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FINANCIAL SERVICES EXECUTIVE JEFFREY W. SMITH, CFA,
JOINS PERFORMANCE TRUST INVESTMENT ADVISORS, LLC
CHICAGO—December 22, 2009—Jeffrey W. Smith, a Chartered Financial Analyst (CFA) and institutional sales and marketing executive, was named Managing Director of Business Development at Performance Trust Investment Advisors, LLC, a sister company of Performance Trust Capital Partners, LLC, the companies announced today.
In this newly created position, Smith will develop new client relationships for Performance Trust Investment Advisors, whose asset management business has grown substantially since it was established two years ago. Specifically, Smith will be responsible for marketing strategies, sales management and client services.
Smith has deep experience developing and managing new business for a number of the nation’s best-known brands, including Fidelity Investments, UBS, State Street Bank and Chase.
Most recently, Smith managed his own asset management consulting firm, specializing in strategy, product and distribution. Previously, he worked for Pyramis Global Advisors, a unit of Fidelity Investments, as head of institutional distribution, and as Managing Director of UBS Global Asset Management. Smith is a member of the CFA Institute and Investment Analyst Society of Chicago, and has served on the Board of Trustees of Christian Heritage Academy.
The Performance Trust Companies focus on helping financial institutions become top performers through strategic financial advisory and investment banking services. Performance Trust Investment Advisors launched its asset management business in 2008 for institutional investors, Registered Investment Advisors, family offices and high net worth individuals. The group is led by Chief Investment Officer Peter Cook.
“Jeff brings an array of institutional, investment and operational experience to our asset management business, and we are pleased to have him join this unit,” said James H. Matson, President and Chief Operating Officer of Performance Trust Companies. “The relationships and skills Jeff has built over his successful career will allow him to hit the ground running and bring immediate value to our team.”
Smith earned a BA in economics from Wheaton College and an MBA with a specialization in finance from the University of Chicago.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Mark-to-Market Debate Website Wins
International Marketing Award
CHICAGO—December 8, 2009— In February of 2009, Performance Trust Investment Advisors, LLC developed and launched a website, www.MarktoMarketDebate.com, to help bring mark-to-market accounting issues to the forefront of public attention in the financial industry. Recently, it was selected from among 500 entries worldwide as the winner of the Summit Marketing Effectiveness Award.
The Summit International Awards recognize organizations that produce outstanding marketing, advertising, design and interactive communications. More than 50 countries are represented in the 16-year-old award competition.
Performance Trust turned to the Chicago-based interactive agency Marcel Media to build MarktoMarketDebate.com. Featuring an interactive video library, the website served as a virtual forum to discuss how mark-to-market and related accounting and bank regulations were hurting bank lending during the height of the global credit crunch.
In addition to the website, Marcel Media set up a branded YouTube channel that featured videos outlining the debate in layman's terms, as well as a LinkedIn group and a Twitter profile that delivered more than 500 followers including the Obama Presidential Campaign, the Financial Times and WSJ Online.
This initiative culminated in the testimony to Congress by Rich Berg, Chief Executive Officer of Performance Trust Investment Advisors, concerning the much-needed modifications to accounting regulations. Heightened public awareness of the issues led the Financial Accounting Standards Board to issue new guidance in April for fair value accounting rules.
"Many initially thought the mark-to-market issue was only an arcane accounting rule,” said Berg. “However, these rules were forcing banks to take excessive write-downs on their assets, destroying capital and the ability to lend. We are proud of the role our communications played in bringing these issues to light, resulting in Congressional hearings and the Financial Accounting Standards Board's decision to revise the rules to allow these assets to be accurately valued."
