Team Name: TSG Wealth Management
Firm: Wells Fargo
WFC
Senior Members: Mark Schulten, Allen Schreiber, John Szymura, Lori Zorn, Merlin Micken
Location: Long Beach, CA
Team Custodied Assets: $3.1 billion
Forbes Rankings: Top Wealth Management Teams High Net Worth, Best-In-State Wealth Management Teams
Background: Mark Schulten started as an advisor at Paine Webber in the late 1980s, eventually teaming up with his father in 1992 at Shearson Lehman Brothers, which later became Citi Smith Barney. As the two grew the business together, they were joined by Allen Schreiber in the late 90’s, who had started at Paine Webber as a cold caller. In 2009, following the financial crisis, the team moved to Wells Fargo for ten years before switching to the firm’s independent channel. “The dream was to have a business small enough to be high-touch like a boutique, but at the same time offer the services and resources of a big institution like Wells Fargo,” says Schulten. The team not only specializes in working with high net worth families but it has also created a platform for advisors who want to be independent but don’t necessarily want to go through the arduous set up process themselves. A big chunk of TSG’s business comes from small fees from affiliate advisors who partner with TSG but are still able to own their own practices and keep working with clients. With 55 advisors and 45 support staff, TSG now has 16 offices across several states. Though they are supported by Wells Fargo, virtually all of the branding is TSG and affiliated advisors.
Competitive Edge: On the client experience side, the team’s competitive edge is their ability to offer a financial concierge approach, handling everything from investments and lending to tax and estate planning. “The ability to be a true one stop shop for the families we work with allows them to come to us and have their financial lives simplified,” says Schreiber. “It’s key to have advisors focused on facetime with clients—having multiple touch points is crucial.” On the advisor side of the business, Schulten emphasizes the competitive edge of being able to offer independence without the stress. “We offer the ability for them to consider independence but without all the headaches that traditionally come with that,” says Schulten. “We take everything an independent practice owner has to deal with off their shoulders so they can focus on clients.”
Investment Philosophy/Strategy: The team’s core philosophy is cash flow oriented, with the two partners arguing that cash management is now more important than ever for clients because they are finally being compensated with returns. “We like dividends and consistent cash generators, but more importantly, growing dividends, which are an indication of strong earnings and great financial health,” says Schreiber. Fixed income had been challenging, meanwhile, but has now become a much larger part of client portfolios as rates have risen, describe the two partners. For the most part, portfolio bond holdings are still fairly short in duration: “We’re keeping quality very high because we haven’t been convinced that the end of the bear market in bonds is over,” says Schulten.
Investment Outlook: Over the long term, both partners are believers in markets, pointing out that well positioned quality portfolios will always be able to ride out the storm. “There’s a lot of uncertainty in markets and the world today,” says Schreiber, though he still expects the market to be fairly positive going into the end of the year. “There is a lot of money on the sidelines—now people are getting some bang for their buck—but that will add firepower as many uncertainties gradually get eliminated.” When it comes to the Federal Reserve, the team anticipates that markets are near the end of the rate hiking cycle, especially as some pressure in wages and inflation subsides. “I think the Fed has done the lion’s share of its changes to monetary policy,” says Schulten. “While it may take longer for the Fed to start cutting rates, most of the current we’ve been swimming against has subsided.”
Best Advice: “The most frequent advice we give to families is to diversify but always keep powder dry on the sidelines to take advantage of opportunities—and we’re starting to see more of those in this market,” says Schreiber. He advises looking for opportunities that not only have a compelling story but also consistent and rising cash flow.
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