Guided Portfolio Solutions

Transcription

1 Guided Portfolio Solutions

2 Simple, yet sophisticated, the Guided Portfolio Solutions platform can elevate your advisory business.

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4 Guided Portfolio Solutions (GPS) is a sophisticated, yet simple advisory platform that elevates how you conduct fee-based advisory business. Whether you choose to manage your clients assets on your own or delegate the responsibility to a strategist or investment manager, GPS allows you to: Build effective investment solutions that meet your clients needs; and Manage accounts more efficiently, thus increasing your productivity and ultimately, your profitability. This unique platform has both advisor-directed and centrally managed accounts in one place, all with the same easy-to-use capabilities that enhance your ability to manage money and drive growth. One Simple Tool Just as Windows makes it easy to seamlessly use diverse applications such as Excel, Word and Outlook, GPS allows you to access advisory programs that have different characteristics, but common processes and workflows. To accommodate all of your advisory needs, we have consolidated the options into advisory programs that were designed with your clients goals, and your ease of use, in mind. Superior Features GPS systematizes your asset management process, saving you time and making it easy for you to navigate through what can be a complicated set of hurdles. matter which advisory program you use, GPS gives you access to consistent, high-quality proposals, model and account management tools, straightforward and timely performance reports, and the ability to household accounts, among other features that support your growth. FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 3

5 GPS FEATURES 1 Discovery 2 Research Simple risk tolerance assessment helps document the alignment of your recommendations with a client s profile Research portal to filter fund strategist portfolios (FSPs) and separately managed accounts (SMAs) based on numerous criteria Express profiling process to leverage financial planning output as the basis for your recommendations Profiles of institutional asset manager portfolios to aid you in the evaluation of potential strategies for your clients Simple tools to input clients holdings to generate a complete picture of their current state Fact sheets for mutual funds and ETFs with key performance and cost data 5 Recommendations to Client 6 Performance Reporting Proposal system to compare your recommended portfolio to a prospect s current portfolio Daily reconciliation of account data so you can view up-to-date performance as of the previous day s market close Investment selection statement that shows clients how their assets will be invested and documents their risk tolerance level, fees to be paid, and other key items Broad array of client data and performance reporting all in one portal, including on-demand performance reporting, cost basis, holdings reports and more 4 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

6 3 Product Selection Process 4 Investment Management Complementary fund strategist portfolios ranging from strategic to tactical, using mutual funds, ETFs or both An investment system similar to those institutional portfolio managers use giving you the opportunity to efficiently manage large numbers of client accounts Several hundred SMA models from leading asset managers, allowing you while radically reducing the time required for account management processes to create compelling solutions for highnet-worth individuals, foundations and endowments Automated monitoring of portfolio drift and the ability to set your own parameters for position drifts 7 Ongoing Client Management Powerful rebalancing engine that offers several methods for adjusting exposures and implementing model or allocation changes across multiple accounts Reports to easily identify accounts for which you may need to raise cash to pay advisory fees, or accounts with potential tax losses GPS offers sophisticated and easy-to-use features through each step of the investment process to help streamline your advisory business and impress clients. FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 5

7 ADVISOR SELECT A Solution for Advisors Acting as Portfolio Managers The ability to scale your business and access tools and infrastructure that allow you to do so without hiring additional staff is critical to profitable growth. For advisors who act as portfolio managers, a solution for managing client accounts efficiently is necessary if you want to have the time and resources to grow your business. What It Is Advisor Select allows you to manage clients assets yourself in an efficient, yet sophisticated manner. Instead of managing each account separately, Advisor Select allows you to create model portfolios, put groups of clients in the models, and manage the models instead of each individual account. You can also set the system to monitor the allocation of the accounts, so that you are alerted when accounts drift outside their predefined parameters. Even if you decide to have separate models for each client, the system will still tell you when each account is out of balance. In this way, you ensure continued, proper alignment with each client s risk profile, a topic of increasing importance when it comes to fulfilling your fiduciary duties. 6 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

8 Gives you access to the same type of infrastructure used by top institutional asset management firms Allows you to efficiently and accurately manage large numbers of accounts across multiple models Benefits Allows you to quickly identify tax-management opportunities Gives you the ability to calculate and execute trades across accounts simultaneously Makes tracking progress of accounts fast and easy Helps free up time to focus on prospective and current client relationships FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 7

