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. 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.
5. 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.
6. ConfidentialYour Team
Lisa Smallwood-Hurtt
Administrative Assistant
Ms. Smallwood-Hurtt has been in the investment industry for over 8 years. She provides administrative support for the
professionals in the office. Ms. Smallwood-Hurtt has extensive experience in back-office operations which makes client
transitions to LPL a very smooth experience.
Prior to joining LPL, Ms. Smallwood-Hurtt was a securities transfer agent for Legg Mason of Baltimore.
Ms. Smallwood Hurtt is a graduate of Morgan State University.
8. 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 $485.4 billion in advisory
and brokerage assets,** LPL has the scale to provide the technology
and breadth of services to support the sophisticated and complex
needs of organizations such as yours.
LPL is a leading source of objective advice to help financial advisors
provide accumulation and personal wealth management strategies.
LPL Research is one of the largest, most experienced research
groups among independent brokerage firms, comprised of seasoned
and accomplished industry veterans.
As your financial advocate, we leverage these valuable resources to
prepare and deliver our best investment ideas designed exclusively to
support your organization’s aspirations.
* As reported by Financial Planning magazine, June 1996–2015, based on total revenue.
**As of March 31, 2015
9. ConfidentialAccount Protection and Oversight
Oversight
The Private Trust Company, N.A., an affiliate of LPL, is a nondepository
national banking association that’s regulated and reviewed by the
Office of the Controller of the Currency (OCC).
Account Protections
LPL Financial Corporate Snapshot
Following are highlights of key financial performance metrics for
LPL Financial Holdings Inc. For complete financial information,
including recent SEC filings, visit the Investor Relations section
of www.lpl.com.
Advisory & Brokerage Assets ($ 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.
10. 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
11. 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.
12. 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.
14. 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
15. 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.
16. 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)
17. 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
18. 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
19. 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
20. Confidential
Keith A. Holmes 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.
