PNC Private Bank Hawthorn

Hawthorn offers truly integrated wealth management services by combining investment management with tax, financial planning and estate planning guidance, as well as personal administrative services. Our unbiased and independent advocacy is dedicated to safeguarding wealth and aligning assets with family values, lifestyles and aspirations. Each Hawthorn relationship begins with a thorough discovery process. We ask key questions and listen closely to answers -- not just the words but the spirit of the message clients convey. Once we understand what they value most, we craft a customized family profile that reflects their overall financial situation and related interests. At Hawthorn, we have the insight to help clients maximize financial performance today and the foresight to help preserve their legacy for generations to come. Our wealth strategy and fiduciary services help confirm that tax, financial, estate planning guidance, insurance and philanthropic issues are identified and articulated so that portfolio management decisions are optimized to meet the personal goals of our clients.

Experience has shown us that successful wealth planning begins with clarity of purpose. To achieve such clarity, we pay close attention to clients’ values and goals as we establish a high level strategic plan, design specific solutions and work to precisely execute their strategy. Our wealth management approach is inclusive and forward-focused. We address the wide spectrum of your legacy – family values, finances, business, and philanthropy – and plan ahead for the needs of future generations. Once we have a deep understanding of client goals and have established a strategic plan, we create a customized Investment Policy Statement for our clients that will guide portfolio development. We build broadly diversified portfolios, including traditional and alternative investments, to help manage downside risk while participating in market advances. We can professionally manage a portfolio and/or select top-performing managers to add style and manager diversity — all utilizing proprietary research and executing on our valuation discipline. We also provide timely, transparent, comprehensive and customized reporting for accounts. Working with clients and their legal advisors, Hawthorn will explore a variety of fiduciary structures to help protect and transfer wealth to future generations. Our experience in fiduciary services includes evaluation of trust structures, trust administration, executor/estate administration, and guardian or conservator services. In addition, Hawthorn established a center of excellence dedicated to thought leadership on integrated wealth management. The center’s pursuit of knowledge has an explicit purpose: building bridges from thought to action by developing practical strategies to help our client families define and achieve life goals. The center nurtures family legacies with customized family education programs and counsels families on governance and business succession. Just as important to preserving the legacies of families is the ongoing relationship and communication we have with clients. And our team approach, led by the Relationship Strategist, helps to ensure frequent contact with professionals across disciplines, as well as access to our extensive network of investment and industry experts.

Client needs and aspirations drive Hawthorn’s investment process. We understand the complexities of multi-generational wealth and have integrated our investment decision making with tax, financial and estate planning considerations for a comprehensive asset management approach. After taking time to understand a client’s goals and preferences, we work with them to create a customized Investment Policy Statement that guides the development and ongoing management of their portfolio. This statement outlines a client’s target asset allocation, risk tolerance, investment restrictions and other essential aspects of their personal circumstances. To construct and manage portfolios, we incorporate our view of macroeconomic conditions, asset valuations and technical analysis. We assemble a broadly diversified portfolio using Hawthorn’s comprehensive asset class framework ranging from traditional equities and bonds to complex non-traditional investments such as hedge funds, private equity and derivatives. Our open platform approach allows Hawthorn investment advisors to manage portfolios objectively and transparently, searching out investment opportunities that can offer robust returns on a risk adjusted basis. It does not matter whether these opportunities are under our roof or elsewhere. It just matters that we find them. We believe a carefully selected mix of assets is the best strategy to achieve return objectives, manage risk and improve consistency of returns. Hawthorn conducts in-depth portfolio analysis using propriety technology to offer complete transparency, including full reporting of returns, holdings and attribution. Written statements and detailed performance reports are customized to client specifications. In addition, we subject every portfolio to stress testing and rigorous compliance oversight.

