PORTFOLIO MANAGER SELECTION AND EVALUATION. In PWP, LPL and IAR are responsible for the overall investment advice and management services offered to clients, and the client selects the IAR who manages the account. LPL generally requires that individuals involved in determining or giving investment advice have at least 2 years financial planning, advisory or brokerage-related experience. Each IAR is also generally required to possess a FINRA Series 6, 7, 62, 65, or 66 license (to the extent required). For more information about the IAR managing the account, client should refer to the Brochure Supplement for the IAR available from the IAR. LPL makes available Models designed by PWP Advisors. LPL selects and reviews on an ongoing basis the PWP Advisors available on PWP based on quantitative, qualitative and infrastructure criteria, which include: Quantitative Criteria LPL evaluates quantitative criteria both in terms of the PWP Advisor’s absolute performance and performance relative to the PWP Advisor’s investment style group, including but not limited to: • Rate of return • Consistency of returns and risk • Number of employees and accounts • Years in the business • Assets under management Qualitative Criteria LPL evaluates qualitative criteria, including but not limited to: • Sound Investment philosophy and process that drives performance • Assessment of the investment manager and team • Risk controls • Legal and compliance issues Infrastructure Criteria LPL reviews infrastructure criteria to assess whether a PWP Advisor can handle operational requirements including but not limited to: • Composite calculation methodology • Trade rotation policy, if applicable • Back office review • Client servicing resources • Firm-wide program commitment LPL reviews PWP Advisors currently participating in the program and reviews new PWP Advisors prior to the addition of their Models to the program. LPL may elect to remove a PWP Advisor should it determine that the PWP Advisor has failed to meet one or more of the above selection criteria or other pertinent criteria (e.g., significant change in management staff). In making a decision to remove a PWP Advisor, LPL’s Research Department takes into consideration all criteria; no one criteria is necessarily determinant in the replacement decision. Additionally, in its review process, LPL places emphasis on long term overall PWP Advisor performance from a qualitative and/or quantitative viewpoint. Short-term developments are monitored but are not necessarily sufficient fo...
PORTFOLIO MANAGER SELECTION AND EVALUATION. In OMP, LPL does not select, review or recommend the services of other investment advisor or portfolio management firms. LPL and its IARs are responsible for the investment advice and management offered to clients, and the client selects the IAR who services the account. LPL generally requires that individuals involved in determining or giving investment advice have at least two years financial planning, advisory or brokerage-related experience. Each IAR is also generally required to possess a FINRA Series 6, 7, 65, or 66 license (to the extent required). For more information about the IAR managing the account, client should refer to the Brochure Supplement for the IAR, available from the IAR. In OMP, clients invest in Portfolios designed by LPL’s Research Department. LPL’s Research Department provides various types of advisory services. LPL Research provides research recommendations on asset allocation and mutual funds and ETFs. LPL Research provides investment advice on mutual fund selection and allocation through other LPL advisory programs, such as Model Wealth Portfolios and Personal Wealth Portfolios. LPL Research also reviews and recommends outside portfolio management firms for LPL’s separately managed account wrap program, Manager Select. LPL Research designs different types of Portfolios for OMP to meet the varying needs of clients. The IAR selects the Portfolio and provides advice based on the client’s individual needs. LPL receives a portion of the Account Fee for the Portfolio design services of LPL Research. LPL and its IARs do not accept performance-based fees under OMP. LPL’s Research Department uses the following investment strategies in designing Portfolios. It is important to note that no methodology or investment strategy is guaranteed to be successful or profitable. Investing in securities involves the risk of loss that clients should be prepared to bear. Each of these investment strategies seek to generate capital appreciation while assuming a reasonable amount of risk. • Standard. These Portfolios invest in up to six Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, international, and fixed income. • U.S. These Portfolios invest in up to five Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, and fixed income. These Portfolios do not invest in international. • Growth Tilt. These Portfolios invest in up to six O...
PORTFOLIO MANAGER SELECTION AND EVALUATION. In MWP, LPL and IAR are responsible for the overall investment advice and management services offered to clients, and the client selects the IAR who manages the account. LPL generally requires that individuals involved in determining or giving investment advice have at least two years financial planning, advisory or brokerage-related experience. Each IAR is also generally required to possess a FINRA Series 6, 7, 65, or 66 license (to the extent required). For more information about the IAR managing the account, client should refer to the Brochure Supplement for the IAR, which client should have received along with this Brochure at the time client opened the account. LPL makes available Portfolios designed by LPL, third party Portfolio Strategists and the applicable IAR. LPL reviews on a periodic basis IARs acting as Portfolio Strategists on MWP. In addition, LPL selects and reviews on a periodic basis the third party Portfolio Strategists available on MWP. LPL uses information provided by the third party Portfolio Strategist and also may use independent, third party data sources when evaluating such Portfolio Strategist. Third party Portfolio Strategist performance information is not calculated on a uniform and consistent basis. LPL does not review performance information to determine or verify its accuracy and does not calculate third party Portfolio Strategist performance. However, LPL provides clients with individual quarterly performance information. Performance information distributed is compiled by LPL using third party portfolio accounting and reporting software. Client performance information is calculated on a uniform and consistent basis using a time weighted basis. Performance information is intended to inform clients as to how their investments have performed for a period, both on an absolute basis and compared to investment indices. It is important to note that third party Portfolio Strategists provide the Portfolios to LPL, and it is LPL that has discretion for trade implementation and execution in MWP accounts. Therefore, Portfolios submitted to LPL by third party Portfolio Strategists may represent activity that has already been implemented on behalf of other clients of such Portfolio Strategists. Because of this fact and because LPL (and not the third party Portfolio Strategist) has discretionary authority to implement trades, performance of an MWP account will differ from the performance of such Portfolio Strategist’s discretionary acco...
