GREENLEAF TRUST
YEAR IN REVIEW
Greenleaf Trust is a comprehensive wealth management firm with specialized disciplines in goals-based wealth management, trust administration and retirement plan services. As a privately held and managed trust-only bank (one of Michigan’s first), our independence frees us from conflicts of interest and ensures that our clients’ well-being is at the center of everything we do. Client-aligned and talent-driven, we adhere to the highest standards of fiduciary excellence, while providing personalized service and customized solutions.
2
CHAIRMAN’S LETTER
William D. Johnston CHAIRMAN
It is again my pleasure to present our Annual Report to you on behalf of our Board of Directors and the entire team of Greenleaf Trust associates. I am very pleased to share that 2014 was the 16th consecutive year that we increased our revenue by 20%. Whenever I am asked about our history of consistent annual growth, excellent client retention, significant growth in new client relationships and extremely low employee turnover, I feel very confident that the answer lies with our team, who executes a great business culture within a great workplace culture. In the body of this report you will learn from other leaders in our company of the awards and recognitions achieved by Greenleaf Trust. The awards and recognitions are wonderful, but are really just a reflection of the service our team passionately dedicates to the clients we serve.
3
Our company’s commitment to the core pillars of our business culture remains as steadfast as ever. We know that our pledge to be totally free from conflicts of interest places us by our client’s side and in their corner always. Our team-delivered service model provides the opportunity for the collective wisdom and experience of that team to solve problems and deliver results for those who employ us. Today’s efforts and tools will not meet the demands of the future and so we resolve to be better whenever and wherever we can. This spirit of continuous improvement produces tangible results, efficiencies and security enhancements for our clients. Every year we structure our budgeting process to meet the needs of our continuous improvement process. Trust is in our name and it is what we do. Our clients depend upon it and we are driven to deliver on that promise. Ninety-four percent of our revenue is derived from serving as trustee for individuals, corporations, endowments, non-profits and foundations. Being a regulated bank, chartered in the state of Michigan, requires that we meet our regulatory requirements and practice fiduciary standards of management at the highest level possible. Our total bank capital now exceeds $40 million and stands $27 million in excess of our required capital representing an increase of 145% over 2013. Our consistent growth in revenue, strong balance sheet, increase in excess capital as well as profit and cash flow demonstrate solid fiscal management and discipline by our entire team, allowing for additional resources to invest in people, facilities and technology. The team that serves your wealth management and fiduciary needs now numbers 91 and reflects additions in all divisions of
4
our company. We are truly excited with the talent that we have been able to recruit and select to serve our clients. Their collective talent profiles, experience and educational backgrounds amplify our ability to add value for those we serve in many ways. It is my pleasure to welcome Kay Palan, Ph.D., to our Board of Directors. Dr. Palan serves as the Dean of the Haworth College of Business at Western Michigan University. Director Barbara James chaired the nominating committee of the board and was joined by Vice Chair Ronda Stryker and Director David Thoms in the search for a new board member. Greenleaf Trust is very pleased with their process and their nomination. Dr. Palan began her board term at our February meeting and we are eager for her contributions, guidance and wisdom. Michael Odar begins his third year as the President of Greenleaf Trust and has a wonderful executive leadership team to lead our respective divisions. Their leadership resulted in significant accomplishments in 2014 and their goals for 2015 are both challenging and exciting. Our business culture is very strong and our workplace culture second to none. The opportunities before us are fabulous and we are eager for the privilege to continue to earn the trust of our current and future clients. We offer sincere thanks for the opportunity to serve you and promise that we will remain disciplined in our efforts to provide you world-class service.
