1. 4 what we believe
11 how we invest
13 meet the professionals
The Chudom Hayes
Wealth Management
Group at Morgan Stanley
Smith Barney
2. The Drake Oakbrook Plaza
2211 York Road, Suite 100, Oakbrook, IL 60523
630-573-9680
T 800-445-6529 F 630-572-9030
kyle.chudom@mssb.com
eric.hayes@mssb.com
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3. Our Mission
The Chudom Hayes Wealth Management Group helps a select
group of families manage their financial assets so they can focus
on areas of their life that bring them joy, meaning and purpose.
we work with you to:
• Develop a comprehensive financial plan
• Diversify your portfolio across a broad range of investments
• Maintain strict objectivity and avoid conflicts of interest
• Adhere to a long-term strategic asset allocation
• Tactically adjust holdings in response to evolving opportunities and risk
• Minimize investment costs and taxes
• Defend capital during bear markets
• Substitute discipline for emotion in the investment process
morgan stanley smith barney | 2010 3
4. What We Believe
Managing wealth requires an appreciation for who you are and
where you want to go. So the Chudom Hayes Team begins by
listening to you, developing an understanding of you and your
family, exploring the forces that are influencing your financial life,
and then developing a plan.
Our approach allows us to design an investment strategy that
helps make you comfortable and sustains your confidence over
the long term. And when we know you well, we can advise on
decisions spanning your entire financial life.
4 morgan stanley smith barney | 2010
5. a focus on you cost efficiency
Your relationship with the Chu- Over time, expenses matter. One
*
dom Hayes Team will be driven way to help increase long-term re-
solely by your needs and goals. We turns is to decrease overall portfolio
can help you articulate and refine expenses. We can help minimize
your goals. We will work to analyze the expenses our clients incur by
and understand them. And we will emphasizing low-cost exchange-
develop and implement a plan to traded funds (ETFs) and deliver-
help you achieve them. ing our services as economically
as possible.
client service
intensive financial financial planning
the strength of a team planning
objective guidance
Our team is a big part of what makes
us unique. We are a carefully as-
Using our own process, and drawing
on our knowledge and experience,
* your relationship
with us
sembled team of individuals who we will help you better understand
are passionate about investments, your current situation and create
service excellence and our clients’ a powerful vision of your financial
success. Because we work as a team, future. Then we guide you in maxi-
you benefit from our collective ex- mizing the potential of your assets,
perience, as well as each individual’s protecting and empowering your
perspective and distinct skills. family, and help you to achieve or
exceed your personal goals.
objective guidance service excellence
To be truly effective, we must be When it comes to service we go
objective, offering unbiased financial above and beyond the basics. For
planning and investment advice example, a team member can visit
rather than simply selling products. your home to set up electronic ser-
Clients turn to us to help simplify vices on your computer. We can help
their financial lives by providing you integrate financial information
thoughtful guidance, wisdom and into popular tax software. And you
solutions—and by sorting through specify how often we meet with you
the financial products and strate- and the types of information you
gies to find what is best for them. want. Just say the word.
morgan stanley smith barney | 2010 5
6. will i outlive
my money
can i achieve financial
independence
what kind of legacy can
i leave for my family
should i redefine my retirement to
consider a new business or career
questions answered
7. No No
Unclear as to confidence plan Tax
investments inefficiencies
Scattered Uncertain
Unorganized investments risk tolerance
before
Clarification
Inventory of goals
assets
and liabilities
Recommend
during Implement
portfolio
appropriate
investment Development
strategies of a financial
plan
after
Clear vision Organized Confidence Understand Comprehensive Cost Construction
into financial investments financial plan conscious of tax-
future approach efficient
portfolios
the benefits of working
with the chudom hayes team
8. Recognition
Members of the Chudom Hayes Team have been repeatedly
recognized by leading industry publications and the Chicago press
for excellence in investment research and wealth management.
You can expect the same high levels of insight, experience and
service when you become a client.
2009 etf advisor hall of fame the top 1,000 advisors top 50 financial advisors
Research Magazine Barron's Chicago Magazine
October 2009 February 22, 2010 April 2008
8 morgan stanley smith barney | 2010
9. 2002 advisor hall of fame
Research Magazine
December 2002
team spirit
Research Magazine
July 2000
the winner's circle
Research Magazine
January 2006
terrific teacher
Registered Representative
May 1999
Please see back cover
for ranking criteria.
morgan stanley smith barney | 2010 9
10. the importance of discretionary asset management
All of our ETF accounts are managed by the team on a
discretionary basis. That means we make all investment
decisions regarding your account. By managing money
in a discretionary manner, we can respond quickly to
new opportunities and evolving risks without the delays
involved in seeking approval from each client.
the asset allocation concept
high We create a range of core portfolios
designed to deliver the highest level of
return for a given level of risk. This graph
shows examples of three hypothetical
portfolios, each expected to generate a
return
higher level of return than the one to its left
by assuming a higher level of risk. One of
our most important responsibilities: helping
you determine which risk/return balance is
the most appropriate starting point for you.
low risk high fixed income equity alternative
11. How We Invest
Guesswork should have no place in achieving your financial
goals. Analysis and planning, cost-effective execution and
constant monitoring and refinement—these are the tools
we use in designing your strategy, building your portfolio and
helping keep you on track.
asset allocation: the exchange-traded funds: helping you understand
strategic foundation effective and cost effective “what if?”