PORTFOLIO MANAGER SELECTION AND EVALUATION. In XXX, LPL does not select, review or recommend other investment advisors or portfolio managers. LPL through its IARs is responsible for the investment advice and management offered to clients, and the client selects the IAR who manages the account. LPL generally requires that individuals involved in determining or giving investment advice have at least two years financial planning, advisory or brokerage-related experience. Each IAR is also generally required to possess a FINRA Series 6, 7, 65, or 66 license. For more information about the IAR managing the account, client should refer to the Brochure Supplement for the IAR, which client should have received along with this Brochure at the time client opened the account. LPL does not calculate the performance record of IARs, however, LPL does calculate performance for each account. LPL provides clients with individual quarterly performance reports, which provides performance information on a time weighted basis. LPL performance reports are intended to inform clients as to how their investments have performed for a period, both on an absolute basis and compared to leading investment indices. LPL sponsors other types of advisory programs. The Strategic Asset Management II (“XXX XX”) program is similar to XXX, in that LPL through its IARs provides the investment advice and management to client accounts, except that in XXX XX, the client does not pay transaction charges in addition to the Account Fee. Instead, in XXX XX, the client pays a single Account Fee for advisory services and execution of transactions, and the IAR pays LPL the transaction charges. In LPL’s separately managed account wrap program, Manager Select, a third party portfolio manager provides discretionary advisory services. In LPL’s mutual fund asset allocation programs, such as Optimum Market Portfolios and Model Wealth Portfolios, LPL (and not its IARs) is responsible for the discretionary advisory services. LPL and its IARs do not accept performance-based fees under any LPL advisory programs. Investment Discretion In XXX, the IAR provides advisory services on a discretionary basis for the purchase and sale of mutual funds, UITs, closed-end funds, ETFs, and variable annuity subaccounts. The IAR provides advisory services on a non-discretionary basis for all other types of securities approved by LPL for investment in the account. In some cases, the client may provide discretionary authorization to the IAR for equities, fixed income securitie...
PORTFOLIO MANAGER SELECTION AND EVALUATION. In OMP, LPL does not select, review or recommend the services of other investment advisor or portfolio management firms. LPL and Advisor are responsible for the investment advice and management offered to clients, and the client selects the Advisor who services the account. Advisor is responsible for determining the standards required for its associated persons. For more information about the Advisor, client should refer to the Advisor’s Firm Brochure, which client should have received at the time client opened the account. In OMP, clients invest in Portfolios designed by LPL’s Research Department. LPL Research designs different types of Portfolios for OMP to meet the varying needs of clients. The Advisor, or the client with the assistance of the Advisor, selects the Portfolio and provides advice based on the client’s individual needs. LPL’s Research Department uses the following investment strategies in designing Portfolios. It is important to note that no methodology or investment strategy is guaranteed to be successful or profitable. Investing in securities involves the risk of loss that clients should be prepared to bear. Each of these investment strategies seek to generate capital appreciation while assuming a reasonable amount of risk. • Standard. These Portfolios invest in up to six Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, international, and fixed income. • U.S. These Portfolios invest in up to five Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, and fixed income. These Portfolios do not invest in international. • Growth Tilt. These Portfolios invest in up to six Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, international, and fixed income. These Portfolios are over-weighted to growth relative to the standard models. • Value Tilt. These Portfolios invest in up to six Optimum Funds across the following asset classes: large growth, large value, small/mid growth, small/mid value, international, and fixed income. These Portfolios are over-weighted to value relative to standard models. For Standard and U.S. Portfolios described above, LPL Research makes available a strategic or tactical version for each Portfolio. The strategic Portfolios are intended to take advantage of market opportunities that will occur or persist over a three-to-five-year time frame. ...
PORTFOLIO MANAGER SELECTION AND EVALUATION. Our own investment professionals may provide advice under the Adviser as Portfolio Manager service described above. We generally require that individuals involved in determining or giving investment advice have passed the Series 65 exam or have an appropriate professional designation, such as Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP). For more information about the investment professional managing the account, client should refer to the Brochure Supplement for the investment professional, which client should have received along with the Brochure at the time client opened the account. In circumstances where we recommend separate account managers, we consider several factors including account size, risk tolerance, the opinion of each client and the investment philosophy of the selected registered investment adviser. Clients should refer to the selected registered investment adviser's Disclosure Brochure or other disclosure document for a full description of the services offered.
