Matter LLC (“Matter Family Office”) is an investment advisor registered with the United States Securities and Exchange Commission (“SEC”) and is a Limited Liability Company formed under the laws of the State of Missouri. Matter Family Office was founded in 1990 and is owned entirely by current management and employees of the firm. To provide for management and ownership succession and a broadening of equity ownership to associates in the firm, Matter Family Office completed a reorganization of its predecessor entity, Matter, Inc., in May of 2015. This reorganization provided for a conversion of Matter, Inc. to Matter Family Office, such that the original shareholders of Matter, Inc., own their interests in Matter Family Office through Matter Holding Company, Inc. Matter Holding Company, Inc., is the majority owner of Matter Family Office. Matter Family Office also issued additional equity interests to certain original shareholders of Matter, Inc. as well as interests to additional employees to begin the process of broadening ownership. CLIENT ASSETS MANAGED BY MATTER FAMILY OFFICE As of December 31, 2022, Matter Family Office had direct management responsibility for $3,212,104,878 of our clients’ assets. In addition, Matter Family Office considers our clients’ full net worth when developing plans and strategic recommendations, and typically reports on a fully consolidated basis. In that context, we advise on wealth in excess of $6 billion. The firm’s clients are all individuals or families; we manage no institutional funds. All assets are managed on a non-discretionary basis except for less than 5% of assets that are pooled and used as conduits to access non-Matter investment opportunities. GENERAL DESCRIPTION OF PRIMARY ADVISORY SERVICES Matter Family Office provides fully integrated investment management, wealth planning and coordination, and culture and legacy services to support successful families across generations, defined as follows: Investment Management: Matter empowers families to invest with clarity and conviction. Our disciplined and transparent process draws upon: independent and proprietary research; integrated collaboration with your family and advisors; and solid investment insights from respected endowments, institutions, and single-family offices. Our philosophy helps drive this approach and is predicated on the following primary beliefs:
• Preserve & Protect: We place a higher priority on the preservation of capital rather than on the achievement of “home run” returns that can create unintended and sizeable risk.
• A Global View with Staying Power: Matter builds sophisticated portfolios designed to participate in global economic growth across all asset classes.
• Respected Skills and Access: Our experience, scale, and independent approach provide Matter access to today’s most respected investment managers and capital markets research.
• Keep What You Get: Our exclusive focus on families ensures we balance tax and fee sensitivity with the opportunity to compound performance over time. We support our families in the role of Chief Investment Officer to deliver our investment management advice. We are accountable to you for a process that ultimately creates a portfolio that is customized for your family. This involves a meaningful investment of time to ensure there is an alignment of constituents and objectives from the outset, the development of an investment portfolio that reflects this understanding, and a continual loop of communication and reporting to keep you fully informed. Generally, we focus on delivering the following specific investment services:
• Investment Strategy: Development of individual entity and group level investment policy statements, and asset allocation analyses. This may include Monte Carlo simulations to provide scenario analyses of different investment portfolio allocations to help families determine the most appropriate risk and return objectives that meet their needs.
• Asset Custody and Geography: We assist families with the selection of custody providers. We have numerous custodians and brokers that feed into our reporting systems daily, so families don’t need to be concerned with “moving” investment assets to a single platform. We also work with you to ensure that your investment assets are held in the appropriate title or entity to ensure your overall wealth management and transfer objectives are met.
• Research: We conduct thorough research of capital markets and asset classes to identify thematic opportunities to strategically and tactically allocate your investment assets. We provide ongoing communication of our research and findings to your family to ensure that you are fully informed on our views of your portfolio.
• Investment Manager Screening, Selection, Due Diligence, and Monitoring: We rely on an open architecture approach to selecting investment solutions for your portfolio. Through a consulting relationship with Asset Consulting Group, LLC (“ACG”), one of the premier national investment consultants focusing on endowments and institutions, we are able to provide our families with the benefit of ACG’s scale of more than $100 billion in investment assets under advisement and more than 40 research professionals. This business relationship helps to ensure that we have coverage and access to the best investment solutions for your portfolios.
• Performance Reporting/Analytics and Portfolio Accounting: We provide your families with up-to-date and aggregated reporting on all of your investment assets. This information is available to you at any time through our on-line portfolio which means you have the power to access information when it is convenient for you.
• Direct Private Investment Activities (Private Equity, Real Estate, etc.): Many of our families are active in direct investing in other private businesses and real estate. Matter supports these efforts through detailed review, analysis, and assessment of the appropriateness of the investment relative to your investment objectives and needs. Wealth Planning and Coordination: Serving in a role analogous to that of a Chief Financial Officer, we support your family in the following areas depending on the needs and complexities your family has: Coordination of Administrative Activities
• Cash management and money transfers
• Development and oversight of family office internal controls (including existing family administrative personnel, outside accountants or vendors)
• Oversight of bill pay activities, vendor selection, etc.
