About the Firm
Baystate Wealth Management, LLC is an investment adviser registered with the SEC since
2009. We are wholly owned by Mariner, LLC (“Mariner Wealth”). Mariner Wealth is wholly
owned by Mariner Wealth Advisors, LLC (“Mariner”). MWA Midco, LLC (“Midco”) is the
manager of Mariner. MWA Holdco, LLC (“Holdco”) is the manager of Midco. Holdco is owned
by 1248 Holdings, LLC (“1248”), the Martin C. Bicknell Revocable Trust dated August 7, 1996,
as amended and restated, and GEI VIII MW Aggregator LLC (“MW Aggregator”).
We are headquartered in Overland Park, Kansas. Baystate is located in Boston, Massachusetts.
Investment Advisory Services
This Disclosure Brochure describes Baystate Wealth’s services, fees, conflicts of interests and
duties and responsibilities with respect to its investment advisory business. For a description of
MMLIS’ duties and responsibilities, please see MMLIS’ Form ADV 2A Disclosure Brochure and
other disclosures as appropriate.
Baystate Wealth has entered into a co-advisory agreement with MML Investor Services LLC
(“MMLIS”), pursuant to which the two companies act as co-advisors to Clients who open
investment advisory accounts at Baystate Wealth. Under the terms of the Co-Investment Advisory
Agreement, MMLIS is responsible for the initial and ongoing day-to-day relationship with the
Client, including the initial and ongoing determination of Client suitability for asset allocation
strategies. Baystate Wealth is responsible for managing the Client’s assets consistent with the
Investment Policy Statement (“IPS”) signed by the Client.
The investment advice provided by Baystate Wealth and/or an Independent Manager is customized
to fit the risk profile, goals, objectives, and other preferences of each individual Client, pursuant to
a written IPS developed with and signed off on by the Client. Baystate Wealth primarily uses
Exchange Traded Funds (“ETFs”), Exchange Traded Notes (“ETNs”), Index Funds, some mutual
funds (when the manager’s expenses and fees can be justified), some bond funds and individual
fixed-income securities (treasuries, corporates, municipals, etc.), when appropriate. Some
Independent Managers may use individual securities, including individual equities and individual
bonds.
Baystate Wealth provides fee-based discretionary and non-discretionary investment supervisory
services and portfolio management primarily for high-net-worth individuals, corporate pensions,
and profit-sharing plans, closely held and family businesses, corporations, trusts, foundations, and
athletes involved in professional and amateur athletics (the “Program”). Baystate Wealth is
compensated for its services by charging a fee based on a percentage of assets placed under its
management. Typically, when providing investment advisory services, we have full discretion to
select securities to buy and sell for a Client’s account. Client accounts are tailored to address the
specific goals, objectives, and constraints of each Client. We consider a range of factors that can
impact the investment management process, including risk tolerance, investment time horizon,
current and future cash needs and such other circumstances deemed relevant.
We provide these services under the nonexclusive safe harbor from the definition of an investment
company for programs that provide discretionary investment advisory services to Clients under 17
CFR 270.3a4. We usually do not allow Clients to impose restrictions on investing in certain
securities or types of securities due to the level of difficulty this would entail in managing their
account. We will accept investment restrictions from Clients if the restrictions do not hinder our
ability to execute our investment strategies.
Baystate Wealth offers a number of diversified portfolio strategies, ranging in risk tolerance from
conservative to aggressive. The portfolios consist of equities, fixed income instruments, and
alternative investments, and may include individual securities, separately managed accounts,
mutual funds, index funds, bonds, bond funds and alternative investments.
The Baystate Wealth Program offers flexibility in choosing the kinds of securities to be held in the
Clients’ account(s). Eligible securities include, without limitation the following:
Exchange Listed Stocks (NYSE, AMEX); NASDAQ Listed Securities; ETFs; ETNs; No-load
Mutual Funds; Load-Waived Mutual Funds; Separately Managed Accounts; American Depository
Receipts (“ADRs”); U.S. Government Bonds; Mortgage-backed Bonds; Municipal Bonds;
Corporate Bonds; Unit Investment Trusts; Exchanged Traded REITs/Limited Partnerships/Master
Limited Partnerships; and Brokerage Certificates of Deposit.