Following the success of the Mark-to-Market Debate website, Performance Trust Investment Advisors and Marcel Media have launched a second website, www.TheRatingsDebate.com, which discusses the issues with the current ratings system, while proposing potential solutions to those issues.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Human Resources Executive Bob Chrismer Joins
Performance Trust Capital Partners
CHICAGO—July 29, 2009—Bob Chrismer, a veteran human resources executive with significant experience in financial and professional services, has joined Performance Trust Capital Partners, LLC as Chief Human Capital Officer, the company announced today. The Performance Trust Companies focus on helping financial institutions become top performers through strategic financial advisory and investment services.
Chrismer’s position at Performance Trust Capital Partners is newly created and takes effect immediately. Chrismer will be responsible for developing and managing the company’s human resources function including HR strategy, recruitment and talent development.
Prior to joining Performance Trust, Chrismer was a partner at Heidrick & Struggles, a leader in international executive search, where he specialized in disciplines of corporate strategy, human resources and consulting. Earlier in his career, he held senior recruiting and division level human resources roles at A.T. Kearney, a global management consulting firm, and First Chicago Corp., now part of JP Morgan Chase.
"We are excited about Bob Chrismer’s decision to join Performance Trust," said James H. Matson, the firm’s president and chief operating officer. “His extensive experience as a human resources professional will add tremendous value as we expand our capabilities and leverage the great success we’ve achieved over the past two years,” he said. “Bob will be a key member of our management team, helping us develop the exceptional talent required to exceed our growth and leadership goals for the future.”
Chrismer holds a MA in history from the University of Illinois and a BA in literature from Wheaton College.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Megan E. Geldman Promoted to Marketing Manager
at Performance Trust Capital Partners
CHICAGO—April 6, 2009—Megan E. Geldman, marketing and PR coordinator at Performance Trust Capital Partners, LLC, has been promoted to marketing manager, the company announced today.
In this newly created position, Geldman will be responsible for monitoring all marketing activities, including brand management, marketing communications, graphic design, event organization, the company’s web site and a newly launched blog and web site, www.marktomarketdebate.com, which focuses on the debate over the use of mark-to-market accounting in the banking industry.
The Performance Trust Companies focus on helping financial institutions become top performers through strategic financial advisory and investment services.
Prior to joining Performance Trust in 2007 as a marketing and PR coordinator, Geldman served as Director of Marketing and Advertising for Sereno Group Real Estate in Los Gatos, California. She also founded the in-house graphic design department for the Sereno Group agents.
"Meg has been a great asset as we have expanded our marketing operations during the past year, and we congratulate her on this much deserved promotion," said James H. Matson, President and Chief Operating Officer of Performance Trust Capital Partners.
Geldman has a Bachelor of Arts in studio art from the University of Puget Sound.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Chicago-based Banking Expert Rich Berg Testifies in Washington DC
at Congressional Hearing on Credit Availability
CHICAGO—March 25, 2009—Rich Berg, Chief Executive Officer of Performance Trust Capital Partners, testified today in Washington D.C. as an expert witness before the US House of Representatives’ House Sub Committee on Banking. The testimony was delivered during a hearing titled “Exploring the Balance Between Increased Credit Availability and Prudent Lending Standards.”
Berg, one of 10 experts who testified, focused his comments on how the “one-size-fits-all” approach to rating securities was labeling securitized assets that were performing and delivering cash flows as toxic assets.
“As Congress and Treasury form plans for removing ‘toxic assets’ off the books of financial institutions through taxpayer assistance in order to get credit flowing again, we need to correctly define toxic assets,” Berg said.
Toxic assets are typically identified by the credit ratings provided by ratings organizations such as Standard & Poor’s, Moody’s or Fitch. The rating scale ranges from AAA (Triple A), AA (Double A), A (Single A)—all the way down to D (default). BBB (Triple B) is generally considered the lowest rung for investment grade. Corporate bonds below investment grade are referred to as “junk” bonds and mortgage bonds and other securitized debt below investment grade are labeled “toxic.”
