AT-A-GLANCE. Fee-Based Programs

Transcription

1 Fee-Based Programs AT-A-GLANCE Cetera was selected as the 2014 Advisory Solutions Sponsor Firm of the Year by members of the Money Management Institute.

2 Program Features Preferred Asset Management, Prime Portfolio Services, and Premier Portfolio Management Program Description Minimum Account Size Key Program Features Preferred Asset Management (Preferred), Prime Portfolio Services (Prime), and Premier Portfolio Management (Premier) are advisor-directed programs designed, sponsored and operated by the broker-dealer. Preferred, Prime and Premier have an open architecture that investment adviser representatives can use to build and allocate portfolios to a client s individual needs. These programs offer the same investment options. However, Preferred, Prime, and Premier feature different pricing structures for added flexibility within your client service model. Assets are custodied at Pershing LLC. $25,000 $10,000 for consolidated accounts Access to numerous securities No transaction costs in Premier; see program fees on the next page for more information. Investment product research and screening Tiered fee schedule with no commissions Ability to link multiple accounts across a household for reporting purposes Sophisticated modeling, rebalancing and performance reporting tools offered through the award-winning* SmartWorks Adviser platform New assets in Preferred and Prime are eligible for the net new assets (NNA) program 12b-1 fees are credited to clients on all ERISA and IRA accounts Securities Offered Low-Cost Share Class Mutual Funds Equities ETFs Over-the-Counter and Listed Stocks Unit Investment Trusts Closed-End Funds Municipal Bonds Corporate Bonds Treasuries Collateralized Mortgage Obligations Agency Bonds Certificates of Deposit Approved Load-Waived Variable Annuities REITs Covered Options Managed Futures Structured Products including principal protected notes Securities and Restrictions A shares must be held for two years prior to transfer to the program B shares must be held for four years prior to transfer to the program No purchases or transfers of C shares Mutual fund purchases limited to the approved product list found on SmartWorks Advisory Fee Payment Client fees are assessed quarterly in advance; paid monthly to IARs * SmartWorks Adviser is powered by FolioDynamix, which was selected as the 2012 Advisory Solutions Technology Innovation of the Year award by the members of the Money Management Institute.

3 Program Fees Preferred Prime Premier Administrative fee is also the minimum client fee Small account fee: $25 paid quarterly by IAR for accounts under $50,000 (this fee is waived for consolidated households, using form 306, worth more than $500,000 in aggregate) Ticket charges are paid by the client (Preferred) or the advisor (Prime) For detailed information on account-related charges and ticket fees, see forms 53 and 70. Includes 25 trades per year; additional trade blocks may be purchased. For accounts that are part of a household, trades may be aggregated. Small account fee: $25 paid quarterly by IAR for accounts under $50,000 (this fee is waived for consolidated households, using form 306, worth more than $500,000 in aggregate) Fees covered in the program include: Annual IRA and QRP custodial maintenance fees Confirm fees Dividend reinvestment fees REIT holding fees Paper statement and confirm fees Refer to the program FAQs for a full list of fees and information. Consolidating Accounts Fees for Preferred and Prime accounts can be consolidated for families/households with other Preferred and Prime accounts Fees for Premier accounts can be consolidated for families/households with other Premier accounts Quarterly Reports can be consolidated with advisory accounts from any program Resources Client Resources: Sales kits, which can include: Program folder and overview flyer The Value of Our Advisory Relationship brochure Cetera Client Collaboration flyer Investor Profile Questionnaire Protecting Your Assets flyer Educational flyers on mutual funds and ETFs Sample Quarterly Reports and Overview flyer IAR Resources: Proposal generator Investment Policy Statement Rebalancing tools Marketing support and education Asset allocation models Internal wealth management specialists Wealth management consultants Fee calculators Performance reporting Albridge data aggregation (CashEdge) Research Resources: Research Select List Asset allocation models strategic and tactical Mutual fund top conviction picks Access to the Cetera Research team

