Welcome

Zager Fixed Income Management focuses on discretionary account management of cash and fixed income portfolios, working closely with client's risk profile and income requirements. Client accounts can be fully customized to meet specific investment preferences and constraints. Our team consists of eight professionals who run some of Morgan Stanley's largest, separately managed, fixed income and cash portfolios. As of 6/30/18, the team managed $10.1 billion for insurance companies, public and private corporations, foundations and ultra high net worth individuals. This includes approximately $2.8 billion in custodied assets at the largest US custodians.

Our exceptionally experienced team builds and actively manages highly customized fixed-income portfolios, providing:



Dedicated fixed income managers

Tailored, high-grade, cash portfolios

Customized investment guidelines

Street wide coverage and institutional execution

Independent credit research

Direct access to portfolio manager and trading team

Online portfolio access provides position data and account reporting

Third-party custodial capabilities



For Taxable Accounts:



Strong tax background and focus on after-tax total return



Click the PDFs below to see our latest newsletters:

Q2 2018 ZagerFIM Newsletter.pdfQ1 2018 ZagerFIM Newsletter.pdfQ4 2017 ZagerFIM Newsletter.pdfQ3 2017 ZagerFIM Newsletter.pdf
Capabilities
  • Investment Management
  • Pre-Liquidity Planning
  • Risk Management
Check the background of Our Firm and Investment Professional on FINRA's BrokerCheck.*

About PWM

Founded in 1977, Private Wealth Management is the division of Morgan Stanley Wealth Management that is dedicated to serving the firm’s most affluent clients, including some of the world’s most accomplished entrepreneurs, executives and stewards of multigenerational wealth. Functioning as an exclusive investment boutique within a global financial firm, we deliver sophisticated solutions that leverage the intellectual capital and insight of Morgan Stanley’s substantial global resources. Drawing on a deep understanding of your financial life, our goal is to help you:
  • Manage investments with an unwavering focus on your financial strategy and personal goals
  • Create comprehensive, multigenerational wealth management plans based on your needs, challenges and the values that guide your life and legacy
  • Simplify financial complexity to help you achieve clarity and control
Private Wealth Management Highlights
  • Approximately 250 teams1  specialized in assisting individuals and families with $20MM+ in investable assets
  • Over $330 billion in AUM2
  • Comprising 26% of the Barron’s Top 100 Financial Advisors list for 20173
  • Direct access to ultra high net worth experts in philanthropy, family dynamics, wealth transfer, lifestyle advisory and other areas of interest to ultra high net worth families
1 Morgan Stanley Wealth Management, December 31, 2017
2 Morgan Stanley Internal Compensable Revenue Report, December 31, 2017
3 Barron’s Top 100 Financial Advisors, April 2017

Approach

Discovery Process
Investing the time to learn about you and your family; your assets and liabilities and the risk exposures, enables us to formulate strategies and customize the relationship to your needs.
Formulation of Tax, Trust and Estate Strategy
Working with your tax and legal advisors, we help analyze your income and estate tax circumstances to identify and tailor planning techniques that may be used to address your objectives.
Creation of Customized Strategic Asset Allocation
Your customized asset allocation reflects risk, opportunities and taxation across multiple entities, while integrating your investing and estate plans.
Integration of Tactical Asset Allocation
Short-term adjustments seek to capitalize on temporary market distortions. Before making adjustments, we analyze the impact of taxes and trading costs on potential returns.
Implementation of a Customized Wealth Strategy
After comprehensive due diligence and analysis of expected results across multiple market scenarios, strategies are chosen from our expansive investment platform.
Ongoing Assessment
In coordination with your other advisors, we can conduct ongoing reviews and comprehensive reporting to ensure that your strategy adapts to changing financial and family needs.

Philosophy

We follow a highly disciplined process in our quest to maximize after-tax returns.

Our fixed income management objectives are to ensure the protection of principal, maximize after-tax return and maintain ample liquidity for cash flow and potential reinvestment needs. We manage diversified portfolios with no positions exceeding 5% of the portfolio at cost, and do not employ leverage.

In addition to seeking to preserve market value through portfolios with high-quality diversified issues, we create customized maturity structures to meet any capital calls and planned expenditures. We utilize liquid and marketable short securities that provide attractive relative returns compared to traditional cash management alternatives. All investment decisions are made in accordance with the account's investment guidelines. All trades executed with firms unaffiliated with Morgan Stanley on an agency basis. The exclusion of trading on a principal basis can eliminate potential conflicts of interest.

Every day, we monitor and evaluate macroeconomic trends to identify favorable or negative sectors. We examine credit quality, bond structure, duration and other criteria, looking for issues or issuers that exude favorable characteristics or are relatively undervalued.

