Strategic Financial Solutions The Advantage of Personal Professional Money Management
2 S t r a t e g i c F i n a n c i a l S o l u t i o n s Having financial goals is one thing. Achieving them is another, especially in today s complex, ever-changing financial markets. Are you properly diversified? Which funds or securities should you invest in? How much risk should you take? What is the right asset allocation strategy based on your personal risk tolerance and goals? Your answers to a few key questions will help determine which managed account best suits your needs. Are you properly diversified and comfortable with the level of risk associated with your investments? Do you have trouble deciding what to buy and when to sell? Are you unsure how to allocate your investments? Do you have the time and resources to manage your money effectively? Do you have a difficult time keeping track of all your investments at different institutions? Have you been disappointed by the performance or service you ve received? Do you want to lower your investment risk while attempting to improve your returns? Are you tired of paying transaction fees every time you make an investment decision? You have questions. You need a financial advisor who will listen. Above all, you demand solutions that will help you reach your financial goals. Whether you re a highly involved investor, someone who would rather never think about your investments, or somewhere in between, Commerce Brokerage Services has investment management options to meet your needs. Strategic Solutions That Fit Money management choices Commerce has partnered with FundQuest, a leading investment management firm, to offer four distinct options for personal professional money management based on your needs and preferences: the Fund Manager Account, the Portfolio Manager Account, the Investment Manager Account and the Asset Manager Account. Each offers a personalized asset allocation strategy, professional management, and comprehensive reporting. These strategic solutions also have unique differences designed to complement your personal investment objectives, styles, and risk tolerance. Your Commerce Brokerage Financial Consultant can help you determine which strategic financial solution is best for you.
3 A Complete Set of Advantages Professionally managed accounts simplify the often overwhelming process of selecting and directing a diversified securities portfolio. You benefit from a number of important factors, including: Personalized asset allocation strategy Working closely with your Commerce Brokerage Financial Consultant, you establish your investment objectives, time horizon, liquidity needs, and risk tolerance. Based on this information, we develop a personal strategy for investment diversification through asset allocation. The core of any personal investment plan, asset allocation is a technique of spreading your investments across several different asset classes to offer protection against dramatic market fluctuations. This helps provide more consistent returns while minimizing your overall risk. Professional management and rebalancing Our process of professional money management includes both quantitative and qualitative analysis in the selection of securities for your portfolio. Plus ongoing review of your securities is conducted so you maintain an optimal portfolio based on the strategic asset allocation and your unique investment situation. The percentage of your portfolio we initially assign to each asset class will change over time due to the effect of market performance on those investments. Since maintaining the appropriate asset allocation is one of the primary determinants of long-term performance, we will review, monitor, and rebalance your portfolio to maintain the asset allocation outlined in your Personal Investor Profile. This process helps to ensure you are continually taking the right amount of risk for your investment objectives and personal comfort level. Consolidation of your investments Your account can include both new investments and existing holdings you wish to retain. You re always in control because your investments remain in your name, you re not locked in for any period of time, and there are never any account withdrawal or penalty charges.* No transaction fees or commissions As an investor in our managed accounts, you never pay transaction fees or commissions for trades made for your portfolio. Instead, professional management is yours for an annual fee, based on the value of the assets in your portfolio. And there is no minimum investment holding period so you have maximum flexibility. Suggested taxable and tax-deferred allocation strategy Professional management ensures your assets are strategically invested in a portfolio composed of taxable and tax-deferred investments that seek to increase your potential for growth and meet your long-term and short-term goals. Comprehensive reporting Straightforward quarterly portfolio performance reports (as shown to the left) enable you to see your entire financial picture and dramatically simplify record keeping and tax reporting. *Does not include National Financial Services, LLC standard IRA account fees. See IRA Customer Agreement for details. Mutual funds and other investment products: Not FDIC-Insured May Lose Value No Bank Guarantee
4 S t r a t e g i c F i n a n c i a l S o l u t i o n s Professional Money Management to Reach Your Investment Goals Gain control over your financial future Each of these strategic financial solutions controls risk by spreading exposure across a range of asset classes long-term growth, growth and income, international, specific industry sectors, and bonds. The specific asset allocation over these different types of investments, of course, all depends on your personal investment goals, time horizon, and risk tolerance. Fund Manager Account Mutual funds and exchange-traded funds are an ideal solution for many investors. Analyzing and understanding thousands of available mutual funds and exchange-traded funds can be challenging, time-consuming, and overwhelming. With the Fund Manager Account, we ll help you select a portfolio of funds appropriate to meet your objectives. And we will automatically rebalance your portfolio to ensure the selected risk level. All funds are carefully reviewed and screened on an ongoing basis for a variety of performance characteristics to make certain they continue to be right for you. This gives you confidence that your portfolio conforms to the appropriate risk level, based on your personal preferences and financial objectives. Portfolio Manager Account The Portfolio Manager Account offers access to diversified portfolios with multiple products, using separately managed accounts, mutual funds, and exchange-traded funds within one account. A distinct overlay portfolio management process helps increase portfolio diversification and ensures that the selected investments blend together to create the right mix to meet the objective of your portfolio. The Portfolio Manager Account also offers you tax management opportunities, including the ability to tax harvest gains or losses on specific securities.
