The Fort Dearborn Group at Morgan Stanley Chicago, IL

Transcription

1 The Fort Dearborn Group at Morgan Stanley Chicago, IL Income Focused Offerings Fixed Income Rotation Fixed Income Rotation + Alternatives Tax Free Bond Portfolio Taxable Bond Portfolio Short Term Taxable Limited Term Tax Free Floating Rate MLP Income Dividend Income Capital Appreciation Growth & Income Strategic Enhanced Income Wealth Accumulation Offerings Strategic Moderate U.S. Sector Rotation Strategic U.S. Small Cap Strategic International Country Rotation Strategic Growth & Income Moderate U.S. Sector Rotation Moderate U.S. Small Cap Moderate Dynamic Allocation + US Dynamic Allocation Diversified International Country Rotation Moderate Commodity Rotation Currency Rotation Global Allocation U.S. Sector Rotation Tactical Fort Dearborn Balanced Long / Short Tactical Dynamic Allocation Core Asset Classes Dynamic Allocation

2 Brian Kasal William Ross Brendan Connolly Senior Vice President Financial Advisor Financial Advisor Financial Advisor Portfolio Manager Portfolio Manager Portfolio Management Director CERTIFIED FINANANCIAL PLANNER 70 West Madison Chicago, IL P F Toll Free Morgan Stanley Smith Barney LLC. Member SIPC

3 What is Portfolio Management? As a Portfolio Management team at Morgan Stanley, we are able to manage portfolios for our clients on a fee based discretionary basis. What investment approach is used to create and manage these portfolios? We use a relative strength based approach that focuses on emphasizing asset classes and sectors that are demonstrating superior relative strength while trying to avoid those areas which are displaying weaker relative strength. Which Strategy is appropriate for me? While all of our models are relative strength based, we work with each of our clients to select the specific portfolios which we believe is appropriate for their individual goals and risk tolerance.

4 Income Focused Portfolios Taxable Bond Portfolio A Portfolio of taxable bonds customized to meet each individual client s needs. These portfolios can be constructed using individual bonds or vehicles such as exchange traded funds (ETF s) to help achieve the client s goals. Tax Free Bond Portfolio A Portfolio focused on tax free income. Primarily going to be focused on municipal issuers and the benefits of tax free income. Some exchange traded funds can be used to help achieve the client s desired goals. Fixed Income Rotation Model A single diversified portfolio that focuses on relative strength to identify which sectors of the bond market to focus on. At any given time we will use exchange traded funds (ETF s) to have focus on the relative strength strongest areas of the fixed income markets. Fixed Income Rotation + Alternatives This strategy combines the Fixed Income Rotation Model with a segment focused on non-core alternative income sources such as Limited Partnerships, Preferred Stocks, Real Estate Investment Trusts, and Dividend Focused stocks. Through the use of exchange traded funds we are able to construct a diversified portfolio of securities with the goal of potentially earning an above average yield.

5 Income Focused Portfolios Short Term Taxable A portfolio that focuses on relative strength to identify areas within the short duration bond universe offers superior returns. In addition to adding incremental yield, a central focus of the portfolio is on principle protection. MLP Income The MLP Income portfolio utilizes relative strength to identify a portfolio of holdings focused on Master Limited Partnerships and related securities. At any given time we will use exchange traded funds (ETF s), closed end funds and open end funds to have focus on the relative strength strongest areas of the MLP markets. Limited Term Tax Free A portfolio that focuses on the limited term tax free bond universe. In addition to adding incremental yield, a central focus of the portfolio is on principle protection. Floating Rate The Floating Rate fund seeks to achieve returns by investing in the income securities offering a variable return, This is achieved through investments in open end funds, closed end funds and exchange traded securities.

