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Confidential
Investment
Guidance
Contents Firm and Mission
LPL Financial: The Organization
Institutional Wealth Management...
Confidential
Firm and Mission
ConfidentialFirm and Mission
Our Mission
Our Firm
Client ServicesClient Services
Our mission is to help determine the pers...
ConfidentialYour Team
Mr. D. Danard Smith
President and CEO, LPL Financial, Owings Mills, MD
Mr. Danard Smith had been in ...
ConfidentialYour Team
Mr. Keith A. Holmes
Wealth Management Advisor
Mr. Holmes has been in the investment industry for ove...
Confidential
LPL Financial:
The Organization
ConfidentialOur Independence,Your Advantage
Our independence is built on a foundation of
objective and unbiased financial ...
ConfidentialAccount Protection and Oversight
Oversight
The Private Trust Company, N.A., an affiliate of LPL, is a nondepos...
ConfidentialInstitutional Investment Management Services
High-Capacity Institutional Services at
Your Advisors’ Fingertips...
ConfidentialOur Resources
Acting in a leadership capacity, Institutional Investment Management Services harnesses the full...
ConfidentialPerformance Reporting
Comprehensive investment reporting specifically
designed for affluent and institutional ...
Confidential
Institutional Investment
Management Process
ConfidentialInstitutional Investment Management Process
We believe if organizations follow a clear and disciplined
investm...
ConfidentialInstitutional Investment Management Process (continued)
Step 1: Analyze Goals and Current Portfolio
We’re comm...
Confidential
Step 1: Analyze Goals and Current Portfolio
As part of our initial evaluation, we’ll interview appropriate me...
Confidential
Step 2: Determine Investment Policy
Statement and Asset Allocation
A disciplined methodology is essential to ...
Confidential
Step 3: Build Portfolio
The third step of the investment consulting process focuses on investment manager sea...
Confidential
Step 4: Manage and Monitor Portfolio
The final step in the process is performance monitoring and
reporting.To...
Confidential
Mr. D. Danard Smith is a registered representative with, and securities and advisory services offered through...
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Smith Investment Guidance

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Smith Investment Guidance

  1. 1. Confidential Investment Guidance Contents Firm and Mission LPL Financial: The Organization Institutional Wealth Management Process
  2. 2. Confidential Firm and Mission
  3. 3. ConfidentialFirm and Mission Our Mission Our Firm Client ServicesClient Services Our mission is to help determine the personal and financial needs of our clients and help manage those needs. The firm’s success is based on our client’s success. Our practice is run on full transparency, client involvement as well as advice being delivered in an intelligent, ethical, and proactive manner. We never lose sight of the importance of your trust and privacy. Understanding that each client’s goals and objectives are unique, we develop customized financial solutions for each client engagement. Established in 2010 our firm strives to provide clients with the highest level of integrity and client support. Through a thorough discovery process, we can uncover underlying concerns and anxieties of our clients and show them a plan to relieve those worries. Our ability to tap into the deep resources of LPL Financial as well as our network of attorney’s, CPA’s and other professionals enables us to address complex client issues. Our team of professionals deliver comprehensive wealth management services to our individual clients, institutions, and non-profit relationships. We specialize in issues dealing with asset management, investments, retirement planning, estate planning, business continuation planning and insurance. The list of financial concerns and considerations facing you today is seemingly endless and there are no easy answers. We are in the business of helping my clients address all their financial challenges. We do this by using a total wealth management approach. Each area is important individually, but managing them all collectively is one of the most important considerations in working towards the goal of your overall financial success. Our approach can help you invest conservatively, reduce your exposure to taxes, address your business and personal needs. We can help you develop a plan with goal of successfully transferring your wealth to your heirs and philanthropic interests. Among our financial offerings are the following: - Managed asset plans - for professional fee-based portfolio management through LPL Financial - Strategic Asset Management (SAM) - providing you with fee-based asset management through LPL Financial, a Registered Investment Adviser. Access to over 3,500 mutual funds, as well as individual stocks and bonds. - Portfolio Management Securities and Advisory Services offered through LPL Financial, Member FINRA/SIPC
  4. 4. ConfidentialYour Team Mr. D. Danard Smith President and CEO, LPL Financial, Owings Mills, MD Mr. Danard Smith had been in the investment industry for over 32 years serving in such capacities as Insurance Manager, Financial Advisor as well as Wealth Management Advisor. Mr. Smith is the President of the Owings Mills LPL Financial Office. As President, he directs the overall management, investment direction and supervision for the office. Prior to becoming an owner of a LPL office, Mr. Smith held senior advisor positions at such prestigious firms at Morgan Stanley, Citigroup, Smith Barney and Legg Mason. Mr. Smith’s specialties include: Retirement Planning, non-profit investments as well as Financial Planning. Mr. Smith is a graduate of William Penn University and holds FINRA series 7, 31, 63 and 65 licenses in addition to state Life, Health, Property, and Casualty licenses.