Each day, Hawthorn earns the trust of ultra-affluent individuals and families by providing integrated wealth management to help aspirations take root, legacies grow and family trees flourish for generations to come. OUR PROMISE: The core tenet of the Hawthorn Promise is keeping wealthy families wealthy. We do this by: • Helping families define success in words as well as numbers • Easing the complexities of wealth • Building deep, personal and enduring relationships • Delivering peace of mind We help families of substantial wealth build a legacy that will last by: Listening to clients so that we have a complete understanding of their goals and they have confidence in our knowledge of their needs; Developing multi-generational plans to support their estate, wealth transfer, business succession, and philanthropic and unique goals; Identifying appropriate investment opportunities to help achieve effective diversification, tax management and asset preservation with growth for current and future generations; Delivering customized, transparent and detailed performance reporting; Providing a substantial array of support services to ease the burden of day-to-day tasks; Anticipating and responding to family needs through extraordinary client service and multi-generational educational programs; Accessing the extensive resources of PNC, one of the nation's premier financial institutions. Hawthorn’s culture is built on the simple precept that we do what is right for our clients every time. We strive to know our clients better than any other firm and we care about them as people.

Hawthorn clients have access to a team of professionals dedicated to helping build, maintain and protect wealth. Hawthorn’s collaborative team approach brings together a mix of proficiencies and perspectives to develop, recommend and implement strategies that best serve our clients interests and the interests of those they wish to provide for. A client’s team of advisors is responsible for delivering all Hawthorn resources and fulfilling our client promise. Guided by a Relationship Strategist, the team will include multiple professionals with deep technical and broad client service experience. Team members are specifically chosen to match capabilities and chemistry with a client’s personal style and individual needs. The core Hawthorn team is comprised of the following: RELATIONSHIP STRATEGIST: Responsible for meeting a family’s comprehensive needs. Coordinates all efforts on a client’s behalf. Introduces local, regional and national Hawthorn and PNC resources as needed. FIDUCIARY ADVISOR: Explores, recommends and administers estate and trust vehicles to help protect and transfer client’s wealth. INVESTMENT ADVISOR: Ascertains investment objectives and establishes risk parameters for a customized Investment Policy Statement. Constructs and actively manages portfolios. WEALTH STRATEGIST: Serves as primary steward of a client’s wealth management efforts, leading the planning process while integrating financial, estate, tax and philanthropic considerations. PRIVATE BANKER: Provides personal banking services to meet a family’s specialized cash management and credit needs. All Hawthorn advisors work in concert to provide advice in a client’s best interests and the best interests of those they care about. Clients have frequent contact with their Hawthorn team of strategists and advisors and with our professionals around the country. Throughout the process, we also work closely with a client’s attorneys, accountants and other advisors they designate.

Each Hawthorn relationship is uniquely different, thus requiring a customized profile that reflects the overall financial situation and related interests of the client. Hawthorn specializes in providing integrated wealth management to the following types of clients. Entrepreneurs—Wealth creators, serial entrepreneurs, still actively growing wealth through multiple ventures and has young children. Some liquidity through employment and prior sale of a business; some assets are used for collateral on lines of credit. Self-Directed Investors—Wealth creators overseeing primarily liquid assets who want advice and information, but prefer to make investment decisions. Many direct investments and structures; adult heirs are involved. C-Suite Executives of Fortune 500 Firms—Executives focused on leading a complex, high profile company. Compensation is a mix of cash, stock options, deferred compensation and restricted stock. Executives have little liquidity outside of the cash portion of their compensation and must negotiate special reporting to the SEC. Multi-Generational Families— Wealth creators present and in control, married with adult children. Mostly liquid wealth from the sale of a business plus a few small real estate investments. Families with a Closely-Held Business—Family owners across multiple branches with some senior generation members involved in leading the family business. Little liquidity outside of the business; regular, ongoing liquidity via dividends.