6 U.S. Equity Focused Models Dividend Income A diversified portfolio that focuses on relative strength to identify the strongest segments of equity universe with a focus on dividend income. The universe is selected based upon a history of providing strong dividend growth and payout. Growth & Income Sector Rotation based relative Strength Model with an emphasis on dividend income as a portion of total return. Seeks to achieve returns by weighting portfolios towards relative strength strong sectors of the U.S. markets while underweighting the relative strength laggards. Capital Appreciation Individual security based portfolio with an emphasis on growing capital. Focus is on sector weightings to help manage risk exposure and focusing on individual security selection. Enhanced Income A focused portfolio of individual equities that possess a strong dividend history. To further enhance income, covered calls are written to both provide downside protection and enhance yield. U.S. Sector Rotation Sector Rotation based relative Strength Model. Seeks to achieve returns by weighting portfolios towards relative strength strong sectors of the U.S. markets while underweighting the relative strength laggards. Has a defensive mechanism in place to move a portion of the portfolio into cash if the model and asset class begins to display weak relative strength. U.S. Small Cap Sector Rotation based relative Strength Model. Seeks to achieve returns by weighting portfolios towards relative strength strong sectors of the U.S. Small Cap markets while underweighting the relative strength laggards

7 International / Global Equity Focused Models International Country Rotation Relative Strength model that diversifies assets on a country, regional and market segment level in non-u.s. Equities as appropriate. Global Allocation Geographically diversified relative strength model that seeks to achieve superior returns through relative strength based analysis. Alternative Asset Focused ETF Models Commodity Rotation A pure relative strength model portfolio that provides investors with a basket of commodities. Exchange Traded funds are selected based upon relative strength. Currency Rotation A relative strength based portfolio comprised of a basket of currency ETF s from around the world.

8 Multi-Asset Class ETF Models Dynamic Allocation Portfolio A relative strength based strategy that focuses on emphasizing the two relative strength strongest asset classes between Domestic equities, International Equities, Commodities, Currencies, Fixed Income and cash. Once the two asset classes are identified they enter the portfolio as long as they are also relative strength positive versus cash. Within each asset class we also apply relative strength so that the relative strength strongest sectors within the asset classes represented. Dynamic Allocation Core Asset Classes A relative strength based strategy that focuses on emphasizing the two relative strength strongest asset classes amongst the core asset classes of Domestic equities, International Equities, Fixed Income and cash. Once the two asset classes are identified they enter the portfolio as long as they are also relative strength positive versus cash. Within each asset class we also apply relative strength so that the relative strength strongest sectors within the asset classes represented. Dynamic Allocation Diversified The Dynamic Allocation Diversified portfolio maintains a small base representation in three asset classes: Domestic Equity, International Equity, and Fixed Income. A tactical weighting based upon relative strength is made to the two relative strength strongest asset classes between Domestic equities, International Equities, Commodities, Currencies, cash and Fixed Income. Ft. Dearborn Balanced Long/Short Portfolio A balanced portfolio of different asset classes based on relative strength with a mandate to be long or short depending on the conditions of the market.

9 A word about the risks of the eligible investments/asset classes that maybe used in these strategies International Investing: International investing involves risks not associated with domestic investing, including political, economic, currency and liquidity risks as well as differences in accounting and limited available information. These Risks may be magnified in emerging markets. Equities: Investors should be willing and able to assume the risks of equity investing. The value of a client s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in which securities the portfolio holds. Small Cap Companies: Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Sectors: Portfolios that invest primarily in securities of companies in one industry or sector are subject to greater price fluctuation and volatility than portfolios that invest in a more broadly, diversified portfolio. Fixed Income: All fixed income securities are subject to market risk and interest rate risk. If fixed income securities are sold in the secondary market prior to maturity, an investor may experience a gain or loss depending on the level of interest rates, market conditions and the credit quality of the issuer. Equity Mutual Funds: The value of a fund s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in whose securities the fund invests. Exchange Traded Funds: An investment in an exchange-traded fund (ETF) involves risks similar to those of investing in a broadly based portfolio of equity securities traded on exchange in the relevant securities market, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock prices. The investment return and principal value of ETF investments will fluctuate, so that an investor s ETF shares (creation units), if or when sold, may be worth more or less than the original cost. Real Estate Investment Trusts: REITs investing risks are similar to those associated with direct investments in real estate; lack of liquidity, limited diversification, and sensitivity to economic factors such as interest rate changes and market recessions. Commodities: The commodities markets may fluctuate widely based on a variety of factors including, but not limited to, changes in supply and demand relationships; governmental programs and policies; national and international political and economic events, war and terrorist events; changes in interest and exchange rates; trading activities in commodities and related contracts; pestilence, technological change and weather; and, the price volatility of a commodity. Investing in physical commodities, such as gold and silver, exposes the Fund to other risk considerations such as potentially severe price fluctuations over short periods of time and storage costs that exceed the custodial and/or brokerage costs associated with the Fund s other portfolio holdings. Emerging Markets: Investing in the securities of such companies and countries involves certain consideration not usually associated with investing in developed countries, including political and economic situations and instability, adverse diplomatic developments, price volatility, lack of liquidity and fluctuations in the currency exchange. Asset Allocation: Asset Allocation does not assure a profit or protect against loss in declining financial markets.

