Tolleson Wealth Management

At Tolleson Wealth Management, offering our clients fully-integrated, comprehensive financial service is the only way we serve clients, and is the only manner in which we plan for and provide advice to our clients. There are several ways in which we achieve the integration of services. First, our Managing Directors hold CPA* and either a CFA® OR CFP® certifications, which enables them to naturally incorporate all of the wealth management services and advice a client needs. Second, there is one primary advisor who is responsible for the client relationship and several junior advisors who support the primary advisor. There are specialty advisors who also work directly with clients on an as-needed basis for services like tax, trusts, banking, bookkeeping, etc. Our client teams also work directly with experts outside our firm including CPA’s, attorneys, insurance brokers, etc. to integrate their services into our clients’ overall strategic financial planning.

The core services we provide for our clients include planning and organization, investments, multi-generational estate planning, charitable and private foundation planning, education on wealth and family dynamics, cash flow management, risk management, private banking, and much more. We also offer trust, tax and accounting services, bookkeeping, but not all clients utilize these services. If our clients do not utilize all of our services we work closely with their preferred advisors to meet their needs and fully integrate their services into our clients’ overall financial plan.

Philosophy - Our firm is conservative in everything we do and our investment philosophy is based on long-term wealth preservation and safeguarding of assets. Our key philosophy is to protect our clients’ assets while producing long-term attractive returns. Our investment strategies are designed to provide attractive returns while controlling risk and volatility. We offer a diversified portfolio that avoids risky or unattractive asset classes. We hire third party, best-in-class money managers rather than choosing stocks internally. We also rigorously monitor asset allocation, managers, and performance. Below is a summary of our philosophy: Conservative strategy focused on wealth protection • Involves asset allocation and investment manager selection overseen by an investment committee • Seeks attractive returns while controlling risk and volatility • Creates diversified portfolio, avoiding risky or unattractive asset classes • Hires best-in-class money managers rather than choosing stocks internally • Rigorously monitors asset allocation Comprehensive and customized • Focuses on investment alternatives and issues unique to the wealthy • Thoroughly evaluates the client’s portfolio, financial position and goals • Carefully appraise the tax efficiency of investment alternatives • Seeks to minimize fees, transaction costs and taxes

Below is the statement that was established to remind our employees why we come to work every day and the values everyone should uphold on a daily basis. This statement is on employee’s desk and we give public recognition regularly to those who demonstrate our values. Mission - Driven by our passion for wealth management, Tolleson Wealth Management strives to achieve exceptional results for our clients and provide an unrivaled experience while serving their best interests. Vision – Our vision is to be the premier wealth management firm, while maintaining our uncompromising values. Values • Client Service – We are client-centric, proactive, professional and friendly; we always go above and beyond to serve our clients. • Integrity - We are ethical and values driven, serving our clients’ best interests and protecting their assets without conflicts in a confidential manner. • Teamwork – We work together to grow and develop a positive, challenging and fun culture that provides significant career opportunities inspired by our collective achievements and potential for continued success. • Excellence – We produce exceptional work and stand for nothing less than impeccable quality across the wealth management, investment and banking spectrum.

At Tolleson Wealth Management, we are emphatic about client service and designed our organization to ensure we put our clients first and we are able to respond to their needs in an effective and efficient manner. We have client teams that serve as the focal point of the client relationship. There is one primary advisor who is responsible for the client relationship and several junior advisors who support the primary advisor. Our primary advisors have the credentials necessary to advise affluent families, including: CPA* and CFA® OR CFP® AND CIMA®. There are specialty advisors who also work directly with clients on an as-needed basis for services like tax, trusts, banking, etc. We have a very low client to staff ratio – 103 families: 95 employees. All employees put clients’ best interests first and all clients are always our number one priority.

We specialize in serving very successful, dynamic families who want to avoid the paradox of having wealth: Having wealth can permit you to do anything you want with your time; managing wealth can dominate every waking minute of your time. We have a high level of sophistication because we have a great deal of experience of serving clients who are both new to wealth because of a major liquidity event and who have had wealth for many generations regardless of whether the wealth is held in businesses, family trusts, or in other liquid or illiquid assets. We serve entrepreneurs and executives, and their families, who recently experienced a liquidity event from successfully selling their business or taking their business through an IPO. We also serve multigenerational clients, as well as widows, widowers, divorcees, celebrities and athletes. Tolleson Wealth Management’s minimum investment is $10 million. Our clients’ invested assets range from asset of $10 million to over $500 million.

Below are the three characteristics that distinguish Tolleson Wealth Management from competitors: 1. Comprehensive and Conservative Approach - We are a comprehensive, full-service wealth management firm that provides objective advice and highly-personalized solutions unique to the complex needs of affluent families. We integrate financial strategies and services including advice, investments, estate planning, tax, trust, private banking, risk management, and much more. Our firm is ultra conservative in everything we do and our investment philosophy is based on long-term wealth preservation and safeguarding of assets. 2. Origin of our firm was the Tollesons’ family office – Our office began as a family office for the Tolleson family. The Tolleson family believes in, invests in, and utilizes the same investment vehicles and services the firm offers. We are a privately held firm, which enables us to put clients’ interests first. 3. Independent and objective - We seek to eliminate conflicts of interest and constantly evaluate our investment strategies. All investment strategies are based on prudent, long-term wealth preservation. We do not benefit by putting our clients’ money in our own investment products, because we oversee third party money managers and don't sell products. Our investment strategies are based on selecting, evaluating and monitoring third party managers, which allow us to remain objective and respond quickly to market changes.