FIXED INCOME STRATEGIES


Taxable:

Core Fixed Income

Short, Intermediate & Long Duration

Cash Management



Tax-Advantaged:

Short, Intermediate & Long Duration

Cash Management

National/State Focus


Click the PDF below to view current rates:



Capital Market Rates - 09.04.18.pdf

Clients

We manage high-grade fixed-income assets for some of the world’s wealthiest and most influential people. Our clients include several billionaires, many of the world’s most prominent entertainers, entrepreneurs, business executives and an extensive list of foundations, hedge funds and other institutional clients. We work to develop a comprehensive understanding of each client’s specific goals, challenges and risk tolerances so we can design and implement a highly customized fixed-income portfolio to address our clients’ needs. Zager Fixed Income Management works closely with each client to implement strategies that provide flexible liquidity and tax-exempt solutions that best fulfill their financial imperatives.




Focus on fixed income investments:

Taxable:




Government securities

Corporate securities

Mortgage and asset-backed securities

Floating rate and callable notes

Taxable municipals

Money market funds and other short-term securities



Tax-Exempt:




Tax-exempt municipal bonds

Put bonds

Tax-exempt commercial paper

Private activity

Callable and cushion issues





Click below to watch Morgan Stanley's Vice Chairman Gary Kaminsky commend ZagerFIM (03:15) around the 3 minute mark on CNBC:



www.cnbc.com/video/3000187450

Location

1999 Avenue of the Stars
Suite 2400
Los Angeles, CA 90067
US
Direct:
(310) 788-2130(310) 788-2130

Meet Zager Fixed Income Management

About Me

Drew Zager is a Managing Director of Morgan Stanley Private Wealth Management. He is a Private Wealth Advisor and the Senior Portfolio Management Director of the Zager Fixed Income Management team, which manages high-grade, fixed income portfolios with assets under management of $10.1 billion as of 06/30/2018. Drew has been with the firm for over 30 years. Previously, Drew provided fixed income coverage to Morgan Stanley’s middle market institutional clients. Before joining Morgan Stanley, Drew was a Senior Tax Consultant of KPMG. He was a Certified Public Accountant in the state of California and a graduate of California State University with a Bachelor of Arts degree in Finance and Accounting. Barron’s has ranked him in their Top 100 list of advisors in the U.S. every year since its inception in 2004, and ranked him #9 in 2017. Drew is a Founding Director and the Chair of the UCLA Investment Company. He is also on the Board of Directors of the UCLA Foundation, and an advisory member of the UC Regents Investment Subcommittee. Drew has been the UCLA Anderson Investment Finance keynote speaker, and for the past 9 years has guest lectured at the UCLA Anderson School. From 2000 – 2017, he had been on the Board of Trustees for the University of California at Riverside and was on UCR’s audit and investment committees. He also serves on the Board and as Treasurer for the Young Eisner Scholars, a nonprofit organization that identifies and empowers academically promising children in underserved neighborhoods across the country. Drew created and Chaired the Morgan Stanley Global Philanthropic Exchange in 2006, which brought together large philanthropic donors, activists, and organizations, at the Guggenheim Museum in New York.
Securities Agent: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, VI, VT, WA, WI, WV, WY; Investment Advisor Representative; General Securities Representative; Transactional Futures/Commodities; Managed Futures
NMLS#: 1288334

About Me

Joe McCullough is a Senior Vice President and Private Wealth Advisor at Morgan Stanley Private Wealth Management, and he joined the firm in 2006. Joe is a Senior Portfolio Management Director on the eight-person Zager Fixed Income Management team and works closely with clients and their advisors to construct customized fixed income separate accounts that align with their investment objectives and risk tolerances. In 2017, Mr. McCullough was named in the top 100 of Forbes Magazine’s inaugural list of America’s Top Next Generation Wealth Advisors, ranking #13 of California based advisors. Joe holds the Senior Portfolio Management Director, Strategic Partner, Sports & Entertainment Director, and Government Entity Specialist designations. Mr. McCullough is a CFA Charterholder, a member of the CFA Institute and the CFA Society of Los Angeles, and mentors Level I CFA candidates. Joe is a founding co-chair of the Emerging Leader Council at the Children’s Hospital Los Angeles and previously was a founding board member of the Young Professional’s Council at CHLA. Prior to joining Morgan Stanley, Joe received his B.A. in Economics from Bucknell University.
Securities Agent: AL, AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, KS, KY, LA, MA, MD, MI, MO, MT, NC, NJ, NM, NV, NY, OH, OR, PA, TN, TX, UT, VA, WA, WI, WY; Investment Advisor Representative; General Securities Representative; Managed Futures
NMLS#: 1268193

About Me

Shane Kim is an Executive Director and Director of Business Strategy at Zager Fixed Income Management at Morgan Stanley Private Wealth Management. He joined the firm in 2004. He is the head of trading for the team. Shane is responsible for development of investment strategies, portfolio management, and trading. Prior to joining Morgan Stanley, Shane was a Manager of Fixed Income Research at Amervest Co. from 2000 to 2004, covering corporate bonds, asset-backed securities and mortgage-backed securities. From 1993 to 1999, he designed and built water and gas utility systems as a Civil Engineer. Shane earned his M.B.A. in International Business from the University of Southern California, and his B.S. and M.S. in Civil Engineering from the University of California at Irvine. Shane previously served on the Investment Committee of the California State University Fullerton Philanthropic Foundation from 2012 to 2018.

