Manager Selection and Monitoring

Our manager selection process is built on in-depth comprehensive analysis. Within the framework of our overall asset allocation guidance, LPL Financial Research recommends quality money managers to meet the objectives of all investors, from the most aggressive to the most conservative.

We conduct in-depth, comprehensive analysis in order to identify the most attractive products. The investment selection process comprises three primary steps:

• Initial screening
• Quantitative analysis
• Qualitative analysis

Within each asset class and category, our model portfolios seek to combine managers with complementary investment styles in order to provide additional diversification and reliability.

Measuring Our Results
LPL Financial Research publishes and tracks several model mutual fund portfolios, ranging in investment objective from “Income with Capital Preservation” to “Aggressive Growth” to determine the effectiveness of its asset allocation and manager selection over time.

• Each model portfolio employs a static “strategic” asset allocation that determines the split between stock, bond and cash investments, and uses mutual funds on LPL Financial recommended list to fill these categories
  
• In addition, we provide ongoing guidance as to the “tactical” allocation within each asset class
  
• Performance of each model portfolio is tracked against a custom unmanaged benchmark, a composite of the Russell 3000 and Lehman Aggregate Bond indices that reflects that model’s static allocation between equity and fixed income vehicles

Securities Research
If you prefer to build client portfolios security-by-security, LPL Financial Research can provide you with objective proprietary and third-party inputs for security and sector selection as well as insights on style, quality, duration and other security attributes.

Alternatives and Strategic Solutions
Our analysis of alternative strategies reflects our commitment to providing an objective, empirical research foundation in support of your advisory practice. LPL Financial Research performs due diligence and develops approved lists of alternative investments and services, including:

• Hedge fund strategies
• Private equity
• Managed futures vehicles
• Structured products
• Equipment leasing partnerships
• Real estate investment trusts (REITs)
• 1031 real estate exchanges
• Oil and gas partnerships

For business founders, executives and others with significant holdings in individual stocks, customized risk and liquidity management solutions are available through Moores & Cabot, a leading practitioner in the field.

Communicating With Clients
Access to the breadth of LPL Financial Research is reflected in the wide range of client-approved publications we produce, from broad market commentaries to individual mutual fund and separate account manager profiles. We know that, while it’s great for you to have access to economic and investment analysis, it’s even more important that you can share information easily with clients.

Our publications can serve as tangible evidence to your clients of the expertise you draw upon, as well as a valuable tool in maintaining client contact throughout the year.

Corporate Offices
Boston : 1 Beacon Street, 22nd Floor, Boston, MA 02108-3106  
Charlotte : 2810 Coliseum Centre Drive, 4th Floor, Charlotte, NC 28217-1468  
San Diego : 9785 Towne Centre Drive, San Diego, CA 92121-1968  

 

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