  5. 5. ConfidentialYour Team Mr. Keith A. Holmes Wealth Management Advisor Mr. Holmes has been in the investment industry for over 28 years. He has held several senior management positions within the securities industry as well State Government. Mr. Holmes is a Wealth Management Advisor for LPL Financial where he assists clients with retirement planning, college funding as well as management of foundation and retirement plan assets. Prior to joining LPL Financial, Mr. Holmes served as Deputy Director of the Maryland Industrial Development Financing Authority (MIDFA). In this role, he oversaw the development of economic development incentive proposals across the State of Maryland as well acted as an issuer of taxable and tax exempt municipal bonds. Mr. Holmes’ specialties include: Fixed Income Securities, Retirement Planning, and Institutional Investing. Prior to joining MIDFA Mr. Holmes held several roles as Financial Advisor, Investment Banker and Manager of Fixed Income for several Baltimore based securities firms. Through this mix of institutional as well as retail experiences, Mr. Holmes is uniquely qualified to handle many challenging client situations. Mr. Holmes is a graduate of Morgan State University and holds FINRA series 7, 63 and 65 licenses in addition to state Life and Health insurance licenses.
  6. 6. Confidential LPL Financial: The Organization
  7. 7. ConfidentialOur Independence,Your Advantage Our independence is built on a foundation of objective and unbiased financial guidance, allowing us to provide you with autonomy and support of your goals. Being a key decision-maker of an organization entails a great deal of responsibility—especially with respect to who you entrust to help maintain and grow these assets. We believe it’s necessary to develop a deep understanding of your core mission and offer personal service and unbiased strategies aligned with your complicated needs. This commitment to your best interests provides a strong foundation on which we can build a longstanding, trusted relationship and carefully guide you toward the goals you’ve established. We have the flexibility to offer your organization access to a wide range of nonproprietary products and services—without the obligation to sell any particular investment or brand—keeping our focus solely on your purpose and mission. Additionally, we’re supported by the resources of LPL, the nation’s largest independent broker/dealer.* With $485.4 billion in advisory and brokerage assets,** LPL has the scale to provide the technology and breadth of services to support the sophisticated and complex needs of organizations such as yours. LPL is a leading source of objective advice to help financial advisors provide accumulation and personal wealth management strategies. LPL Research is one of the largest, most experienced research groups among independent brokerage firms, comprised of seasoned and accomplished industry veterans. As your financial advocate, we leverage these valuable resources to prepare and deliver our best investment ideas designed exclusively to support your organization’s aspirations. * As reported by Financial Planning magazine, June 1996–2015, based on total revenue. **As of March 31, 2015
  8. 8. ConfidentialAccount Protection and Oversight Oversight The Private Trust Company, N.A., an affiliate of LPL, is a nondepository national banking association that’s regulated and reviewed by the Office of the Controller of the Currency (OCC). Account Protections LPL Financial Corporate Snapshot Following are highlights of key financial performance metrics for LPL Financial Holdings Inc. For complete financial information, including recent SEC filings, visit the Investor Relations section of www.lpl.com. Advisory & Brokerage Assets ($ billions) $475.6 Advisory Assets ($ billions) $187.2 Net Revenue ($ millions) $4,275.1 2014 Annual Net Revenue ($ millions) $4,373.7 Number of Financial Advisors 14,054 Number of Employees 3,382 Funded Accounts (millions) 4.6 Financial Institution Partners 760 Industry ranking by number of advisors* 5 * Based on publicly filed information as of December 31, 2015. ** The account protection applies when an SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments. Securities Investor Protection Corporation (SIPC) Insurance applies in the event that an SIPC member firm ails financially and is unable to meet obligations to securities clients, but it doesn’t protect against losses from the rise and fall in the market value of investments. LPL’s membership in SIPC provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be in cash.** For an explanatory brochure,visit www.sipc.org. Additionally, through London Insurers, LPL accounts have securities protection to cover the net equity of customer accounts up to an overall aggregate firm limit of $575 million, subject to conditions and limitations. Account Program deposits are eligible for up to $1.5 million of deposit insurance for individual and trust accounts and up to $3 million of deposit insurance for joint accounts, both through the FDIC.