9 ALLOCATION SERIES Solutions for Advisors Using Investment Strategists Today s increasingly complex and turbulent markets have become more difficult to navigate as they require, among other things, a high degree of knowledge of global economic and geopolitical conditions, as well as the ongoing and skillful analysis of increasingly interdependent global markets. In addition, volatile conditions, which are expected to persist for the foreseeable future, require advisors to constantly monitor and adjust portfolios. Due to the time, knowledge and effort required to manage client accounts in this environment, delegating investment management may be a wise choice. In addition to gaining access to the expertise of highly qualified professionals, using investment strategists frees up your time to work on relationships with prospects and clients and focus on asset gathering rather than asset management. Strategists Comparison Fundamental/ Technical Vanguard First Allied Asset Mgmt. Nuveen PMC/ Innealta Quantitative New Frontier Morningstar Cougar Global Investments Strategic Dynamic (Tactical Constrained) Tactical (Tactical Unconstrained) What It Is We created Allocation Series to give you and your clients access to some of the industry s best investment strategists, covering a wide range of disciplines, investment approaches and styles. Allocation Series is a full asset allocation solution that offers one point of access to a broad range of complementary investment strategists. The strategists have been selected based on a rigorous due 8 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

10 diligence process and range in style from strategic asset allocators to tactical and dynamic global allocators, employing varying disciplines for portfolio construction. To accommodate shifting market conditions and changing client needs, Allocation Series gives you the ability to easily move a client s assets across a strategist s different models, or even shift assets from one strategist to another. The result is a sophisticated and comprehensive program that accommodates different preferences. A choice of mutual fund and/or ETF-based strategies Provides Diverse selection of strategists, as well as the option to easily diversify a client s portfolio among more than one strategist Selection of strategies and strategists based on client s suitability, needs and preferences The ability to easily change your selections to stay in line with a client s changing needs and preferences Gives your client access to asset allocation strategies investing in mutual funds and/or ETFs, all with only one client agreement Can fulfill the needs of a client s entire portfolio Allows you to shift assets from one strategist to another or from an ETF strategy to a mutual fund strategy without a new client agreement Benefits Gives you the opportunity to diversify a client s portfolio across strategists to protect against different market conditions and bal ance out differing manager disciplines Offers strategies from several third-party strategists within the same program Allows you to quickly and easily create, modify and adjust your client s investment profile FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 9

11 MANAGER SERIES Solutions for High-Net-Worth and Institutional Clients The ever-evolving needs and increasing sophistication of today s investors, especially of high-networth investors, are requiring advisors to offer cutting-edge solutions. The exclusive use of separately managed accounts (SMAs) for the construction of a client s portfolio, or even the mere inclusion of SMAs along with other investment vehicles, provides your clients solutions that reach the level of sophistication only institutional investors had access to until recently. If you target high-net-worth clients or foundations and endowments, you already know that they expect or even require access to products and services not available to the typical retail investor. We created Manager Series to give you access to a comprehensive list of institutional money managers including some of the largest and most sophisticated managers available today, as well as boutique and emerging investment managers not yet extensively available in the industry. What It Is Manager Series allows you to build a completely customized portfolio from the ground up and choose from a large menu of SMA options and single strategy-specific products (i.e., large cap growth). You have access to more than 800 SMA models from a broad range of investment management firms. The wide selection of investment managers offers the ability to pick from different investment styles within the same asset class, and each portion of the portfolio can even be allocated to a different model if the client s objectives and account size require it. The purpose of Manager Series is to allow for an extremely high degree of customization and fine tuning, so portfolios are in line with high-networth investors preferences and needs. In addition, Manager Series gives you the option of building a high-net-worth client s entire portfolio, or you can pick a manager for a portion of a smaller client s portfolio. 10 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

12 Asset class-specific portfolios allow you to build customized portfolios without the limitations or disadvantages other investment vehicles, such as mutual funds, may present (i.e., as SMAs hold individual securities directly, clients are not impacted by the actions of other investors, whereas in mutual funds, investors who sell create potential tax liabilities for the remaining holders of the fund) Benefits Investment models are extremely granular with individual securities and offer customization features attractive to the high-net-worth individual The program s diversity and flexibility gives you the ability to restrict certain securities or groups of securities from a portfolio based on a client s need (e.g., an executive in a publicly traded company who cannot hold his/her company s or competitor s stock) FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 11