5
PRESIDENT’S LETTER
Michael F. Odar PRESIDENT
As you will read throughout this report, 2014 was an exciting and successful year for Greenleaf Trust and our clients. And what makes it even more meaningful to everyone in the company is that it was all part of our plan. Our annual Executive Leadership Team Advance was held in the fall of 2013. There we established what we wanted to accomplish in 2014 as part of our longer-term strategy. We set out to create more focused time for our talented team to spend with, and for, our clients. This was an acknowledgment that we wanted to do more for our clients and that by improving efficiency, we could. To help us achieve our goal, we chose five initiatives for 2014: innovation, communication, benchmarking, talent development and business development. Using key performance indicators and their data measurement and goal-setting components, we drove our initiatives throughout the company, focusing accountability and answering critical questions about our business. How many hours were we actually saving from process improvements? How many retirement plan participant education meetings were held? What was our client retention ratio? Were we exceeding our Client Service Standards? Determining the answers to these questions helped us to accomplish our five initiatives, resulting in a positive impact for our company as well as our clients.
6
7
INNOVATION This is the critical next step to creating more value-added time with, and for, our clients. It means transformation of workflow and more sophistication, automation and operational excellence. During 2014, we added efficiencies to our organizational review of portfolios and trust documents, and also enhanced our fiduciary excellence standards with the implementation of Automated Account Reviewer. COMMUNICATION At its core, communication is a prerequisite to serving more collaboratively. Communication, teamwork and the effective exchange of ideas are vital components of world-class service. Our solutions to address the growing needs and sophistication of our clients included further development of our Family and Foundation Services Division and our hedge fund offering. BENCHMARKING Being the best at what you do starts with understanding yourself and then benchmarking yourself against the best. We conducted our first corporate Enterprise Risk Assessment in 2014. Modeled after best practices in our industry,
8
this assessment allows us to manage and mitigate risks to our company and clients. TALENT DEVELOPMENT In order to be the best for our clients, we must continuously engage and inspire our teammates by creating opportunities that align with their strengths and challenge them to do more. Last year, our teammates earned multiple accreditations and engaged in over 1,323 hours of outside training. BUSINESS DEVELOPMENT By striving to be top of mind with our clients, we generate more business development opportunities, leading to the continued expansion of the breadth and depth of our services. Our Retirement Plan Division achieved record new business growth in 2014. We will continue to use the same planning process in 2015, with a focus on the following strategic initiatives: culture, stewardship, innovation and purposeful growth.
9
C L I E N T C ENTR IC TEA M
Daniel J. Rinzema, CFA®, CFP® CHIEF CLIENT OFFICER
The client centric team’s daily mission is to provide remarkable service through holistic wealth management, advanced financial planning and expert trust administration. We pursue this by focusing first and foremost on the needs of our clients. We then leverage the collective wisdom of the team to provide highly personalized service and conflict-free, customized solutions. The year 2014 was both gratifying and humbling in this regard as the team achieved 99% client retention while creating a positive impact in the areas of client care, fiduciary excellence and purposeful growth. CLIENT CARE Every tangible improvement we have made on behalf of our clients stems from a disciplined review of our practices. As we look for opportunities to serve our clients better, we begin by listening to those who matter most—our clients. Simply put, when our clients speak, we listen. It was in this spirit that we redesigned the 2014 year-end client satisfaction survey to better gauge our collective efforts from the clients’ perspectives. The changes were designed to improve survey participation, more closely align our daily impact with the voice of our clients, and better understand how our clients feel about Greenleaf Trust’s service and solutions. As a result, participation was up 60% this year.
10
11
The following is a summary of what our clients had to say. 2014 CLIENT SATISFACTION SURVEY RESULTS: PERSONAL TRUST & WEALTH MANAGEMENT 99.6% find our team members to be easily accessible 99% feel their questions and concerns are answered in a prompt and satisfactory manner 96% are satisfied with the frequency of contact 96% feel as though they are treated as a very important client 97% believe we listen to and understand their goals and objectives 97.5% believe their accounts are tailored to meet their financial goals and objectives 97% believe we’re successful in meeting their investment needs 96% say they would refer an individual to us Satisfaction scores with our account statements, performance reports and newsletters uniformly exceeded 94%. While we are pleased with the generally high marks received, we recognize there is always room for improvement. In order to enhance the value of our relationship with our clients, and to achieve our standing goal of 100% client satisfaction on all fronts, we are focusing on the specific suggestions and comments received. Our team has already implemented several of the suggestions including a consolidated statement option that reduces the number of envelopes clients with multiple accounts receive each month.
