A Better Way To Achieve Financial Security NATIONAL ASSET MANAGEMENT

A Better Way To Achieve Financial Security NATIONAL ASSET MANAGEMENT

Welcome to NAM National Asset Management Inc. (NAM), is a Registered Investment Advisor and affiliate of National Securities Corporation Member FINRA/SIPC. NSC is one of the investment industry s major full-service independent brokerage firms. NSC unites a nation of successful investment professionals with state-of-the-art electronic communications and systems. With client-invested assets in excess of $3 billion, NSC s philosophy is to provide its clients with relevant and suitable financial products with focus on service, integrity, and ingenuity. Since National Securities Corporation s inception in 1947, the primary focus of its registered representatives, management, and employees is to increase its clients net worth and seek to improve their fiscal well-being. NSC is committed to providing its valued clients with an extensive selection of investment options. Uniq ue Customization An investment process built around your unique needs. Relationships Focus on relationships. Understanding the goal. Portfolio Diversification through Asset Allocation. Tax-aware Tax-aware portfolio management. Access A secure online account access. NATIONAL ASSET MANAGEMENT 1

NAM s Investment Process Astute Planning Disciplined Implementation An investment process built around your unique needs. Through NAM AdvisorGuide, its state-of-the-art portfolio management and processing platform, clients can access account information that includes performance, holdings, transactions, billing and capital gain & loss reports. With the support of products and systems offered by National Asset Management, our financial advisors are well prepared to assist you in meeting your financial objectives. NAM s investment approach provides a disciplined process that identifies your unique investment goals, and establishes a personalized investment plan to meet them. We employ a defined process for each critical step in the investment management cycle including goal setting and risk/return profiling, asset allocation modeling, investment manager selection, ongoing monitoring and comprehensive reporting. Prudent I nvesting Identify the client s needs and objectives Continuous portfolio and manager monitoring Investment Process Determine asset allocation policy Recommend premier asset managers and implement portfolio strategy NAM Financial Advisors focus on relationships Before they present ideas, NAM Financial Advisors listen. They work with you to analyze your individual needs, goals, and investment challenges. Once your financial advisor has a full understanding of your financial picture, he or she begins to construct a customized portfolio solution that addresses your unique needs.we pride ourselves on our commitment to integrity, and quality service and performance. 2

Understanding the goal The profile we develop serves as the foundation for an investment strategy designed to suit your specific needs and preferences. NAM begins by analyzing your financial requirements and goals. What are your basic investment objectives? What are your personal preferences with respect to risktaking and yield? How does your overall financial situation present itself? The answers to these fundamental questions provide the foundation for professionally managing your investment goals. Objectives What rate of return do you expect? Are you looking for a regular flow of income generated, for example, by interest earnings on bonds? How are tax issues best taken into account in your investment strategy? Time What proportion of your wealth should be invested for the short term, the medium term, or the long term? The longer your time horizon, the less concerned you may need to be about price fluctuations. A longer time horizon usually increases the likelihood of higher returns over the longer term, but this cannot be guaranteed. After analyzing your requirements we work together with you to define an investment strategy that is tailored to your specific situation. Our investment approach does not begin with numbers and pie charts, but with a careful assessment of each client s individual needs and aspirations Risk Your portfolio may be exposed to more or less fluctuations depending on the strategy you choose. These market movements can occasionally produce a negative return for a given year. It is crucial to discover what short-term or medium-term swings you can tolerate in order to achieve your investment goals. The higher the risk you are able to bear, the higher your targeted return will normally be, but this can not be guaranteed. 3

Building the Roadmap Portfolio Diversification through Asset Allocation The weighting of the various asset categories that make up a portfolio is a key component to the successful implementation of any investment strategy. The next step of our process is to build the appropriate strategy based on your individual needs. This requires an assessment of market conditions and long-term financial market trends. Consultation Your Investment Advisor Representative will work with you to understand your profile and to determine your investment risk tolerance and time horizon and help define your investment objective. Rebalancing Your Investment Advisor Representative will design a portfolio to suit your investment objective, then will adjust and rebalance the portfolio periodically based on market fluctuations to maintain the course. The weighting of the various asset categories that make up a portfolio is one of the most important factors in the successful implementation of any investment strategy. Spreading risk among various asset classes and investment vehicles is a classic way of increasing the security of a portfolio. The rule of thumb is that the overall risk of a portfolio is reduced as the number of different securities held in different classes in a given market is increased. NAM also keenly manages to avoid over-diversification, as spreading too thin dilutes the value of diversification. Furthermore, diversification should not focus solely on holdings that seem to indicate above-average potential gains (chasing performance); the stability of returns and the balanced nature of the portfolio are equally vital**. Market Timing (1.8%) Other (2.1%) Stock Selection (4.6%) Asset Allocation (91.5%) Source: Brinson, Singer and Beebower (1991) * A landmark study published by Brinson, Singer and Beebower in 1991 (and expan ded in 1993) determined that portfolio asset allocation is the most important long-term determinant of investment results. Past performance, stock selection and timing investments in and out of the market were far less influential in achieving long-term results. ** Diversification does not insure profit or guarantee against loss. 4

Executing the strategy Using the asset allocation strategy as a roadmap, the third step in NAM s process is the careful selection and combination of the appropriate investment product(s) to implement your portfolio. NAM AdvisorGuide offers many investment solutions and innovative products available to you through your financial advisor. Your investment advisor representative will provide you with the most suitable investment strategy to achieve your financial objectives. Monitoring your portfolio Your portfolio will be monitored to allow it to remain on track to help achieve the investment goals and objectives that you reviewed with your financial advisor. Market conditions, contributions to your account and other factors can cause the allocation of your assets to move outside the parameters set for your portfolio. When this happens, we rebalance your portfolio to bring allocations back into the desired range. Tax-aware portfolios Separately managed accounts provide direct ownership of the securities in your portfolio. This structure provides substantial control, allowing you and your advisor to actively manage for taxes, and customize an investment solution that reflects your individual goals and objectives. Your financial advisor is not a tax expert, and neither NAM nor your financial advisor provides tax advice. You are advised to consult your tax specialist, attorney, and/or CPA regarding tax matters and the impact of your investment results on your particular tax situation. Access to institutional managers Unified Managed Accounts (UMA) Separately Managed Accounts (SMA) Ask about our ETF Portfolios Mutual Fund Portfolios Specialty Managers 5

Access to your Portfolio You can access information on your portfolio, 24 hours a day, 7 days a week through our comprehensive web services. www.namadvisorguide.com We at NAM care about and value our relationship NAM AdvisorGuide works with you through every step of the process, and every step we take is determined by the investment strategy approved by you. It will act as the guide-post when we implement your carefully crafted investment plan. You will be regularly informed of the progress of your portfolio. Our quarterly statements give you a consolidated view of your holdings, allowing you the ability to track your progress toward your investment goals. For more information, please contact us at (212) 417-8061. We look forward to working with you. 6

Note: Experience life with confidence through calculated and smart investment planning 7

Offices Nationwide www.namadvisorguide.com East Coast New York Headquarters: 120 Broadway, 27th Floor New York, NY 10271 T (212) 417-8061 West Coast Seattle Office: 1001 4th Avenue, Suite 2200 Seattle, WA 98154 T (206) 343-8092

NATIONAL ASSET MANAGEMENT National Asset Management Inc. (NAM), a Registered Investment Advisor and affiliate of National Securities Corporation Member FINRA/SIPC