ADVISOR GUIDE GUIDING YOUR TRANSITION TO THE NEW AGE OF FINANCIAL PLANNING FOR ADVISOR USE ONLY

Transcription

1 ADVISOR GUIDE GUIDING YOUR TRANSITION TO THE NEW AGE OF FINANCIAL PLANNING FOR ADVISOR USE ONLY

2 TABLE OF CONTENTS About Your Financial Planning Practice Investment Philosophy Fee Schedule The Portfolios Investments Conservative Moderately Conservative Moderate Moderate Growth Moderately Aggressive Aggressive How it Works Page 2

3 ABOUT Starlight Portfolios provides investors of any size access to a broad universe of diversified investments, exclusively through mutual funds. The portfolios feature investment management flexibility, research-based recommendations, and goal-based planning. Why choose Starlight Portfolios? Technology-driven. With Starlight Portfolios, you can offer your clients a truly automated third-party money management experience supported by the next generation of technology. Research-based recommendations. Our dedicated investment committee continually reviews our portfolios based on the views and research from the most respected analysts in the industry. Easy account setup. We make it fast and simple to open an investment account. Our online automated process leads to less paperwork for you to manage and minimizes errors. In just five simple steps, your clients can be well on the way to managing their portfolio. Goal-based planning tools. We assist your clients with identifying their goals and priorities, with tools that help with monitoring progress and next steps. Transparent pricing. We believe that investing should be affordable for everyone, with no hidden fees. Page 3

4 YOUR FINANCIAL PLANNING PRACTICE Starlight Portfolios is the new age of financial planning, serving as your online investment advisory platform. We ve designed the investor experience to provide your clients with all of the tools needed to build and manage a portfolio - any time and any place. Offering financial advisors a truly automated third-party money manager experience that is completely developed and accessible with stateof-the-art technology. The changing face of today s financial planning practice requires that you not only respond quickly to changes in the market, you must also stay ahead of trends within the marketing of financial services. As your online investment advisory partner, we assist you with the transition into the new age of financial planning. The online market for wealth management is continually growing, offering your clients many options for investment management automation. Starlight Portfolios can assist you with retaining clients of all size and reduce the time used to service clients while meeting fiduciary obligations to act in your clients best interests. We serve as a complement to your financial planning practice, resulting in a combination of your expertise and service supported by our online investment advisory capabilities. Page 4

5 INVESTMENT PHILOSOPHY Starlight Portfolios was created to provide investors access to a broad universe of diverse investments based on investment flexibility and research-based recommendations. Our duty is to help our investors best meet their financial goals - short and long term. We consider our process on the forefront of the new generation of financial services technology. Our clients have the ability to plan for retirement or other financial goals from any place, at any time. Our investment philosophy is based on choice, research-based recommendations, and transparent pricing. Unlike other financial advisors, with Starlight Portfolios, your clients will be able to choose the investment management experience they prefer - active, passive, or a blend. We constantly research and make adjustments based upon the views of the most respected investment analysts in the industry. This is the process used by large pensions and endowments, and we believe your clients deserve the same thoughtful approach. We have chosen mutual funds paired with the institutional share class, which represents the lowest level of fees available. The following pages provide an overview of our portfolio investments and fee disclosure. Page 5

6 FEE SCHEDULE The Starlight Portfolios fee schedule is competitive within the third-party money manager structure. As an advisor, you hold a fiduciary responsibility to disclose fees to your clients regarding their investments. We outline our fee structure in a clear and concise way, to assist your communication about this topic with your clients. To stay aligned with our intention to make the process easier for investors, we worked with TD Ameritrade to create an asset-based pricing structure that provides investors of all size access to funds with competitive performance and pricing. TLG portfolio manager.70% TD Ameritrade*.14% to.30% Vanare.10% *TD Ameritrade breakdown of charges: $0 $10,000.30% $10,001 $50,000.22% $50,001 $150,000.20% $150,001 $250,000.18% $250,001 $500,000.16% $500, % Page 6

7 THE PORTFOLIOS Page 7

8 INVESTMENTS STOCKS Symbol BONDS Symbol American Funds New World Fund NFFFX AB Global Bond Fund ANAYX Vanguard Emerging Markets Stock Index Fund VEMAX AB High Income Fund AGDYX Morgan Stanley Global Opportunity Portfolio MGGIX BlackRock Dynamic High Income Portfolio BDHIX INTECH Global Income Managed Volatility Fund JGDIX Vanguard Total Bond Market Index Fund VBTLX Vanguard Developed Markets Index Fund VTMGX PIMCO Income Fund PIMIX Morgan Stanley International Advantage Portfolio MFAIX JPMorgan Core Plus Bond Fund JCBIX Vanguard 500 Index Fund VFIAX DoubleLine Total Return Bond Fund DBLTX Loomis Sayles Growth Fund LSGRX AB Global Bond Fund ANAYX Invesco Diversified Dividend Fund LCEYX TCW Total Return Bond Fund TGLMX Victory Sycamore Established Value Fund VEVIX Pioneer Bond Fund PICYX Pioneer Multi Asset Income Fund PMFYX Vanguard Emerging Markets Government Bond Index VGAVX Vanguard Small Cap Value Index Fund VSIAX Vanguard High-Yield Corporate Fund VWEAX Wells Fargo Special Small Cap Value Fund ESPNX T. Rowe Price U.S. Bond Enhanced Index PBDIX Vanguard Mid-Cap Value Index VMVAX ALTERNATIVE INVESTMENTS Fidelity Real Estate Index Fund Symbol FSRVX T. Rowe Price Real Estate Fund TRREX Vanguard Emerging Markets Stock Index Fund Morgan Stanley Global Opportunity Portfolio VEMAX MGGIX Page 8

