Effective on or about July 1, 2003, investment products and services are offered through Prudential Securities, a division of Wachovia Securities,

Transcription

1 Effective on or about July 1, 2003, investment products and services are offered through Prudential Securities, a division of Wachovia Securities, LLC. Any reference to Prudential Securities or Prudential Securities, Incorporated in this material is a reference to the Prudential Securities Division of Wachovia Securities, LLC. Wachovia Securities, LLC is owned, indirectly through subsidiaries, 38 percent by Prudential Financial Inc. and 62 percent by Wachovia Corporation. Prudential, Pru and Rock logo marks are owned by The Prudential Insurance Company of America and are used herein under license.

2 INVESTMENT MANAGEMENT SERVICES Managed Assets Consulting Services Custom Services A Customized Approach to Asset Management

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4 As a sophisticated investor, you know that today s global investment environment presents tremendous potential and challenges. You also know that finding the best opportunities takes time, talent, and experience. That is why investors like you turn to professional consultants, like your Prudential Securities Financial Advisor, for help. That s a good first step. Next, you need competent, experienced investment management to help you and your financial professional meet your specific needs. Still, crucial questions remain: Should you use more than one investment manager? How will your portfolio s performance be monitored? The Prudential Securities Managed Assets Consulting Services Custom Services (MACS CS) program was developed to address these questions. MACS CS has helped fulfill the complex investment needs of thousands of corporations, retirement plans, trusts, foundations, and individuals. MACS CS can help you develop your investment program, sort through many of the world s leading investment managers, and provide detailed information on an ongoing basis. MACS CS differs from many investment programs in that you decide which features and benefits best address your needs. While MACS CS offers a comprehensive list of investment services, you choose only the ones you need. DIRECT ACCESS TO YOUR INVESTMENT MANAGER An important feature of MACS CS is the interaction between you, your Financial Advisor, and the investment managers you select to choose securities for your account. Your Financial Advisor can help you develop a direct relationship with an investment manager who can then tailor a portfolio to address your specific objectives. Your manager can even take into consideration any restrictions or requirements you place on a portfolio. You can, for example, have your manager exclude certain securities such as companies or industries in which you already have a large exposure, or companies in which you have socially responsible investing concerns. As part of your direct relationship with a manager, your account must meet minimum size and fee schedules, which vary depending on the manager(s) you select. 1

5 THE PROCESS Your Prudential Securities Financial Advisor will help you select the MACS CS features that best meet your individual needs. These features include: Development of a written Investment Policy Statement Asset allocation Multiple investment manager structuring Investment manager search and selection Trade execution Custodial services 1. Investment Policy Development 4. Ongoing Performance Analysis and Review The Investment Management Consulting Process 3. Manager Selection and Evaluation 2. Long-Term Strategic Asset Allocation One of the best ways to address your long-term goals is through a disciplined investment strategy. If you don t already have a formal investment management process in place, you and your Financial Advisor can implement one through MACS CS. 2

6 INVESTMENT MANAGER EVALUATION AND SELECTION Through MACS CS, your Financial Advisor can help you select an investment manager or combination of managers best suited to your unique investment goals and preferences. Your Financial Advisor can introduce you to managers covering the full range of investment strategies, providing access to almost every asset class and style, both domestic and international. All the firms introduced through MACS CS have met our criteria for assets under management, professional staff, and business and performance history. PERFORMANCE MONITORING Prudential Securities will monitor your portfolio to ensure that your investment guidelines are being followed. You will receive: Monthly statements identifying and updating all deposits, disbursements, dividends, interest received, purchases, sales, and a summary of positions and the total value of your portfolio Quarterly performance reports containing an analysis of your performance relative to inflation and market indexes A composite performance monitor if you have more than one investment manager A detailed risk/return analysis and chart (after three years of history) A Capital Gains and Losses Report containing a detailed summary of your portfolio s realized gains and losses A year-end summary of all transactions and earnings 24-hour access to your account information via prudentialsecurities.com Each quarterly performance monitor report is carefully designed to answer these three questions: 1. Is your portfolio meeting your objectives? 2. How much risk did your investment manager(s) take in achieving results? 3. Did the decisions of your investment manager(s) help increase returns or cushion against market declines during the period? Your Financial Advisor will be available to review these reports with you, discuss your portfolio s performance, and answer your questions. 3

7 ANNUAL ASSET-BASED FEE A distinct advantage of MACS CS is the alignment of your Financial Advisor s interests with your own. Because your Financial Advisor earns a fee based on the assets in your portfolio, he or she has a vested interest in helping your assets grow. This annual fee is charged in four quarterly installments. FOR MORE INFORMATION ON MACS CS Discuss with your Financial Advisor how the personalized, professional approach of Managed Assets Consulting Services Custom Services can help make your investment goals a reality. Please keep in mind that professional money management is not suitable for all investors. We need to review your individual objectives before introducing any specific investment programs to you. 4

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9 Securities products and services are offered through Prudential Securities Incorporated, 199 Water Street, New York, NY 10292, a Prudential Financial company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ, and its affiliates. PSI-A76628 MAC800 Ed. 03/01/2003 b 2