Grow Your Prosperity - The Prosperity Consulting Group, LLC
The Signature Advisory Account Process
1. N o rt h W e St e r N Mu t uA L
Your GoALS. Your Future.
Your ChoiCe.
61-1077 (0506) (REV 0209)
2. the MiSSioN oF
the NorthWeSterN MutuAL FiNANCiAL NetWork
is to develop enduring relationships with our clients by providing expert
guidance for a lifetime of financial security. “Financial Security”
means bringing to our clients a feeling of confidence that they will
realize their financial goals through the actions they are taking
today; actions that are based upon a process that examines both
risk protection and wealth accumulation needs. it is an integral
part of our investment philosophy.
3. OU R VISION OF FINA N CIA l S eCURITY
At the Northwestern Mutual Wealth Management Company, Confidence also comes from having the right tools, resources,
we view investing through a lens that focuses on your financial and investment programs available to help you accomplish your
security. Investing for financial security is about working with a financial goals. The Northwestern Mutual Signature Choice
trusted advisor who gives you confidence that your personal goals, program is built on strong beliefs in investment fundamentals and
dreams, and needs can be fulfilled. That kind of confidence cannot the flexibility to establish an investment strategy that is tailored
be found by working with just anyone. It comes from working to you. Your Wealth Management Advisor will take you through
with a Northwestern Mutual Wealth Management Advisor. Your the process of determining your financial profile, developing an
Northwestern Mutual Wealth Management Advisor is committed appropriate asset allocation, and constructing a personalized
to developing an enduring relationship with you by providing investment policy statement. That’s just the beginning ... your Wealth
expert guidance for a lifetime of financial security. Management Advisor will continually monitor your situation and
accounts and meet with you regularly to help keep your long-term
financial goals in focus. This kind of approach helps you feel that
you’ve done what you can to help manage your risk and strengthen
your feeling of financial security. It’s what you expect from a
company that carries the Northwestern Mutual name.
4. THE SIGNATURE ADV I S O RY P RO C E S S
Our Wealth Management Advisors appreciate that careful
planning today is essential to reach your goals for tomorrow. They
are professionals who often hold advanced degrees in business,
law, and accounting, as well as industry-recognized certifications
including: Review
and Monitor
• Certified Financial Planner™ Identify
• Chartered Financial Consultant Goals
Our advisors understand the complexity of issues faced by
individuals like you and the importance of following a sound
THE
SIGNATURE
process. Your advisor will act in your best interests by following a
ADVISORY
comprehensive process not just at the time of sale, but throughout
PROCESS
your relationship, working with you to meet your long-term goals.
Select
Investments
Create Personalized
Investment Policy
Statement
5. Identify Goals – Your advisor will guide you through a
comprehensive financial profile that will help determine your time
horizon, potential income needs, risk tolerance, and your attitudes
toward investing.
Create Personalized Investment Policy Statement – Based on the
information gained from your financial profile, your advisor will
determine an appropriate asset allocation strategy. This strategy
is formalized through an Investment Policy Statement that helps
provide the discipline to follow your investment plan and make
decisions free from emotion.
Select Investments – Choose from a wide variety of investment
options such as mutual funds, exchange-traded funds, stocks, and
fixed income securities to complete your asset allocation.
Review and Monitor – Advanced account servicing tools help your
advisor analyze whether your account remains in line with your
Investment Policy Statement. Your advisor will meet with you
periodically to review any significant changes to your personal or
financial situation and help determine whether these changes will
require any repositioning of your portfolio.
6. IS THE SIGNATURE CHOICE PROGRAM RIGHT FOR YOU?
Are you seeking a personalized investment process, diversified • Is it important for you to be involved in the development of
investment portfolio, access to a variety of investment options, your investment strategy and the decisions regarding your
and ongoing consultation with a professional financial advisor? account holdings?
If you are, then the Signature Choice program may be right for you.
