Investment Advisory Services:

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Investment Advisory Services Broker/Dealer
Karl Schwab, CFA FTN Financial
CMTA Conference April 22, 2004
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Discussion Topics

• Investment goals
• Factors influencing investment decisions
• Choosing the relationship
• Portfolio management tools
• What to expect from your advisor

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Investment Goals

• Preservation of principal
• Protect
• Taxpayers
• Debt-holders
• Income Generation
• Fund ongoing services
• Cover debt service
• Meet emergency needs

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Discussion Topics

• Investment goals
• Factors influencing investment decisions
• Choosing the relationship
• Portfolio management tools
• What to expect from your advisor

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Factors influencing investment decisions

• Current level of interest rates
• Cash flow and budget requirements
• Risk tolerances
• Investment policy state and local laws
• External Influences

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Discussion Topics

• Investment goals
• Factors influencing investment decisions
• Choosing the relationship
• Portfolio management tools
• What to expect from your advisor

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Choosing the relationship

• Active / Passive investment management
• Advisor track record
• Approval process and documentation

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Choosing the relationship
Broker / Dealer Direct Investment - Defined

• Pay as you go
• Sector specific research and information
• Strategies, ideas, and trade execution
• Compete for your transactions

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Broker / Dealer Direct Investment
Advice
Advice
Trade
Trade
Advice
Trade
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Choosing the relationship
Broker / Dealer Direct Investment - Advantages

• Market knowledge
• Product / Sector insight
• Closer to the market / can underwrite issues
• Independent of process

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Choosing the relationship
Broker / Dealer Direct Investment - Advantages
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Discussion Topics

• Investment goals
• Factors influencing investment decisions
• Choosing the relationship
• Portfolio management tools
• What to expect from your advisor

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Portfolio Management Tools
Information to make the right decisions

• Essential analytics
• Online portfolio tools

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Portfolio Management Tools
Information to make the right decisions
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Portfolio Management Tools
Information to make the right decisions
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Portfolio Management Tools
Information to make the right decisions
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Portfolio Management Tools
Information to make the right decisions

• Essential analytics
• Online portfolio access
• CMS Bondedge
• Yieldbook
• Bloomberg

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Portfolio Management Tools
Information to make the right decisions

• Essential analytics
• Portfolio accounting

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Portfolio Management Tools
Information to make the right decisions
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Portfolio Management Tools
Strategies and Trade Ideas

• Tailored to the objectives of the municipality
• Based on the current portfolio structure
• Both strategic and tactical trade ideas

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Portfolio Management Tools
Strategies and Trade Ideas
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Portfolio Management Tools
Investment Research Industry Leaders

• Economic Research
• Government Agencies
• Corporate Bonds

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Portfolio Management Tools
Investment Research
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Portfolio Management Tools
Investment Research
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Discussion Topics

• Investment goals
• Factors influencing investment decisions
• Choosing the relationship
• Portfolio management tools
• What to expect from your advisor

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What to expect from your advisor relationship
Broker / Dealer Direct Investment

• Quality coverage based on needs
• Proven Firm with knowledgeable representatives
• Trade execution for quality ideas service
• Customized Agency underwriting
• Market making leadership in Agency debt

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What to expect from your advisor relationship
Broker / Dealer Direct Investment

• Access to customized analytics and reporting
• Distribution of research and information flow
• Access to Economist and Analyst