Certain securities are “ineligible” for the Program. Those securities will not be purchased for
Clients’ Accounts. Clients may establish an account at Baystate Wealth by transferring cash or by
transferring accounts in kind or after the sale of all or some of the securities in the transferred
account. To the extent the Client seeks to transfer an account in kind, and the account contains
securities that are ineligible under the Program, those ineligible securities will be refused for
transfer or sold prior to, concurrent with, or shortly after the transfer.
The Client relationship is managed by Investment Advisor Representatives (“IARs”) of MMLIS
and by the management and associates of Baystate Wealth. IARs, with the assistance of Baystate
Wealth (if requested), generally meet with Clients, discuss the Clients’ goals and objectives, and
assist the Clients in the development, management, and implementation of the Clients’ wealth
management program. MMLIS IARs do not, however, manage Baystate Wealth portfolios for
Clients. Rather, Baystate Wealth portfolios are managed by Approved Portfolio Managers
(“APMs”) of Baystate Wealth. All APMs of Baystate Wealth are pre-approved by the Firm to
manage assets. The APMs and the Research Department, in consultation with the Investment
Committee (when appropriate), oversee the Firm’s investment strategies, transactions, policies and
guidelines, including review of APM selection, establishment of investment benchmarks, review
of investment performance and oversight of investment risk management exposure policies and
guidelines. The Investment Committee will typically meet twice a month or as dictated by market
conditions, to discuss the current strategies of the APMs.
Limitations of Non-Investment Consulting/Implementation Services
Baystate Wealth does not hold itself out as providing financial planning or related consulting
services and no portion of Baystate Wealth’s services should be construed as legal, accounting or
insurance implementation services. Accordingly, Baystate Wealth does not prepare estate planning
documents, tax returns, or sell insurance products. However, to the extent requested by a Client,
Baystate Wealth may recommend the services of other professionals for certain non-investment
implementation purposes (e.g., attorneys, accountants, insurance agents, etc.). Baystate Wealth
does not receive any compensation for such recommendations. The Client is under no obligation to
engage the services of any such recommended professional. The Client retains absolute discretion
over all such implementation decisions and is free to accept or reject any recommendation from
Baystate Wealth.
If the Client engages any such recommended professional, and a dispute arises thereafter relative
to such engagement, the Client agrees to seek recourse exclusively from and against the engaged
professional. At all times, the engaged licensed professional(s) (i.e., attorney, accountant, insurance
agent, etc.), and not Baystate Wealth, shall be responsible for the quality and competency of the
services provided.
Non-Discretionary Service Limitations
Clients that have engaged Baystate Wealth to provide investment advisory services on a non-
discretionary basis must be willing to accept that Baystate Wealth cannot consummate any account
transactions without obtaining prior consent from the Client. Thus, in the event that Baystate Wealth
would like to make a transaction for a Client’s account (including in the event of an individual
holding or general market correction), and the Client is unavailable, Baystate Wealth will be unable
to make any account transactions (as it would for its discretionary Clients) without first obtaining
the Client’s consent.
Cash Positions
At any specific point in time, depending upon perceived or anticipated market conditions/events
(there being no guarantee that such anticipated market conditions/events will occur), Baystate
Wealth may maintain cash positions for defensive purposes. In addition, while assets are maintained
in cash, such amounts could miss market advances. All cash positions (money markets, etc.) shall
be included as part of assets under management for purposes of calculating Baystate Wealth’s
advisory fee.
Baystate Wealth Wrap Program
Baystate Wealth also provides services on a wrap fee basis as a wrap program sponsor. Under
Baystate Wealth’s wrap program, the Client generally receives investment advisory services, the
execution of securities brokerage transactions, custody, and reporting services for a single
negotiated fee. Participation in a wrap program may cost the Client more or less than purchasing
such services separately. The terms and conditions of a wrap program engagement are more fully
discussed in Baystate Wealth’s Wrap Fee Program Brochure.
Baystate Wealth has two different methods of charging fees to Clients. One method is that the Client
is charged a fee for asset management and the Client pays the commissions and other trading costs
associated with the account (please note that none of the trading costs is paid to Baystate Wealth;
they are all collected by and paid to the Custodian). This fee arrangement is known as “Advisory
Fee Plus.” The other method is for the Client to be charged an overall fee that includes the costs
for commissions and other trading costs. This fee arrangement is known as “Advisory Fee One.”