Ask yourself these questions: • Do you want access to a wide variety of investment options
including mutual funds, exchange-traded funds, stocks, and
• Do you have a significant amount of investable assets? fixed income securities?
• Do you have a moderate to long-term investment horizon of at Answering “Yes” to some or all of these questions suggests that
least five years? you may benefit from the Northwestern Mutual Signature Choice
program.
• Do you want to work with a professional financial advisor who
will guide you in the development of an investment strategy?
7.
8. Th e SIgNATURe ChO ICe A dVA N TAg e
The Signature Choice program is about having choices. Multiple Investment Options – A wide range of eligible
mutual funds, exchange-traded funds, stocks, and fixed income
• A choice to entrust your financial future with a company securities is available to help complete your asset allocation.
that shares your values.
Independent & Proprietary Research – Your Wealth
• A choice to work with a trusted advisor to manage your Management Advisor has access to third-party, professional
investments. investment research and ongoing monitoring from Morningstar
Associates, a wholly owned subsidiary of Morningstar, Inc., a
• A choice to participate in a personalized investment process.
leading global investment research firm. The Northwestern Mutual
• A choice to invest in a program with a wide array of quality Wealth Management Company may also review and recommend
investment options. funds independent of Morningstar Associates’ process.
The Signature Choice program offers: Multiple Account Management – The multiple account
management feature allows for two or more accounts that share
Professional Investment Advice – You’re not alone. Your a common goal (such as retirement or education) to be managed
Wealth Management Advisor will become your partner in together to a common asset allocation.
identifying and prioritizing your financial needs and investment
objectives. Your advisor will help you develop an investment
strategy, implement your plan, monitor your portfolio’s
progress, and keep you informed through periodic meetings and
detailed performance reporting.
9. Comprehensive Reporting – You will receive detailed reporting
on your account including:
• Quarterly account statements (monthly, if there is activity in
the account)
- Current value of holdings
- detailed trading activity (buys, sells, dividends, and
reinvestments)
• Quarterly Performance Reporting
- Your portfolio’s current asset allocation
- Your portfolio’s performance versus benchmark goals
Flexible Fee Payment – Signature Choice is a fee-based account in
which you pay a quarterly fee, based on the value of your assets,
rather than a commission. Your fee will be deducted from the
money market position within your account. If you have multiple
Signature program accounts, you can designate one account to pay
the fees for all accounts in the Signature programs*.
NMIS Gateway™ Platinum/ProCash Plus™ – You are eligible
to open a separate NMIS Gateway Platinum or ProCash
Plus account, free of charge, through our brokerage firm,
Northwestern Mutual Investment Services, llC (NMIS). The
NMIS Gateway Platinum and ProCash Plus programs allow
you to have unlimited checkwriting, direct deposit, and other
account features and benefits on a separate brokerage account
outside the Signature Choice program.* The NMIS gateway
Platinum account also offers an awards program and debit card.
*Certain rules and restrictions apply.
10. Th e BleNd OF RISk & ReT URN Th AT ’ S RIg h T FO R YO U
Signature Choice is a flexible program that allows your advisor The eFFICIeNT FRONTIeR
to create a custom portfolio of mutual funds, exchange-traded The goal of asset allocation is to produce an “efficient
funds, stocks, and fixed income securities to help you meet your portfolio,” one in which your expected return is maximized at
personal investment goals. Your portfolio will be built around a given risk level – or – your risk is minimized at a given return
an asset allocation strategy that aligns with your goals, tolerance level. If all the “efficient portfolios” for a set of investment
for risk, and time frame. alternatives at given levels of risk are joined together, they form
an “efficient frontier.”
Asset allocation is the process of diversifying your portfolio
among various asset classes, such as stocks, bonds, and cash The associated chart depicts an efficient frontier. each portfolio
alternatives. These asset classes can be further divided into along the efficient frontier represents the most efficient
various sub-classes. different asset classes have historically combination of asset classes, on the basis of risk and return. Any
responded differently to economic activity and market trends. restrictions or customization to your portfolio could move your
Varying combinations of asset classes within an account may asset allocation away from the efficient frontier – potentially
help provide investors with a balance between expected risks causing higher risk and lower returns.
and expected returns that are most appropriate for them.
