant Capital Management ADDRESS: 190 Buckley Drive, Rockford, IL 61107 (Headquarters) Chicagoland offices: Chicago, Downers Grove, Hoffman Estates, Naperville, St. Charles, Wilmette PHONE: 866.489.0500 WEBSITE: TOTAL EMPLOYEES: 163 YEAR ESTABLISHED: 1986

MANAGING EXECUTIVE: Brent R. Brodeski, Chief Executive Officer REGULATORY ASSETS UNDER MANAGEMENT: $6 billion MINIMUM ACCOUNT: $500,000 AVERAGE ACCOUNT: $1.25 million

CLIENT DIVERSIFICATION:

High-Net-Worth Individuals: 65%

Individuals: 21%

Pension and Profit Sharing Plans: 11%

Charitable Organizations: 2%

Corporations and Other Businesses: 1%

ADVERTISING SECTION CRAIN'S CONTENT STUDIO

FOCUS: Serving as a personal CFO, Savant helps its clients manage the complexities of their investment, planning and tax strategies. Using a time-tested and evidence-based approach, we provide investors access to a personalized portfolio option and proactive, customized planning advice, all while considering the tax implications over their lifetime. We believe Savant's unique approach can help provide clients with an advantage.

Savant is a Registered Investment Advisor, which means we are required by law to act in clients' best interests. Savant remains independent and is not swayed by things like in-house products or quarterly earnings reports. Savant has a transparent fee structure based on how well we manage assets, not on how often trades are made or products are sold. We are a vibrant firm that uses a team approach, and we pride ourselves in the time we take to get to know our clients and what is most important to them.

CLIENTS: Savant offers integrative investment management and financial planning solutions to individuals, families, foundations, trust funds, retirement plans and nonprofit organizations. We also provide portfolio design, tax planning, tax preparation, advanced estate and wealth transfer planning services.

INVESTMENT PHILOSOPHY: Our investment philosophy is designed to engineer broad, globally diversified portfolios that minimize risk and maximize after-tax return. This evidence-based strategy is founded on tried-and-true principles:

? The markets are efficient ? Asset allocation is important ? Markets are not predictable ? Broad diversification is necessary ? Take a global approach ? Actively manage taxes ? Eliminate excessive costs ? Systematically rebalance ? Optimize cash-flow management

Disclosure: Savant Capital Management is a Registered Investment Advisor. Savant's marketing material should not be construed by any existing or prospective client as a guarantee that they will experience a certain level of results if they engage Savant's services. Please see Important Disclosures at .

Fortunately, an experienced and reputable independent investment

advisor is in the Chicago area.

866.489.0500 |

investments | financial planning | tax | private trust | retirement plans

Savant leverages over 30 years of experience and the collective wisdom of our team to help people like you move toward your ideal future. By helping individuals and families preserve hard-earned capital while pursuing steady, wise growth, we've earned a strong reputation in our local communities, and significant recognition by discerning national organizations.

Contact us today to learn more about how we can help you build your ideal future.

Savant Capital Management is a Registered Investment Advisor. Savant's marketing material should not be construed by any existing or prospective client as a guarantee that they will experience a certain level of results if they engage the advisor's services. Please Note: "Ideal" is not intended to give assurance as to achieving successful results. Recognition by organizations should not be construed as a guarantee of a certain level of results. Please see full disclosures at recognition.

2019 EXECUTIVE GUIDE: WEALTH MANAGEMENT

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CRAIN'S CONTENT STUDIO ADVERTISING SECTION

Active Investing: The Comeback Kid?

By Jane Adler

I nvestors have flocked to passive index funds over the last decade. In fact, passively managed funds now have a 45% market share, according to recent data from Bank of America Merrill Lynch.

It's easy to understand why. The average annualized total return for the S&P 500 stock market index over the past 90 years is 9.8%. Not bad, especially for an investment that requires little attention.

But active investing could be making a comeback. Worries about market volatility and a possible downturn after a 10-year expansion may give an advantage to investment managers who take an active approach.