Advisory Fee One is considered a “wrap fee” program. A wrap fee program account is a type of
individually managed account in which most expenses that are typical of a managed account are
combined into one fee (i.e., a “wrap fee”). This includes the management fees and transactional
costs and fees.
As indicated in the Wrap Fee Program Brochure, the Program fee charged by Baystate Wealth for
participation in the Program may be higher or lower than those charged by other sponsors
of
comparable wrap fee programs. Because wrap program transaction fees and/or commissions are
paid by Baystate Wealth to the account custodian/broker-dealer, Baystate Wealth could have an
economic incentive to maximize its compensation by seeking to minimize the number of trades in
the Client's account. For more information on our wrap program, see separate Wrap Fee Program
Brochure.
Baystate Wealth shall provide investment advisory services specific to the needs of each Client.
Prior to providing investment advisory services, an investment adviser representative will ascertain
each Client’s investment objective(s). Thereafter, Baystate Wealth shall allocate and/or recommend
that the Client allocate investment assets consistent with the designated investment objective(s).
The Client may, at any time, impose reasonable restrictions, in writing, on Baystate Wealth’s
services.
There is no significant difference between how Baystate Wealth manages wrap fee accounts and
non-wrap fee accounts. However, as stated above, if a Client determines to engage Baystate Wealth
on a wrap fee basis the Client will pay a single fee for bundled services (i.e., investment advisory,
brokerage, custody). The services included in a wrap fee agreement will depend upon each Client’s
particular needs. If the Client determines to engage Baystate Wealth on a non-wrap fee basis, the
Client will select individual services on an unbundled basis, paying for each service separately (i.e.,
investment advisory, brokerage, custody).
Portfolio Activity
Baystate Wealth has a fiduciary duty to provide services consistent with the Client’s best interest.
As part of its investment advisory services, Baystate Wealth (on occasion and, in conjunction with
the IAR) will review Program Accounts on an ongoing basis to determine if any changes are
necessary based upon various factors including, but not limited to, investment performance, market
conditions, fund manager tenure, fund flows, style drift, account additions/withdrawals, financial
circumstances or changes in the Client’s investment goals or objectives. Based upon these and other
factors, there may be extended periods of time when Baystate Wealth determines that changes to a
Client’s Accounts are neither necessary nor prudent. The Client nonetheless remains subject to the
fees described in Item 5 below during these periods of account inactivity. Of course, as indicated
below, there can be no assurance that investment decisions made by Baystate Wealth will be
profitable or equal any specific performance level(s).
Client Agreement
Prior to engaging us, the Client will be required to enter into one or more written agreements setting
forth the terms, conditions, and objectives under which we shall render our services (the
“Agreement”). Additionally, we will only implement our investment recommendations after a
Client has arranged for and furnished all information and authorization regarding accounts with
appropriate financial institutions. Our Clients are advised to promptly notify us or MMLIS if there
are ever any changes in their financial situation or investment objectives.
Other Businesses and Investment Programs
Our affiliates may offer to our Clients a variety of services, including estate and trust services, and
risk management. The Firm earns fees for the services provided by it, and its affiliates will likewise
earn fees directly for services they provide. Please see Item 10 for more information on the services
provided by our affiliates.
Pledged Assets Loan
In consideration for a lender (i.e., a bank, etc.) to make a loan to the Client, the Client pledges its
investment assets held at the account custodian as collateral. These collateralized loans are
generally utilized because they typically provide more favorable interest rates than standard
commercial loans. These types of collateralized loans can assist with a pending home purchase,
permit the retirement of more expensive debt, or enable borrowing in lieu of liquidating existing
account positions and incurring capital gains taxes. However, such loans are not without potential
material risk to the Client’s investment assets. The lender (i.e., custodian, bank, etc.) will have
recourse against the Client’s investment assets in the event of a loan default or if the assets fall
below a certain level. For this reason, Baystate Wealth does not recommend such borrowing unless
it is for specific short-term purposes (i.e., a bridge loan to purchase a new residence). Baystate
Wealth does not recommend such borrowing for investment purposes (i.e., to invest borrowed funds
in the market). Regardless, if the Client were to determine to utilize margin or a pledged assets loan,
the following economic benefits would inure to Baystate Wealth:
• By taking the loan rather than liquidating assets in the Client’s account, Baystate Wealth
continues to earn a fee on such Account assets.