The Northwestern Mutual Signature Choice program
recommends portfolio asset allocations that are based upon
an efficient frontier. Your Wealth Management Advisor will
help you create an efficient asset allocation and recommend a
combination of investment vehicles that are appropriate for
your situation.
12. SI gNATURe ReSeARCh M eTh O d O lO g Y
Independent and reliable investment research and analysis is Mutual fund selections. Morningstar Associates and the
critical in helping you and your Wealth Management Advisor Northwestern Mutual Wealth Management Company have
make important investment decisions. The Signature Choice developed a quantitative and qualitative evaluation methodology
program brings together both independent and proprietary that looks to identify mutual funds that satisfy a number of
investment research to help you make more informed return, style, and expense characteristics.
investment choices. Morningstar Associates provides independent investment
Morningstar-recommended stocks. Stocks eligible for the research and ongoing analysis for certain mutual fund options
Signature Choice program are followed by Morningstar, Inc. available within the Signature Choice program. The chart on
Only those stocks meeting specific criteria may be recommended the following page illustrates the four-step process used to
for a Signature Choice account. The Northwestern Mutual evaluate and select these funds.
Wealth Management Company oversees Morningstar’s Certain investment options in the Signature Choice program
maintenance of this group of stocks. Recommendations for a are monitored by the Northwestern Mutual Wealth
specific security are made only after reviewing a client’s specific Management Company’s Investment Committee based on
situation. mutual fund research and due diligence guidelines developed by
Northwestern Mutual Wealth Management Company. Russell
Diversification of individual fixed income securities. If you Investments mutual funds, exchange-traded funds, and some
choose, your Wealth Management Advisor can work with you index mutual funds are included in the program as a result of
to recommend a diversified fixed income allocation for your this process.
portfolio. The allocation may include a combination of investment
grade bonds, municipal bonds, U.S. Treasuries, Cds, or preferred The research and analysis used to select investment options for
stock. Your advisor will provide ongoing monitoring of these the program, combined with the expert guidance of your Wealth
securities if they are included in your Signature Choice account. Management Advisor, helps you rest easy knowing that you have
an experienced investment team working with you.
Russell funds are advised by an affiliate of Northwestern Mutual. Certain securities within the Signature Choice program, including Russell funds, do not undergo the same screening and
ongoing quantitative analysis applied to investments evaluated by Morningstar Associates.
13. MUTUAL FUND FAMILY
ChOICeS
ReSeARCh MeThODOLOGY FOR MUTUAL FUND eVALUATION AND SeLeCTION The Signature Choice program
gives you access to the expertise
of some of the most respected O
investment management
QUANTITATIVe ANALYSIS
Fund Scoring System: companies. Below is a sampling of
Me
QUANTITATIVe
ONGOING MONITORING ANALYSIS • Risk & return some of the fund families available
Seek to identify possible style • Manager tenure
drift, performance concerns, in the Signature Choice program:
• Peer group comparison
or funds that require further
qualitative analysis • Performance consistency AllianceBernstein Investments
• Expenses
PIMCO Funds
ONGOING American Century Investments®
MONITORING CLIENT
PORTFOLIO QUALITATIVe American Funds®
ANALYSIS
Fidelity® Advisor Funds
Franklin Templeton Investments
QUALITATIVe ANALYSIS
“Top-down” process:
PORTFOLIO BUILDING MFS Investment Management®
• Evaluate manager performance
“Bottom-up” Process:
• Turnover Russell Investments
• Assess how well funds work PORTFOLIO
together in a portfolio BUILDING • Portfolio concentration
• Style or market cap drift Vanguard® Funds
• Determine overall correlation of
managers and its effects on risk • Sector bets/market timing
Fund family availability subject to change.
