Suburban Life - Main Line/Philadelphia

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0823_PrudentMgmtAssoc_profile - FINAL_Layout 1 8 / 31 / 23 4 : 10 PM Page 1 leading The past four years have been among the most transformative in the firm’s history . In 2019 , Ed Snitzer and Marshall Blume both passed away . Then came the COVID - 19 pan - the way demic , during which the firm upgraded its technology platform and also moved its by BILL DONAHUE headquarters from the skyscraper formerly photos by ALISON DUNLAP known as Mellon Bank Center to Two Com - merce Square . General Counsel / Chief Com - pliance Officer Paul Snitzer and Chief After pioneering a novel approach to investing more InformationOfficer Joe Furka guided the firm through the transitions . than four decades ago , Prudent Management “ It was an emotionally difficult time , ” re - Associates continues to blaze a trail for investors . callsPaul Snitzer , referring to the death of his father and Marshall Blume . ( Paul joined the Prudent Management Associates was built on techniques used to create portfolios that pri - firmin 2011 after working for almost 20 years a foundation of creativity , durability , and ac - oritize diversification and risk control , built as an attorney for two national law firms ademic expertise — much like each invest - with carefully evaluated and selected mutual headquartered in Philadelphia . ) “ It wasn’t ment plan tailored by the firm’s advisory funds . long after our father died that the pandemic team . The firm’s long and deep roots in the Although Prudent Management Associ - began . We had anticipated a transition pe - Philadelphia area can be traced to Marshall ates remains a family operated enterprise , the riod and the challenges that came with it , but Blume , Ph.D . , a professor of finance at The leadership has changed . The second gener - no one could have anticipated that we would Wharton School of the University of Pennsyl - ation of the Snitzer family — namely , brothers be required to shut our offices and scatter to vania ; and Ed Snitzer , a Philadelphia busi - Fred Snitzer and Paul Snitzer — now helm the the winds . nessman and lawyer . firm . “ At the same time , ” he continues , “ the When they founded the firm more than “ I think one of the reasons for our markets sort of nose - dived in March 2020 , 40 years ago , Blume and Snitzer created a longevity is that my father and Marshall were and we were in regular communications novel approach to constructing the architec - early , ” says Managing Director Fred Snitzer , with our clients as that occurred . We had to ture of a secure future for high - net - worth who joined the firm in 2002 . “ They started keep the business running when it seemed families , small to medium - sized businesses , the firm in 1982 , when the financial services like the world was ending , and that’s what and not - for - profit organizations . The firm business was much different than it is today . we did . ” was an early pioneer of an investment - man - Rather than picking stocks , they were using Prudent Management Associates has agement approach that combines academic academic finance to build risk - controlled done much more than “ keep the business finance with a Registered Investment Advisor portfolios , keep costs low , and help people running . ” Its relatively small staff aside , the model . In other words , the firm’s investment achieve their goals . Their ideas worked , and firm has more than $ 1 billion under manage - advisors were early adopters of academic have since been widely adopted . ” ment ( as of the end of July 2023 ) . Fred attrib - SUBURBANLIFEMAGAZINE.COM VOLUME 14 ISSUE 12 38 |