• If Baystate Wealth’s advisory fee is based upon the higher margined account value (see
margin disclosure at Item 5 below), Baystate Wealth will earn a correspondingly higher
advisory fee. This could provide Baystate Wealth with a disincentive to encourage the
Client to discontinue the use of margin.
To the extent that a Client authorizes the use of margin, the market value of the Client’s account
and corresponding fee payable by the Client may be increased. Clients authorizing margin are
advised of the potential conflict of interest whereby the Client’s decision to employ margin may
correspondingly increase the management fee payable to the Firm.
The Client must accept the above risks and potential corresponding consequences associated
with the use of margin or a pledged assets loan.
Socially Responsible Investing Limitations
Socially Responsible Investing involves the incorporation of Environmental, Social and
Governance considerations into the investment due diligence process (“ESG). There are potential
limitations associated with allocating a portion of an investment portfolio in ESG securities (i.e.,
securities that have a mandate to avoid, when possible, investments in such products as alcohol,
tobacco, firearms, oil drilling, gambling, etc.). The number of these securities may be limited when
compared to those that do not maintain such a mandate. ESG securities could underperform broad
market indices. Investors must accept these limitations, including potential for underperformance.
Correspondingly, the number of ESG mutual funds and exchange traded funds are few when
compared to those that do not maintain such a mandate. As with any type of investment (including
any investment and/or investment strategies recommended and/or undertaken by Baystate Wealth),
there can be no assurance that investment in ESG securities or funds will be profitable or prove
successful.
Cryptocurrency
For Clients who want exposure to cryptocurrencies, including Bitcoin, Baystate Wealth will advise
the Client to consider a potential investment in corresponding exchange traded securities, or an
allocation to separate account managers and/or private funds that provide cryptocurrency
exposure. Crypto is a digital currency that can be used to buy goods and services, but uses an online
ledger with strong cryptography (i.e., a method of protecting information and communications
through the use of codes) to secure online transactions. Unlike conventional currencies issued by a
monetary authority, cryptocurrencies are generally not controlled or regulated, and their price is
determined by the supply and demand of their market. Because cryptocurrency is currently
considered to be a speculative investment, Baystate Wealth will not exercise discretionary authority
to purchase a cryptocurrency investment for Client accounts. Rather, a Client must expressly
authorize the purchase of the cryptocurrency investment. Baystate Wealth does not recommend
or advocate the purchase of, or investment in, cryptocurrencies and considers such an
investment to be speculative. Clients who authorize the purchase of a cryptocurrency investment
must be prepared for the potential for liquidity constraints, extreme price volatility and complete
loss of principal.
Securities Class Actions and Proofs of Claim
The Firm is not obligated to file, nor will it act in any legal capacity with respect to class action
settlements or related proofs of claim. If requested by the Client, the Firm will try to provide the
Client with the required documentation, if available.
Certain of the Firm’s associates may be licensed to practice law. However, no such persons
provide legal services to any of the Firm’s Clients, and no corresponding Attorney-Client
relationship is established. Associates are required to report such activity as an Outside
Business Activity and are supervised accordingly.
Assets Under Management
As of December 31, 2023, the assets under management (“AUM”) of Baystate Wealth were
$1,869,185,417 in full discretionary accounts and $47,983,274 in non-discretionary accounts.
Our Fiduciary Acknowledgement
When may we provide investment advice to you regarding your retirement plan account or IRA,
we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act
(“ERISA”) and/or Section 4975 of the Internal Revenue Code (the “Code”), as applicable, which
are laws governing retirement accounts. The way we make money creates some conflicts with your
interests, so we operate under a special rule that requires us to act in your best interest and not put
our interest ahead of yours. Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice)
• Never put our financial interests ahead of yours when making recommendations (give loyal
advice)
• Avoid misleading statements about conflicts of interest, fees, and investments
• Follow policies and procedures designed to ensure that we give advice that is in your best
interest
• Charge no more than is reasonable for our services
• Give you basic information about conflicts of interest
For purposes of this special rule, covered “plans” include 401(k), 403(b), profit sharing, pension
and all other plans that are subject to ERISA, together with tax-qualified retirement plans under the
Code (even if not subject to ERISA) such as Solo 401(k) and “Keogh” plans. “IRAs” subject to the
special rule include both traditional and Roth IRAs, individual retirement annuities, health savings
accounts, Archer medical savings accounts and Coverdell education savings accounts.