About Me

Sophia Cross is a Vice President and Group Director at Morgan Stanley Private Wealth Management and joined the firm in 1994. She received her B.S. in Applied Mathematics from the University of California at Los Angeles (UCLA) in 1994. Sophia has worked in both the Los Angeles and New York offices of our Private Wealth Management division in both the Sales Associate role and the Administrative Management role for the past 24 years. Her focus is on day to day administrative and operational activities of the team.

About Me

Troy Nakamatsu is a Vice President at Morgan Stanley Private Wealth Management and joined the firm in 2009. His principal responsibilities include portfolio management, investment strategy, and credit research. Prior to joining Morgan Stanley, Troy managed balanced portfolios for high-net-worth investors at AllianceBernstein and was an investment banking analyst specializing in the consumer discretionary/e-commerce segments at Susquehanna International Group. Troy received a B.S. in Finance from the University of Southern California in 2006 and is a CFA Charterholder.

About Me

Laura Humber is a Vice President at Morgan Stanley Private Wealth Management and joined the firm in 2013. Her principal responsibilities include portfolio management, credit research, macroeconomic strategy, performance attribution and serving as editor of the Zagerfim quarterly newsletter. She received her Masters of Business Administration (MBA) in finance from Wharton Business School in 2012 and her Bachelor of Arts (BA) in government from Harvard University in 2002. Previously, Laura worked at Banc of America Securities as a Vice President on their Structured Derivatives team, specializing in portfolio analysis, risk management and principal protected products.

About Me

Mary Masso joined Morgan Stanley in 2000 and Morgan Stanley Private Wealth Management in 2003. Her responsibilities include reviewing prospective and existing client portfolios as well as providing administrative and operational support to the team. Mary received her B.A. in English from the University of California at Davis in 2000. Prior to joining Private Wealth Management, she worked in Morgan Stanley’s Corporate Treasury Analyst Program for two years and as a Sales Associate at BNP Paribas in European Equity Sales for one year. Mary has worked in both the New York and Los Angeles offices of our Private Wealth Management division in the Senior Sales Associate role.

About Me

Luis Medina joined Morgan Stanley Private Wealth Management in 2016. His primary responsibilities include administrative and operational support to the team, as well as ad hoc research and analysis. He received his B.A. in Economics and Political Science from the University of Michigan in 2011. Previously, Luis worked as a payroll specialist for Wolters Kluwer, where he handled payroll operations for employees in their Corporate Legal Services division.
Professional Insights

Q3 2017 ZagerFIM Newsletter


Economic and Market Perspectives

On the Markets

Managing Significant Wealth

  • Investment Management
  • Wealth Transfer & Philanthropy
  • Cash Management & Lending
  • Family Governance & Wealth Education
  • Lifestyle Advisory
  • Business Services
Successfully Staffing Your Home

Successfully Staffing Your Home

By adopting more professional approaches to hiring, training and retaining staff, you can more easily maintain a well-run and harmonious home.

Insights and Outcomes

Thought Leadership for our ultra high net worth clients, which contains thought-provoking articles, authored by leading experts from Morgan Stanley Family Office Resources.
Art as An Asset
CRC 2274738 01/19

Art as An Asset

Art may play a significant role in the context of a collector's overall wealth. Generally, a collector may differentiate financial assets, including stocks, bonds and real estate, from other possessions, such as art.

Wealth Management for Athletes and Entertainers

Understanding the unique financial challenges of athletes and entertainers and how they differ from one profession to the next, we deliver the experience and resources you need to help create and implement a comprehensive, multigenerational wealth management plan based on your needs, values and aspirations.
  • Investment Management
  • Wealth Transfer & Philanthropy
  • Private Banking Solutions
  • Family Governance & Wealth Education
  • Lifestyle Advisory
Why Do Pro Athletes Go Broke?

Why Do Pro Athletes Go Broke?

Our new Ideas podcast examines the strange phenomenon of athletes and bankruptcy… and how to change the game.

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Our complimentary program for eligible clients provides you and your family with access to exclusive offers and discounts from premium travel, automotive, health and wellness, and retail brands as well as curated insights from Morgan Stanley.
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Market Information Delayed 20 Minutes
The securities/instruments, investments and investment strategies discussed on this website may not be suitable for all investors. The appropriateness of a particular investment or investment strategy will depend on an investor's individual circumstances and objectives. The views and opinions expressed on this website may not necessarily reflect those of Morgan Stanley Smith Barney LLC (“Morgan Stanley”). This website and its associated content are intended for U.S. residents only.

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