Managed Account Programs

The IronStone Securities Managed Account Programs provide clients access to institutional investment managers who seek customized portfolio management. Our professional portfolio management programs are appropriate for individual and institutional investors, and utilize an extensive customer profiling process to help the client determine the most appropriate asset allocation and investment style. Clients receive comprehensive account reporting as well as ongoing consultative services from their financial consultant.

Professional portfolio management for the serious, objective-oriented investor
Investment decisions made today will determine your standard of living tomorrow. Managing your financial affairs to comfortably meet your future needs may be one of the most challenging tasks of your lifetime. Today, you—the serious, objective-oriented investor—are faced with a virtually unlimited number of investment choices, the selection of the right investment strategy, and your ability to implement this strategy. Professional asset management through The IronStone Securities Managed Account Programs guides you through this process and helps you attain your long-term financial objectives.

Your Financial Consultant and you: a tailored service approach
Selecting the appropriate program, one which provides the investment discipline required to help you meet your financial goals, begins with the formulation of your own investment strategy. Your Financial Consultant is prepared to assist you through the completion of a unique Investor Profile Questionnaire that will help you determine your investment goals, your attitude toward risk, investment preferences, and expected cash flow requirements. Your Financial Consultant will use the information gathered to help determine your investor profile and formulate an investment strategy that utilizes an appropriate asset allocation in consideration of your specific financial objectives.

Program selection
The investment manager for each program was selected specifically on the basis of expertise in various investment disciplines and asset allocation classes, long-term investment performance, and other quantitative and qualitative criteria. Based on your investor profile, your Financial Consultant can help you choose one or more appropriate programs for your consideration.

And your Financial Consultant will continually keep a watchful eye on your account, helping you to interpret portfolio performance and acting as your liaison with the team of professionals managing and maintaining your account.

Informed investing
Each quarter you can look forward to receiving a comprehensive report detailing the performance of your program account, complete with historical performance and tax-lot accounting. Your Financial Consultant will be available to review the report and your account's progress with you. Should conditions warrant, your Financial Consultant will be prepared to effect any changes to ensure continued conformance to your financial profile and selection standards. In addition to your quarterly performance evaluation, you will receive a periodic statement of account activity and asset reporting.

Securities held in custody by Pershing for your program account receive the highest level of account protection in the marketplace today—unlimited account protection for the securities and cash awaiting reinvestment held in custody by Pershing for your account. Of this total, Securities Investor Protection Corporation (SIPC) provides $500,000 of coverage including $100,000 for claims for cash awaiting reinvestment. The remaining coverage is provided by Pershing through a commercial insurer. The account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments.

All-inclusive fee
With IronStone Securities Managed Account Programs, you benefit from a program in which the management fee is all-inclusive and based on value rather than transactions, commissions, or ancillary professional fees. This means that you limit your costs and know in advance the total fee associated with the management of your account.

Who can participate?
Individuals, corporations and other business entities, and pension and profit sharing plans can participate. The IronStone Securities Managed Account Programs are designed for the objective-oriented, serious investor seeking to obtain professional assistance in optimizing long-term investment results.

How to get started
IronStone Securities endeavors to build life-enhancing relationships by helping clients identify and achieve their goals. We are a team of dedicated professionals committed to providing exceptional service through sound planning, insightful advice, proper asset allocation and professional management. When you select the program that is right for you, simply ask your Financial Consultant to initiate the procedures to enroll you in that program.

Definitions of investment styles

GROWTH — Focuses on capital appreciation, concentrating on stocks and industry groups with above-average earnings potential.

VALUE — Places emphasis on selecting securities which are considered undervalued by the market. Stocks selected typically have a low price/earnings ratio and above-average dividend yields.

CORE — A diversified portfolio, typically investing in both growth and value stocks. Uses a broad index such as the S&P 500 index as a benchmark.

GROWTH & INCOME/EQUITY INCOME — Place emphasis on securities with relatively high dividend yields. May favor companies with above-average capitalization and utilities. These funds may also contain stocks that have above-average dividend growth potential.

LARGE CAPITALIZATION — Mutual funds which generally invest in companies whose market capitalization exceeds $5 billion at the time of initial investment.

MID-CAPITALIZATION — Stocks of companies with mid-range market capitalizations, or market values. Generally the term refers to companies with capitalization between $1 billion and $5 billion.

SECTOR ROTATOR — Overweights stocks of industry sectors that are considered to be more promising and underweights those in less promising sectors.

SMALL CAPITALIZATION — Favors smaller companies with high growth and appreciation potential (market captializiation is typically under $1 billion). This portfolio will be more volatile than overall market.

INTERNATIONAL — Portfolio comprising foreign equities exclusively. Specializations may include emerging markets, developed countries and specific regions.

GLOBAL — Portfolio consisting of U.S. and foreign securities.

FIXED INCOME
Corporate: Portfolio emphasis on investment grade issues. Typically broad market sector coverage.

INTERMEDIATE-TERM — Portfolio emphasis on two-year average maturity with above-average portfolio yield pursued. Broad market sector coverage.

U.S. GOVERNMENT — Approximately 75%-100% commitment to U.S. Government securities with actively managed portfolio duration.

MUNICIPAL BOND — Invests in high-quality fixed-income securities issued by state and local governments and exempt from federal income tax. Portfolio average maturity ranged from two to ten years. Funds may specialize in state-specific investments or may invest nationally.

TOTAL RETURN — Primary emphasis on capital appreciation and secondary emphasis on current yield. Portfolios actively trade among market sectors and maturity ranges.

INTERNATIONAL — Invests in fixed-income issues of foreign governments and corporations.

HIGH YIELD — Offers high current income by investing in low-quality corporate debt.

Balanced
EQUITY-ORIENTED — Portfolio weightings skewed toward equity investments including convertible bonds.

FIXED INCOME-ORIENTED — Portfolio skewed towards U.S. Government and corporate bonds.

GLOBAL — Portfolio consisting of U.S. and foreign securities.

MUTUAL FUNDS — Portfolio comprising both equity and fixed-income securities.

Convertible
Majority holdings of bond and/or preferred stock which are convertible to common stock.

Specialty
Included mutual funds with investment specializations in gold, real estate and utilities.

The IronStone Securities Managed Account Programs are offered by IronStone Securities, Inc., which is a registered broker-dealer and investment advisor, not a bank. These Managed Account Programs are not offered by any bank, and IronStone Securities, Inc. is separate and distinct from banks with which it is affiliated. These Managed Account Programs: (1) are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States; (2) are not a deposit or other obligation of, or guaranteed by, any bank or any affiliate of a bank, or IronStone Securities, Inc., (3) involve investment risks, including possible loss of principal invested and possible loss of value.