12
FIDUCIARY EXCELLENCE During 2014, we put a number of internal innovations into practice. Each was identified, designed and implemented to ensure that our role as fiduciary was executed at the highest levels, and to allow our team members more time with, and for, our clients. Some of the highlights include: the establishment of an Estate Administration Council and Institutional Client Council; implementation of the “Wow!” initiative to reinforce client loyalty; specialization within roles; increased automation of daily workflows; broader use of technology; updated client service standards; refinement of key performance indicators; and the adoption of several new practices geared towards fiduciary excellence as it pertains to estate settlement, nontraditional assets, compliance and irrevocable life insurance trusts, to name a few. PURPOSEFUL GROWTH For clients of Greenleaf Trust, financial security is measured in generations. Founded in Michigan as a private, trust-only bank, we’re chartered to remain independent in perpetuity. It is with this time frame in mind that we strengthened our commitment and presence in both Northern Michigan and Southeast Michigan during the year. During 2014, Trust Relationship Officer Lauree VanderVeen relocated to Traverse City in order to better serve our Northern Michigan client base, and we also doubled the space occupied in our Birmingham office to accommodate growth. In addition to growing a loyal client base, our culture remains focused on professional development. We take great pride in recognizing personal growth, growth in role and impact in role within our mission of remarkable client service. During the year, several team members graduated from the American Bankers Association Trust Schools, pursued the Certified Financial Planner™ designation, and participated on panel discussions as industry experts. Wealth Management Advisors Paul Jude and Allison Birmingham earned the Certified Wealth Strategist® designation, a highly esteemed credential reflective of comprehensive wealth management expertise. As always, we are committed to earning our clients’ trust anew each and every day. Our team has only one priority—providing each client with remarkable service through personalized wealth management and trust administration. We remain honored and humbled by our clients’ continued trust and confidence.
13
RETIREMENT PLAN DIVISION
Chris A. Middleton EXECUTIVE VICE PRESIDENT AND DIRECTOR OF RETIREMENT PLAN DIVISION
As I shared last year, we have been marching toward a goal of $1 billion in Retirement Plan Division assets by the end of 2017. We made great progress toward that goal in 2014, and started 2015 with just over $800 million in assets. This type of progress was feasible because of a strong and dedicated team focusing on our key fundamental areas, which are: client and employee satisfaction, product excellence, profitable business development and audit excellence. CLIENT SATISFACTION Retirement plan services is purposeful work—there is nothing mediocre about helping employees have a chance to retire with dignity. We formally monitor our clients’ sentiments through our annual client satisfaction surveys. The 2014 survey had a 41% response rate and was overwhelmingly positive, indicating improvements in all categories. Aggregated remarks showed approval ratings of 93%–97%. We were thankful for the positive comments, but especially appreciated the critical feedback we received reminding us that we have plenty of work left to do. EMPLOYEE SATISFACTION As service professionals, it is imperative that our attitudes remain positive and accommodating. We are proud to do impactful and purposeful work for our clients, and that is a key driver of employee satisfaction. Conducting annual surveys allows us to monitor our team’s engagement and satisfaction.
14
15
PRODUCT EXCELLENCE Great progress is rarely made in one broad-sweeping change, but rather in numerous incremental adjustments. In addition to this fine-tuning, we are revamping the retirement plan website, including improvements in the site’s look and feel as well as simplified navigation. We have also begun adding forecasting tools that enable participants to monitor their progress toward retirement readiness. Additional website enhancements remain underway for 2015. PROFITABLE BUSINESS DEVELOPMENT Successful business development is a cornerstone of our success. Our product offering and service model have proven to be compelling for prospective clients, enabling us to bring in a near record level of new plan assets. We ended 2014 with new accounts totaling $70 million in assets.
16
AUDIT EXCELLENCE Our clients deserve the peace of mind that comes with knowing that the financial transactions of their plans are cross-checked and monitored for accuracy. Beyond all mandatory audits, Greenleaf Trust employs independent auditors to test our controls of retirement plan transactions. As expected, Greenleaf Trust received a “clean� audit report indicating that clients can trust that plan assets are in good hands. Overall, 2014 was a fantastic year of progress for the Retirement Plan Division. Our development of key performance indicators enhances our consistent improvement in the performance of daily responsibilities, and ensures that our focus supports the achievement of our longer-term goals. Thanks to the best teammates, our great clients, and our future clients, I have no doubt 2015 will be another stellar year for the Retirement Plan Division.