The current rating approach is primarily geared to evaluating fixed income instruments with a single obligor (loan), but not multiple obligors (a pool of loans). As a result, when the current letter-based credit rating is applied to a multi-obligor security, it effectively treats all obligors in default even if only a small percentage—such as 1 percent—of the pool is not performing. In addition, the current rating approach makes no accommodation for purchasing the security at a price that is below 100 cents on the dollar.
“The systemic effect is huge and significantly contributing to the downward spiral we are now witnessing,” he said. Credit ratings are hard-coded into current regulations, capital calculations, counterparty agreements, collateral agreements and investment policies, and a CCC rating may trigger cascading negative actions by accountants, regulators, counterparties and investors. “As an institution creeps closer to mandatory regulatory or policy minimums in these areas, it has less tolerance for any risk taking and will hoard more cash,” he said.
Berg recommended establishing a numerical scale rating system for multiple obligor securities because single and multiple obligor securities have very different risks.
“We strongly believe that a critical step to restoring credit markets is a revamp of the rating system for multiple obligor securities like mortgage-backed securities,” he said. “Unless a major change is made, it will be very difficult to clean up previously issued securities—those already downgraded, or those feared to be downgraded in the future – and the current discussion involving loan modifications will certainly cause a whole new round of downgrades and create more toxic assets,” he said.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Fixed Income Sales Executive Paul S. Kangas Joins Performance Trust Capital Partners as Managing Director of Sales
CHICAGO—March 10, 2009—Paul S. Kangas, a veteran sales manager and executive in the fixed income capital markets industry, has joined Performance Trust Capital Partners, LLC as Managing Director of Sales, the company announced today.
Kangas will be in a senior leadership role at the company, responsible for expanding the company’s relationships with its banking clients, growing the fixed-income business and developing the sales team. The Performance Trust Companies focus on helping financial institutions become top performers through strategic financial advisory and investment services.
Previously, Kangas was a Managing Director and Sales Manager with BMO Capital Markets GKST, Inc., and Senior Vice President and Sales Manager for Griffin, Kubik, Stephens & Thompson before the firm was acquired by BMO in 2008.
“With more than 20 years of experience in debt securities, Paul is a proven leader in our industry,” said James H. Matson, President and Chief Operating Officer of Performance Trust Capital Partners. “Paul is joining us to help lead a new growth phase of our company,” he said.
Kangas earned a BBA in finance from Loyola University.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
Banking Experts Offer Educational Web Site on Mark-to-Market Accounting to Outline Needed Changes to Bank Accounting Rules
CHICAGO—February 9, 2009 - Chicago-based Performance Trust Investment Advisors, LLC, a bank advisory firm, has created a virtual forum at a new web site—called marktomarketdebate.com—to educate the public on how “fair value” standards, also known as mark-to-market, and related accounting and bank regulatory rules impact bank lending.
“Many people may not realize that the mark-to-market rules are having a disastrous effect in today’s distressed market because they are discouraging banks from taking on significant amounts of new lending, which is vital to economic recovery,” said Rich Berg, Chief Executive Officer of Performance Trust Investment Advisors. “We encourage all Americans to get educated, get involved and contact their Congressman or Congresswoman to make sure the regulatory bodies quickly take action to address these problems and get the economy moving again,” he said.
Under mark-to-market accounting rules, banks and insurance companies are required to report fixed income securities representing bundles of mortgages and consumer loans at today’s fire sale prices – even when these investments are currently performing by delivering cash flows to the investor. Related to this issue is the bank accounting rule called “Other Than Temporarily Impaired” (or OTTI). This rule requires that an entire pool of loans be considered “impaired” when only a small portion of the loans in the pool may not be performing as expected. In addition, there are bank regulations that are compounding these accounting-related problems.
“These rules require banks to take write-downs on their investments, destroying capital and the ability to lend,” noted Rich Berg. “Yet most of these fixed income securities being written down are not toxic subprime mortgages. Many are regular, performing loans made to Americans to purchase homes and autos and to finance college educations,” he said.