"Active investors are outperforming passive investors so far this year," says Bob Diedrich, director of wealth management, First Midwest Bank, Chicago.

consequences of the various investments. Portfolio managers make decisions that may result in unwanted gains, resulting in higher tax payments.

HOW TO MANAGE OUTCOMES

Still, active investing can make sense--especially in a bumpy market, experts say.

Index funds performed well after the recession. But now that the bull market is into its tenth year, not all sectors are making uniform gains. "It's time to look at defensive plays," First Midwest's Diedrich says.

Individual securities can be a good defense, if managed properly. For example, First Midwest Bank tracks capital gains in client portfolios. The stock market rose for the first three quarters of 2018, generating a lot of gains. But the market experienced a sell-off in the last quarter,

can fight investor inertia. "The advisor is often the difference between the investor having a plan in the back of their mind and actually executing on that plan," Gleason says.

TAKE THE LONG VIEW

Active investing is not all about outperformance, but balancing risk and return, says Jackie Moss, a member of CFA Society Chicago and managing director at William Blair Private Wealth Management, Chicago. As a portion of a well-balanced portfolio, she looks for small- and mid-cap companies that will grow to largecap companies over time. "We are believers in active investing," Moss says.

Investors don't necessarily have to choose between an active and passive approach. A blend of both is often best, according to Mike Stritch, chief investment officer,

"THE ADVISOR IS OFTEN THE DIFFERENCE BETWEEN THE INVESTOR HAVING A

PLAN IN THE BACK OF THEIR MIND AND ACTUALLY EXECUTING ON THAT PLAN."

-Bill Gleason, market investment executive, Bank of America Private Bank, Chicago

Active portfolio management is a strategy in which the manager makes specific investments with the goal to outperform a benchmark index such as the S&P 500. When the bull market inevitably ends, so will the positive returns for passive index investors.

Active investment managers can mitigate risk by reducing exposure to the stocks that will be hit the hardest. They can also buy undervalued assets to capture upside as markets recover.

The relative benefit of active vs. passive investing is an age-old question, according to Don Duncan, financial advisor and managing director, Savant Capital Management, a registered investment advisor. He has offices in Chicago and Downers Grove, as well as in Santa Fe, New Mexico. The firm has a handful of offices in the Chicago area, as well as in Virginia and Wisconsin.

Duncan attributes the rise in passive investment strategies, such as index funds, to the fact that many Americans don't require sophisticated asset management approaches. A passive strategy just makes life simpler.

Another potential drawback to active fund investing is that the investor has less control over the tax

which presented the opportunity to sell securities to manage the tax liability. "We were very active," Diedrich says, explaining that the securities can be repurchased when the price is right.

Active investing can help manage outcomes in other ways.

A passive strategy assumes the investor's risk tolerance matches that of the index fund. But what if the investor has a lower risk tolerance than that of the index, or perhaps the investor has a greater need for income? asks Bill Gleason, market investment executive, Bank of America Private Bank, Chicago. An active manager can craft a portfolio that is more defensive or more aggressive. "The clients have the opportunity to have the portfolio tailored to their needs," Gleason says.

A financial advisor can help investors pick the best mix of investment funds--either indexed or managed--to meet their goals. "It's one of the advisor's biggest values," Gleason notes. The advisor also helps the investor stay on track, making appropriate decisions based on market conditions and changes in the investor's personal situation.

Don't overlook the value of an outside financial advisor. Too often, busy executives think they'll make investments, but then never get around to it. An advisor

BMO Wealth Management- U.S., Chicago. The recent uptick in market volatility could be a good time for index investors to add actively managed funds to help mitigate downside risk. Active managers also have the flexibility to make targeted purchases. "Be careful of fees," Stritch warns, advising investors to ask about the costs associated with actively managed funds.

Is there an ideal percentage split between active vs. passive investment funds? No, Stritch says, adding that the decision of how to divide a portfolio will depend in part on the asset classes being purchased. For example, an actively managed small- cap international stock fund could outperform an indexed fund.

Not all passive funds are equal, advisors say. Some index funds are concentrated in a few companies--a fact investors may be unaware of. The widely held QQQ fund, for example, tracks the NASDAQ 100 market. But 45% of the index's holdings are made up of just five companies-- Amazon, Facebook, Google, Microsoft and Apple.