9 CONSERVATIVE Blend Management Asset Class Investment Allocation Core +1 PIMCO Income Fund Institutional 21.8% Core +5 TCW Total Return 13.5% Core +3 DoubleLine Total Return 12.9% Core +6 Pioneer Bond 12.1% Core +2 JPMorgan Core Plus Bond 11.5% Core +4 AB Global Bond 8.8% Large Blend Vanguard 500 Index 8.4% Global Core 1 Morgan Stanley Global Opportunity 4.1% International Development Morgan Stanley International Advantage 2.3% REIT T. Rowe Price Real Estate 1.0% Small Cap Blend Wells Fargo Special Small Cap Value 0.5% Cash 3.1% Page 9

10 MODERATELY CONSERVATIVE Active Management Asset Class Investment Allocation Core +1 PIMCO Income Fund Institutional 19.6% Core +5 TCW Total Return 12.2% Core +3 DoubleLine Total Return 11.6% Core +6 Pioneer Bond 11.0% Core +2 JPMorgan Core Plus Bond 10.4% Large Cap Growth Loomis Sayles Growth 6.6% Large Cap Value Invesco Diversified Dividend 6.6% Global Core 1 Morgan Stanley Global Opportunity 5.4% International Development Morgan Stanley International Advantage 5.0% Global Core 2 INTECH Global Income Managed Volatility 4.0% REIT T. Rowe Price Real Estate 2.0% Emerging Markets ETF Vanguard Emerging Markets Government Bond 1.2% Mid Cap Blend Victory Sycamore Established Value 1.0% Small Cap Blend Wells Fargo Special Small Cap Value 0.5% Cash 2.9% Page 10

11 MODERATE Passive Management Asset Class Investment Allocation Large Cap Blend Vanguard 500 Index 29.3% Bond Index Vanguard Total Bond Market Index 27.7% International Development Vanguard Developed Markets Index 16.6% High Yield ETF Vanguard High Yield Corporate 7.1% Emerging Markets ETF Vanguard Emerging Markets Government Bond 5.0% Emerging Markets Vanguard Emerging Markets Stock Index 3.9% REIT T. Rowe Price Real Estate 3.5% Mid Cap Blend Vanguard Mid Cap Value Index 2.9% Small Cap Blend Vanguard Small Cap Value Index 1.0% Cash 2.9% Page 11

12 MODERATE GROWTH Blend Management Asset Class Investment Allocation Large Cap Blend Vanguard 500 Index 26.2% Global Core 1 Morgan Stanley Global Opportunity 12.4% International Development Morgan Stanley International Advantage 11.5% Core +1 PIMCO Income 11.3% Global Core 2 INTECH Global Income Managed Volatility 9.2% Core +5 TCW Total Return 7.0% Core +3 DoubleLine Total Return 6.7% Emerging Markets Vanguard Emerging Markets Stock Index 4.5% REIT T. Rowe Price Real Estate 4.2% Mid Cap Blend Vanguard Mid Cap Value 3.2% Small Cap Blend Vanguard Small Cap Value Index 0.7% Cash 3.1% Page 12

13 MODERATELY AGGRESSIVE Active Management Asset Class Investment Allocation Global Core 1 Morgan Stanley Global Opportunity Portfolio 14.9% Large Cap Growth Loomis Sayles Growth 13.6% Large Cap Value Invesco Diversified Dividend 13.6% International Development Morgan Stanley International Advantage Portfolio 13.5% Global Core 2 INTECH Global Income Managed Volatility 11.0% Core +1 PIMCO Income Fund Institutional 8.9% Emerging Markets American Funds New World 6.4% Core +5 TCW Total Return 5.5% REIT T. Rowe Price Real Estate 4.7% Mid Cap Blend Victory Sycamore Established Value 3.5% Small Cap Blend Wells Fargo Special Small Cap Value 1.5% Cash 2.9% Page 13

14 AGGRESSIVE Passive Management Asset Class Investment Allocation Large Cap Blend Vanguard 500 Index 41.5% International Developed Vanguard Developed Markets Index 32.0% Emerging Markets Morgan Stanley Global Opportunity 10.10% REIT Fidelity Real Estate Index 5.40% Mid Cap Blend Vanguard Mid-Cap Value Index 5.2% Small Cap Blend Vanguard Small Cap Value Index 2.60% Cash 3.2% Page 14

15 Seamless money management is at your fingertips in five simple steps. Step 1: Visit the website Visit you ll find information about the process, the portfolios, blog articles and FAQs. Step 2: Registration To register a new client, click the Log In / Register button, visit or complete the Advisor portal form located at Please note, you ll need to complete the Advisor Portal to receive your Solicitor Fee. Page 15

16 Step 3: Create the Portfolio Your client will create their portfolio by answering six questions. The questions guide the portfolio building process by identifying time horizon, investment intention, risk assessment, and expectations. Step 4: Open the Investment Account In less than ten minutes, your client can complete the paperwork submission process - online. Step 5: Account Management All account management activities can be handled online. FOR ADVISOR USE ONLY Page 16