For more information and to hear the many voices on this subject, go to www.marktomarketdebate.com.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
FINANCIAL INVESTMENT EXECUTIVE PETER B. COOK, CFA,
NAMED CHIEF INVESTMENT OFFICER OF
PERFORMANCE TRUST INVESTMENT ADVISORS, LLC
CHICAGO—September 18, 2008—Peter B. Cook, a Chartered Financial Analyst (CFA) and successful financial services leader with broad experience in asset management, was named Chief Investment Officer of Performance Trust Investment Advisors, LLC, a sister company of Performance Trust Capital Partners, LLC, the companies announced today.
As Chief Investment Officer, Cook will develop and implement investment policies and procedures for the company’s expanded asset management business. Previously, Cook founded and was the Chief Investment Officer at Rochester Partners L.P., a highly ranked, value-oriented global hedge fund based in Hinsdale, Illinois. He also served as a hedge fund manager and head of global equity trading at Templeton Investments, and Vice President of interest rate swap and option trading at Union Bank of Switzerland. Cook serves on several leadership committees of the CFA Society of Chicago and recently chaired its Investment Exchange Forum.
The Performance Trust Companies focus on helping financial institutions become top performers through strategic financial advisory and investment banking services. Performance Trust Investment Advisors recently launched a new private placement investment fund for institutional investors and high net worth individuals.
“Peter has impressive track records in global investment and trading management in all major asset classes, and his extensive understanding of markets worldwide will create significant investment opportunities for our clients,” said James H. Matson, President and Chief Operating Officer of Performance Trust Capital Partners. “We are very pleased that Peter is joining our team in this newly created position,” he said.
Cook earned a BS in accountancy from the University of Illinois and an MBA with a specialization in international finance from the University of Chicago. In addition to being a CFA, Cook passed the Certified Public Accountant (CPA) exam in 1982 while working in audit and tax functions at Deloitte and Touche.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com.
For More Information, Contact:
James H. Matson, President & COO
(312) 521-1103
jmatson@performancetrust.com
TRADING AND FINANCIAL MARKETS DATA EXPERT NAMED CIO AT
PERFORMANCE TRUST CAPITAL PARTNERS
CHICAGO—February 27, 2008—Stephen J. Sinclair was named Chief Information Officer of Performance Trust Capital Partners, LLC, the company announced today.
Sinclair, who served as the company’s senior technology manager since 2003, steps into the CIO role, effective immediately. As head of information technology, Sinclair will be responsible for implementing the strategic direction of the firm’s technical initiatives. Performance Trust Capital Partners is a strategic, fixed income financial advisor to community banks throughout the country.
“Steve is a leading expert in providing technical solutions to the financial services industry, and we are pleased to promote him to be our CIO,” said James H. Matson, President and Chief Operating Officer of Performance Trust Capital Partners. “When it comes to managing trading data and proprietary investment analysis, Steve has proven to be a leader and innovator and he is a valued member of our team,” he said.
Sinclair has 14 years of software development, design and management experience in the financial services industry. Prior to joining Performance Trust Capital Partners, he founded Sintech Consulting Group and Sintech Software, LLC, which created custom web-based management systems for insurance companies. He also was a senior-level developer and manager for UBS’ foreign exchange technology division.
Sinclair has a Bachelor of Science degree in finance and investments from Babson College in Wellesley, Mass. He has been quoted in a number of technical and business publications discussing web technologies, and he is a featured speaker at industry conferences.
About The Performance Trust Companies
The Performance Trust Companies are an SEC-registered investment advisor and FINRA regulated broker\dealer, with proprietary investment methodologies and products designed to accomplish investment objectives. Based in Chicago, Performance Trust focuses on educating fixed income investment professionals and assisting client institutions to invest through total return. For more information, go to www.performancetrust.com
For More Information, Contact:
James H. Matson, President
(312) 521-1103
jmatson@performancetrust.com
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