14. MA kIN g The RIghT C hO I CeS SIGNATURe PROGRAMS
MA ke S All T he dIF Fe ReN C e Clients with significant investable assets often
require more tailored investment services and
therefore may benefit from the level of professional
Signature Choice is a program offered by the Northwestern advice and personal service that is available through
Mutual Wealth Management Company, which is a wholly owned our Signature programs:
subsidiary of The Northwestern Mutual life Insurance Company
(Northwestern Mutual). Signature Annuities is an investment advisory
program that combines the benefits of a tax-deferred
For 25 years, a FORTUNe® Magazine survey has named
variable annuity with the expert guidance and personal
Northwestern Mutual “America’s most admired” life insurance
service of a financial advisor.
company. What’s more, Northwestern Mutual’s well-earned
reputation is based on its financial strength, its long-standing Signature Portfolios is an advisory mutual fund
commitment to the principles of mutuality, and its history of
wrap solution. It utilizes select mutual funds and/or
consistently delivering long-term value to its policyowners.
exchange-traded funds to construct comprehensive,
Northwestern Mutual maintained the highest available ratings for
fully diversified investment portfolios. The one-stop
financial strength from all four major rating agencies.*
solution gives you access to personalized asset
Talk to your Northwestern Mutual Wealth Management Advisor allocation, world-class fund management, and
today to learn more about Signature Choice and other products systematic portfolio rebalancing.
and services. Before opening a Signature Choice account, review
the information contained in the Northwestern Mutual Signature Signature Managed Accounts is an investment
Choice Program Disclosure Brochure. You will also need to agree advisory program that provides investors access
to the terms of the Northwestern Mutual Signature Choice Client to third-party asset management and specialized
Agreement. We look forward to having an opportunity to help you portfolio managers to create a highly customized
pursue your financial goals. investment portfolio of individual securities.
* These third-party ratings are a measure of an insurance company’s financial strength
and do not apply to the performance of any investments in the Signature Choice
program. Investments in the Signature Choice program are not guaranteed, and
their value can be less than your original investment.
15.
16. This brochure is intended to provide general information and is for educational purposes only. This is not intended to provide legal or tax advice.
Please consult your legal or tax professional for specific information.
Investment products and trust services are not insured by the FDIC, are not deposits or other obligations of or guaranteed by Northwestern Mutual
Wealth Management Company® or its affiliates and are subject to investment risks, including possible loss of the principal amount invested.
You should carefully consider the investment objectives, risks, expenses, and charges of the investment company before
you invest. Your financial advisor can provide you with a fund prospectus that will contain the information noted within this
brochure, and other important information that you should read carefully before you invest or send money.
The Northwestern Mutual Signature Choice program is an advisory program offered by Northwestern Mutual Wealth Management Company, a
wholly owned company of The Northwestern Mutual Life Insurance Company (NM) and limited purpose federal savings bank. NM does not
guarantee or insure the account’s performance or investments made in the account and is not responsible for the investment advice given.
Morningstar Associates, LLC is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Associates provides fund
selection and investment monitoring and analysis services to Northwestern Mutual Wealth Management Company, but is not serving in the capacity of
investment advisor to individual investors. Morningstar Associates is not affiliated with Northwestern Mutual Wealth Management Company or its affiliates.
Russell Investment Group is a Washington USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a
subsidiary of The Northwestern Mutual Life Insurance Company.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered
CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements.
Northwestern Mutual Financial Network (NMFN) is the marketing name for the sales and distribution arm of NM and its affiliates and subsidiaries.
Securities are offered through Northwestern Mutual Investment Services, LLC (NMIS), member FINRA and SIPC, a wholly owned subsidiary of the
Northwestern Mutual Life Insurance Company, and a dually registered broker-dealer and investment adviser.
Northwestern Mutual Wealth Management Company®
Milwaukee, WI
61-1077 (0506) (REV 0209)
www.nmwealthmanagement.com