The Chudom Hayes Team focuses Exchange-traded funds (ETFs) are Markets don’t always perform as
our energy and investment manage- low-cost, tax-efficient investments expected. We analyze that pos-
ment efforts on asset allocation. that track the performance of specific sibility, and help you understand
We believe that your asset alloca- market indexes. Because many ETFs what it may mean to you. We run
tion—not which stocks or mutual mirror the performance of market a range of analyses that quantify
funds you own—will be the source indexes, we believe they are excel- the likelihood that your strategy
of the largest percentage of your lent tools for implementing asset will support your goals, measuring
returns. We are more likely to add allocations, which are calculated the mathematical probability of a
value by concentrating on asset al- by combining market indexes in range of possible outcomes, based
location and minimizing expenses different proportions. And ETFs on real-world possibilities.
and taxes than by attempting to also allow us to rapidly adjust your By showing you many potential
outperform indexes through active asset allocation when we believe that values that your asset allocation might
management of individual stocks or risks and opportunities require it. produce over a given time period,
bonds. Instead, we construct discre- Please see page 18 for additional you can decide if that probability is
tionary portfolios using exchange- information about ETFs. in your risk comfort zone—and we
traded funds because we believe can make adjustments, if needed.
they allow us to build a better-al-
located and more diverse portfolio
more efficiently.
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12. Too often, fear drives financial decisions,
becoming a major reason why financial plans
fail. With sound investment advice, we help our
clients get beyond the headlines and the noise
to focus on their goals and dreams.
kyle chudom
Senior Vice President, Wealth Advisor
Senior Portfolio Manager
We help each client answer a key question:
How do I make my financial situation support
my vision for my life? Helping clients find the
answer is the reason I chose this profession.
eric hayes
Vice President, Financial Advisor
Portfolio Manager
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13. Meet the Professionals
Kyle Chudom Eric Hayes
Senior Vice President Vice President
Wealth Advisor Financial Advisor
Senior Portfolio Manager Portfolio Manager
Kyle Chudom is the founding mem- the team over the years have become Eric is a Vice President, Financial
ber of the Chudom Hayes Wealth members of the Chudom Hayes Wealth Advisor and Portfolio Manager with
Management Group, and focuses on Management Group or entered the the Chudom Hayes Wealth Man-
client relationship management and financial services industry. agement Group at Morgan Stanley
investment policy decisions. He re- Kyle graduated from Alma Col- Smith Barney. Eric is a member of
cently celebrated his 26th anniversary lege in Michigan and has completed the firm's Century Club and is Series
with Morgan Stanley Smith Barney. advanced studies at the Wharton 6, 7, 9, 10, 24, 63, and 66 registered.
Since 1984, Kyle and the Chudom School at the University of Penn- The Chudom Hayes Team has
Hayes Wealth Management Group sylvania. Kyle and his wife, Kena, received national recognition.
have been nationally recognized reside in Hinsdale, Illinois, with their Research Magazine included Eric
for excellence by multiple publi- two daughters, Kacey and Khloe, and the Chudom Hayes Wealth
cations. Both Kyle and the Group along with the family dog, Karma. Management Group in their 2009
are members of the Morgan Stanley ETF Advisor Hall of Fame.
Smith Barney Chairman’s Club, which Awards and recognition Eric graduated from Southern
recognizes the top two percent of • Outstanding Financial Illinois University. He developed
financial advisors at the firm. Advisor Award, Registered his interest in the financial markets
Under Kyle’s leadership, the Representative Magazine, 1999. during his teenage years, mostly by
Chudom Hayes Team pioneered • Advisor Hall of Fame, Research watching the stocks of telephone
the retirement planning software Magazine, 2002 companies for which his father
that has become the standard across • ETF Advisor Hall of Fame, worked. Eric remembers reading
Morgan Stanley Smith Barney. Research Magazine, 2009 the phone company annual reports
Having benefited from mentoring • Top 50 Financial Advisors, his dad would bring home from
early in his career, Kyle has initi- Chicago Magazine, 2008 the office.
ated a program for mentoring young • Top 1,000 Advisor, Barron’s, 2010 In his spare time Eric enjoys pilot-
professionals at the Chudom Hayes • Current member of ing airplanes, family time and read-
Team, and the team regularly mentors Morgan Stanley Smith Barney ing. Eric started flying lessons at the
interns. Several of the high school Chairman’s Club age of sixteen, receiving his pilots’
and college students mentored by license shortly after graduating from
high school and leaving for college.
Eric and his wife, Jennifer, have
a daughter named Emma.
morgan stanley smith barney | 2010 13
14. At the Chudom Hayes Wealth Management Group, our team
makes a commitment to achieving your most important financial
goals—approaching them with the same energy and urgency
that you do. We support that commitment not only with
knowledge and experience, but also with the principles and
values that we would demand from our own closest advisors
and allies. To learn more about our approach and how it may
contribute to your success, please contact us.
Kyle Chudom
630-573-9680
kyle.chudom@mssb.com
Eric Hayes
630-573-9675
eric.hayes@mssb.com
14 morgan stanley smith barney | 2010
15. why we work with morgan stanley smith barney
We have chosen to work with Morgan Stanley
Smith Barney because they help us be more
effective in reaching your goals.
for example:
• Through Morgan Stanley Smith Barney, we can complement our own
research with in-depth reports and firsthand analyses of economies and
financial markets around the world.
• Morgan Stanley Smith Barney delivers excellent ETF research. Its
Exchange-Traded Funds Research Team was recognized for its leading
position in ETF Research at the 2010 Capital Link Closed-End Fund and
Global ETF Forum.
• Through the firm’s open architecture platform, we have access to
thousands of investment choices—including hundreds of ETFs.
• Morgan Stanley Smith Barney’s discretionary fee-based account program,
Custom Portfolio, allows us to closely monitor your portfolio, manage risk
and make strategic and tactical asset allocation changes quickly when they
are needed.