5 Investment Manager Account The Investment Manager Account provides top-level expertise using separately managed accounts. Your portfolio is managed according to a personalized asset allocation plan designed to meet your goals while managing risk. The Investment Manager Account offers you access to the top money managers in the country. In addition, it provides a high level of customization, including the ability to place restrictions on the manager from purchasing specific securities. Because your portfolio is customized, you receive greater flexibility over your income tax management. You can decide when to recognize capital gains and losses, which provides you with greater control over your tax bill. Asset Manager Account The Asset Manager Account provides individual investors with professional money management according to a personalized strategy that integrates most types of investments exchange-traded funds, stocks, bonds, and mutual funds in a single, consolidated portfolio. Simplify your investment plan and let the professional management process ensure consistency through periodic rebalancing. The Asset Manager Account provides a comprehensive investment account that helps you better achieve your financial objectives while effectively managing risk. Professionally managed accounts control risk by spreading exposure across a range of asset classes. Mutual funds and other investment products: Not FDIC-Insured May Lose Value No Bank Guarantee
6 S t r a t e g i c F i n a n c i a l S o l u t i o n s How Our Strategic Financial Solutions Advisory Process Works 1 We ask. We listen. At the start of the investment advisory process, your Commerce Brokerage Financial Consultant creates your Personal Investor Profile. The profile evaluates, among other things, your long-term financial goals, priorities, time horizon, liquidity needs, and level of risk tolerance. 2 We solve. Next, your Financial Consultant analyzes your profile and creates a personalized asset allocation plan designed to pursue your financial goals while managing risk. You receive a detailed Investment Strategy Report (as shown below) that includes suggestions of asset classes to comprise the taxable and tax-deferred components of your portfolio. 3 We take action. We finalize your investment plan and establish your account, purchasing or trading investments in accordance with your Personal Investor Profile. There are no commissions or redemption fees for any purchases or trades made for your portfolio. Your Financial Consultant manages the entire process to minimize its impact on you and your time. 4 We keep solutions on track. Your Commerce Brokerage Financial Consultant and FundQuest s team of portfolio managers monitor your portfolio s performance. Periodically, your portfolio may be rebalanced to ensure that it remains aligned with your investment strategy. Together, your Financial Consultant and FundQuest deliver institutional quality money management to meet your investment needs. 5 We keep listening. Life events such as the achievement of a financial goal, a career change, or the decision to retire can impact your investment strategy. Your Financial Consultant meets with you regularly to make sure your investments continue to keep pace with your life and investment plan.
7 Which Strategic Financial Solution Is Right For You? Everyone is different. So we ve created the following table to help suggest the best account for you based on your personal preferences and investment philosophies. Use this as a starting point and then give us a call. We ll ask listen solve to find the investment solution that s just right for you. Fund Manager Account Portfolio Manager Account Investment Manager Account Asset Manager Account I want a customized asset allocation strategy. I could benefit from ongoing research on thousands of mutual funds to help me select the best funds. I want professional money managers to oversee my investments. I want to modify my investment strategy when my needs change or market conditions warrant. I want simplified record keeping for tax preparation. I want an account that includes tax management options as part of the overall investing strategy. I like straightforward quarterly results and analysis. I want stock and bond investments as part of my investment plan. I like the idea of paying an annual fee based on the value of my assets no commissions or transaction charges. I want access to all types of investment products. Take the next step To explore our Strategic Financial Solutions services further, visit with one of our Financial Consultants. We ll talk and get better acquainted. Because the more we ask and listen, the better we can solve your investment needs. Call Commerce Brokerage Services, Inc. at 1-800-772-7283. Click www.commercebank.com/brokerage, or e-mail us at commercebrokerage@commercebank.com. Come by any Commerce branch and arrange a meeting with a Commerce Brokerage Financial Consultant. What else do you need? This brochure provides information on many services provided by Commerce through Commerce Brokerage Services, Inc. You may also have needs that require other services, such as checking, savings, online banking, and borrowing. We can offer help in these areas as well. For all your financial needs, Commerce offers a family of solutions through Commerce Bank, Commerce Brokerage Services, Inc., Commerce Insurance Services, Inc., and The Commerce Trust Company. Commerce Brokerage Services, Inc., Member NASD, SIPC and Commerce Insurance Services, Inc. are wholly owned subsidiaries of Commerce Bank, N.A. The Commerce Trust Company is a Division of Commerce Bank, N.A. Mutual funds and other investment products: Not FDIC-Insured May Lose Value No Bank Guarantee
1-800-772-7283 www.commercebank.com/brokerage MK 2010 06/06