17
18
RESEARCH
James W. Gray, CFA® CHIEF INVESTMENT OFFICER
Suppressed growth, deflation and divergence were the key themes as we look back at the global economic and market landscape for 2014. As the year unfolded, we witnessed U.S. economic growth outpacing many of the major global economies. By the time we entered the second half, it was apparent that both Europe and Japan were experiencing very different economic trajectories as compared to the U.S. This led to the greatest level of central bank policy divergence since the crisis of 2008–2009. The U.S. Federal Reserve terminated quantitative easing while it became clear to the European Central Bank that a more accommodative policy was required. The fear of deflation throughout much of the world’s developed economies solidified the point that divergent policies were not only likely but also required. As this realization materialized, the U.S. dollar began to strengthen, spiking nearly 14% in the back half of the year. At the same time oil began a precipitous decline, falling nearly 50% due to a significant supply increase caused by the advent of hydraulic fracturing (fracking) in U.S. shale and the impact of the strengthening dollar. As a result of these developments, oil producing nations like Russia experienced a shock to their economy and their currency.
19
DOMESTIC EQUITIES After a massive run of over 32% in 2013, many commentators were pessimistic on the 2014 market outlook. However, the S&P 500 delivered a strong 13.7% return for the year, outpacing mid- and small-cap stocks, which returned 9.7% and 5.7%, respectively. As the economic points discussed above unfolded in the back half of the year, market volatility increased with a 7.5% decline in the mid-September to mid-October period, followed by a 12% rally in the closing weeks of the year. While equities experienced a continuation of their six-year run, they continue to reflect a much stronger risk/return profile as compared to fixed income. As we discussed in our year-end seminar, equity valuations, while far from inexpensive, ended the year at fair levels. Many ask whether equities can continue to climb higher in the face of a Federal Reserve tightening. History would suggest that equities perform fairly well in rising rate environments when the starting level of rates is low, as they are abnormally so now. INTERNATIONAL EQUITIES The divergence theme continued with the returns of both developed and emerging markets. Developed international markets (MSCI EAFE index) declined 4.9% while emerging international markets declined 2.2% for the year, representing underperformance of 19% and 16%, respectively, as compared to the S&P 500. It’s important to remember that the nature of diversification is that your portfolio will always contain something you do not like. International markets often zig when the U.S. zags. But it’s important to stay disciplined with maintaining your target asset allocation and balanced exposure across the asset classes in accordance with your long-term financial goals. Our job is to make sure you do just that. We’ll certainly see more periods in the future when international equity markets outperform U.S. markets. We remain constructive on emerging markets over the long term given their faster growing populations and wealth, but they face significant near-term challenges that are not likely to be clearly resolved in 2015.
20
Asset Class Performance (Year to date 2014)
35.5%
40%
25.4%
30% 14.2%
10%
10.9%
6.1%
0%
5.2%
6.6%
3.9%
4.9%
6.0%
2.4%
-0.4%
-10% -20%
Fixed Income
Global Real Estate
Managed Futures
High Yield
Intermediate Credit
Intermediate Gov./Credit
US Aggregate
Emerging Markets
Developed International
US Small Cap
US Mid Cap
US Large Cap
Equities
Merger Arbitrage
-20.0%
-30%
Commodities
20%
Alternatives
Source: Factset, Bloomberg. Asset classes are represented by US Large Cap: S&P 500; US Mid Cap: S&P 400; US Small Cap: S&P 600; Developed International: MSCI EAFE; Emerging Markets: MSCI EM: US Aggregate: Barclays US Aggregate; Intermediate Gov./Credit: Barclays Intermediate Government/Credit; Intermediate Credit: Barclays Intermediate Credit; Long Treasuries: Barclays 20+ Year Treasury; Commodities: Dow Jones UBS Commodity Total Return ETN; Merger Arbitrage: IQ Merger Arbitrage; Managed Futures: ASG Managed Futures Fund; Global Real Estate: Dow Jones Global REIT.