Our client service and communication approach is one of our firm’s strengths. We interact and communicate with our clients in a variety methods and the frequency is based on their needs. Our goal is to give clients peace of mind knowing their finances and estate are well organized and well preserved so they can enjoy their wealth and their time rather than letting their wealth dominate their time. We produce consolidated reports quarterly so the minimum number of times we meet with clients is quarterly. Our clients’ needs are ever-changing so we modify the frequency of our communication accordingly. Our clients often travel and have busy schedules so we are very flexible about when and where we meet and the manner in which we communicate. For clients who reside outside the Dallas area, we travel to meet with them face-to-face as needed. We also communicate with weekly, monthly and quarterly market research repots, as well as banking, trust, tax, and other necessary statements.

Our firm offers formal training through The Tolleson Wealth Management Family Education Program and informal training through our client advisory teams. The Tolleson Wealth Management Family Education Program offers a lecture series and covers topics on investments, economic outlook, philanthropy, women and money, children and money, and much more. Our Investment Team also researches and creates detailed weekly, quarterly, and biannual reports on the domestic and foreign markets and economic landscapes. Below is summary of The Tolleson Wealth Management Family Education Program: The Tolleson Wealth Management Family Education Program was created when Tolleson Wealth Management executives saw a need, a need that was not being addressed by the financial services industry. After many years of studying and working directly with families of significant wealth, Tolleson Wealth Management executives recognized a critical need to educate wealthy families on the unique and complex dynamics wealthy families face. The program is spearheaded by Richard Joyner, who believes passionately in the importance of helping families make good day-to-day decisions that impact how they pass wealth to their heirs, structure family businesses, and build future family leaders and philanthropists. Mr. Joyner also believes in the importance of helping families understand and navigate the social, societal and psychological impact that family wealth has on each and every member of a family. Tolleson Wealth Management executives also realized that most financial advisors have little or no training to help them understand the complex dynamics wealthy families face and the impact they have on their clients’ decision-making processes. For this reason, Tolleson Wealth Management sought help from industry-leading experts on counseling wealthy families.

Our investment philosophy is based on conservative, long-term wealth preservation and safeguarding of assets. Our investment strategies are designed to provide attractive returns while controlling risk and volatility. We offer a diversified portfolio, avoiding risky or unattractive asset classes and we hire third party, best-in-class money managers rather than choosing stocks internally. We also rigorously monitor asset allocation, managers and performance. Our risk evaluation includes thorough review of all aspects of clients’ lives and our advice includes both qualitative and quantitative strategies. Qualitative measures include in-depth discussion, evaluation and advice on risk within their families, finances and businesses. Quantitative measures include discussion, evaluation and advice on all areas of insurance - life, property and casualty, and liability - as well as, asset protection in trusts and offshore planning, personal affairs such pre-nuptial planning and divorce settlements, cash flow management, illiquid asset allocation, and much more.