  9. 9. ConfidentialInstitutional Investment Management Services High-Capacity Institutional Services at Your Advisors’ Fingertips Our firm is uniquely positioned to cater to your organization’s distinct financial needs. As your trusted financial advocate, we provide unbiased investment guidance and conflict-free institutional services in a truly independent manner. We bring together comprehensive resources and intellectual capital across LPL and its partner firms. Our vast resources are an extension of your advisors’ expertise and provide centralized access to specialized professionals who can offer advice and implementation strategies across the spectrum of institutional needs. LPL Research Fixed Income Investment & Planning Solutions The PrivateTrust Company LPL Insurance Associates Restricted Securities Retirement Partners INSTITUTIONAL INVESTMENT MANAGEMENT SERVICES Client
  10. 10. ConfidentialOur Resources Acting in a leadership capacity, Institutional Investment Management Services harnesses the full scope of intellectual capital from throughout LPL in support of your organization’s purpose and mission. Your team of resources includes: LPL Research: LPL Research’s mission is to be a trusted partner to our advisors who provide investors like you with choices to help meet your financial goals. In this endeavor, our goal is to provide stellar due diligence and investment management advice—as a partner for those advisors who manage client assets themselves, or as a portfolio manager for those advisors who want to leverage LPL Research’s experience. Fixed Income: With a deep understanding that fixed-income investments (bonds) play a major role in the portfolios of institutional clients, this unit specializes in the construction of portfolios with elements such as corporate and municipal bonds, foreign denominated debt, structured products, and certificates of deposits (CDs). Whatever the investment objective or purpose of funds might be, we have the expertise to craft suitable fixed income strategies. Investment Solutions: This team exists with the sole purpose of consulting with you on a personalized portfolio strategy using prudent investment platform and products. As the tides of the economy ebb and flow, this team is consistently proactive and forward thinking. The PrivateTrust Company: This wholly owned subsidiary and nationally chartered trust bank is deeply connected to the unique needs of high-net-worth clients and institutions. Comprised of experienced, knowledgeable, and professional administrators with backgrounds in law, accounting, banking, and tax, The Private Trust Company is dedicated to the administration of trusts and other family wealth arrangements such as family offices, businesses, and foundations. LPL Insurance Associates: As a general insurance agency and wholly owned subsidiary, we provide businesses and organizations with conflict-free strategies coupled with a broad range of products provided by the highest rated insurance carriers in the nation. Our concierge platform is designed to serve large client or impaired risk needs through personalized collaboration with underwriters of suitable insurance carriers. Restricted Securities: Many organizations offer stock-based compensation or rewards that are regulated by securities law. This specialized unit is experienced with crafting personalized execution and exercise strategies that encompass regulatory compliance and personal financial objectives. Retirement Partners: With advanced experience and knowledge in retirement plan design and implementation, this wholly owned subsidiary of LPL provides a turnkey solution for businesses looking to establish or modify an existing plan. Retirement Partners can be accessed during any stage of the retirement plan design process.
  11. 11. ConfidentialPerformance Reporting Comprehensive investment reporting specifically designed for affluent and institutional investors LPL Private Client performance reporting helps you stay on top of your investments and financial goals through a customized aggregation of all your investment accounts—regardless of where they’re held—including non- traditional investments such as private equity, hedge funds, partnership interests, and investment property. Accessible on any device, Private Client’s unique secure website allows you to easily: Review performance analytics relative to your investment-specific benchmark, including advanced portfolio statistics. View your asset allocation in real time relative to your target allocation. Access customized reports prepared by your advisor.