1
21
FIXED INCOME For many of the same reasons that led to the underperformance of the international markets, interest rates experienced a steady and meaningful decline throughout the entire 2014 period. The ten-year Treasury rate began the year at 3.0% and ended the year at 2.19%, a decline of 27%. This movement came as a result of the strength of the U.S. economy, which led safety-seeking investors out of the relatively more risky and uncertain European and Asian sovereigns and into dollar-denominated debt. A year ago, we highlighted our view that fixed income markets would remain quite challenging, though like most investors, we didn’t see rates going down. We do not see a reason to change that view now. Looking into 2015, the U.S. Federal Reserve is signaling an increase in rates later in the year. The point of “not if but when” for higher rates leads us to continue to manage fixed income portfolios with short durations to protect against a spike in rates. While we continue to expect fixed income returns to be diminished relative to the last several decades, we still believe in their place in client portfolios to provide correlation benefits relative to equities. DISCIPLINED INVESTMENT RESEARCH—PROCESS AND TALENT
22
Throughout 2014 we continued to focus on raising the bar on our rigor and processes. Looking back, we experienced the fruits of the strong new talent within our fixed income team. We congratulate Dan Haines on earning his Chartered Financial
AnalystŽ designation and Chris Burns on successfully completing CFAŽ Program Level II. We are proud of our team and continue to leverage expertise across the research and wealth management teams. At the end of 2014, we announced three promotions that represent a strong level of talent and engagement. Nick Juhle was promoted to vice president, assistant director of the Wealth Management Division. In his new role, Nick will lead our team of wealth management advisors while also driving a strong connection point between the research and wealth management teams. Josh Wheeler was promoted to vice president, assistant director of research, equities. He will lead our equity research effort ensuring continued rigor and diligence in our dedication to selecting positions within our core equity focus list. Mike Storms was promoted to senior research analyst. This new title is representative of the expertise Mike has developed as an investor, as evidenced by outstanding performance in stock selection. We look forward to further leveraging their skills for the benefit of our clients. We are very proud of the level of diligence in our research process as well as the strong level of holistic planning that our wealth management advisors deliver on behalf of our clients. The individuals that comprise this strong team are honored to have earned the responsibility of managing our clients’ wealth, each and every day.
23
O P E R AT I O N S
Thomas L. Drews CHIEF OPERATING OFFICER
The operations team takes pride in being leaders of change and innovation throughout our organization. During 2014, we implemented improvements in several areas, including remote office check printing, automated fixed income trading capabilities, outsourced tax printing and mailing, and enhanced systems automation. Each of these initiatives was accomplished with one thing in mind: client service. I am very pleased to announce that Peggy Anderson has been promoted to vice president, assistant director of operations. Peggy has over 20 years of experience in the financial services industry and has been a team leader in Operations at Greenleaf Trust for the past three years. I am confident that Peggy’s leadership will continue to move us toward worldclass status in Operations. Mary Schiffhauer has been promoted to senior operations technician, joining Julie Howes as our second senior technician on the team. We continue to mature and gain valuable experience in the areas of securities, cash and tax processing and everyone contributes a great deal of energy and enthusiasm to our office. I am proud of our team’s accomplishments. The improvement goals we have identified for 2015 include reducing our paperwork redundancies, automating our bill paying capabilities, and streamlining our document preparation and account opening processes. We will continue to work closely with our vendors to improve system functionality and flexibility to better serve our clients. I am excited to see the improvements that will drive process efficiencies and ultimately provide enhanced client support.
24
It is our pleasure to serve you each and every day. We look forward to another year of innovation and growth during 2015.