4 Program Features Mutual Funds/Exchange Traded Funds Advisory Program Selected as the 2012 Advisory Solution of the Year by the members of the Money Management Institute Program Description Key Program Features The turnkey Mutual Funds/Exchange Traded Funds (MF/ETF) Advisory program provides institutional investment services, advice to your clients, and active portfolio rebalancing, enabling you to save time to focus on your clients. This program features multiple strategists : Wilshire Funds Management, the investment management arm of Wilshire Associates Incorporated (Wilshire ), offers a series of globally diversified taxable, tax-sensitive, and alternative portfolios. Wilshire has been advising clients in the development of multi-asset class portfolios that incorporate traditional and non-traditional strategies for more than 40 years. Cetera Investment Management LLC, the investment management arm of Cetera Financial Group, Inc., operates on the philosophy that diversified portfolios, structured according to risk tolerance and periodically rebalanced, provide the most prudent approach to achieving long-term investment goals. Cetera Investment Management offers both mutual fund and exchange-traded fund (ETF) based portfolios built on both a strategic and a tactical asset allocation foundation. Sage Advisory Services (Sage) is an Austin, Texas based independent asset management firm that serves the institutional and private client marketplace with tactical asset allocation strategies as well as traditional and liability-driven fixed income asset management. With over a decade of experience managing ETF strategies, Sage offers a series of globally diversified tactical ETF solutions designed to meet varying risk objectives. UBS Global Asset Management (UBS) is a leading asset manager that seeks to deliver superior risk-adjusted investment performance through its global investment capabilities to institutional investors and private clients. UBS utilizes its original fundamental research, proprietary valuation model and risk management system, and disciplined ETF selection process to create portfolios that offer flexible solutions. Asset allocation, mutual fund/etf due diligence, and selection and reallocation decisions are performed by the strategists. Trading and administration are provided by FolioDynamix, a provider of investment management programs and wealth management solutions to financial services organizations. Ability to house multiple strategists under one custodial account Diversified portfolios utilizing cost-efficient investment vehicles Mutual fund portfolio construction using the lowest-cost share class available Provides institutional money management for your retail clients Model reallocation decisions driven by the strategists New assets in this program are eligible for the net new assets (NNA) program Minimum Account Size $25,000 minimum investment for Cetera Investment Management and Wilshire $50,000 minimum investment for UBS and Sage Please note that when using multiple strategists in one account, the minimum investment of each strategist must be met before the account can be opened.

5 Fund Selection Cetera Investment Management (Tactical) Wilshire (Strategic) Wilshire (Alternatives) Cetera Investment Management (Enhanced Passive) Sage (Tactical) UBS (Tactical) Open architecture focused on selecting high-quality funds and using the lowest-cost share class available Entire ETF universe Rebalancing and reallocation varies by strategist; please reference the strategist fact sheets found on SmartWorks Advisory Fee Payment Program Fees Client fees are assessed quarterly in advance; paid monthly to IARs When using multiple managers, the highest program fee schedule per tier will be the minimum client account fee Program fee is also the minimum client fee, and includes: Trading costs, due diligence, clearing costs, manager fee, sponsor fee, reporting and billing fees, and access to a comprehensive wealth management technology platform through SmartWorks Adviser Ticket charges paid by program Prospectus delivery fees paid by program Resources Client Resources: Sales kits, which can include: The Value of Our Advisory Relationship brochure Cetera Client Collaboration flyer Investor Profile Questionnaire Protecting Your Assets flyer Educational flyers on mutual funds and ETFs IAR Resources: Proposal generator Investment Policy Statement Marketing support and education Internal wealth management specialists Wealth management consultants Performance reporting Strategist-Provided Resources: Manager fact sheets and investment overview Performance information Marketing support and education Market commentary Webcasts Quarterly calls Sample Quarterly Reports and Overview Flyer Fee calculators Albridge data aggregation (CashEdge)

6 Program Features Next Generation Managed Accounts (xma ) Program Program Description Key Program Features Minimum Account Size The Next Generation Managed Accounts (xma) program is an investment management solution designed to help investors and institutions. It offers a powerful combination of professional guidance and flexibility supported by a foundation of unbiased research, delivered in a model portfolio format. xma starts with the attributes of a traditional separately managed accounts program client profiling, fee-based pricing and investment research combined with individualized security and tax management capabilities. It takes that to the next level by providing multiple investment strategies sleeves in one account. This dramatically cuts down on paperwork, but even more importantly it allows you to move immediately to adjust client allocations to specific manager sleeves as the market or client needs evolve. xma offers over 70 managers and more than 100 unique investment styles and can be used in conjunction with other advisory programs to offer institutional money management solutions to your clients. To help you select from these managers, the Cetera Research team identifies the most attractive strategies for each asset class, based on the approved list of managers that were vetted by FolioDynamix. FolioDynamix brings together institutional quality manager research services, investment consulting services and discretionary investment solutions that enable you, as the IAR, to successfully establish and sustain an open-architecture wealth management program. FolioDynamix provides trading, rebalancing and administration services for xma. Access to multiple institutional money managers under one custodial account Direct ownership of securities that can enable management of tax consequences Ability to restrict specific securities A single asset-based fee Confirmation suppression available Tax harvesting available New assets in this program are eligible for the net new assets (NNA) program Equity Managers: $100,000 Fixed Income Managers (ETFs): $100,000 Traditional Fixed Income Managers: $250,000 $500,000 Please refer to the xma manager list for manager minimums.