  12. 12. Confidential Institutional Investment Management Process
  13. 13. ConfidentialInstitutional Investment Management Process We believe if organizations follow a clear and disciplined investment process, they can benefit most in working toward their goals and objectives. Our comprehensive plan is implemented using a four-step process. Institutional Consulting We’re commited to helping clients who have responsibility for large pools of assets such as corporations, banking institutions, hospitals, private and public retirement plans, foundations, and endowments. Our consulting services include investment policy development, asset allocation, manager searches, and performance monitoring. All functions are focused on assisting organizations to fulfill their obligations. Our consulting services include: Assisting with the preparation of a written Investment Policy Statement Diversifying portfolio assets with regard to the risk/reward parameters defined in the Investment Policy Statement Incorporating the use of prudent experts to make investment decisions Monitoring the activities of all money managers and service providers Helping to avoid conflicts of interest and control expenses rocess. Analyze Build DetermineManage COMMUNICATION
  14. 14. ConfidentialInstitutional Investment Management Process (continued) Step 1: Analyze Goals and Current Portfolio We’re committed to helping clients who have responsibility for large pools of assets, such as hospitals, private and public retirement plans, foundations, and endowments. Our consulting services include investment policy developments, asset allocation, manager searches, and performance monitoring. All functions are focused on assisting organizations to fulfill their fiduciary obligations. Step 2: Determine Investment Policy and Asset Allocation A disciplined methodology is essential to create an effective investment policy and implement an efficient asset allocation strategy. Through extensive consultation with key members of your organization, we’ll develop or modify an Investment Policy Statement, outlining the duties of our combined efforts and establishing a basis for your organization’s investing future. Step 3: Build Portfolio We’ll take into consideration qualitative and quantitative factors, organizational review findings, and risk and performance measurements when selecting managers. The portfolio will then be built using institutional money managers. Step 4: Manage and Monitor Portfolio In conjunction with LPL Research, we’ll monitor the investment managers selected to implement your strategies. Performance reports are designed to help your organization evaluate your portfolio against its stated goals and objectives.
  15. 15. Confidential Step 1: Analyze Goals and Current Portfolio As part of our initial evaluation, we’ll interview appropriate members of your organization to gain an understanding of your specific needs, goals, and risk tolerance. We’ll analyze your current portfolio and then, with your input, develop a series of portfolio objectives and constraints. These objectives are reviewed annually, giving consideration to the economic climate and the portfolio performance. We believe the formulation of realistic investment objectives combined with the flexibility to make midcourse adjustments will, in the long run, assist your organization in addressing its goals and objectives. The investment analysis process is a continuous cycle.To add value to your portfolio, a thorough understanding of your unique needs and objectives is essential. Some investment professionals may be quick to make recommendations without a firm grasp of the client’s situation. Our approach is to listen to and learn from our clients before formulating appropriate courses of action.The process of carefully matching the asset classes, manager philosophy, and investment vehicles with your needs is the key to meeting objectives. We’ll evaluate the effects of asset class performance and asset allocation strategies on the total rate of return earned by various asset mixes within your organization’s objectives, policy guidelines, and constraints. Analyzealy Institutional Investment Management Process (continued)
  16. 16. Confidential Step 2: Determine Investment Policy Statement and Asset Allocation A disciplined methodology is essential to creating an effective investment policy and for implementing an efficient asset allocation strategy. We employ an ongoing dynamic process that starts by evaluating your organization’s specific expectations and objectives for your portfolio and continues by establishing procedures to regularly re-examine the Investment Policy Statement (IPS). After a thorough examination of your goals, we’ll assist you in creating an IPS to help you direct investment managers in working toward these goals. Depending on the type of organization, the IPS development may include, but is not limited to, an analysis and discussion of: Organization objectives Roles and responsibilities Time horizons Risk tolerance Performance expectations Asset allocation constraints Rebalancing policy guidelines Securities guidelines Duties of investment managers Monitoring and evaluation procedures One of the core elements of our relationship is to develop an asset allocation policy that will diversify portfolio assets consistent with the risk/return parameters defined in the IPS. Based on the results of our initial interview and questionnaire findings, we’ll work to create an asset allocation model for your organization.The asset class