Morningstar Separate Account Report Sowell Aggressive Growth

Transcription

1 Morningstar Separate Account Report 2 Snapshot 3 Portfolio (Equity) 4 Portfolio (Bond) 5 Performance 6 Operations 7 Firm Summary 8 Brokerage Availability

2 Release date 6/30/2014 Page 2 of 8 Snapshot Account Customization Options Tax Efficiency Options Exclude securities Access daily portfolio holdings Use tax-optimization software Analyze taxable income streams Modify sector weightings Access daily performance Use tax-lot trading strategies Sell high cost positions first Consult with portfolio manager Access daily risk/mpt stats Harvest tax losses Flag short-term gain before trade Consult with portfolio administrator Miscellaneous customizations Analyze trades by holding period Analyze potential loss candidates Tax lot harvest report to broker Use lng-trm cap gains when trading Receive annual tax document Proactive By Request No Portfolio Analysis 6/30/ Small Mid Large Value Blend Growth Low Med High Ltd Mod Ext Defensive Sensitive Morningstar US Market Fund Cyclical Asset Allocation Long % Short % Net % Cash US Stock Non US Stock Bond Other Fixed-income investment style data is as of 6/30/2014 Performance 6/30/2014 Equity Investment Style Market Cap ($Mil) 9, K 9 Growth of 10K Fund Index Category /2014 History & ) ) & Quartile Rank (cat) Total Return % /- Category /- Index* Net Assets (Mil) * DJ Moderate TR USD Trailing Total Returns Trailing Ret % +/- Index +/- Cat % Rnk Cat YTD Mo Yr Annualized Yr Annualized Yr Annualized Inception DJ Moderate TR USD Fixed-Income Investment Style Avg Effective Duration (Yrs) 1.83 Avg Effective Maturity (Yrs) 0.98 Avg Credit Quality A Sector data is calculated only using the long position holdings of the portfolio. Ratings and Risk 3/31/2014 Stock Sectors % Stocks h Cyclical j Sensitive k Defensive Overall 3 Yr 5 Yr 10 Yr Morningstar Rating TM Number Rated Morningstar Risk TM High High High High Morningstar Return TM Above Avg Below Avg High High Standard Deviation Mean Top 10 Holdings 6/30/2014 YTD Return as of 7/27/2014 Sector YTD Return % % Assets Smead Value Institutional Grandeur Peak Global Opportunities Instl JPMorgan Mid Cap Value Instl Transamerica Large Cap Value I DWS RREEF Global Infrastructure Inst Managed Futures Strategy I 9.95 Westcore Micro Cap Opportunity 9.27 Us Money Market 0.48 % Assets in Top 10 Holdings Total Number of Stock Holdings 0 Total Number of Bond Holdings 0 Turnover % Month Yield %

3 Release date 6/30/2014 Page 3 of 8 Portfolio Equity Style 6/30/2014 Ownership Zone TM Small Mid Large Value Blend Growth Value Measures Stock Rel Portfolio Category Price/Prospec Earnings* Price/Book* Price/Sales* Price/Cash Flow* Dividend Yield %* *Forward-looking based on historical data Style Breakdown Small Mid Large Value Core Growth Weight % > Growth Measures Stock Rel Portfolio Category Long-Term Earnings % Book Value % Sales % Cash Flow % Historical Earnings % Top 20 Holdings 6/30/2014 YTD Return as of 7/27/2014 Sector YTD Return % % Assets T Smead Value Institutional T Grandeur Peak Global Opportunities Instl T JPMorgan Mid Cap Value Instl T Transamerica Large Cap Value I T DWS RREEF Global Infrastructure Inst T 361 Managed Futures Strategy I 9.95 T Westcore Micro Cap Opportunity 9.27 Us Money Market 0.48 T Increase Y Decrease E New Since Last Portfolio % Assets in Top 10 Holdings Total Number of Stock Holdings 0 Total Number of Bond Holdings 0 Turnover % Month Yield % Market Cap Breakdown % Stocks Rel Cat Giant Large Medium Small Micro Size $Mil Market Cap 9,291 Style and Market Cap Breakdown and Value and Growth Measures are calculated only using the long position holdings of the portfolio. Asset Allocation 6/30/ Asset Allocation Long % Short % Net % Cash US Stock Non US Stock Bond Other Stock Sectors 6/30/2014 % Stocks Rel Mkt h Cyclical r Basic Matls t Consumer Cycl y Financial Svs u Real Estate Sector data is calculated only using the long position holdings of the portfolio. World Regions 6/30/2014 Greater Asia Americas Greater Europe % Stocks Rel Mkt j Sensitive i Commun Svs o Energy p Industrials a Technology Greater Asia 7.81 Japan 0.83 Australasia 0.81 Asia Developed 2.98 Asia Emerging 3.19 % Stocks Rel Mkt k Defensive s Consumer Def d Healthcare f Utilities Americas North America Latin America 1.25 Defensive Greater Europe United Kingdom 3.88 Europe Developed 5.95 Europe Emerging 0.22 Africa/Middle East 0.43 Sensitive Morningstar US Market Fund Cyclical Market Maturity % Developed Markets % Emerging Markets 4.81 Not Classified 0.00 Region breakdown data is calculated only using the long position holdings of the portfolio. N/C >90%