7 Advisory Fee Payment Client fees are assessed quarterly in advance; paid monthly to IARs When using multiple managers, the highest program fee schedule per tier will be the minimum client account fee Program Fees Program fee is also the minimum client fee, and includes: Trading costs, due diligence, clearing costs, manager fee, sponsor fee, reporting and billing fees, and access to a comprehensive wealth management technology platform through SmartWorks Adviser Ticket charges paid by program Prospectus delivery fees paid by program Resources Client Resources: IAR Resources: Fee calculators Sales kits, which can include: The Value of Our Advisory Relationship brochure Proposal generator Investment Policy Statement Albridge data aggregation (CashEdge) Manager fact sheets Cetera Client Collaboration flyer Marketing support and education Performance analysis Investor Profile Questionnaire Internal wealth management specialists Protecting Your Assets flyer Educational flyers on mutual funds and ETFs Wealth management consultants Performance reporting Sample Quarterly Reports and Overview Flyer Manager list with preferred managers selected by Cetera Research Manager commentaries

8 Program Features Managed Wealth ADVANTAGE Program Description Managed Wealth ADVANTAGE (MWA) allows you to customize portfolios for your client s individual goals, risk tolerance and time horizon while providing a diversified and professionally managed portfolio. MWA offers clients a set of asset allocation models constructed based on risk profiles. Your first step will be to determine your client s risk tolerance, then select the appropriate asset allocation model. For each model, you have a lineup of asset classes, where you have a diverse choice of mutual funds and ETFs from multiple investment companies. You pick the mutual funds and ETFs from this list to build your client s MWA account. Cetera Investment Management carefully designs and manages the asset allocation models. Cetera Investment Management is also responsible for the selection process of the mutual funds and ETFs. Key Program Features Minimum Account Size Fund Selection Ability to diversify portfolios utilizing many asset classes Asset allocation models designed and managed on an ongoing basis by Cetera Investment Management, allowing you more time for client relationship management Mutual fund/etf selection by Cetera Investment Management Choose from a select list of passive and actively managed no-load and load-waived investment products $25,000 Open architecture focused on selecting high-quality mutual funds and ETFs.

9 Advisory Fee Payment Program Fees Client fees are assessed quarterly in advance; paid monthly to the IAR. Program fee includes: Trading and rebalancing costs, due diligence, clearing costs, manager fee, sponsor fee, reporting and billing fees Ticket charges paid by program Prospectus delivery fees paid by program Access to SmartWorks Adviser IRA maintenance fee Resources Client Resources: Sales kits, which can include: The Value of Our Advisory Relationship brochure Cetera Client Collaboration flyer Protecting Your Assets flyer Educational flyers on mutual funds and ETFs Sample quarterly reports and Overview flyers IAR Resources: Proposal generator Investment Policy Statement Research analytics on available mutual funds Marketing support and education Internal wealth management specialists Wealth management consultants Fee calculators

10 Program Fees Preferred Asset Management and Prime Portfolio Services Maximum Client Fees 1 Account Size Maximum Preferred Fee Maximum Prime Fee From To First $0 $250, % 2.75% Next $250,001 $500, % 2.50% Next $500,001 $1,000, % 2.00% Next $1,000,001 $2,500, % 1.75% Next $2,500,001 $5,000, % 1.50% Over $5,000, % 1.25% Ticket Charges Paid by Client Paid by IAR Program Fees 2 Advisor AUM Annual Account Fee 3 Annual Administrative Fee From To $0 $10,000,000 $ bps $10,000,001 $25,000,000 $ bps $25,000,001 $50,000,000 $ bps $50,000,001 $100,000,000 $ bps $100,000,001+ $ bps Reduced Annual Administrative Fee for Accounts over $1 Million 4 Administrative Fee <$100 Million AUM Account Size From To First $0 $1,000,000 Per AUM Per AUM Next $1,000,001 $5,000, bps 4.5 bps Next $5,000,001 $25,000, bps 3.0 bps Over $25,000, bps 1.5 bps Administrative Fee >$100 Million AUM