selection and percentage allocations reflect your risk/return profile. We’ll design an asset allocation plan tailored to your organization’s parameters.This goal-oriented process takes into account your cash flow and operating capital expenditure needs. We’ll determine the impact of various asset mixes on the portfolio’s total rate of return to remain consistent with your objectives and constraints. Through the use of various analytical tools and with assistance from LPL Research, we’ll use portfolio optimization and data analysis to make intelligent decisions regarding your portfolio’s allocation. Results of our asset allocation study include the interpretation of the expected risk and return conditions of your current portfolio and the exploration of the potential benefits of asset mix restructuring. Our goal is to optimize your expected returns while minimizing the overall portfolio variance within the constraints set forth in the investment policy. Your long-term performance expectations and funding requirements can be pursued through the implementation of a detailed investment policy, strategic asset allocation, careful investment manager selection, and ongoing due diligence. Institutional Investment Management Process (continued) Determinerm
  17. 17. Confidential Step 3: Build Portfolio The third step of the investment consulting process focuses on investment manager search, selection, and due diligence. The use of independent money managers meets the need to incorporate prudent experts to make investment decisions. This process is driven by your need for a specific type of manager. When a need is identified (e.g., a Small Cap Growth manager), a number of money managers are initially screened to uncover candidates for that asset class and style category. This screening is based on both the investment style descriptions, as offered by managers (qualitative), and on the style analysis performed by LPL Research analysts (quantitative). The pool of candidates is then reduced to a manageable number by eliminating from consideration managers lacking adequate track records and firms without the asset base to be considered viable. The remaining candidates are then subjected to closer scrutiny. Quantitatively, managers are compared to an appropriate benchmark and to each other. Managers must demonstrate a consistent record of closely tracking their benchmark under a variety of market conditions. Performance is evaluated on both an absolute and risk-adjusted basis. LPL Research analysts also subject those managers that appear best from a quantitative perspective to a rigorous qualitative analysis. Our goal is to safeguard clients from unethical practices or investment processes lacking rigor in definition or implementation. While we use investment performance in manager selection, we also focus on style analysis, relative performance, rolling statistical time frame analysis, attribution analysis, and organizational reviews to ensure that managers continue to add value with their investment decisions. Institutional Investment Management Process (continued) Builduild
  18. 18. Confidential Step 4: Manage and Monitor Portfolio The final step in the process is performance monitoring and reporting.Together with a full-time staff of dedicated LPL Research analysts, we’ll monitor your managers regularly, and review portfolio transactions and asset allocation performance.To help keep your portfolio in line, we apply a management and monitoring process that includes: Insightful Planning Asset/liability and spending policy modeling Investment Policy Statement development Asset allocation (strategic and tactical analysis) Portfolio and manager structure Diligent Evaluation and Analysis Continual asset/liability spending policy analysis Investment Policy Statement review Proactive, comprehensive communication Performance evaluation by total fund, asset class, and investment manager Evaluation of special investment products Evaluation of changes in investment trends Prudent Implementation Determine investment policy mandates Conduct manager research and selection process Use of the LPL investment platform to access managers at reduced fees A Straightforward Fee Schedule Complete disclosure of all fees is essential. Consequently, all services are offered within an all-inclusive asset-based fee schedule. Our asset-based fee helps ensure our objectives are aligned with our clients’—prudently growing assets with no concern for billing hours or commissions on product sales. You’ll receive a detailed performance report for each individual account as well as a composite report for the entire portfolio. Outlined in the report will be: Portfolio Summary and Changes Portfolio Appraisal Lists each asset currently held in the account, including purchases and transactions Realized Gains and Losses Full reporting of assets liquidated Interest, Dividends, and Expenses Full reporting of all activity by dollar amount Performance History By quarter, year-to-date, inception-to-date, and benchmark constraints Consolidated Statement Links all accounts together and summarizes the market value for each type of security held in the account and at what percentage Institutional Investment Management Process (continued) ManageManag
  19. 19. Confidential Mr. D. Danard Smith is a registered representative with, and securities and advisory services offered through, LPL Financial, a registered investment advisor, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

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