"Think about the risks," William Blair's Moss says. There are emerging privacy issues that could impact these companies. There's talk about the government intervening to break them up because they're too big. Europe is already placing restrictions on the companies. "Investors need to consider the environment," Moss says.

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2019 EXECUTIVE GUIDE: WEALTH MANAGEMENT

COMPANY NAME: First Midwest Bank, Wealth Management ADDRESS: 8750 W. Bryn Mawr Ave., Suite 1300, Chicago, IL 60631 PHONE: 800.369.4065 WEBSITE: wm TOTAL EMPLOYEES: 2,000+ YEAR ESTABLISHED: 1940

MANAGING EXECUTIVES: Michael Scudder, Chairman and CEO Mark Sander, President and COO Robert Diedrich, President - Wealth Management Division ASSETS UNDER MANAGEMENT: $11 billion MINIMUM ACCOUNT: $500,000

CLIENT DIVERSIFICATION:

High-Net-Worth Individuals: 65%

Pension and Profit Sharing Plans: 20%

Charitable Organizations: 10%

Corporations and Other Businesses: 5%

ADVERTISING SECTION CRAIN'S CONTENT STUDIO

FOCUS: The mission of First Midwest Wealth Management is to help people, organizations and businesses manage their finances and investments so they can achieve their goals. We offer trust and fiduciary services, wealth planning, investment management, real estate and farm management, custody and institutional asset management, retirement benefit services and private banking.

We know that your financial life can get complicated and we help you manage it. We have the depth of resources you need and the personal service you want. We can help with your business and your retirement, so you can work on your legacy.

CLIENTS: Trust and private banking clients include high-net-worth individuals and families, corporations and nonprofit organizations.

INVESTMENT PHILOSOPHY: We begin by assessing your complete financial situation and goals. We help you weigh the trade-offs in financial decisions and then develop an investment plan customized to you.

We employ a "core" and "satellite" approach to portfolio construction. The core portion consists of traditional asset classes of stocks, bonds and cash; when determining the appropriate percent, we use a quantifiable model of risk and return statistics from Modern Portfolio Theory. The satellite portion is designed to help achieve greater diversification and may include asset classes or strategies such as real estate, commodities, high-yield and emerging markets, depending on the investor profile.

"Structuring wealth is as important as creating it."

2019 EXECUTIVE GUIDE: WEALTH MANAGEMENT

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Creative solutions to complicated problems.

CHICAGO OFFICE

161 North Clark Street, Suite 2800 Chicago, IL 60601 312.782.3456

LAKE FOREST OFFICE

300 East Illinois Road, Suite 200 Lake Forest, IL 60045 847.405.9500

CRAIN'S CONTENT STUDIO ADVERTISING SECTION

What to Expect from a

Financial Advisor: A Checklist

By Jane Adler

G ood wealth managers know how to multitask. They can offer trusted financial advice, help a family plan for college, and map out the fastest route to retirement--all at the same time. But what else should we expect? Here's a checklist of what to look for when selecting a financial advisor.

Robust services. A financial advisor should offer a full menu of services. These can include portfolio management, investment recommendations, financial planning, tax strategies, and estate and retirement planning. "An advisor should be well versed in all these areas," says Bob Diedrich, director of wealth

management, First Midwest Bank, Chicago. That includes understating how to navigate the maze of Social Security benefits and gaps in insurance coverage. "An advisor with expertise adds value," Diedrich says.

Ask what services are provided and how the advisor is compensated. They may charge an hourly rate, a fixed annual retainer or a percentage of the investments they manage. Some take a commission on the products they sell.

Savant Capital Management is a fee-only registered investment advisor. It provides analysis and

recommendations in 10 areas: vision and goals, retirement planning, educational planning, investment planning, estate planning and administration, business and succession planning, risk management and asset protection, debt management, income tax planning and charitable planning. "These areas are all interrelated," says Don Duncan, financial advisor and managing director, Savant Capital Management, Chicago. "We focus on the client's goals and the plan to achieve those goals."