11 Premier Portfolio Management Program Fee 1,2,4,5,6,7,14 Account Size Advisor AUM Maximum Client Fee From To $0-$50M $50M-$100M Over $100M+ First $0 $250, % 0.25% 2.75% Next $250,001 $500, % 0.20% Contact the Wealth 2.50% Next $500,001 $1,000, % 0.18% Management Consulting 2.00% Next $1,000,001 $2,500, % 0.13% Team for pricing 1.75% Next $2,500,001 $5,000, % 0.09% 1.50% Over $5,000, % 0.05% 1.25% 1 $200 early termination fee charged to clients for accounts closed within 12 months. 2 Client fee should equal the sum of the program fee and the advisor fee. 3 Annual account fees are not prorated. 4 Pricing applies to stand-alone and consolidated accounts. 5 Certain mutual funds may have additional fees. Please see program FAQs for further details. 6 Mutual fund short-term redemption fees are charged to the IAR if sold within three months. 7 Ticket charges paid by program. For Premier, please see program FAQs for further details. 8 $250 minimum annual fee for UBS and Sage. 9 Program fees assessed pro rata per strategist. 10 When using multiple managers, the highest program fee schedule per tier will be the minimum client account fee. 11 Advisors who exceed $50 million in AUM in this program will receive a rebate. 12 Transaction fee assessed to the advisor for positions that transfer in kind, and subsequently liquidated in the account. 13 Large account pricing discount available. 14 Custodial fees are included in the program fee.

12 Program Fees Mutual Funds/Exchange Traded Funds (MF/ETF) Advisory Program Selected as the 2012 Advisory Solution of the Year by the members of the Money Management Institute Program Fees 1,2,7,8,9,10,11,12 (Pricing Per Strategist, Per Account) Cetera (Enhanced Passive) Sage (Tactical & Income) UBS (Tactical & Income) Account Size Wilshire (Strategic) Wilshire (Alternative) Cetera (Tactical) From To First $0 $250, % 0.65% 0.45% 0.45% 0.65% 0.65% 2.75% Next $250,001 $500, % 0.55% 0.40% 0.40% 0.55% 0.55% 2.50% Next $500,001 $750, % 0.50% 0.35% 0.35% 0.50% 0.50% 2.00% Next $750,001 $1,000, % 0.45% 0.30% 0.30% 0.45% 0.45% 1.75% Over $1,000, % 0.40% 0.25% 0.25% 0.40% 0.40% 1.50% Maximum Client Fee Next Generation Managed Accounts (xma ) Program Program Fees 1,2,7,9,10,13 (Pricing Per Manager Strategy, Per Account) Account Size Equities Fixed Income From To Maximum Client Fee First* $0 $250, % 0.70% 2.90% Next $250,001 $500, % 0.65% 2.90% Next $500,001 $1,000, % 0.60% 2.70% Next $1,000,001 $2,000, % 0.55% 2.00% Over $2,000, % 0.40% 1.50% $1,200 minimum annual fee or program fee schedule per manager, whichever is greater. *

13 Managed Wealth ADVANTAGE Account Size Program Fees 1,2,7,12,14 Program Fee Maximum Client Fee From To First $0 $250, % 2.75% Next $250,001 $500, % 2.50% Next $500,001 $750, % 2.00% Next $750,001 $1,000, % 1.75% Next $1,000,001 $2,000, % 1.50% Over $2,000, % 1.25% 1 $200 early termination fee charged to clients for accounts closed within 12 months. 2 Client fee should equal the sum of the program fee and the advisor fee. 3 Annual account fees are not prorated. 4 Pricing applies to stand-alone and consolidated accounts. 5 Certain mutual funds may have additional fees. Please see program FAQs for further details. 6 Mutual fund short-term redemption fees are charged to the IAR if sold within three months. 7 Ticket charges paid by program. For Premier, please see program FAQs for further details. 8 $250 minimum annual fee for UBS and Sage. 9 Program fees assessed pro rata per strategist. 10 When using multiple managers, the highest program fee schedule per tier will be the minimum client account fee. 11 Advisors who exceed $50 million in AUM in this program will receive a rebate. 12 Transaction fee assessed to the advisor for positions that transfer in kind, and subsequently liquidated in the account. 13 Large account pricing discount available. 14 Custodial fees are included in the program fee.