13 PORTFOLIO ONE Solutions to Combine Many Models into a Single Advisory Account Portfolio ONE provides a multi-portfolio structure that allows you to combine any number of models from across the three GPS advisory programs Advisor Select, Allocation Series and Manager Series into a single custodial account. What would previously have been multiple custodial accounts can now be structured as one. For example, without Portfolio ONE, five models or strategies for the same client would mean five account numbers, five IRA fees, five 1099 forms and the necessary monitoring of each. With Portfolio ONE, those five accounts become five models or strategies in one account one account number, one custodian fee, one 1099 form and one account to monitor. Previously, using different managers and strategists for one client may have been too cumbersome and time consuming. w, the process is fast, easy and efficient, and allows you to diversify as much as you like for each client. Increased ability to produce effective investment solutions in an efficient manner Time saved the monitoring, rebalancing and trading that would usually take hours can be completed in a matter of minutes Benefits Uniform reporting for all managers and models on GPS Less paperwork no new paperwork or signatures are required for updates or changes to the Portfolio ONE model as long as you stay within a client s stated risk tolerance Enhanced tax-management capabilities 12 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

14 GPS Simple and Sophisticated Portfolio ONE Advisor Select ALLOCATION Series Manager Series Full Wrap Transaction Based: Advisor Pays* Transaction Based: Client Pays* First Allied Asset Managment Cougar Global Investments Morningstar New Frontier First Allied Asset Management Covered Call Select* Dynamic Macro Select Liquid Alternatives Select U.S. Large Cap Select Yield Select Nuveen PMC/Innealta Roster of over 250 Managers and over 800 Models Vanguard* *t available in Portfolio One FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 13

15 KEY PLATFORM FEATURES Advisor Select Allocation Series Licensing First Allied IARs First Allied IARs Products Mutual Funds Closed End Funds ETFs Common Stock First Allied Asset Management Cougar Morningstar New Frontier Nuveen PMC/Innealta Vanguard Custodians Pershing, LLC J.P. Morgan Clearing Corp. Pershing, LLC J.P. Morgan Clearing Corp. Program Minimums (per account) Quarterly Performance Reports Transaction Charge: $25,000 Wrap: $50,000 Clients access online; mailed upon request Available to IAR via GPS Starting at $10,000 Clients access online; mailed upon request Available to IAR via GPS Fee Structure Quarterly fee charged to client in advance Quarterly fee charged to client in advance Direct Billing Household Billing Account Funding Suppression of Daily Trade Confirmations Account values can be combined with accounts in other GPS programs to meet tiers for the total client fee upon request Fund with cash or eligible securities Transfer in kind Available for wrap accounts, upon written client acknowledgement Account values can be combined with accounts in other GPS programs to meet tiers for the total client fee upon request Fund with cash or eligible securities Transfer in kind Yes, upon written client acknowledgement Proxies Voted By Client Strategist Trading Costs Transaction Charges: Paid by client or IAR Wrap: Included in the program fee Included in the program fee Foreign Accounts Margin Check Writing/ Debit Cards Cash Protection Yes Yes Systematic Withdrawals Yes, IAR raises cash Yes, IAR creates service request Tax Harvesting At IAR s direction Yes, IAR creates service request 14 FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS

16 Manager Series First Allied IARs More than 800 separately managed accounts Pershing, LLC J.P. Morgan Clearing Corp. Portfolio ONE First Allied IARs Advisor Select sleeves Allocation Series strategies* Most Manager Series models *Vanguard is not available in Portfolio ONE Pershing, LLC J.P. Morgan Clearing Corp. Starting at $25,000 Sleeves starting at $25,000 Clients access online; mailed upon request Available to IAR via GPS Quarterly fee charged to client in advance Account values can be combined with accounts in other GPS programs to meet tiers for the total client fee upon request Fund with cash or eligible securities Transfer in kind Clients access online; mailed upon request Available to IAR via GPS Quarterly fee charged to client in advance Account values can be combined with accounts in other GPS programs to meet tiers for the total client fee upon request Fund with cash or eligible securities Transfer in kind Yes, upon written client acknowledgement Yes, upon written client acknowledgement Investment Manager Envestnet Included in the program fee Included in the program fee Yes, subject to manager s acceptance Yes Yes, IAR creates service request Yes, IAR creates service request Yes, IAR creates service request Yes, IAR creates service request FIRST ALLIED GUIDED PORTFOLIO SOLUTIONS 15

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