INVESTMENT POLICY STATEMENT. Prepared For: On: 05/01/2014

Transcription

1 INVESTMENT POLICY STATEMENT Prepared For: IRA Rollover On: 05/01/2014 Advisor Information: Sample Advisor, 353 Peach Street, Suite 101, Atlanta, GA Ph: (800)

2 Account Name: Type of Account: IRA Rollover Tax Status: Qualified Current Assets to Invest: $500, Approximate Investable Net Worth: $500, Approximate Total Net Worth: $100, Investment Time Horizon: More than 15 years Accredited Investor: No Investment Objective: Moderate Growth Relationship Manager: Sample Advisor The purpose of this Investment Policy Statement is to assist the Client and Advisor in effectively supervising, monitoring, and evaluating the investment of the Client's portfolio. The Client's investment program is defined in the various sections of the investment policy by: Stating in a written document the Client's attitudes, expectations, objectives, and guidelines for the investment of all assets. Setting forth an investment structure for managing the Client's portfolio. This structure includes various asset classes, investment management styles, asset allocation and acceptable ranges that, in total, seek to produce an appropriate level of overall diversification and total investment return over the investment time horizon Encouraging effective communications between the Client, his/her advisor, and the Client's other advisors. Establishing formal criteria to select, monitor, evaluate and compare the performance of sub-managers on a regular basis. Controlling and account for all investment expenses. Monitoring and supervise all service vendors and all investment options. Avoiding prohibited transactions and conflicts of interest. Complying with all applicable fiduciary, prudence and due diligence requirements experienced investment professionals would utilize, and with all applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Client's assets.

3 BACKGROUND The Investment Policy Statement has been prepared for. The assets covered by this Invesment Policy Statement currently total $500, in market value, but the Client's net worth is estimated to be $100, DUTIES & RESPONSIBILITIES The Advisor is responsible for: Assisting the Client in making an appropriate asset allocation decision based on the particular needs, objectives, and risk profile of the Client. Reviewing this Investment Policy Statement with the Client at least annually to determine whether stated investment objectives are still relevent. Communicating any changes in this Investment Policy Statement in writing on a timely basis to all interested parties. Being available to meet as requested. The Sub-Manager is responsible for: Managing the assets under their supervision in accordance with the guidelines and objectives outlined in their respective Service Agreements, Prospectus, or Trust Agreement. Exercising full investment discretion with regards to buying, managing, and selling assets held in the portfolios. Lindner Capital Advisors is responsible for: Serving as the platform manager and operating the technology on which the program assets exist; Makes sub-manager portfolios available for investment selection. Providing sufficient asset classes with different expected return/volitality profiles so that the Client can prudently diversify the portfolio. Providing and maintaining the Investment Portfolios. Completing due diligence on available sub-managers. Rebalancing the Portfolios upon discretion. Preparing and presenting appropriate reports. The Custodian is responsible for: Maintaining separate accounts by legal registration. Valuing the holdings. Collecting all income and dividends owed to the Portfolio.

4 Selling all transactions (buy-sell orders) initiated by the Advisor. Providing monthly reports that detail transactions, cash flows, securities held and their current value, and change in value of each security and overall portfolio since the previous report. The Client is responsible for: Providing the Advisor with all relevent information on their financial condition, net worth, and risk tolerance. Notifying the Advisor promptly of any changes to this information. Understanding the information contained in this Investment Policy Statement and the prospectus of each investment in the portfolio. INVESTMENT MANAGER SELECTION The Platform Manager will apply the following due diligence criteria in selecting each Sub-Manager or mutual fund. Each sub-manager should be a regulated bank, an insurance company, a mutual fund organization, or a registered investment advisor. The product should be highly correlated to the asset class. This is one of the most critical parts of the analysis since most of the remaining due diligence involves comparisons of the manager to the appropriate peer group. The product's performance should be evaluated against the peer group's median manager return, for 1-, 3- and 5-year cumulative periods. The product's risk-adjusted performance (Alpha and/or Sharpe Ratio) should be evaluated against the peer group's median manager's riskadjusted performance. The product's inception date should be greater than three years. The product should have at least $150 million under management. The screened product should have no more than 10% of the portfolio invested in "unrelated" asset class securities. For example, a Large-Cap Growth product should not hold more than 10% in cash, fixed income, and/or internationl securities. The product's fees should be in the top deciles (least expensive) of their peer group. There should be no perceived organizational problems - the same portfolio management team should be in place for at least two years. CONTROL PROCEDURES The Client acknowledges fluctuating rates of return characterize the securities markets, particularly during short-term time periods. Recognizing that short-term fluctuations may cause variations in performance, Advisors intend to evaluate manager performance from a long-term perspective. The Client is aware the ongoing review and analysis of the sub-managers is just as important as the due diligence implemented during the manager selection process. The performance of the sub-managers will be monitored on an ongoing basis. On a timely basis, but not less than quarterly, Platform Manager will evaluate each manager for conformity to the search criteria outlined in the previous section.

5 A sub-manager may be placed on a watch list and a thorough review and analysis of the sub-manager may be conducted, when he fails to conform to the search criteria outlined in the previous section. RISK CONSIDERATIONS Asset Allocation cannot eliminate the risk of fluctuating prices or uncertain returns. Diversification does not assure a profit or guarantee against loss. Investing involves risk, including the potential for loss of principal. Past performance does not guarantee future performance. There is no guarantee that the client's investment objectives will be achieved.

6 IMPLEMENTATION Your individual portfolio allocation is based on our analysis of your individual risk tolerance and time horizon. This is your initial allocation. Your actual allocation will change to take advantage of asset class performance and risk management strategies to help you achieve and preserve your capital goals. Registration:, IRA Rollover Account: LCA Retirement TD Ameritrade Portfolio Allocation Class Percent Market Value DFA US Core I Large Blend (LB) 22.00% $110, Angel Oak Multistrat Income Instl Strategic Income Bond (SIB) 18.00% $90, DFA Five Year Global Fixed Income World Bond (WB) 15.00% $75, DFA US Targeted Value Small Value (SV) 14.00% $70, DFA Intl Core Equity Foreign Small/Mid Value (FSMV) 10.00% $50, DFA Emerging Markets Core Equity Diversified Emerging Mkts (DEN) 4.00% $20, DFA Intl Value Foreign Large Value (FLV) 4.00% $20, DFA US Large Cap Value Large Value (LV) 4.00% $20, DFA Intl Small Company Foreign Small/Mid Value (FSMV) 3.00% $15, DFA Intl Real Estate Secs Specialty-Real Estate (SPRE) 2.00% $10, DFA Real Estate Secs Specialty-Real Estate (SPRE) 2.00% $10, TDAM Money Market Inv Cash (CASH) 2.00% $10, Total: 100.0% $500,000.00