25
26
HUMAN RESOURCES
Karen A. Baldwin VICE PRESIDENT AND DIRECTOR OF HUMAN RESOURCES
As we begin our 18th year in business, we continue to value and appreciate those that help make this possible each and every day—our clients and our team. We work hard behind the scenes to ensure our team members are engaged, learning, growing and putting their talents to work for you. We filled ten open positions in 2014, eight of which were new members to the Greenleaf Trust team: Christopher Burns—Fixed Income Associate Gabrielle Contesti—Participant Services Coordinator Kitty Fazzini—Operations Technician Ean Hamilton—Trust Relationship Officer Christine Hansen—Controller Anne Johnston—Marketing & Business Development Specialist Thomas Meyers—Trust Relationship Officer Steven Phillips—Wealth Management Associate Katherine Szymanski—Team Service Coordinator Chris Tarkowski—Trust Relationship Officer As Greenleaf Trust continues to grow and require more specialized knowledge, opportunities for individual growth in many areas have presented themselves to our team members. Employees have the option to work towards leading others, or to become technical specialists in their division. Through HUMANeX, our partner in talent selection and training, we were able to offer over 1,300 hours of training that focused on personal
27
development and culture. This was twice as many hours of training as provided the previous year. During 2014, the following designations and certifications were received: Allison Birmingham—Certified Wealth Strategist® Kim Dudley—Certified Human Resources Specialist Dan Haines—Chartered Financial Analyst® Faith Heikkila—Associate Business Continuity Professional Paul Jude—Certified Wealth Strategist® Oliver Krings—Associate Business Continuity Professional Tom Meyers—Certified Trust and Financial Advisor To ensure that we’re able to attract the best talent, we have benchmarked our employee value proposition to that of other top talent-based companies in West Michigan. This year, we were fortunate to enjoy 86% employee engagement based on external surveys, and a 94% retention rate.
28
Greenleaf Trust was recognized with the following awards during 2014: •
101 Best and Brightest Companies to Work For™ – National 2014 Winner – West Michigan 2014 Elite Winner of Employee Achievement and Recognition – Metro Detroit 2014 Winner
•
Crain’s 2014 Cool Places to Work in Michigan –
First place for medium-sized companies (50–249 employees)
Receiving these awards has created opportunities for our team to make presentations, as subject matter experts, on talent, on-boarding and retention techniques. These special events have drawn recognition to Greenleaf Trust as an employer of choice. These are exciting times for Greenleaf Trust and our clients. With each new addition to the team, great care is taken to ensure a good match for our company, division, team, position, and especially for our clients. We appreciate our clients and we are honored to continue to serve you.
29
30
MARKETING
Sarah A. Johansson VICE PRESIDENT AND DIRECTOR OF MARKETING
Daniel L. Baker VICE PRESIDENT, DIRECTOR OF BUSINESS DEVELOPMENT AND TRUST RELATIONSHIP OFFICER
Mention the term “marketing” and outreach often comes to mind. As in, how companies continually reach out in search of new clients and opportunities. While that’s critically important, marketing has an inward-looking side, too; one that rightly focuses on the valued people who have already given us the privilege of working on their behalf. So in 2014, the marketing team at Greenleaf Trust devoted our energies to nurturing relationships with you, our valued clients, and on improving our communications. Those worthy objectives were the impetus for the more than 72 articles we penned for our newsletter, Perspectives. Monthly topics encompassed everything from trust options and year-end tax planning to our chairman’s economic commentary.
31
t r u e s t o ry
t r u e s t o ry
From tool and die to retool and thrive. Enough is enough, concluded the CFO of the tool and die company; the fees being charged by its bank had increased one too many times. The account was moved to a smaller bank that provided relief in all but one important area: it had no trust department to manage the company’s 401(k) retirement fund. Wisely, the CFO appointed an internal team to assess six retirement plan service providers in terms of customer service, fees, methodology, transition planning, employee education, technology, portfolio composition, investment management, independence, references, conflicts of interest, likability, etc. With over 200 employees and a nearly $20,000,000 plan, the company had good reason (not to mention its legal, fiduciary obligation) to carefully weigh its options.