1. Our Heritage: As a member of one of the largest and most trusted financial institutions, The PNC Financial Services Group, Inc., we have a more than 160-year history of helping distinguished clients articulate their joys, manage their responsibilities, and realize both immediate and multi-generational goals.2 2. Wealth Strategy & Fiduciary Services: At Hawthorn, we have the insight to help clients maximize financial performance today and the foresight to help preserve their legacy for generations to come. Our wealth strategy and fiduciary services help confirm that tax, financial, estate planning, insurance and philanthropic issues are identified and articulated so that portfolio management decisions are optimized to meet the personal goals of our clients. As a member of The PNC Financial Services Group, Inc., Hawthorn is well known for its reputation in administering complex estates and multi-generational trusts. Our experience and institutional memory in these matters dates back to the mid-1800s. 3. Client Service Team: Each Hawthorn client has a core team of multi-disciplinary professionals customized to match their unique individual needs. Hawthorn advisors include Relationship Strategist, Wealth Strategist, Fiduciary Advisor, Investment Advisor and Private Banker, all dedicated to helping build, maintain and protect wealth. Each Hawthorn team works with clients and their other advisors as needed to craft a wealth plan and execute on all facets of the plan. The team is supported by a robust technology platform enabling them to remotely leverage regional and national resources. 2 Forbes, August 3, 2015

Just as important to preserving our clients legacies is the ongoing relationship and communication we have with them. Each Hawthorn team, led by a Relationship Strategist, provides frequent contact throughout the year with clients and their Investment Advisor, Wealth Strategist, Fiduciary Advisor, and other advisors. Client face-to-face meetings are scheduled on average four times a year and we conduct a comprehensive review no less than annually or whenever a significant change occurs. Clients receive communication pieces, full transparent reports, statements and performance reports which are customized to their specifications.

Hawthorn offers multi-generational family education programs designed to prepare families for the current and eventual transition of wealth and values. The focus is on enhancing communication and leadership skills, improving technical knowledge, and promoting individual and social responsibility through cross-generational educational experiences, forums and seminars, and research publications. Customized programs are developed after completion of a needs assessment with the family members. Curriculums are designed noting the ages, subject command, presentation preference, personal responsibilities of the participants, as well as the message to be conveyed. Topics may include family governance, leadership development, next generation issues, and technical topics. Subject areas range from basic budgeting and investment market concepts to complex financing and estate planning issues. All are age and knowledge level appropriate and include mentoring projects and application skills. In addition to formal sessions with Hawthorn faculty members and content leaders, specialists within PNC often participate in the program. Application opportunities exist in capital markets, retail and commercial banking and strategic philanthropy. Recognized national speakers may be assembled for larger group presentations to address family dynamics, business succession, and economic markets. The learning environment is carefully designed to be a productive, enlightening and unique experience for everyone involved. Interactive exercises, publications, and resources enhance the talent development of the individual participants and focus on continual learning.

We assemble a broadly diversified portfolio using Hawthorn’s comprehensive asset class framework ranging from traditional equities and bonds to complex non-traditional investments such as hedge funds, private equity and derivatives. We believe a carefully selected mix of assets is the best strategy to achieve a client’s return objectives, help manage risk and improve consistency of returns. Our open platform approach allows Hawthorn investment advisors to manage portfolios objectively and transparently, searching out investment opportunities that can offer robust returns on a risk adjusted basis. We strive to create portfolios which generate returns that meet or exceed our client's expectations. The Hawthorn Investment Policy Committee seeks to add value to portfolios through proper strategic and tactical asset class weighting, manager selection and tax-aware portfolio construction techniques. We utilize performance attribution tools to help measure the risk/return trade-off and evaluate the success of our strategies, while also implementing risk management strategies that help to reduce exposure and help protect wealth.

Hawthorn clients have access to a team of professionals dedicated to helping them build, maintain and protect their wealth. The dedicated team works with clients and their other advisors as needed to craft and execute on all facets of the wealth plan. Average industry experience among our professional staff is 22 years and most of our professional staff have industry credentials in their chosen field. Highlighted below are other credentials of Hawthorn team members. Relationship Strategists: CTFA, Certified Financial Planner (CFP) Wealth Strategists: Certified Financial Planner (CFP), CPA, Investment Advisors: Chartered Financial Analyst (CFA), CIMA, CAIA