OUR WEALTH MANAGEMENT TEAM SENIOR MANAGEMENT AND INVESTMENT COMMITTEE John C. Tolleson is Chairman and CEO of Tolleson Wealth Management and Tolleson Private Bank. In building the core team of specialists for Tolleson Wealth Management, John called upon his more than three decades of experience in banking and financial services. In 1989, John led a leveraged buyout of First USA and, in 1992, took the company public, listing it on the NYSE. Under his leadership, First USA grew from $400 million to $24.6 billion in credit card loans prior to its merger with Bank One Corp. in 1997. After the merger, he joined the board of Bank One and started The Tolleson Group, which is now Tolleson Wealth Management. As CEO of Tolleson Wealth Management, John focuses on strategic planning, policy and investment services. John has over 40 years of industry experience and has been with the firm since inception, 15 years. J. Richard Joyner, CIMA®, CPA*, CFP®, is a President and CEO of Tolleson Wealth Management's Private Wealth Management group. His primary focus is serving and advising clients on their wealth management matters. He is an experienced veteran in the wealth management industry and has managed the financial affairs for numerous prominent families and entrepreneurs. Richard is the Director of the firm’s Legacy and Trust services, and is a member of the Board of Directors and Investment Committee. Richard joined Tolleson Wealth Management in 2003 from Ernst & Young, LLP, where he was a partner and director of the Southwest Area Private Client Services practice. Richard has 30 years of industry experience and has been with the firm for 9 years. Carter Tolleson serves as President of Tolleson Wealth Management and as President and CEO of Tolleson Private Bank. He oversees key strategic, marketing and policy determinations for the company and both its lines of business. Carter is a relationship manager for Tolleson Private Bank, in which capacity he attends to the banking needs of key clients of the bank. He also has a leadership role in the management of Tolleson Private Wealth Management, the investment advisory subsidiary of Tolleson Wealth Management, including serving on the investment committee and the management committee. Prior to joining the management of Tolleson Wealth Management, Carter was a partner and investment analyst at a local hedge fund. Carter has 11 years of industry experience and has been with the firm for 9 years. Gregory S. Hall, CPA*, CFP®, is a Managing Director, and serves as a primary contact and coordinator for all client services. He manages the comprehensive financial planning and oversight process for clients by identifying, implementing and monitoring strategies that meet each client’s investment, financial and wealth-transfer needs. Prior to joining Tolleson Wealth Management, Greg was a senior manager at KPMG, where he served wealthy clients in their personal financial planning group. Greg graduated Cum Laude from Texas Tech University, where he earned his Master’s of Science in accounting with a tax concentration. Greg has 18 years of industry experience and has been with the firm for 11 years. Philip J. Durst, CPA*, CFA® serves as Chief Investment Officer for Tolleson Wealth Management. His responsibilities include the comprehensive oversight and execution of our firm’s investment research process, asset allocation, manager selection/retention and overall portfolio management. Prior to joining Tolleson Wealth Management, Philip worked within the Investment Management divisions of both INVESCO and John McStay Investment Counsel in Dallas. In addition, Philip has worked within the internal Hedge Fund and Private Equity divisions of Enron North America in Houston. Prior to his investment management career, Philip spent several years with Crescent Real Estate in Fort Worth and with Ernst & Young in Dallas. He earned an MBA with honors from SMU and received his undergraduate degree in Accounting from the University of North Texas. Philip has 18 years of industry experience and has been with the firm for 6 years. Brittyn Russell Brender, JD, CFP®, CPWA®, is Vice President and Senior Trust Officer for Tolleson Private Bank. Her responsibilities include oversight of the Trust Department, as well as working closely with the Tolleson Private Wealth Management group in the day to day administration of accounts where the Bank serves in a fiduciary capacity. She currently serves on the Trust Committee and the Trust Investment Committee. Prior to joining the Trust Department, she was a Manager on the Tolleson Private Wealth Management Client Advisory Team. Brittyn graduated from Baylor University School of Business with a degree in Economics and received her Juris Doctorate from Baylor University School of Law in 2004, with a concentration in Estate Planning and Probate. Before Tolleson, she was a Financial Analyst at The Ayco Company, a Goldman Sachs Company. Brittyn has 7 years of industry experience and has been with the firm for 6 years. Amy Armstrong, JD, CPA*, serves as Tax Director of Tolleson Wealth Management. Her responsibilities include oversight of client tax returns, providing a tax perspective on client gift and estate plans, and researching/educating both staff and clients on the ever-changing tax law. Amy joined Tolleson Wealth Management in 2007. Prior to joining Tolleson Wealth Management, she worked in both public accounting and with a private company developing financial planning software for high-wealth investors. Amy received an undergraduate degree from Baylor University followed by Juris Doctorate at the University Of Texas School Of Law. She has 12 years of industry experience and has been with the firm for 5 years. *This firm is not qualified to be licensed as a CPA firm in Texas.

Alternatives - Tolleson Wealth Management has been investing in alternative strategies, including hedge funds and private equity, for over 14 years. We currently oversee over $600 million in assets invested in alternatives. We have a great deal of experience in investing in hedge funds and a strong network and research team. Currently our portfolio includes investments with 25 alternative managers across the hedge fund and private equity space. In addition to monitoring these managers, our Investment Team meets with over 150 new prospective managers each year, and conducts visits/calls with more than 250 managers annually. We do a great deal of research on how our clients’ investments are allocated within the alternative asset class and are active in selecting, monitoring and changing managers. Historically, Tolleson has allocated funds in various alternative strategies including, but not limited to: global macro, long/short equity, event driven, credit related strategies (distressed, long/short, specialized assets) and various stages of private equity funds. Private Equity - We review private equity investments that our clients ask us to review, and we also present private equity funds to our clients when we see a fund that is appropriate. Due Diligence - Due diligence in alternatives requires a deeper dig due to the fact most of these are in a partnership form and the investment strategies are more complex. Thus, we do more work up front than with traditional stock and bond managers, and our monitoring process is customized for these types of investments. Preliminary due diligence includes, but is not limited to: • Multiple conversations with analysts and portfolio managers on the fund • Onsite visits to review back-office standards as well as to meet with the portfolio manager face-to-face • Comparative risk-return and correlation analysis • A historical attribution analysis of exposures and performance drivers • Reference checks with investors and industry contacts, in-depth background checks on all key decision makers and a complete legal document review performed by Tolleson’s outside legal counsel Ongoing due diligence includes, but is not limited to: • Bi-weekly performance monitoring • Monthly attribution analysis • Quarterly update calls with management • Annual onsite visit • Ongoing background monitoring