The CFO’s heart was in the right place, As in all competitions, a winner emerged. Greenleaf Trust’s winning edge may have been the clear and thorough detail how we invest and manage a plan’s assets, identifying the specific mutual funds we select and why. Or perhaps it which told herabout the company’s 401(k) plan was and not. was our continuous assessment of each fund’s performance and suitability, our transparency about fees. Or maybe it
we minimize the inconvenience durationbore of a aplan’s transition, and take on responsibility for modifications In her capacity as CFO for one ofwas thehow region’s leading manufacturers, theand executive weighty responsibility: Or that we meet401(k) regularly with spouses) to educate to continue providing decent jobs,and andmandated to ensurefilings. that her company’s plan wasemployees properly(and managed. It was the them on the necessity and benefit of setting forhad retirement. Chances are, itbank was all ofwas those thingstoward and more. latter point that worried her. For years, the aside plan money provider been a large, regional that biased its own proprietary funds. None were top performers in their sector, and the overall fund selection was equal parts Every company has its own story to tell, of course, but with Greenleaf Trust as the plan provider some things never old/laggard and new/unproven. Believing her employees deserved better, and mindful of her own legal fiduciary change: employee participation improves, contributions go up, asset values increase and smiles reappear. Everyone, it responsibility, the CFO asked a local banker for a recommendation. “We use Greenleaf Trust,” came the reply. seems, likes a happy ending. Call Matt Siel at 800.416.4555 and let’s get started on yours. At the introductory meeting, the retirement plan services team from Greenleaf Trust made a favorable impression. There was clarity and due diligence on how funds are researched, chosen and continuously measured against a stringent performance requirement. There was transparency on fees. There was a simple, step-by-step plan to expedite a seamless and timely transition from the company’s current provider. And there was a proactive, hands-on approach to meeting with employees individually and collectively in order to help them make smarter decisions about their eventual retirement. It was pretty much everything the current provider was failing to provide, and Greenleaf Trust was awarded the business. Employee participation is now higher, contributions have increased, asset values are healthier, and the CFO thanks the day she met us. Financial Security from Generation to Generation Not every plan conversion is such an eye-opener. But with Greenleaf Trust’s fiduciary excellence, open architecture, best-in-class investment platform, and nearly perfect client satisfaction scores, your employees will clearly see things in a better light—starting with you. Let’s talk: Call Matt Siel at 800.416.4555.
3 4 9 7 7 wo o d wa r d av e n u e , b i r m i n g h a m , m i 4 8 0 0 9 g r e e n l e a f t r u s t. c o m 2 4 8 . 5 3 0 . 6 2 0 2 8 7 7. 5 3 0 . 0 5 5 5
3 4 9 7 7 w o o d wa r d av e n u e b i r m i n g h a m , m i 4 8 0 0 9
g r e e n l e a f t r u s t. c o m
800.416.4555
Greenleaf Trust is a comprehensive wealth management firm with specialized disciplines in goals-based wealth management, personal trust administration and retirement plan services. In a straightforward and uniquely personal manner, we plan wisely for your financial security from generation to generation.
3 4 9 7 7 w o o d wa r d av e n u e b i r m i n g h a m , m i 4 8 0 0 9
g r e e n l e a f t r u s t. c o m
The great outdoors of Michigan, by way of a beautiful indoor setting.
32
800.416.4555
2015 Calendar
Improving our communication with you also drove the development of: • Our True Stories series, where clients provide insight into their reasons for selecting and continuing to work with Greenleaf Trust. • A brochure for the Retirement Plan Division. • The annual calendar, with artwork created by the enthusiastic students at Lakeside Academy. • An enhanced retirement plan login portal at Greenleaftrust.com. • Brochure, ads and supporting collateral materials for our Family and Foundation Services Division. In terms of personal, face-to-face opportunities, we hosted 35 events in Kalamazoo, Bay Harbor, Birmingham, Bloomfield Hills, Holland, Traverse City and Petoskey. These ranged from seminars on generational philanthropy as a family value to hands-on cooking classes, and from wing-shooting schools to musical performances during the Gilmore Keyboard Festival and Kalamazoo Symphony Orchestra seasons. We look forward to seeing you at these events in 2015. While we will maintain our focus on valued clients throughout 2015, the growth and management of additional assets will always be important to the strength of our organization. We are most appreciative of our clients who continue to refer their friends and family to us in all of the markets we serve. Thank you for giving us the opportunity to serve you, and to hear your constructive suggestions as to how we can improve our communications. Many of your comments are already being put into practice. We look forward to serving you in even more meaningful ways in 2015 and thereafter.