4 Release date 6/30/2014 Page 4 of 8 Portfolio Fixed-Income Style 6/30/2014 Ownership Zone TM Ltd Mod Ext Low Med High Only one duration reported Type % Bonds AAA 4.22 AA A 8.29 BBB 4.75 BB 0.08 B 0.00 Below B 0.00 Not Rated 3.38 Top 25 Holdings 6/30/2014 Date of Amount Value % Net Maturity (000) ($000) Assets T Smead Value Institutional T Grandeur Peak Global Opportunities Instl T JPMorgan Mid Cap Value Instl T Transamerica Large Cap Value I T DWS RREEF Global Infrastructure Inst T 361 Managed Futures Strategy I T Westcore Micro Cap Opportunity Us Money Market T Increase Y Decrease E New Since Last Portfolio Average Effective Duration (Yrs) 1.83 Average Weighted Coupon 1.79 Average Effective Maturity (Yrs) 0.98 Average Weighted Price ¹ Average Credit Quality A ¹ as of 6/30/2014 *Figure provided by fund % Assets in Top 10 Holdings Total Number of Stock Holdings 0 Total Number of Bond Holdings 0 Turnover % Month Yield % Asset Allocation 6/30/ Asset Allocation Long % Short % Net % Cash US Stock Non US Stock Bond Other Fixed-Income Sectors 6/30/2014 % Bonds Rel Cat Government Municipal Corporate Securitized Cash & Equivalents Derivative Coupon Range 6/30/2014 % Bonds Rel Cat 0% PIK % to 4% % to 6% % to 8% % to 10% % to 12% 0.05 More than 12% 0.00 Municipal Bond Sectors 6/30/2014 % Bonds Rel Cat General Obligation Utilities Health Water/Waste Housing Education Transportation COP/Lease Industrial Misc Revenue Demand The fixed income statistics above are calculated only using the long position holdings of the portfolio.

5 Release date 6/30/2014 Page 5 of 8 Performance 5 Investment Style Growth of 10K Fund DJ Moderate TR USD Category 8 & & & & ) & & ) ) & Quartile Rank (cat) (within category) /2014 History Total Return % /- DJ M /- Category 10K Net Assets $Mil 30.0 Relative SA Quarterly 20.0 vs. Category Quarterly SA Relative Return Category Baseline Best Qtr Performance Worst Qtr Performance Qtrly Total Returns st Quarter nd Quarter rd Quarter th Quarter ]3 [1 ]3 [1 ]3 [1 ]4 [0 ]1 [3 ]3 [1 ]3 [1 ]3 [1 ]3 [1 ]3 [1 ]2 [0 Trailing Total Returns Trailing Ret % +/-Index +/- Cat % Rnk Cat YTD Mo Mo Mo Yr Annualized Yr Annualized Yr Annualized Yr Annualized Inception DJ Moderate TR USD Morningstar Ratings TM Overall 3 Yr 5 Yr 10 Yr Morningstar Rating TM Number Rated Morningstar Risk TM High High High High Morningstar Return TM Above Avg Below Avg High High Risk Measures Modern Portfolio Theory Statistics Standard Index Best Fit Index DJ Moderate TR USD MSCI World NR USD R-Squared Beta Alpha Trailing 3-Yr through 6/30/2014 Volatility Measurements 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio Bear Market Decile Rank (5 Yr)

6 Release date 6/30/2014 Page 6 of 8 Operations Key Statistics Number of accounts 3 Inception Date 12/31/2003 Product type Composite Product focus Both Account Size Breakdown(Strategy Level) Customization minimum 0 Investment minimum 100,000 Percent of portfolios customized Percent of portfolios tax-managed Less than $250,000 $250,000-1 Million $1 Million-10 Million $10 Million-25 Million $25 Million-50 Million $50 Million-100 Million More than $100 Million Total Acct Value # of Accts Fees Breakpoints Management Bill Sowell 12/31/2003 Chris Magann 2/1/2011

7 Release date 6/30/2014 Page 7 of 8 Firm Summary Correspondence Information Sowell Management Services 7301 River Pointe Drive North Little Rock Arkansas Firm Details Year Founded 12/20/2001 Total Employees Percent Owned by Employees Firm Type 4 Firm Legal Structure Limited Liability Company (LLC) Parent Company Firm Summary AIMR Compliant AIMR PPS Compliance Date 12/31/2003 Legal Information Registered investment advisor Exempt with SEC Errors and ommissions insurance Fiduciary liability insurance Bonded Disciplinary action is the past 10 years Previous judgments against firm Pending litigation Pending SEC investigations Yes Yes Yes Yes No No No No Firm Narratives Provided by Sowell Management Services Product Our management style is a unique blend of offensive positions to provide positive returns in healthy market conditions and tempered with defensive positions for sideways and down markets. Simply stated; our goal is to outperform the markets with less risk and less volatility. Performance The performance data quoted represents actual past performance and does not guarantee future returns. Sowell Management Services is a GIPS verified firm. To obtain a full GIPS complaint presentation, please BusinessDevelopment@SowellManagement.com. History Sowell Management Services is a Fee-Based Third Party Management firm with investment portfolios for individuals, retirement plans, corporations, trusts, foundations and institutions. As a Third Party Manager, Sowell Management Services manages assets for industry professionals through a network of some of the industry s largest and most respected Independent Broker/Dealers as well as Investment Advisor Representatives located across the country.

8 Release date 6/30/2014 Page 8 of 8 Appendix: Brokerage Availability Wrap/TAMP Availability