• Annual planning and objective setting across disciplines (tax, estate, legal, accounting)
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Evaluation and selection management of key advisors (CPAs, Attorneys, etc.)
• Secure document storage and paper flow management (contracts, agreements, tax and estate documents, etc.) Net Worth Reporting & Analysis
• Preparation of consolidated balance sheets at family group and individual levels
• Oversight and coordination of entity level accounting (trusts, foundations, direct investments, and operating businesses)
• Cash flow and spending analysis
• Custom reporting and analysis, as necessary
• Risk management and insurance adequacy assessment Multi-Year Budgeting and Capital Sufficiency Planning & Analysis
• Detailed scenario analysis of projected net worth, spending, and cash flow for family group and individuals
• Budget setting and ongoing monitoring
• Spending analysis
• Project analysis – residential purchases, private aviation, direct investment activities
• Coordination with family operating business executives to integrate budgeting, planning and analysis as it impacts the family Tax, Trust, & Estate Coordination
• Consolidation of tax documents and supporting information for annual tax preparation and compliance
• Coordination of estate, wealth transfer, and tax planning with family advisors and family operating business personnel, etc.
• Processing of tax payments, including estimated payments
• Administration and implementation of estate and tax planning decisions
• Oversight of administrative and corporate trustee activities, including selection of third- party trust administration
• Administration of charitable giving strategies and implementation, including oversight of foundation accounting and administration Family Culture & Learning: Families who are intentional about engaging all family members in the development of skills and communication around the responsibilities and opportunities that come with wealth significantly improve the odds of preserving their legacy across generations. Our approach to wealth management involves the integration of the technical aspects of a family office (investments and wealth planning & coordination) with an intensive focus on preparation and effective communication. Modern research has shown that failure of successful wealth transfer stems from poor communication and preparation within the family rather than mismanagement of the technical aspects. To help your family address these challenges, Matter provides the following services: Preparation: Preparing the rising generation for wealth is as critical as managing it. From quick tutorials to personalized discussions and materials for family members of all ages and abilities and financial skill levels, Matter helps each member of your family understand their wealth and build a solid foundation for informed decision-making together. Your Matter team members also build meaningful relationships with the young adults in your family to help prepare them for beneficiary, inheritance and future trustee roles. Communication: Communicating effectively is the foundation of sustainable families. Matter guides your family through exercises that build good communication, promote collaboration and trust, and provide a firm foundation for effective goal setting, transition-planning, and decision-making. We help your family define the things that matter most, individually and collectively, articulate shared values and the greater purpose of your wealth, and set goals and objectives for our work together. All this contributes to family meetings that are dynamic, purposeful, and foster multi- generational collaboration and input. Alignment: Aligning wealth plans with values and purpose increases impact. Your Matter advisors are your family’s thought partners as you navigate everything from investments and philanthropic activities to career plans. We help you see the breadth of your opportunities and create an integrated strategy that addresses the impact you want to have and the legacy you want to leave as a family. MEETINGS AND COMMUNICATION We generally meet with you quarterly, but often more frequently as circumstances warrant. Our meetings with you are designed around executing an annual plan of objectives we create with you each year. This meeting cadence ensures the services we are providing you align with the needs of your family. Meeting agendas may include: review of your investment holdings and performance, assessment of your current estate plan with your advisors, tax planning with your CPAs, coordination of administrative activities to ensure your day-to-day wealth management needs are supported or planning for upcoming family meetings. The important point is that our meetings with you are “your” meetings and are used to provide you the opportunity to express the needs you have with respect to your wealth and family. We augment our time with you with technology platforms to provide you immediate access to your most important information such as estate documents, investment performance, etc. SPECIALIZATION Matter Family Office does not specialize in any particular type of advisory service, but prides itself on offering objective, independent advice on a range of financial issues. ADVICE LIMITED TO CERTAIN TYPES OF INVESTMENTS Matter Family Office develops asset allocation models and provides investment management services, generally through funds with outside managers, across the following asset classes:
• Fixed Income (Bonds)
• Large Cap Stocks
• Mid Cap Stocks
• Small Cap Stocks
• International Stocks
• Emerging Market Equity
• Equity Long/Short
• Covered Call
• Private Equity
• Master Limited Partnerships (MLPs)
• Real Estate
• Commodities Individually held securities represent about 15% of our aggregate holdings and are typically related to clients’ legacy portfolio positions. Matter Family Office recommendations include both active and passive (index) managers. Matter Family Office’s primary focus is on wealth accumulation and protection, and on attempting to minimize volatility while maintaining competitive returns. ADVISORY SERVICES TAILORED TO INDIVIDUAL NEEDS OF CLIENTS Matter Family Office services are based on the individual needs of each client. Depending on the size and complexity of your family our scope of services may vary meaningfully. All engagements are supported by a mutually agreed upon scope of services. We review our services with you on an annual basis to determine whether we would need to expand or contract our level of support depending on your needs.