10 Disclosures & Important Information: These materials were prepared by Morgan Stanley LLC for discussion only with the prospective investor to whom they are given. These may not be distributed to any person without the prior written consent of Morgan Stanley. These materials are for informational and discussion purposes only. Actual holdings will vary depending on the size of an account, cash flows within an account, and restrictions on an account. Portfolio holdings are subject to change daily. Morgan Stanley investment advisory programs require a minimum asset level and depending upon your specific investment objectives and financial position may not be suitable for all investors. This material and the applicable Morgan Stanley LLC Disclosure Document should be thoroughly reviewed for a description of the terms of any particular investments and the material risks associated with it prior to making any investment decision. Legal, accounting and tax restrictions, transaction costs and changes to assumptions may significantly affect the economics and results of portfolio transactions or investments. The information and analyses contained herein are not intended as and should not be construed to be investment, tax or legal advice. Neither Morgan Stanley, nor its employees provide tax or legal advice. Clients must speak with their personal tax advisor and attorney regarding their specific circumstances. The Investment Management Services of Morgan Stanley and investment vehicles managed by Morgan Stanley or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above-market returns exposes the portfolio to above-average risk. Performance aspirations are not guaranteed and are subject to market conditions. High volatility investments may be subject to sudden and large falls in value, and there could be a large loss on realization which could be equal to the amount invested. This material is intended only for clients and prospective clients of the Portfolio Management program. It has been prepared solely for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument, or to participate in any trading strategy. The individuals mentioned as the Portfolio Management Team are Financial Advisors with Morgan Stanley participating in the Morgan Stanley Portfolio Management program. The Portfolio Management program is an investment advisory program in which the client's Financial Advisor invests the client's assets on a discretionary basis in a range of securities. The Portfolio Management program is described in the applicable Morgan Stanley ADV Part 2, available at or from your Financial Advisor. Past performance of any security is not a guarantee of future performance. There is no guarantee that this investment strategy will work under all market conditions.

11 Disclosures & Important Information: These materials were prepared by Morgan Stanley LLC for discussion only with the prospective investor to whom they are given. These may not be distributed to any person without the prior written consent of Morgan Stanley. These materials are for informational and discussion purposes only. Actual holdings will vary depending on the size of an account, cash flows within an account, and restrictions on an account. Portfolio holdings are subject to change daily. Morgan Stanley investment advisory programs require a minimum asset level and depending upon your specific investment objectives and financial position may not be suitable for all investors. This material and the applicable Morgan Stanley LLC Disclosure Document should be thoroughly reviewed for a description of the terms of any particular investments and the material risks associated with it prior to making any investment decision. Legal, accounting and tax restrictions, transaction costs and changes to assumptions may significantly affect the economics and results of portfolio transactions or investments. The information and analyses contained herein are not intended as and should not be construed to be investment, tax or legal advice. Neither Morgan Stanley, nor its employees provide tax or legal advice. Clients must speak with their personal tax advisor and attorney regarding their specific circumstances. The Investment Management Services of Morgan Stanley and investment vehicles managed by Morgan Stanley or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above-market returns exposes the portfolio to above-average risk. Performance aspirations are not guaranteed and are subject to market conditions. High volatility investments may be subject to sudden and large falls in value, and there could be a large loss on realization which could be equal to the amount invested. This material is intended only for clients and prospective clients of the Portfolio Management program. It has been prepared solely for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument, or to participate in any trading strategy. The individuals mentioned as the Portfolio Management Team are Financial Advisors with Morgan Stanley participating in the Morgan Stanley Portfolio Management program. The Portfolio Management program is an investment advisory program in which the client's Financial Advisor invests the client's assets on a discretionary basis in a range of securities. The Portfolio Management program is described in the applicable Morgan Stanley ADV Part 2, available at or from your Financial Advisor. Past performance of any security is not a guarantee of future performance. There is no guarantee that this investment strategy will work under all market conditions.