Ha­panow­icz & As­so­ciates

The Suit - - Contents - Ha­panow­icz & As­so­ciates 301 Grant Street, Suite 300 Pitts­burgh, PA 15219 Phone: 412-261-5966 www.ha­panow­icz-as­so­ciates.com

Trans­parency in Client In­vest­ment is the Ba­sis of Trust

After be­gin­ning his ca­reer with Ad­vest, which was later ac­quired by Mer­rill Lynch, Robert E. Ha­panow­icz founded Ha­panow­icz & As­so­ciates in 1989. He be­gan as its only em­ployee but since that time the team has grown, and now man­ages and/or su­per­vises over a quar­ter bil­lion dol­lars in as­sets. He has con­tin­ued to ad­dress con­cerns that clients weren’t even aware of pre­vi­ously, in­clud­ing the craft­ing of a plan agree­able to the clients and re-bal­anc­ing to stay within what he calls “risk bud­get.” After be­gin­ning his ca­reer with Ad­vest, which was later ac­quired by Mer­rill Lynch, Robert E. Ha­panow­icz founded Ha­panow­icz & As­so­ciates in 1989. He be­gan as its only em­ployee but since that time the team has grown, and now man­ages and/or su­per­vises over a quar­ter bil­lion dol­lars in as­sets. He has con­tin­ued to ad­dress con­cerns that clients weren’t even aware of pre­vi­ously, in­clud­ing the craft­ing of a plan agree­able to the clients and re­bal­anc­ing to stay within what he calls “risk bud­get.”

Ha­panow­icz sought to go out on his own, based on his belief that the tra­di­tional bro­ker-dealer ap­proach of the 1980s was flawed as it of­ten pro­moted prod­ucts it had cre­ated, which re­sulted in what he saw as a po­ten­tial for con­flict of in­ter­est. H&A, which is an SEC regis­tered in­vest­ment ad­vi­sory firm, serves clients and in­sti­tu­tions pri­mar­ily in western Penn­syl­va­nia and it of­fers in­vest­ment man­age­ment, fee for ser­vice fi­nan­cial plan­ning, re­tire­ment and di­vorce plan­ning, tax, es­tate and in­surance plan­ning. It also strived to be a cut above the tra­di­tional fi­nan­cial plan­ner.

“Our dif­fer­en­tia­tors are: one, the qual­ity and depth of our team, (which) we are able to fo­cus on our clients’ needs as we work with limited clien­tele; and two, we start with plan­ning first,” Ha­panow­icz told The Suit Mag­a­zine. “Plan­ning is the foun­da­tion. Build a strong foun­da­tion and it will guide us in ev­ery­thing we do.”

This ap­proach to “risk bud­get” has in­cluded fo­cus­ing less on port­fo­lio al­pha, the tra­di­tional ex­cess re­turn over a bench­mark, and more on port­fo­lio con­struc­tion that is in line with and in support of the clients’ risk bud­get and fi­nan­cial plan.

“It’s a con­ser­va­tive ap­proach with many less sur­prises,” added Ha­panow­icz. “We im­ple­ment with proven, well-known, cost ef­fec­tive man­agers, each with a spe­cific role in our clients port­fo­lio. An ex­cep­tion would be our Spe­cial Sit­u­a­tions Eq­ui­ties Strat­egy, which is very fo­cused on gen­er­at­ing al­pha.”

Ha­panow­icz also re­it­er­ated that credit is due to the qual­ity of the team, which he has said can’t be over­stated; along with the de­tail to the plan­ning process that goes into it each port­fo­lio.

“It’s im­pos­si­ble to an­tic­i­pate ev­ery­thing, but the pre­ma­ture death of a loved one can not only be emotionally trau­matic it can have se­vere fi­nan­cial reper­cus­sions,” he noted. “If there is an ill­ness, as an ex­am­ple, we at­tempt to ad­dress this is­sue as part of the plan­ning.”

The key is also be­ing trans­par­ent in how the firm op­er­ates.

“It helps me sleep well at night,” Ha­panow­icz noted. “It’s the ba­sis of build­ing trust. Gen­er­ally most clients’ risk tol­er­ance has stayed the same, some have be­come a bit more con­ser­va­tive and that’s fine. We’ll have a dis­cus­sion about risk based in­vest­ing, their risk bud­get, and if the client wants to make an adjustment, that’s fine. It’s bet­ter to stay in­vested, even in a lower risk port­fo­lio, than exit the mar­kets al­to­gether.” *Se­cu­ri­ties of­fered through LPL Fi­nan­cial, Mem­ber FINRA/SIPC. In­vest­ment ad­vice of­fered through Ha­panow­icz & As­so­ciates Fi­nan­cial Ser­vices, Inc., a regis­tered in­vest­ment ad­vi­sor and sep­a­rate en­tity from LPL Fi­nan­cial.

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