14 Client Group Summary Inception Date May 13, 2003 Total Value $ 34,261, Accrued Income $ 97, Net Investment 1 $ 8,765, Performance Inception Date Jun 2, 2003 Performance Total Value $ 34,261, Performance 2 This Quarter Year-to-Date Incp to Date TWRR 2.81 % 2.62 % % Account Activity 3 This Quarter Year-to-Date Since Inception Beginning Value $ 33,866, $ 34,323, $ 0.00 Net Cntrbs/Wthdrwls -551, , ,868, Capital Appreciation 931, , ,386, Income Received 48, , ,389, Accounts 2 Market Value Net 1 Investment Asset Allocation Qtr to Date The Client Family Trust DEMO $ 3,634, $ -162, Incp : Jun 2, 2003 Year to Date Equity % Fixed Income Cash 2.21 Fairpointe Mid-Cap Core Equity Managed Account % 4.06 % % The Client Family Trust DEMO $ 2,342, $ 2,117, Incp : Sep 9, 2013 Lazard Int'l Equity Select w/emerging Markets Managed Account The Client Family Trust DEMO $ 5,299, $ 2,907, Incp : Feb 26, 2004 SMHCA Diversified Fixed Income Mgd Account The Client Family Trust DEMO $ 1,810, $ 1,623, Incp : Feb 16, 2011 Tom Johnson Intermediate Fixed Income Managed Account The Client Family Trust DEMO $ 463, $ 205, Incp : Mar 30, 2007 Advisor Directed The Client Family Trust DEMO $ 18,971, $ 2,932, Incp : Apr 1, 2007 Advisor Directed Last 1 Yr Last 3 Yrs Last 5 Yrs Last 10 Yrs Incp to Date Program Resources Quarterly Reports At the end of every quarter, your advisory clients will receive full-color Quarterly Reports that combine performance, value and fees into one concise report. You can customize your client s Quarterly Report by adding a custom introductory statement or About Me message with your picture at the front of each report. It s a level of personalization that s not usually available at most firms. As an added benefit, clients will receive monthly transaction reports from Pershing LLC, the custodian of accounts. The Client Family Data as of May 6, Aggregate Overview All Accounts Large-Cap Growth Large-Cap Core 3.66 Large-Cap Value Mid-Cap Growth 2.17 Mid-Cap Core Mid-Cap Value 3.32 Small-Cap Growth 0.43 Small-Cap Core 0.26 Small-Cap Value 0.50 Int'l Developed Mkts 9.08 Int'l Emerging Mkts 1.96 Intermediate Bond Cash 2.21 Phone Support Advisory sales support is just a phone call away. We have a dedicated team of advisory consultants who will assist you with: Transitioning from commission-based to fee-based business Sales coaching Practice management and marketing strategies Leveraging technology to create a more efficient office On-Site Assistance Our regional sales managers specialize in on-site assistance. If you have a problem and need hands-on support, they can set up a visit to your office. Regional sales managers offer expertise in: Practice management and client service Determining which program is best suited to your business model Client seminars and marketing ideas Transitioning from commissions to fees Knowledge of the competitive marketplace

15

16 For more information, please contact: Cetera Financial Group, Inc. 200 North Sepulveda Boulevard Suite 1200 El Segundo, CA cetera.com About Cetera Financial Group Cetera Financial Group, Inc. is one of the nation s largest privately held, independent broker-dealer and registered investment adviser families. It provides award-winning wealth management and advisory platforms, and comprehensive broker-dealer and registered investment adviser services through: Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC, Cetera Financial Specialists LLC, Cetera Investment Management LLC and Cetera Investment Advisers LLC. Cetera Financial Group offers the benefits of a large, established and well-capitalized firm, while serving advisors in a way that is customizable to their unique needs and aspirations. Cetera Financial Group is committed to helping advisors grow their business and strengthen their relationships with clients. For more information, visit cetera.com Cetera Financial Group, Inc /14