1. Different Entities, Different Needs
The McKnights had amassed a substantial amount of wealth working as a husband/wife team
in both the investment world and a family business. After the death of her husband, Mrs.
McKnight inherited control over four separate entities: the family business, a personal
investment portfolio domiciled in Europe, a Revocable Family Trust and an Irrevocable Trust
for her children. She had little contact with the manager of their personal portfolio, the
Revocable Trust was largely self-managed and the Irrevocable Trust had not been reviewed for
a number of years.
Key Issues
 Mrs. McKnight's income from the family business had declined substantially and she
needed to generate additional income from the three investment entities.
 She no longer wished to manage her investments personally and needed an Investment
Consultant.
 There was no strategic plan in place for the portfolios and no investment policy
statement for the overall group of investments.
 The risk characteristics of the portfolios were not in line with the client's objectives.
 Mrs. McKnight wished to replace the manager of the personal portfolio, a European
currency advisor, with a US advisor.
 There was no comprehensive monthly performance statement.
 The Irrevocable Trust was held at another financial institution and the client wished to
transfer it so that all accounts could be managed by the same entity with a consistent
approach and common objective.
Our Approach
We began with meetings to determine the exact nature of the portfolios, the client's needs and
the family's risk tolerances and then drafted a comprehensive Family Relationship Investment
Policy Statement. Initially, the client transferred a small portion of her personal portfolio to First
Santa Fe Advisors to improve diversification and develop experience with our advisory
services.
After First Santa Fe Advisors was retained as the client's advisor, our team built a multi-
portfolio investment strategy that would provide enhanced income and liquidity and improve
diversification across the family portfolio and the Family Trust. After the client accepted the

2. Family Relationship Investment Policy Statement, we implemented this new investment
strategy over the course of the following year.
The next step was to transfer the Irrevocable Trust to First National Bank of Santa Fe's Trust
Department. While the transfer was in process, our team built an investment blend for the
Irrevocable Trust that would adhere to the Trust's guidelines and conform to the Family
Relationship Investment Policy Statement.
The client receives a monthly report from First Santa Fe Advisors that outlines the performance
for each of the investments and the underlying managers. First National Bank of Santa Fe's
Trust Department acts as Co-Trustee of the Irrevocable Trust and works with the client and
with First Santa Fe Advisors to ensure adherence to the Trust's guidelines and to the Family
Relationship Investment Policy Statement.