NAMCOA. Naples Asset Management Company, LLC Registered Investment Advisor Separately Managed Accounts ( SMAs ) Portfolio Solutions

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1 NAMCOA Naples Asset Management Company, LLC Registered Investment Advisor Separately Managed Accounts ( SMAs ) Portfolio Solutions A Separately Managed Account (SMA) is all about taking control and influencing how your money is managed One Account Actively Managed It s about fine-tuning and staying involved in your investments 1100 Fifth Avenue South, Suite 201 Naples, FL Office: Fax: Toll-Free: Office Hours by Appointment Florida Branch Offices Bonita Springs Fort Myers Sarasota Ocala Branch Offices Outside Florida California Colorado North Carolina Texas 1

2 An SMA is a single investment account comprised of individual stocks, bonds, cash or other securities, tailored to achieve specific investment objectives. Your portfolio manager oversees the investments according to your specific investment objectives and in an investment style with which you are comfortable. Actively managed Discretionary managed Individually managed Privately managed SMAs, also known as Wrap Managed Separate Put simply, an SMA is for demanding investors who... Seek the comfort of professional investment; guidance and a heightened level of personal service Still want to take an active role in their financial life; and potential tax benefits that come from owning individual securities in separate, versus mutual funds; Want a single fee to cover ALL account costs including trading costs and performance reporting; and Low-cost, transparency and 24/7 online access. 2

3 SMAs vs Mutual Funds As the investor, you own each of the securities in your SMA, versus investing in a mutual fund, where you own units or shares without owning the securities outright. And while a single portfolio manager oversees a group of SMA as if they were one, they are, in fact separate.. Dedicated investment account containing stocks, bonds, cash and other securities Investor owns the individual securities, allowing for greater degree of customization Investor may have continuous interaction with portfolio manager Highly tax efficient Professionally managed investment that pools money from many investors to purchase securities Investor owns a share in a pool that owns the securities, but does not own them directly Current fund portfolio positions not clearly disclosed up front, and are only reported in arrears, which may cause overlap in client account positions within other investments. All fees or account costs disclosed and transparent Designed for the higher net worth demanding investor Investor does not interact with fund manager Tax efficiency determined by portfolio turnover Not all fund related fees disclosed up front, investor must request each fund s Statement of Additional Information for full disclosure annually Account positons transparent and online 24/7 No inherited capital gains as with mutual funds, SMAs establish a cost basis unique to each investor Expensive to establish and costly to operate due to regulatory requirements, high commissions and administrative resources to meet the needs of smaller ($50, $100, $250 or $1000, who also need to allow additional at-will contributions of $100 or less 3

4 IS A SMA THE RIGHT CHOICE FOR YOU? SMAs make sense for people in a variety of circumstances, including those who own a large amount of stock in a single company or sector and want to diversify, those who have inherited a material sum of money, or those who are about to roll over a retirement account, perhaps after leaving a job. Regardless of your individual circumstances, SMAs may make sense if you seek... Customization Transparency The ability to place all your investments in a single account means you are in control. You, along with your advisor, decide the makeup of the account. That way, your portfolio does not become overweighted in any one security type or sector and take on unnecessary risk, as can happen with ETFs 1 or mutual funds. It s great for investors who may have large, concentrated positions in company stock, from which they need to diversify. With an SMA, you receive regular comprehensive communications and performance reporting from your portfolio management team. Your account statements show you the securities you own, number of shares, and many other details to help you understand how your investments are performing. Professional management Greater tax efficiency Your financial advisor has the experience to recommend a portfolio manager who specializes in a particular style or asset class that suits your needs and objectives. This choice is generally based on the manager s approach, reputation and performance history, the advisor s relationship with the manager, and other criteria. Because an SMA contains individual securities, you can easily address specific tax concerns, such as offsetting capital gains by instructing your manager to sell investments that will produce a capital loss. An exchange-traded fund, or ETF is: a security that tracks an index, a commodity, or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Separately managed are not suitable for everyone. Other types of investments may provide the same or similar benefits as separately managed. Work with your financial advisor to determine if a SMA is appropriate for you. 4

5 NAMCOA Separately Managed Accounts ( SMA ) Features Investors may appreciate increased portfolio transparency, tax management capabilities and flexible portfolio tailoring No-front end or back end commission to participate A separately managed account is a private portfolio of actively managed, individual securities. By not commingling assets with other investors, clients may closely monitor the portfolio s progress and evaluate their individual securities and asset allocations As a result of individual security ownership, separately managed offer tax flexibility through tax gain/loss harvesting potentially reducing the tax impact of the portfolio. Furthermore, for financial planning purposes, individual portfolio positions may be gifted from a separately managed account. NAMCOA is not a tax advisor. Clients should consult their professional advisors before making any tax or investment decisions. This information should not replace a client s consultation with a professional advisor regarding their tax situation. Customization of the portfolio can be provided by choosing to avoid investing in certain securities or economic sectors, tailoring the portfolio to the investor s distinct requirements and requests. Cost Broad choice on account pricing, which is customized for each client, including an "all inclusive" monthly fee approach to cover all account related services, portfolio management, trading and reporting. Separately Managed Accounts provide individual investor s access to specialized money managers for one asset-based fee. That fee may include investment counseling, portfolio management, brokerage fees and ongoing account administration. 5

