Asset Management

Flagstar Advisors Financial Advisors offer a complete mutual fund advisory solution that provides mutual fund guidance and monitoring. Each investment advisory program begins with a client profiling exercise and a portfolio diagnosis. Post implementation, you receive consolidated reporting and modeling from your advisor.

The mutual fund advisory program tracks your entire portfolio at Flagstar Advisors and monitors diversification to help you weather changing market conditions. Investments reflect individual time-horizons, risk tolerance and overall portfolio scale.

If you wish to combine the benefits of mutual fund advisory services with the advantages of institutional money management, your Flagstar Advisors Financial Advisor will introduce you to the multi-manager account. This account allows you to combine asset classes and investment styles in a single brokerage account. The result is an actively managed portfolio of securities directed by two or more institutional asset managers, encapsulating both a mutual fund advisory approach and a number of separate account managers.

Separate Account Management offers you a more advanced level of professional money management and performance reporting than the above Mutual Fund Advisory service. By employing a separately managed account structure, Flagstar Advisors investors can benefit from professional money management provided by a quality mix of equity and bond managers.

An additional advantage of separately managed accounts is that they have an individual cost-basis for each investment, which allows for tax gain/loss harvesting. Such a technique can minimize your capital gains tax liability through the selective realization of gains and losses in your portfolio. Separate accounts also lack embedded capital gains tax expenses because taxes are specific to each account rather than a group of investors who may have entered or departed an investment at different times.

For those of you who are qualified high-net-worth clients and institutional investors, Flagstar Advisors Financial Advisors offer alternative investments including:

• Long/short equity hedge funds
• Absolute return strategies
• Managed futures
• Private real estate partnerships
• Private Equity

Alternative investments are speculative, subject to a number of risks (including the risks associated with limited liquidity, investments in non-U.S. securities, the use of leverage, options, derivative instruments, distressed securities, futures, illiquid investments and short sales” are not appropriate for all investors. In addition, alternative investment funds with an emphasis on a specific industry sector, non-U.S. investments and/or public and private companies present certain risks that may not exist in a more diversified portfolio. Multi-manager funds are dependent not only on the investment performance of individual managers but also on the ability of the general partner to effectively allocate the Fund’s assets; managers are subject to change and may not be equally weighted; prospective investors should recognize that they will bear asset-based fees, expenses and a performance-based allocation at the Fund level, and indirectly, fees, expenses and performance-based allocation at the Fund level, as well as indirectly, fees, expenses and performance-based compensation of the investment funds in which the Fund invests. Eligibility requirements begin, generally, at a net worth greater than $1 million.