The Wall Street Journal - 19.03.2020

S8| Thursday, March 19, 2020 THE WALL STREET JOURNAL.

New York No. 29

Morgan Stanley Private Wealth Management

Flexibility is key in wealth managementfor the

ultrarich, says Josh Gully, co-leader of the New York–

based Gully/Schwarz Group at Morgan Stanley.

Within one family, there can be a wide range of

ages,economicneeds,andfinancialknowledge,he

says, recalling a client who sold a business for $80

million, then asked the group to distribute $40

millionofthoseproceedstomorethantwodozen

extended family members.

“Those 25 people couldn’t have been more differ-

ent,”Gullysays.Theyrangedfromaniecejustoutof

college“whowaslikeadeerintheheadlightswhen

itcametofinancialmatters,”toabrother“whowas

equallysuccessfulinhisownrightandwantedtotalk

aboutadvancedtopicsaroundphilanthropicgoals

and alternative investing.”

Thegrouphaspurposelyconstructedastaffthat

reflects intergenerational differences, with advisors

who range from 26 to 58—including Gully’s daughter.

“We take a multigenerational approach very serious-

ly,” Gully says.

GullyandPatrickSchwarzformedtheGully/

SchwarzGroupeightyearsago.Thegroupnowhas

some $3.5 billion in assets under management, serving

70 ultrahigh-net-worth individuals and their families.

Gully,58,isprettymuchaMorganStanleylifer,

having joined the firm in 1992, after business school.

Schwarz,54,cametoMorganStanleyfromSmith

Barneyafterthetwofirmsmergedin2009.

SchwarzsayshisearlystintintheU.S.Navy,

wherehelearnedtobothleadandlistentoyounger

menunderhiscommand,hasservedhimwellasa

wealth manager.

“Asafinancialplanner,yousometimeshavetotell

someoneinnouncertainterms,‘Youdon’twantto

dothat,’or,‘Thisiswhatyoushoulddo.’Andthen

in other instances, it’s a discussion,” Schwarz says.

“Clientspayyoutohaveanopinion,buttheywantyou

tolisten.It’sabalance.”

Because the Gully/Schwarz Group serves an

extremelywealthyclientbase,itwrestleswithmore

financial complexity than wealth managers who ser-

vicethemerelyaffluent,saysSchwarz.“It’sshowing

themhowtogettotheirgoalsbygivingthemagreater

knowledgeofwheretheyare,”hesays.“Anditgets

harder with the ultrahigh net worth.”—M.M.

JOSH

GULLY

Photograph byVINCENT TULLO

$3.5B

Total Assets

$30M

Typical Account

$50M

Typical

Net Worth

Wilson, NC No. 16

Edward Jones

Duringmorethan25yearsas a financial advisor

atEdwardJonesinWilson,N.C.,KimHoffman

hasadaptedtonewtechnologyandtheexpanding

needsofclientswithoutgivingupwhatshebelieves

setsthebestadvisorsapartfromtherest:theemo-

tional quotient.

Thismeansseekingtodeeplyunderstandclients’

concerns,passions,fears,andtheirfamilies.“It’sonly

thenthatwecanbaseouradviceontheirgoals,”says

Hoffman,whohasalmost700clientsandoversees

$426million.“Wehaveanumberoftoolsatour

disposal—software, questionnaires, etc.—but our

biggestassetsareoureyes,ears,andempathy.”

Lately,shehasbeenoncallforclientslooking

forarealitycheck,afterthecoronavirustriggered

aplungeinthestockmarket.“It’sunlikelymarket

anxietywillsubsidequickly,”Hoffmansays.“We

believeglobalGDPandcorporateearningsestimates

willneedtoberevisedlowerforthefirsthalfof

2020.Butwealsodoubtthiswillpermanentlyim-

pair the broader fundamental backdrop of economic

expansion and low interest rates, supporting the case

for the bull market to persist.”

Iftheoutlookchangesandtheeconomydoesslip

intoarecession,orcertainindustriessufferamajor

slowdown, she is prepared to make tactical changes

basedonaclient’sincomeneeds,risktolerance,and

timehorizon.“We’rebuy-and-hold,notbuy-and-for-

get,” she says.

Hoffman, 58, constructs portfolios with pas-

siveandactivemanagers.Sheemploysatailored

income-generating strategy—which could mean a

laddered bond portfolio, annuities, or a combination,

dependingonclientcircumstances—andsomecash

equivalents for emergencies.

Herclientsoftensignonwithherduringmajor

lifechanges,suchasretirementorreceivingan

inheritance.Sheviewsestateplanningasoneofher

biggest challenges, as it can raise sensitive issues.

“You may find some spending habits need adjust-

ments—if children are spendthrift, for example,”

Hoffmansays.“Ilookfordifferentwaystofind

solutions.”

HoffmanbelievesherstrongSouthernvalues,

whichprioritizerelationshipsandfamily,arewhat

drivehertobuildstrongtieswithhermultigenera-

tional family clients—and ultimately help her deliver

an effective, customized financial plan.—K.H.

KIM

HOFFMAN

Photograph byJILLIAN CLARK

$426M

Total Assets

$1M

Typical Account

$2M

Typical

Net Worth

AMERICA’S TOP 1200 FINANCIAL ADVISORS 2020