6 Maintaining the right balance. A systematic, ongoing review of your asset mix will help ensure that it is in line with your long-term objectives. On a semi-annual basis (or quarterly basis if requested) your portfolio will automatically be rebalanced and your holdings reallocated to keep your plan on track. 04 Building a personalized portfolio. Next, NAMCOA narrows the universe of options and offers a variety of choices categorized to fit your needs. Together with your Advisor, a diversified portfolio will be developed. OUR PROCESS - HOW IT WORKS? Getting to know you Working together with your Advisor, NAMCOA begins with an assessment to define your individual needs and goals, your tolerance for risk and includes an analysis of your current plan. Your dedicated Advisor will answer any questions you may have and will be there every step of the way. 02 Optimizing your asset allocation strategy. NAMCOA then provides a sophisticated, quantitative process to analyze your goals and risk appetite, to identify the best asset mix for your investment objectives. The result is a personalized asset allocation strategy designed to deliver the optimal risk and potential return in the most effective way. Please call The NAMCOA managed solutions are accessible directly through Naples Asset Management Company, LLC. ( NAMCOA ). NAMCOA is a federally registered investment advisor. or us at sma@namcoa.com to open an account or learn more. 6

7 NAMCOA SMA Portfolios As a separately managed account client of NAMCOA, investors have access to a boutique range of unique investment choices. The availability of these strategies varies across investment firms; prospective clients should consult their financial advisor about investment strategies that are appropriate for their investment objectives, risk tolerance, tax status and liquidity needs. Below is an overview of our current featured managed account offerings: Monthly Needs The Monthly Needs Portfolio is a weighted equity long portfolio of primarily 25 stocks that are focused exclusively on the average consumer monthly spending habits in the US and abroad. The Portfolio seeks to generate attractive relative returns with low volatility from companies the management feels are undervalued. The portfolio was designed and created to truly capitalize on consumers monthly spending. Each month, consumer s eat food, fruits, snacks, and drink all different kinds of beverages, take medicines, use gasoline to commute, use electricity and water, use the internet, or phone for communication and entertainment, pay for car insurance, health insurance, and property insurance for home owners, they clean their houses, wash their clothes, take out their trash, clean and maintain their bodies, they pay their debts, credit cards, student loans, mortgages, car notes, and bank loans. For more information contact Walter Hester at: whester@namcoa.com Portfolio Objective Income and Capital Appreciation Real Income Real Income Portfolio is an actively managed diversified equity long portfolio with an objection of providing income from dividends. The portfolio focus primarily on Real Estate Investment Trust, but can invest up to 30% in preferred and floating rate interest products. The portfolio targets to invest in 25 to 35 equities. The portfolio does not use any leverage or derivatives. For more information, contact us at sma@namcoa.com Portfolio Objective High Current Income ETF Tactical NAMCOA manages a series of balanced, risk-based portfolios consisting of ETF securities. Each portfolio is designed to offer investors returns based upon the investor s tolerance for risk and volatility, using liquid exchanged traded shares vs openend mutual funds. As market conditions change, the managers may tactically increase or decrease exposure to asset classes to increase risk-adjusted returns. ETFs are well known among portfolio managers for their low cost, tax efficiency, transparency and liquidity. For more information contact Adam Waszkowski, CFA at awaszkowski@namoca.com Portfolio Objective Determined by Client Profile Custom Tactical NAMCOA delivers customized, innovative portfolio management solutions designed to help clients achieve their investment portfolio objectives. A NAMCOA portfolio manager using a technical analysis approach can build and manage custom portfolios that reflect client objects, risk tolerance and other objectives. Technical analysis holds that prices already reflect all the underlying fundamental factors. Uncovering the trends is what technical indicators are intended to provide and assist portfolio managers in risk management. Portfolio Objective Determined by Client Profile This portfolio management approach lead to custom tailored portfolios to meet individual client needs may consist of ETFs, REITs, individual stocks and unique fixed income positions built around the client s risk profile and objectives. For more information contact John Ruff at jruff@namcoa.com 7

8 About Us Naples Asset Management Company, LLC ( NAMCOA ) is a federally registered investment advisor, our CRD number is We are a boutique portfolio manager and our affiliated representatives represent decades of financial advisory and portfolio management experience. Our continuous goal is to help clients reach their financial objectives, through high-quality, customized portfolios that seek to provide consistent, risk-adjusted returns over time. Over $150 million in assets invested for clients in the United States in a broad mix of equities, fixed- income, alternatives and cash strategies A diverse family of specialized investment managers, each with its own independent approach to research and analysis Over 300 combined cumulative years of portfolio management experience in identifying opportunities and delivering astute investment solutions to clients Disclosures The information contained in this guide is not provided on behalf of any product or service and should not be construed as investment advice or a recommendation for any specific product or service. All investments involve risk, including possible loss of principal. There is no guarantee that investment objectives will be achieved. Investors should consider their objectives, risk tolerance and time horizon before investing. Diversification does not ensure a profit or protect against market loss. Fixed income securities are subject to interest rate and credit risk. As interest rates rise, the price of fixed income securities falls. Investments may be made in ADRs and other securities of non-u.s. companies in developed and emerging markets, which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards. These risks are magnified in emerging markets. Equity securities are subject to price fluctuation and possible loss of principal. Separately Managed Accounts (SMAs) are investment services provided by Naples Asset Management Company, LLC (NAMCOA), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by one or more of NAMCOA s portfolio manager subadvisors. Naples Asset Management Company, LLC, its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer s circumstances from an independent tax advisor. For more information, please contact us at or by sma@namcoa.com NAMCOA Naples Asset Management Company LLC 1100 Fifth Avenue South, Suite 201 Naples, Florida For more information, please contact us Toll-Free: sma@namcoa.com Website: 8