In addition to the traditional set of services, BMO Wealth Management-U.S. offers investment teams that

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2019 EXECUTIVE GUIDE: WEALTH MANAGEMENT

ADVERTISING SECTION CRAIN'S CONTENT STUDIO

specialize by industry. One team, for example, works with physicians to address their particular needs. Another team works with business owners and entrepreneurs to help reduce the complexity associated with business ownership, including succession planning. The team that works with corporate executives understands issues such as how to handle concentrated stock positions. "We know how to think through their specific issues," says Mike Stritch, chief investment officer, BMO Wealth Management-U.S., Chicago. He adds that a growing number of clients want their investments to align with their social values. An advisor should be able to handle those kinds of assignments.

selection is important, but the advisor should take the time to learn about your goals and objectives, and your family, according to Lynne Pantalena, wealth strategy executive, Bank of America Private Bank, Chicago. "The advisor should listen to your concerns." Then the advisor can craft a comprehensive plan tailored to your stage of life whether you're preparing to send a child to college, or getting ready to retire.

Productive relationship. Money talk can get personal. It's hard to discuss wealth management goals without diving into topics such as inheritances, business succession issues and what's going on with the kids. It's really important to have a strong

they looking out for you rather than trying to make a sale? Another quality often overlooked is whether the advisor is inspirational, BMO's Stritch says. The advisor should be able to motivate the client to execute on the financial plan. "We can help inspire people to meet their goals," Stritch says.

Regular communication. Clients typically determine how, and how often, they want to be contacted by the advisor. Some clients prefer emails, phone calls or in-person meetings. But regular updates are important to stay on track, advisors say. Clients at Savant Capital receive quarterly performance reports. "We encourage clients to review their portfolios and talk to us about the

"WE ENCOURAGE CLIENTS TO REVIEW THEIR PORTFOLIOS AND TALK TO US

ABOUT THE PERFORMANCE."

- Don Duncan, financial advisor and managing director, Savant Capital Management, Chicago

Access to outside services. A financial advisor is unlikely to provide some services, such as the preparation of legal documents. The financial advisor, however, should be able to refer clients to attorneys, accountants and other trusted providers with whom they've worked. For example, Berger Schatz is a matrimonial and family law firm that often consults with financial advisors. "We work like a team," says Andrew Eichner, principal at Berger Schatz, with offices in Chicago and Lake Forest. The team can share financial information, which is especially important in a divorce situation. An attorney can help protect assets while the financial advisor can devise a new plan to meet longterm income and investment goals.

A holistic approach. The advisor should offer an integrated approach. Investment planning and

relationships with your advisor, says Amy Hughes, market executive, Bank of America Private Bank, Chicago. "The advisor will understand your values." A trusted advisor can nudge families to prepare wills and estate plans without stepping on toes. Budgeting can be a tough conversation, too. Bank of America in conjunction with Khan Academy has created a website called Better Money Habits with videos and tutorials to teach money management. (bettermoneyhabits.en)

Good character. Financial information is now widely available, but good advisors should offer something extra. Look for the qualities that set someone apart from the competition. Do they have integrity? Are they trustworthy? Dependable? Are they transparent? Do they have a fiduciary mindset? In other words, are

performance," Duncan says. Regular communication includes an assessment of changes in the family. A new grandchild may prompt the need for a college savings plan. An unexpected inheritance may necessitate a revamp of the financial plan.

Red flags. Beware of those who want to sell an investment product before asking about your situation. Investment selection comes after a solid financial plan is in place, advisors say. If you don't feel comfortable with an adivsor, walk away. An advisor shouldn't be dismissive. There are no dumb questions. Explanations should be in plain English. "The advisor should listen and be respectful," says Jackie Moss, a member of CFA Society Chicago and managing director, William Blair Private Wealth Management, Chicago. "The advisor should take you seriously."

An approach that brings global vision and local insight to your front door

Offering insight, dedication and a global perspective to Chicago. Deeply understanding your individual needs. Creating a customized wealth management strategy that's right for you. All aspects of an approach that connects to your values and goals. One that's been trusted for over 200 years.

To learn more, please contact:

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135 S. LaSalle Street Chicago, IL 60603

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