The Sedgewood Group at Morgan Stanley

Transcription

1 James W. Freeman Director Wealth Management Family Wealth Director Financial Advisor Portfolio Manager C. Lee Ives, III, CFP First Vice President Wealth Management Investment Management Consultant Financial Advisor Portfolio Manager Laraine Campbell Senior Registered Associate Private Client Advisory Investment Management Lending Planning 6101 Carnegie Blvd, Suite 200 P O Box Charlotte, NC (704) Direct (800) Toll Free (704 ) Fax

2 Mission Statement To create a financial consulting relationship for our clients and their families built on the principles of equity, trust and integrity fostered by personal interaction, service and attention to detail.

3 Business Philosophy As your trusted consultants we will seek to assist you in accumulating, protecting and ultimately transferring your wealth based on your needs. We encourage your involvement through ongoing education and communication to create, implement and maintain your unique financial plan. We will collaborate with your other advisors (i.e. accountant, attorney) to insure all aspects of your financial plan are coordinated to meet your goals.

4 Financial Planning Plan Your Future. Make It Happen. Achieving your financial goals begins with an in-depth discussion with a financial professional. can enhance your understanding of what it will take to accomplish your objectives and help map a course to reach your destination. Our wealth management process can help you: Frame your current financial situation Create a customized strategy Uncover potential financial blind spots Achieve your goals

5 Financial Planning Issues can assist you with virtually any planning issues including the following: Education Planning Executive Compensation Issues (including Stock Options) Business Succession Special Needs Planning Goals Planning (such as Vacation Home or Wedding) Retirement Planning Financial Risk Management Insurance Planning (Life, Disability, Long-Term Care) Wealth Transfer Planning (including Estates and Trusts) Philanthropic Goals

6 Investment Philosophy Action should be taken through discipline, not emotion. Managing total return risk is essential to achieving long-term objectives Actively managing asset allocation, portfolio composition and manager selection can potentially enhance returns Blending active and passive investments can potentially help improve investment results, manage costs and refine the management of active risk

7 Wow, I feel great about this investment." Excitement Optimism Thrill Euphoria Driven by Emotions Anxiety Denial Fear "Maybe the markets just aren't for me." "Temporary setback. I'm a long-term investor.." Desperation Panic Capitulation Despondency Depression Hope Optimism Relief Driven by Process Sell 140 AFTER signs 120 of weakness Buy 40 AFTER signs 20 of strength have 0 been established

8 Investment Process * We determine the allocation between cash, bonds, stocks and alternative investments based on a needs and risk assessment. The largest portion of the stock component remains fully invested using a dynamic global asset allocation employing a concept known as relative strength. The remainder of the equity allocation, determined by your individual circumstances and risk appetite, is managed using our tactical strategy which acts like an accelerator and brake for the portfolio. We employ this because the equity markets can behave differently than generally expected and can create the desire to make emotional decisions contrary to an investor s best interests. The tactical strategy takes emotion out of a portion of the equity allocation decision and creates a strategy for limiting losses on that allocation. By trying to limit the downside, we believe we can make it easier to ride out market downturns with the balance of one s stock holdings. History has shown that despite the daily noise of the domestic and foreign stock markets, many trends of outperformance and underperformance can be fairly dramatic and last long periods of time. While this methodology does not determine the top and bottom of trends, we believe it can be a useful, complimentary approach to a more traditional buy and hold strategy. Stocks Globally Diversified Allocation Cash Alternatives Globally Diversified Allocation with Tactical Strategy Tactical Allocation Global Diversified Stocks Cash Alternatives Bonds Bonds *Please see Important Information at the end of this presentation for a description of the portfolio management program.

9 Tactical Process Tactical Stocks Tactical Equities Cash Through a daily analysis, we decide if the Bonds tactical strategy should be invested in equities or cash. If in equities, we are invested in global stocks through the use of Global Diversified Equities Alternatives exchange traded funds. Tactical Cash If in cash, we use money market and short Tactical Cash Cash Bonds maturity exchange traded bond funds to reduce portfolio risk. Global Diversified Equities Alternatives

10 James W. Freeman Director Wealth Management Financial Advisor Family Wealth Director Portfolio Manager C. Lee Ives III, CFP First Vice President - Wealth Management Financial Advisor Investment Management Consultant Portfolio Manager James is a 1979 graduate from the University of Virginia with a B.S. in Commerce and a concentration in accounting. He joined Morgan Stanley in 1983 and holds various securities, commodities and insurance licenses. He is accredited by the firm with the Portfolio Manager and prestigious Family Wealth Director designations, which demonstrates his professional knowledge and experience in a number of advanced wealth management strategies. Prior to Morgan Stanley, James joined Wachovia Bank and spent three years in corporate banking specializing in lending and cash management services. Lee is a 1981 graduate of the University of North Carolina at Chapel Hill with a B.S. in Accounting. He joined Morgan Stanley in early 1994 and currently holds various securities licenses as well as life, health and longterm care insurance licenses. Additionally, he has held the Certified Financial Planner TM designation since 1989 and received the Senior Investment Management Consultant designation in Prior to joining Morgan Stanley, Lee spent nine years in public accounting in Atlanta, concentrating on tax and financial planning issues for individuals and closely held businesses. He left the firm and spent two years working with business owners on private mergers and acquisitions.

11 Laraine S. Campbell Senior Registered Associate Laraine began her career in the financial services industry in 1973 and has been with Morgan Stanley since 1999, through predecessor firms. She brings 20 years of experience in various areas of operations, including management of all branch operations. This background has allowed Laraine to independently focus on all administrative services for the group. Laraine holds various security licenses, including supervisory and managerial licenses. In 2005, she qualified as a Financial Planning Associate to expand her knowledge in personal financial planning. She enjoys working with our clients and has a strong commitment to providing excellent customer service. James W. Freeman C. Lee Ives, III

12 Important Information 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. Established in 1979 to provide individual investors with a level of personalized portfolio management typically reserved for major institutional investors All portfolios are managed individually on a fully discretionary basis by Financial Advisors who have been qualified by the firm to independently manage client assets based on training, experience and commitment to service As your Portfolio Manager, our team can offer you: Direct access to the investment professionals managing your portfolio Personalized service A disciplined, multipart investment process Ongoing client communications and reporting Access to the intellectual capital and global resources of Morgan Stanley 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. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. This material was not intended or written to be used, and it cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. Asset Allocation does not guarantee a profit or protect against a loss in a declining financial market. The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor's individual circumstances and objectives.

13 James W. Freeman Director Wealth Management Family Wealth Director Financial Advisor 6101 Carnegie Blvd., Suite 200 PO Box Charlotte, NC Phone Toll Free Fax C. Lee Ives, III, CFP First Vice President Wealth Management Investment Management Consultant Financial Advisor 6101 Carnegie Blvd., Suite 200 PO Box Charlotte, NC Phone Toll Free Fax Morgan Stanley Smith Barney LLC. Member SIPC.