33
34
FAMILY AND FOUNDATION SERVICES DIVISION
Karen A. Bouche EXECUTIVE VICE PRESIDENT AND FAMILY OFFICE ADVISOR
The year 2014 marked our second year of providing specialized service to our Family and Foundation Services Division clients. It was a year of refining processes and building efficiencies for our clients as well as positioning our team for growth in this segment of the market. Our dedicated team of family office advisors and assistants focuses on a select number of high net worth clients and their specialized needs, enabling us to build deeper relationships with our clients and their families. Greenleaf Trust’s family office team works in tandem with the family’s wealth management advisors, attorneys, tax advisors, employees, service providers and vendors to ensure the smooth coordination of services. We are the solution for those that value holistic wealth management, trust administration, philanthropic planning and personal family office services. The streamlining of our private foundation administration process was a key accomplishment in 2014. The workflow now includes the use of an online grant application tool for administering the grant process. This tool not only saves time and paper, it processes requests and payments more efficiently while reducing inefficiencies for the charities and the private foundation board/grant committee. This enables the team to spend more time working with foundation members to ensure that their questions are addressed and that we are working with causes that are important to them.
35
36
Throughout 2014, we worked with organizations such as the Council of Michigan Foundations and the Family Office Exchange to ensure that we are benchmarking our services and network of providers with those that are the best in the industry. The connections we have made and the resulting access to the knowledge of various experts we have gained, have all proven beneficial for our clients. We laid a solid foundation in 2014 and we will continue to build upon it and grow, bringing in new team members and talent in anticipation of additional Family and Foundation Services Division clients. We are off to a great start and look forward to reporting to you on the growth in this division a year from now.
37
FINANCE
Michael J. Ruchti CHIEF FINANCIAL OFFICER
At the end of my first year of employment with Greenleaf Trust, I am even more amazed with my talented colleagues than when I arrived in December of 2013. This company and its team members embody every detail of the core values our Chairman, Bill Johnston, put into place when he founded Greenleaf Trust nearly 17 years ago. This commitment is evident in our financial performance. One of the most important elements of my job is to guide our company’s profitability. By remaining financially sound we will be able to deliver on our promise to be here for you and your family from generation to generation. In 2014, we delivered a profit to the bottom line, which will allow us to continue to do more for our clients. The keys to maintaining our profitability are rooted in providing remarkable service. My team and I are tasked with implementing tools that improve efficiencies in the day-to-day activities of our organization, thus creating better opportunities to serve you. By benchmarking with our peers in 2014, we identified several tools for improving efficiency. Two examples of this are Expensify and division variance reports. Expensify is an online tool that allows our team members to report expenses directly from their smartphones. Eliminating the need to maintain hard copies of receipts saves time for all involved. Our division variance reports provide division leaders with actual versus budgeted spend detail on a monthly basis. These reports help our division leaders measure the progress their teams are making toward goals and assists them in planning. In 2015, we will continue to benchmark our processes in an effort to become more efficient and effective. We plan to implement additional tools to strengthen our ability to maintain and accelerate the momentum we gained in 2014, enabling us to provide even more remarkable service for each of you, every day.
38
39
40
BOARD OF DIRECTORS
left to right
Sydney P. Waldorf, David M. Thoms, Ronda E. Stryker Vice Chairman, William D. Johnston Chairman, Ronald N. Kilgore Chief Executive Officer, Barbara L. James, Ronald A. Elenbaas
41
211 south rose street kalamazoo, mi 49007 3 4 9 7 7 wo o dwa r d av e n u e b i r m i n g h a m , m i 4 8 0 0 9 1 3 0 s o u t h u n i o n s t r e e t t r av e r s e c i t y, m i 4 9 6 8 4 4 0 6 b ay s t r e e t p e t o s k e y, m i 4 9 7 7 0 g r e e n l e a f t r u s t. c o m