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0823_PrudentMgmtAssoc_profile - FINAL_Layout 1 8 / 31 / 23 4 : 10 PM Page 2 Having a Wharton professor as an advisor Founded by Marshall throughoutthe firm’s history has been critical Blume , Ph.D . , and Ed toour success . ” Snitzer , Prudent Man - agement Associates is Under the firm’s processes “ knowing now led by the second what’s important to clients makes it easier generationof the when there’s volatility or when bad things Snitzerfamily ( left to right ) : Fred Snitzer , happen in the markets , ” Fred continues . “ It Barbara Solit , gets back to tailoring everything the right way andPaul Snitzer . soour clients are well positioned even when they enter a crisis . ” Daniel B . Berkowitz , CFA ® , CIPM © , joined PMA in 2019 , before which he worked for Vanguard’s Investment Strategy Group . In his role as an investment director , Berkowitz devotes most of his time and energy to hon - ing the firm’s investment strategy and processes . He works closely with Professor MacKinlay to carefully vet any prospective in - vestment products the firm might consider adding to client portfolios . “ What we do is a blend of art and sci - ence , both qualitative and quantitative , ” Berkowitz says . “ Considering how dynamic Senior Investment Strategist A . Craig MacKinlay , utes the firm’s good for - themarkets are , there’s always a new set of Ph.D . ( left ) , and Investment Director Daniel B . tune to its nimbleness challengesand problems to solve . The cus - Berkowitzwork closely together to vet any andcommitment to first - tomization component is what I love most prospectiveinvestment products the firm might consider adding to client portfolios . class service . Many PMA about the job . You have the science piece , clients have been with butthere has to be a judgment component . the firm for 15 years or You can’t take a one - size - fits - all approach longer . Prudent Manage - and apply it to every person or institution . ment Associates pro - Everyone’s needs , goals , and risk tolerance vides a comprehensive are different . ” suite of services , includ - WhileBerkowitz enjoys talking in - depth ing retirement planning , about the firm’s academic roots and invest - generational transfer mentphilosophy , he says “ most people don’t planning , and cash - flow want to hear about how the sausage is analysis , among others . made . ” Rather , he believes they just want to “ Fit is very important knowtheir investments are in capable hands . when it comes to the As Fred and Paul reflect on all the “ We never want to lose the intimate relationship with a client , ” changes and challenges the past few years connectionwith the client . ” — Fred Snitzer , Fred says . “ We prefer to have brought , the Snitzers feel immense ManagingDirector of Prudent work with people who pridefor having led the firm through the “ trial ManagementAssociates value our approach and by fire ” after the death of the founders and understand the academic thepandemic - related lockdowns . background and its basis “ Wenever want to lose the intimate con - for the firm . We have a nection with the client , ” says Fred . “ Making wide mix of types of the client experience primary has been part clients , including profes - ofour culture for 40 years . We’re focused on sors from local universi - makingsure our clients always get a prompt ties , doctors , lawyers , response from us . We want to make sure small businesspeople , they know who we are , what we stand for , local nonprofit institu - andhow we can help , and that’s never going ? tions , multigenerational tochange . ” families including grand - The information contained in this article is not a solicitation topurchase or sell investments . The strategies mentioned may parents , their children not be suitable for all investors as the appropriateness of a and grandchildren , and particular strategy will depend on an investor’s individual cir - manyothers . I’d say most of our clients have sorof finance at Wharton . Professor MacKin - cumstances and objectives . Investing involves risk and there is always the potential of losing money when you invest . aminimum of $ 1 million to $ 1.5 million [ in lay is a prominent member of the academic Suburban Life is not a current client or investor of Pru - investable assets ] , and our average client finance community , having spent almost 40 dent Management Associates . Suburban Life was paid by Prudent Management Associates for preparing and distrib - has well more than that . … We’re a conser - years at Wharton and authored work for uting this article . As a result , the article is in the nature of an vative firm , and we take pride in that . Our many prestigious academic publications . advertisement and not an independent evaluation of Prudent clients are not expecting us to shoot the “ Marshall was a student of Harry ManagementAssociates ’ business . lights out , but to perform reliably even during Markowitz , a University of volatile times . ” Chicago professor who won PRUDENT MANAGEMENT Fred cites the firm’s relationship with se - the Nobel Prize for his ideas ? lectprofessors from Wharton , which has en - about creating a portfolio to ASSOCIATES Two Commerce Square dureddespite Blume’s passing . An advisor to effectivelymanage risk , ” Fred 2001 Market Street , Suite 3910 the firm as Senior Investment Strategist , A . adds . “ Marshall and Craig MacKinlay , Ph.D . , is a full - time profes - Markowitzremained friendly . Philadelphia , PA 19103 | ( 215 ) 994 - 1062 www.prudentmanagement.com

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