10-Year Treasury Constant Maturity Rate (DGS10)

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10-Year Treasury Constant Maturity Rate (DGS10)


S&P 500 Stock Price Index (SP500)


CBOE Volatility Index: VIX (VIXCLS)


The Cost of Market Timing

Risk of missing the best days in the market 1993-2012


 Not tied to any proprietary products

 Planning, Investment Portfolio Review & Insurance review

 Partnered with

 Powered by

Pilots Affinity Wealth Management Program


Portfolio Review and Construction

Ibbotson As

 Founded in 1977; acquired by Morningstar, Inc. in 2006

 Leading source of Independent academic research

 Leader in Asset Allocation

 Leader in independent mutual fund, ETF, and stock research

 Stressing risk-adjusted returns

 Using Flexible managers: Does not have their own funds

What is Morningstar Investment Management?


Trusted Provider

• $147.9 billion assets under advisement for investment consulting

• $38.5 billion assets under management for managed accounts

• $6.6 billion assets under management in managed portfolios

Client‐Focused Solutions

• Access to Morningstar’s global resources in 26 countries

• 92 investment professionals

• Selected by 55 of the Fortune 500 to provide investment services

World‐Class Reputation

Frequently quoted in The Wall Street Journal, Forbes, Fortune,  BusinessWeek, etc.

• More than 80 research papers written or co‐authored

• 9 Graham and Dodd Awards awarded by CFA Institute

$193 Billion

Total Assets

34+ Years

Serving Clients

2 Patents

Human Capital and Asset Allocation

Morningstar Investment Management Today


Reaching Your Goals with

Allied First Wealth Management Group

and Morningstar Investment Services


Since 2001, we have created high-conviction investment portfolios…

Morningstar Investment Services was formed in response to feedback from advisors seeking an objective, independent investment approach.

…to deliver investment choices to the clients that they serve.

Our team of investment professionals create, build and monitor a diverse lineup of manage portfolios.

Morningstar Investment Services


 Morningstar, Inc., is a widely recognized source of investment analysis and research

 Focused on providing investors with the services and tools to make better investment decisions

 Breadth and depth of industry expertise

 Regularly turned to by leading financial institutions and media for analyst insights

 Driven by key principles: insightful information, clear communications, and integrity

Putting the Power of Morningstar, Inc. Behind You


 Profile

 Identify your financial needs and goals

 Determine the strategy that best fits your needs

 Proposal

 Select the most appropriate portfolio

 A Plan that grows with you

 We’ll monitor and adjust your portfolio along the way

 We’ll keep you up-to-date on your progress

A Solid Financial Plan Designed Around You


 We Invest for the long term

 We are independent thinkers

 We employ a disciplined, consistent investment process

 We actively manage portfolios

 We are sensitive to costs and taxes

 We invest clients’ money as if it were our own

 We communicate in a timely and candid fashion

Our Philosophy


 Leverage proprietary data, analytics, grading system

 Look beyond stars, style-box

 Draw on decades of experience research managers

 Before investing in a fund, we meet face-to- face with each manager

 The world is our oyster

 We don’t play favorites

Research: Rigorous, Independent


Disciplined Asset Allocation

Rigorous Fund Evaluation and Selection

Cohesive Portfolio Construction

Continuous Risk Management

Strategic Allocation

× Long-term risk/return profile

× Diversify across asset classes

Tactical Overlay

× Over/underweight relative to

strategic allocation

Quantitative Analysis

× Performance analysis

× Risk metrics

Qualitative Due Diligence


Interview managers


Peruse SEC filings


Hold on-site visits


Evaluate fund company stewardship

Portfolio Level

× Holdings-based analysis

× Manage to target risk

× Monitor fund overlap

Fund Level

× Tailor fund to strategy

× Contribution to portfolio risk and expenses


× Managers

× Portfolio positioning

× Risk factors


× Rebalance accounts

× Top-down adjustments

× Fund specific changes

Risk-Management: Built Into Our Process


Universe of 23,000 Funds

Your Portfolio

Qualitative Due Diligence Quantitative Analysis

Portfolio Construction

The fund selection process is based on extensive fundamental research and rigorous analysis driven by the objectives of each portfolio.

Multi-class shares collapsed into single fund

Total assets that exceed peer group minimums

3-year track record in most cases

Evaluate using proprietary rating system

Holdings- and returns-based analysis

Review style and risk consistency measures

Rank vs. peer group

Interview managers and management teams

Analyze fund philosophy, process, performance nuances, and resources

Investment Selection


Portfolio Comparison


Portfolio Comparison


The graph depicts a simulated value derived from the historical  performance of the selected strategy. Use it to gain insight into  how a portfolio with a similar allocation would have behaved  through various market conditions. This is for illustrative  purpose only; past performance is not a guarantee of future  results.

Retirement Income Long Range Simulated Value


Retirement Income Portfolios

 Designed to help pilot’s make the transition from accumulation to distribution phase

 Generate cash flow streams to last through a specific retirement duration

 Set up payouts to range from 4-7%, over time horizons of 1-20+ years

 Stable endowment-like approach, diversified across various asset classes


IMPORTANT DISCLOSURES NO BANK GUARANTEE | NOT FDIC INSURED | MAY LOSE VALUE  All Securities and Advisory Services offered through Investment Professionals, Inc. (IPI), a  Registered Broker/Dealer & Registered Investment Advisor and member FINRA & SIPC. The  investment services offered by IPI under the name Allied First Wealth Management Group  are in no way affiliated with or offered by Allied First Bank, nor is Allied First Bank a 

registered broker/dealer. Customers working with Allied First Wealth Management Group  will be dealing solely through IPI with respect to their investment, brokerage and securities  transactions. IPI does not offer or provide legal or tax advice. Please consult your attorney  and/or tax advisor for such services. The products offered by Investment Professionals, Inc. 

are not insured by the FDIC, the NCUA or any other agency of the government, are not  deposits or other obligations for the bank or guaranteed by the bank and involve 

investment risks, including possible loss of principal amount invested.  







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