Navigate Investment Planning With Ease.Managing an association's financial assets Financial assets Claims on real assets. in today's topsy-turvy market is about as easy as dog-paddling in a riptide. That's why Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason Wood Walker, Inc. ("Legg Mason"), in consultation with the American Society of Association Executives The American Society of Association Executives (ASAE) is a non-profit professional organization for executive directors and executive vice presidents of professional societies both in the United States and abroad. (ASAE ASAE American Society of Association Executives ASAE American Society of Agricultural Engineers (Society for Engineering in Agricultural, Food, and Biological Systems) ASAE Alkali-Sulfite-Anthraquinone-Ethanol ), has created the Association Investment Program (AIP AIP acute intermittent porphyria. AIP Acute intermittent porphyria ), a unique service designed to help manage association reserves, foundations, endowments, and scholarship funds. Since opening its doors in 1899, Legg Mason has grown into one of the strongest regional securities firms in the country, offering financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. such as securities brokerage, asset management, and investment banking through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . "Legg Mason Wood" Walker, Inc., has made a strong commitment to ASAE to support associations in managing the investment process," says Jim Brinkley, president. A Three-Step Approach Legg Mason addresses the unique investment needs of nonprofit organizations through a disciplined, three-step approach to investing and by focusing on long-term relationships, advocating a consultative, rather than a transaction-oriented approach. "AIP consultants are trained to assist executives in managing the investment process for their associations," says Michael Graham Michael Graham is an American author, columnist, and conservative talk radio personality on Boston's WTKK-FM (96.9). He authors a twice-weekly column for the Boston Herald. Career Graham was born in Los Angeles, California and raised in South Carolina. , first vice president of Legg Mason's ASAE AIP. "We understand the unique needs and the decision-making process of nonprofit organizations." Step One: Writing the Policy Developing an investment policy is the first step in the Association Investment Program--and it's provided free of charge. The foundation of an effective investment program, Graham explains, is a customized, written investment policy. "This promotes continuity of a sound investment strategy and demonstrates that you, as a fiduciary, have made an effort to choose suitable investment vehicles. A well-documented, written investment policy can also assist you in meeting your fiduciary obligations." Your association simply completes a questionnaire; the results are then used as the basis for Legg Mason's draft investment policy Afterwards, Legg Mason will: * work with you to decide the asset classes appropriate for your portfolio, * provide an asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. study unique to your organization's needs, and * help you determine the appropriate risk/return level for your association. Step Two: Implementing the Policy Once a written policy is in place, your Legg Mason AIP consultant prepares a proposal detailing the approach he or she recommends to cost effectively implement your association's investment policy Depending on your association's objectives and investment time horizon, the consultant may recommend one or more of the following: Individual managed portfolios. Using the services of Legg Mason's Investment Consulting Group, your AIP consultant will conduct a search for independent registered investment advisors, by asset class, to manage your portfolio. Mutual funds. Selecting from more than 7,800 no-load or load-waived mutual funds, Legg Mason identifies appropriate funds to implement your written investment policy Legg Mason has a customized, fee-based portfolio management program investing exclusively in mutual funds, offering time-weighed performance, consolidated monthly statements, and quarterly reports. Through this fee-based program, front-end and back-end In their most general meanings, the terms front end and back end refer to the initial and the end stages of a process flow. These terms acquire more special meanings in particular areas. loads of recommended funds are waived. Step Three: Evaluating Performance As part of the ongoing consulting process, the program provides performance evaluations of your association's individual manager(s) or mutual funds. This helps you stay abreast of issues such as: * the actual performance of your portfolio versus relative benchmarks and your financial objectives. * the risk level of your portfolio. * whether investment guidelines are being followed. These guidelines, which provide the framework within which investments are made, may pertain to pertain to verb relate to, concern, refer to, regard, be part of, belong to, apply to, bear on, befit, be relevant to, be appropriate to, appertain to proxy voting, liquidity needs, trading and executive guidelines, or socially responsible investing Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, . * whether your portfolio is consistent with the current objectives of your organization. "You will be led through the process by a consultant experienced in working with associations," says Graham. "The process is dynamic and ongoing. Once an investment program is initiated, our job is not done. We will continue to evaluate your investments and provide consultation services to ensure your investments are consistent with your current mission and financial status." |
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